Licensing and Pricing for Dynamics 365 Business Central

Get the answers you need when it comes to licensing and pricing for Dynamics 365 Business Central. We'll cover the different licence types, what's included in each, the costs involved and how to get the most from your money.

Book a licensing consultation
Licensing & Pricing
Confused by the options? Book a free licensing consultation!
Business Central

New to Business Central?

If you're implementing Dynamics 365 Business Central (i.e. moving from another Enterprise Resource Planning solution and not upgrading from Dynamics NAV), there are two options for licensing, both of which are based on a named user basis:

Subscription

You pay a per user, per month fee. This also includes the annual maintenance fee levied by Microsoft, giving you access to future versions. The subscription option provides flexibility in terms of increasing and reducing numbers of users, which is particularly helpful if you have any seasonal impact on the number of people using the system.

Perpetual

You have bought the Dynamics 365 Business Central licence, it’s yours forever and, as long as you pay the annual maintenance fee (known as BREP in the Microsoft world), you are also entitled to access the latest versions. With a perpetual licence you have a set number of users, which of course you can add to, but if you ever choose to remove users then you would have to re-buy them in the future.

If you stop paying the annual maintenance fee you are also prevented from amending your Dynamics 365 Business Central licence, i.e. adding more designers, more users or objects.

Licence types and their cost

Whether you're upgrading from Dynamics NAV or newly implementing Business Central, licences can be purchased on two levels – Essentials or Premium (Premium simply gives an additional layer of functionality for manufacturing and service order management). You cannot mix and match these two types on the same tenant.

Licence Type Team Member User Premium User Essentials User
Permissions These users need to view data in the system and may complete light tasks such as time or expense entry and HR record updates, but will not need to do any posting in the system. Premium licences give an additional layer of functionality for manufacturing and service order management - this is on top of everything within the Essentials User licence. This includes finance management, sales and marketing, fulfilment and delivery, purchase and payables, stock, supply planning and availability, project management and warehouse management.
Cost From £6.60 per user/month From £82.20 per user/month From £57.50 per user/month
 

Example pricing

Monthly pricing for Business Central Online licences is 20% more expensive than annual pricing. However, annual licences have less flexibility as the user numbers cannot be decreased during the annual term, whereas monthly licences can. So, you will need to choose between monthly flexibility at a higher cost, or lower costs with less flexibility. You can also look at combining the two options: you could have some users on the annual plan to reduce the overall cost, alongside a handful of monthly users for flexibility.
 
Here are a couple of worked examples over 4 years:

  On-Prem or TNP Managed Service On-Prem, TNP Managed Service or SaaS
  Perpetual initial Perpetual over 4 years Subscription (CSP) annual Subscription (CSP) over 4 years
10 Full Users £13,410 £13,410 £6,900 £27,600
10 Team Member Users £2,680 £2,680 £792 £3,168
BREP (17%) £2,735.30 £10,941.20 N/A N/A
Total £18,825.30 £27,031.20 £7,692 £30,768
 

Book your free licensing consultation

We offer a free of charge licensing consultation with an expert, where you can get your licensing questions answered. Understand which licence types you need, how much this might cost, where savings can be made and how to get to where you want to be.

Ask our licensing team anything - we're happy to help!