Insights · Knowledge, not a service
Microsoft decoupled the former "Dynamics 365 Finance & Operations" suite into standalone apps in 2020. Anyone searching for "F&O" today is really looking at five separate products. Here's the overview — what they do, how they fit together, and who delivers them.
Until 2020, Microsoft's enterprise ERP suite was called "Dynamics 365 Finance & Operations". It was the successor to Dynamics AX and combined finance, supply chain, retail, human resources and project management under one brand. In 2020 it was dissolved — Microsoft released the individual disciplines as standalone applications, each with its own license, its own roadmap and, in some cases, its own codebase.
The result: if you Google "Dynamics 365 F&O" today, you land on a disambiguation page or get outdated content. To really understand what Microsoft offers in ERP, you need to know the five successor apps.
We do not implement any of these five F&O successors ourselves — the discipline requires a dedicated team with its own methodology. What we deliver is Microsoft Dynamics 365 Business Central (SMB ERP, a separate line) and the Customer Engagement Apps. This page is knowledge content — not a service offering.
The five apps
General ledger, fixed-asset accounting, consolidation, multi-entity reporting, cash & bank management, tax engine. The finance component of the former F&O suite — the largest of the five apps.
See overview Knowledge · not a serviceWarehousing, purchasing, sales, production planning, master planning, quality control. Predecessor: AX Trade & Logistics. Deep industry models for manufacturing, wholesale, distribution.
See overview Knowledge · not a serviceOmnichannel retail, POS, e-commerce platform, store and online inventory, customer loyalty, self-service. Predecessor: Dynamics AX Retail.
See overview Knowledge · not a serviceHR master data, onboarding, benefits, leave management, compensation, performance reviews. Predecessor: F&O HR module / Dynamics 365 Talent.
See overview Knowledge · not a service · NEWOrder orchestration across multi-channel, fulfillment optimization, AI-driven inventory distribution, drop-shipping logic. Newer app, introduced in 2022.
See overviewOur contribution
Three offerings, with clear boundaries:
If you're sure you're looking for Microsoft Dynamics 365 Business Central (SMB ERP, a separate line, not an F&O successor), you're in the right place: Business Central as a service page.
Terminology
Four terms, one product universe. In day-to-day usage — by Microsoft itself, by partners, in tender documents — they are often used interchangeably. Here's the sober distinction.
| Term | Today's meaning |
|---|---|
| Microsoft ERP | Umbrella term for the Microsoft ERP universe — phrased vendor-neutrally, without committing to a brand. |
| Dynamics ERP | Also an umbrella term, with brand emphasis on "Dynamics" — historically grown from the AX/NAV era. |
| Microsoft Dynamics ERP | The full brand designation — formally correct, common in contracts and tenders. |
| Dynamics 365 ERP | Today's official designation — since the cloud transition in 2016, the brand variant Microsoft uses itself. |
All four mean the same thing today: Microsoft's ERP family consisting of Business Central (for mid-market) and the F&O successor apps (for the enterprise tier). Anyone searching for one of these terms is generally looking at one of the two worlds — the distinction only emerges in the advisory conversation.
Licenses · Pricing · Cost
Microsoft ERP licenses come in three different models — and they differ not only in price, but in licensing logic itself. The following overview shows today's list prices for orientation (as of 2026, rounded).
Per-user license, billed monthly per user:
App-by-app license, billed monthly per user (except Intelligent Order Management — tenant license):
Two-tier licensing on a Power Platform basis:
Note on discounts and programs: volume discounts above defined thresholds, NCE Triennial (3-year commitment with up to 5% discount), non-profit and education conditions. An individual cost calculation — including the often-overlooked secondary costs (storage, premium connectors, sandbox environments) — is provided by the License Cost Calculator at licenses.arades.de.
Pricing notice: Microsoft adjusts list prices regularly (currency adjustments, NCE updates, plan restructurings). Figures here are indicative values from May 2026. For current prices including arades CSP conditions, see the License Cost Calculator (licenses.arades.de) ↗ daily.
Partners · Consultants
The Microsoft ERP market is broad — from global enterprise service firms to single-person advisories. Four criteria that hold regardless of company size:
arades delivers Business Central itself and, with Modular ERP, has its own answer on a Dataverse basis. We refer F&O apps to specialised partners from our network. This separation is deliberate — we deliver what we master deeply, and refer what others do better.
Training
An ERP project without a training concept fails quietly — the software runs, but users work around it. Three training obligations that should not be missing from any Microsoft ERP project:
On the consultant side, Microsoft certifications come into play — relevant for selecting implementation partners and for internal staff development:
arades offers training along these three obligations — details at Training.
FAQ
Today, two worlds: Microsoft Dynamics 365 Business Central for the mid-market (successor to Dynamics NAV/Navision) and the F&O successor apps — Finance, Supply Chain Management, Commerce, Human Resources, Intelligent Order Management — for the enterprise tier (successor to Dynamics AX). Both worlds are standalone products with their own licence, their own roadmap and, in some cases, their own codebase.
Pure licence costs start at Business Central at ~€70/user/month (Essentials) and reach up to ~€180/user/month for the F&O apps (per app). However, total project costs typically run 3–5x the pure licence cost — implementation, data migration, training, customizing and ongoing operations. A reliable cost estimate only emerges from a requirements analysis.
Nothing. Both are umbrella terms for the same product family. "Microsoft ERP" is phrased vendor-neutrally; "Dynamics ERP" emphasises the brand. The official designation today is "Microsoft Dynamics 365 ERP" — the short form "D365 ERP" is also common.
As a rule of thumb: companies up to ~250 employees are well placed in the Business Central world — and thus with a partner specialised in it. From ~500 employees, or with specific requirements (multi-entity, international consolidation, manufacturing with high complexity), the path typically leads into the F&O world — and to a partner specialised in it. Between 250 and 500 employees, industry and complexity decide, not size.
Yes — in every ERP project. Recommendation: end-user training (role- and module-specific), power-user training (for internal ERP owners) and admin training (security, customizing, integration). A project without a training concept doesn't fail loudly — it fails quietly, as users work around the software.
30-min initial conversation
Tell us about your situation. We'll give you an honest read — whether it's Business Central, an F&O successor, open source, or something else entirely.