Business Central Essentials vs Premium: Which Licenses are Right for You?

Microsoft Dynamics 365 Business Central is a robust cloud-based ERP designed to empower small and mid-sized businesses with the tools needed to streamline operations and drive growth. One of the most important decisions when adopting Business Central is choosing between Business Central Essentials vs Premium licenses.

In this article, we’ll dive deep into the features, capabilities, and use cases for both the Essentials and Premium licenses. Hopefully this will help you make the best choice for your organization.

Business Central Essentials Licenses

At $70 USD per user per month, the Essentials license is packed with features to manage financials, inventory, and projects efficiently. It’s a great choice for businesses focused on the fundamentals.

Key Features of Essentials:

• Finance Management – Includes tools for managing general ledgers, dimensions, budgets, multiple currencies, account schedules, intercompany postings, cash flow forecasts, fixed assets, cost accounting, and more.
• Sales and Marketing – Features include contact management, campaign tracking, email logging, interaction and document management, opportunity tracking, and integration with Dynamics 365 Sales.
• Fulfillment and Delivery – Supports sales invoicing, order management, return orders, alternative shipping addresses, campaign pricing, line discounts, and bulk invoicing through Microsoft Bookings.
• Purchasing and Payables – Covers purchase invoicing, order management, return orders, alternative vendor addresses, vendor catalog items, invoice discounts, and more.
• Assembly Management – Enables the creation of assembly BOMs for light manufacturing and kitting processes.
• Inventory Management – Includes basic inventory tracking, item categories and attributes, multiple locations, shipping agents, cross-referencing, substitutions, budgets, analysis reports, and cycle counting.
• Supply Planning and Availability – Provides tools for demand forecasting, supply planning, assembly management, sales and inventory projections, order promising, calendars, drop shipments, and order planning.
• Project Management – Offers basic resource tracking, capacity management, job costing, and time sheet management.
• Warehouse Management – Includes functionality for bin setup, inventory picking and put-away, warehouse receipts and shipments, internal transfers, and a warehouse management system.

Business Central Premium Licenses

For $100 USD per user per month, the Premium license offers everything included in Essentials, plus advanced tools for service management and manufacturing. If your business is more complex, this tier is designed to fit your needs.

Additional Features of Premium:

1. Service Management:

• Track and complete orders efficiently.
• Schedule and dispatch technicians to ensure customer satisfaction.
• Maintain detailed records of contracts and warranties.
• Get real-time reporting on service profitability.

2. Manufacturing:

• Manage detailed BOMs for complex products.
• Balance workloads across your shop floor with capacity planning.
• Monitor production progress in real-time with shop floor visibility.
• Simplify subcontracting and ensure it integrates seamlessly into your operations.

Choosing the Right License for Your Business

Selecting the right Business Central license—Essentials or Premium—is a critical decision that hinges on your business’s current requirements and its strategic goals for growth. Both licenses provide a solid foundation for ERP capabilities, but understanding their differences can help you make the best choice for your operations.

Here’s a quick guide to help:

When to Choose Essentials

The Essentials license is designed for businesses that need a streamlined ERP solution focusing on core processes. It’s ideal if:

• You’re focused on financials, supply chain, and basic project management.
• Advanced tools for manufacturing or service aren’t required.
• Keeping costs low is a priority, and Essentials covers all your basic needs.

When to Choose Premium

The Premium license builds on Essentials by adding advanced capabilities for businesses with more complex requirements. You should consider Premium if:

• Your business involves complex or unique manufacturing needs.
• You have a field service team and need to handle service orders and scheduling.
• You’re looking to grow into more complex operations and want an ERP system that supports scaling.

Key Licensing Considerations

Licensing Rules: You can’t mix Essentials and Premium licenses in the same system—all users must be on the same tier.

Scalability: Premium is a better fit if you plan to expand or introduce more complex processes.

Long-Term Value: While Essentials is more affordable upfront, businesses with future plans for growth might find Premium a smarter long-term investment.

Visit our Business Central Pricing Guide to learn more about the license and implementation costs.

Final Thoughts 

Microsoft Dynamics 365 Business Central for manufacturing is a powerful tool that evolves with your business. By choosing the right license, you can streamline your operations and unlock your full potential—whether that’s with Essentials or Premium.

Need help deciding? The team at Sabre Limited can guide you through the licensing, implementation, and customization process. Reach out today to start your journey with Business Central.

If you enjoyed this article and would like to talk to Sabre Limited’s president Rob Jolliffe to chat about Microsoft Dynamics 365 Business Central Essentials vs Premium Licenses, you can book a one-on-one 30-minute call with him at https://calendly.com/robert-jolliffe/30min