Licensing Agreements in Business Central

Posted on: May 10, 2023 | By: Page Wildridge | Microsoft Dynamics Business Central

Microsoft’s Business Central is a powerful management solution to help businesses streamline their operations and increase efficiency. Business Central has a range of functionalities including financial, supply chain, sales, and service management. These functions are available in different capacities depending on the chosen licensing agreement. In this blog, we will go over which licensing plan best suits your business needs.

Essential Versus Premium User

Companies must choose between either Essential or Premium users for their licensing agreement.

The Essentials plan starts at $70 per user per month. This package provides users with a full ERP worth of features, including finance, invoicing, budgets, and more. Essentials licensing provides a solid foundation of functionality for businesses to manage their financial, supply chain, project, and HR management needs.

The Premium licensing plan starts at $100 per user per month and adds manufacturing and service management functionality. So if you need manufacturing and/or service orders you will need to move all users to the Premium license. The same features as the Essentials licensing package are included, as well as the manufacturing functionality such as Bills of Material, Routings, Production Orders and MRP.  Other benefits include features to support service order management, particularly in service contract management, planning and dispatching, and service pricing.

Team Members

At just $8 per user/month, companies are able to provide users with Team Member licenses in order to use Business Central across the entire organization, while not overwhelming users with features they do not need. The major benefit of a Team Member user is their ability to review and approve all reports, such as purchase order approvals. The Team Member plan has limited features for users who do not need full functionality, but rather a few of the Business Central features. Other good candidates for the Team Member option include users with responsibilities of light or limited tasks like time or expense entries.

Device Based License

Device Based licenses allow for the use of Business Central on specific devices, rather than being user specific. Any number of unlicensed users can access the product through the licensed device. Device licenses may use shared logins (such as “Warehouse Computer” and a shared password) or individual logins (each user’s personal credentials), depending on the application and license.

For a full breakdown of the pricing of all aforementioned licensing options, check out Microsoft’s page.

Next Steps

Logan Consulting, a proud partner of Microsoft, specializes in helping our clients identify and implement  the right licensing for their business needs. Reach out to us today to discover how we can help you grow your company through the use of Business Central.