Microsoft Dynamics 365 Business Central vs SAP S/4HANA comparison

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Executive Summary

We performed a comparison between Microsoft Dynamics 365 Business Central and SAP S/4HANA based on real PeerSpot user reviews.

Find out in this report how the two ERP solutions compare in terms of features, pricing, service and support, easy of deployment, and ROI.
To learn more, read our detailed Microsoft Dynamics 365 Business Central vs. SAP S/4HANA Report (Updated: March 2024).
765,386 professionals have used our research since 2012.
Featured Review
Quotes From Members
We asked business professionals to review the solutions they use.
Here are some excerpts of what they said:
Pros
"Microsoft Dynamics NAV is brilliant and it's a different segment when comparing it with Dynamics AX. Dynamics AX is a larger product with much more features and it's aimed at a different segment of the market.""We are getting more features after switching to Microsoft 365.""One developer is enough to maintain the solution. Microsoft 365 is changing technology. The product is a user-friendly ERP solution.""The solution is easy to use, flexible, and customizable.""I am impressed with the tool's user authentication, compatibility , and policies.""It is a stable solution.""The most valuable feature of Microsoft Dynamics 365 Business Central is using the Excel sheets on Chrome and other applications.""Microsoft Dynamic 365 has everything we need, like Teams, Outlook, Excel, etc. I do a lot of data visualization, so I work a lot with Power BI. I bring in tables from Oracle and use Power Bi to manipulate and visualize the data. I handle all the stats and track everything that goes in and out of the company. We use all the modules, but I work primarily with Power BI, Word, Excel, PowerPoint, and Teams. They are all equally important and work together."

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"It is more or less a very, very smooth and seamless product. Day by day they are increasing their technology features and they are keen to resolve the issues. India has a complex business scenario and SAP is thinking about that and resolving the issues day by day.""We're able to get all our processes flowing together. We're able to make all of our business processes talk to each other.""A user-friendly UI with good documentation.""The most valuable feature is the inbuilt standards included in SAP that customers can adopt easily. Also offers to customize it based on the specific requirements.""S4HANA is very scalable - we use it across seven or eight factories, and everything is running fine.""The most useful features of SAP S4HANA are the consolidation reports. The BI is very strong and the manufacturing and finance sections we like a lot.""The key modules that I find most valuable are material management (MM), financial accounting and controlling (FICO), and human resources (HR).""The scalability is excellent, especially on cloud deployment models."

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Cons
"In the next release, I would like to see a quality check module - Navision doesn't have one, and the industry very much requires it.""I wouldn't say that Microsoft Dynamics is very scalable.""The solution is stable, but it could improve.""There is room for improvement in the ability to reverse or correct transactions more easily.""The initial setup of the solution was quite complex and the troubleshooting involved with that needs to be improved.""The price of Microsoft Dynamics 365 Business Central could be reduced.""The solution is not best suited for larger-scale businesses.""Its task scheduling and manufacturing models need improvement."

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"In an upcoming release, it would be beneficial to have more practical intelligence in the system, such as protective maintenance, or artificial intelligence.""There should be an easier way to migrate customers from all versions to SAP S/4HANA.""If S4HANA has more AI and machine learning, it will be better and easier for reporting and dashboarding.""It is simple to implement SAP S4HANA. If you are already in this type of environment, then the transition is not very complex. However, if you do not then it can be difficult.""The solution could be more user-friendly for regular users and developers.""Planned Order List needs a change of screen.""The solution is complex technically because both an old and a new path exist.""The initial setup could be better. They can make the process a little easier. The functions that we require will be available in the next release. We specifically need a new model, and I think we have some versions to implement. I already read on the SAP website that some functionalities we are waiting for are available in this new version."

More SAP S/4HANA Cons →

Pricing and Cost Advice
  • "The first time we tried to buy the newest version, it was expensive."
  • "I have some subscription-based customer and a few customers who have perpetual licenses that hosted the application on the cloud."
  • "The price of the solution is reasonable."
  • "The price of the solution is reasonable."
  • "I think the pricing is the best; it's cost effective for sure."
  • "Microsoft Dynamics NAV has a pay-as-you-use payment model."
  • "NAV might be a little pricey for a small or medium-sized company, but all the solutions out there are."
  • "The cost is one of the benefits. If you don't want to go for the full-blown finance and operations, the pricing model is a lot cheaper and has now switched to being based on a per-user subscription. So, if it's on cloud, you now have an expense instead of a large CapEx. If it's on-prem, you obviously still have to continue with the licensing model that they have, but if you compare the features and functionality, in terms of the price that you pay, I find it's better than other products. My answer on the pricing would be slightly different, depending on the country you're in and the return on investment, based on the size of the company. It's well-priced internationally. I think the new model is priced even better because it's now subscription-based and, if you go for cloud, the return on investment is a lot quicker and if it's expense, you can cap it. If you do take the on-prem version, the licensing is still priced as what it used to be, so that would depend on what country you are in."
  • More Microsoft Dynamics 365 Business Central Pricing and Cost Advice →

