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Microsoft Dynamics Business Central Licensing Explained
Posted on: July 15, 2024 | By: Page Wildridge | Microsoft Dynamics Business Central
Microsoft recently announced a number of changes to their licensing for Microsoft Dynamics. Luckily, Business Central was not affected by the changes, but we thought it would be a good time to review licensing for Business Central, so here we go!
Essentials Versus Premium Plan
Business Central offers two types of full users, Essentials and Premium. Essentials has all Business Central functionality except manufacturing and service management. All full users must either be Essentials or Premium. Premium has all Business Central functionality, while Essentials have a more limited plan. The key here is that all full users must be either Essentials or Premium, you cannot have some Essentials users and some Premium users. The Essentials license is $840 per user per year and Premium users are $1,200 per user per year. There is also monthly options as well, but more below on how pricing and changing/cancelling users works.
Team Members
Team Member is a more restrictive license type but still quite useful. These users have full view access and light approval access. Think of approving a time sheet or a purchase order requisition. Team Member users can be quite useful for executives or other department heads who only need to see reports and information. Team Member users are only $96 per user per year.
Device License
A final Business Central user type that many people do not know about is the Device License. All the user types discussed above are on a named user basis, but Device Licenses allow multiple people to use the same device with only one license. A good example might be a shipping station in a warehouse. You may have three shipping clerks who use a shipping station and with a Device License you can purchase one license and all three users can access Business Central from that one device. If you run multiple shifts in a warehouse or call center a Device License may be a good option as well. A Device License is $480 per device per year.
Pricing
So now let us talk about pricing. All the pricing listed above assumes an annual commitment. If you purchase an annual license, you can only cancel that license at the annual renewal date. You can add throughout the annual term and the cost is prorated to the renewal date. You can always reassign a license. For example, if person X leaves the company and person Y takes their position you can reassign the license from person X to person Y.
If you want to license monthly the price is 20% more. For example, a Business Central Essential License is $840 a year so the monthly price is $84 per user per month. With a monthly license you can reassign as well but you can also cancel each month during a 7-day renewal window. So, assuming you are licensed on the 9th day of a month you can cancel that license from the 9th to the 16th. Once the 17th hits you must pay for that license for another month.
Next Steps
This is a quick summary of licensing in Microsoft Dynamics 365 Business Central. If you have any questions or want to license Business Central, please contact us at Logan Consulting.