  • "It is an expensive solution."
  • "The price of this product is an issue for some customers."
  • "I have found the price of the solution is on the medium to the expensive side of the scale. There is a license for this solution and there are additional maintenance fees."
  • "The solution is expensive."
  • "We're not sure yet. I think it was six figures a year, over 100,000. It has straight-up licensing fees."
  • "Licensing works on a subscription model for the cloud version and it's a one-time fee for the on-premises version."
  • "The price of the solution is reasonable but some modules can be expensive. When comparing SAP S4HANA to other solutions, such as Oracle, it is not expensive."
  • "The price of the solution is expensive."
  • More SAP S/4HANA Pricing and Cost Advice →

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    Answers from the Community
    Amit Mathur
    Avigayil Henderson - PeerSpot reviewerAvigayil Henderson
    User

    Hello Amit, I am posting this answer on behalf of Gene Hammons, a Director at a small tech services company. He says: "Hey Amit - I believe there are huge price differentials between SAP S/4 HANA and MS D365 Business Central (the new web version of the old Navision code base). In most of our clients evaluating SAP we're comparing that to the D365 Finance & Operations (the new web version of the old Axapta code base). Pricing-wise, we'd see $3m for SAP, $1.5m for D365 F&O, and $400k for D365 BC. There is Business One from SAP that would fit in the middle of those Dynamics price points - and it's all relative, a smaller company would cost less, a larger company more - but you see where the competition would play. We do get a lot of calls from companies who have licensed D365 Business Central as part of their Microsoft IT stack and try to implement it themselves. After a couple of years, they start calling around and find out you need a real consulting team to get anywhere - and that's not free. Anyway - the key is who you partner with, make sure they have plenty of experience in your size company, in your industry - and let your business requirements drive the evaluation. The pros and cons of each system are only relevant depending on the requirements of your particular business model - any of these have the ability to be a total nightmare or productivity dream depending on where you try and fit them."







    Tim - PeerSpot reviewerTim
    Real User

    Hi Amit, I have experience with both SAP S/4HANA and Dynamics. SAP is a Tier 1 system, meaning it is meant for very large multinational companies. If you are looking for a midmarket solution, Dynamics Business Central is a better alternative, if you are in a country that is supported either by Microsoft or by an ISV partner. An ISV is an extension on top of Business Central that offers productized functionality (it is as if MSFT has extended it). For your company, it is possible an ISV with business domain-specific logic is possible. With the right partner and extensions (standard products), you can reduce your ERP implementation effort by 80%. Although SAP is a very good high-end ERP solution, it has a price and implementation cost. For the midmarket, MSFT is trying to reduce this radically with a combined offering of an ERP system with a low-code extension platform (Power Platform). From my experience, never go for on-premise, always go for cloud. Also use your own cloud environment, not a partner one. It is your ERP system, never get a partner to take you hostage. I have experience in the domain your business is operating in. I know many run on a Business Central platform. 

    Muhammad Tuaha Mustafeez - PeerSpot reviewerMuhammad Tuaha Mustafeez
    Consultant

    Hello Amit,

    I believe I can safely recommend SAP S/4HANA as a better ERP solution for your organization. Being directly involved in multiple SAP implementation projects, I have seen organizations transform and grow with S/4HANA. The only concern is the cost as I see it because SAP S/4HANA is costly as compared with other products. 

    Another thing that you need to consider is the change in management in your organization. SAP encourages organizations to adopt best practices and in doing so, users are not always facilitated. So how flexible your organization is when it comes to adapting the change is a million-dollar question.

     Let me know if you need further details and we can specifically discuss accordingly.

    Regards,
    Muhammad Tuaha Mustafeez
    SAP Solution Architect & Project Manager

    Questions from the Community
    Top Answer:The most valuable features of Business Central for me are its seamless integration with Power BI and the ability to create customized reports.
    Top Answer:I would rate the pricing of Business Central as a six or seven out of ten in terms of costliness. We have yearly licensing costs, and the biggest additional expense is for external consultants.
    Top Answer:There is room for improvement in the ability to reverse or correct transactions more easily. Currently, if we make mistakes or need to undo something, it can be challenging and time-consuming… more »
    Top Answer:SaP Business One is a complete solution for business management. The software applications are broad, ranging from accounting to project management and human resources. It is very versatile and… more »
    Top Answer:During parallel preparation of go-live processes, SAP B1 and S4H transactional data alignment can be difficult to track. The approach is to have the same sales order amount and quantity to compare the… more »
    Top Answer:We use the solution to import master data. We use classic resolution to collect local US company material masters and align HQ material masters' numbers. We import FI/CO/MM/PP/SD IMG and opening… more »
    Ranking
    4th
    out of 66 in ERP
    Views
    8,859
    Comparisons
    6,142
    Reviews
    33
    Average Words per Review
    366
    Rating
    8.3
    2nd
    out of 66 in ERP
    Views
    19,024
    Comparisons
    13,087
    Reviews
    23
    Average Words per Review
    396
    Rating
    8.5
    Comparisons
    Also Known As
    Dynamics NAV, MS Dynamics NAV
    SAP S4HANA
    Learn More
    Overview

    Microsoft Dynamics 365 Business Central is a cloud-based enterprise resource planning (ERP) solution developed by Microsoft. It is designed to help small and mid-sized organizations streamline and automate their financial, supply chain, and project management processes. Business Central offers a range of tools and features to support collaboration and communication and provides real-time visibility into business performance.

    With Business Central, organizations can manage their financials, including general ledger, accounts payable, accounts receivable, and cash management. It also offers supply chain management capabilities, including inventory management, purchase order management, and sales order management. In addition, Business Central supports project management, including project tracking, project billing, and resource management.

    Microsoft Dynamics 365 Business Central Features

    Microsoft Dynamics 365 Business Central has many valuable key features. Some of the most useful ones include:

    • Mobility: Microsoft Dynamics 365 Business Central provides mobile access, allowing users to access information and perform tasks from anywhere, at any time.
    • Reporting and analytics: The solution includes business intelligence and reporting capabilities to help organizations gain insight into their operations and make data-driven decisions.
    • Security: With its secure platform, the solution protects sensitive data and ensures the integrity of business operations.
    • Customization: It offers a highly customizable solution that can be tailored to meet the specific needs of a wide range of industries and organizations.


    Microsoft Dynamics 365 Business Central Benefits

    There are many benefits to implementing Microsoft Dynamics 365 Business Central. Some of the biggest advantages the solution offers include:

    • Adapt as your business grows: With full capabilities on desktop, tablet, or mobile, on-premises or in the cloud, across Windows, Android, and iOS devices, the solution allows you to work wherever your business takes you.
    • Rapid deployment: The solution can be rapidly deployed either in the cloud or on-premises.
    • Scalability: With the solution, you can scale as you grow using modern technologies built on the Microsoft cloud, such as machine learning, IoT, and mixed reality to help you adapt to market dynamics.
    • Drive continuous process optimization: When you implement Microsoft Dynamics 365 Business Central, you can Improve outcomes and productivity with real-time system suggestions, based on historical data, to guide employees through workflows.

    Reviews from Real Users

    Microsoft Dynamics 365 Business Central is a solution that stands out when compared to many of its competitors. Some of its major advantages are that it is user-friendly, has good integrations, and is flexible.

    Sasinath V., Project Consultant ( Scale Up) at a tech vendor, says, "For me, the main strengths of Microsoft Dynamics NAV are that it's user-friendly and light. These are its major wins. I have used other ERPs and their architecture was a little more complex when compared to the Microsoft Dynamics NAV architecture."

    "The solution's integrations and interface are very good,” mentions Alonso R., Director de Servicios at Kc ERP group.

    Another PeerSpot reviewer, Kamesh G., Vice President - Information Systems at a media company shares what he likes most about the solution: "I have found the flexibility to be very valuable. It's highly flexible, and at least for us, it has been effective. It is also highly functional."

    SAP S4HANA is an ERP (enterprise resource planning) system that uses sophisticated technologies including machine learning and AI. It is most commonly used to integrate and manage business functions and is an ideal solution for large enterprises. The platform includes supplier relationship management (SRM), customer relationship management (CRM), supply chain management (SCM), and product lifecycle management (PLM) functionality.

    SAP S4HANA offers three different deployment options:

    • On-premises
    • Cloud
    • Hybrid

    SAP S4HANA Features

    SAP S4HANA has many valuable key features, including:

    • Customizable
    • ERP, CRM, SRM, SCM, PLM co-deployed
    • High throughput
    • Fast analytics and reporting
    • Smaller total data footprint
    • SAP HANA multi-tenancy
    • All data: social, text, geo, graph, processing
    • New SAP Fiori UX for any device (mobile, desktop, tablet)
    • Unlimited workload capacity
    • High-volume transaction processing (OLTP)
    • High volume real-time analytical processes (OLAP)
    • Service Management
    • Digital Boardroom Integration

    SAP S4HANA Benefits

    Some of the benefits of using SAP S4HANA include:

    • Speed: S4 HANA applications leverage speed, context, and data accessibility to ensure you can stay up to date with rapidly evolving technology.
    • Improved performance: With SAP S4HANA, you can plan, execute, or generate reports and analytics based on live data to increase performance.
    • Simplicity: SAP S4HANA’s whole infrastructure was designed with simplification in mind — from the management of the solution to the administration of the IT landscape. The solution serves as the digital core for business process simplification and enables the centralizing of hardware and network resources.
    • Cost effective: SAP S4HANA is a cost effective solution. It provides the ability to bring together all the analytical and transactional capabilities of a variety of systems in one location, enabling better decision making.

    Reviews from Real Users

    Below are some reviews and helpful feedback written by SAP S4HANA users.

    A Mechanical Engineer at a construction company says, “It is a very powerful, highly customizable tool. The most valuable feature is that the reporting is fast. We can see the results from that in that our commissions come in fast. That is the main advantage.”

    Another reviewer, a SAP Technology Manager at a financial services firm, mentions, "It is more or less a very, very smooth and seamless product. Day by day they are increasing their technology features and they are keen to resolve the issues. India has a complex business scenario and SAP is thinking about that and resolving the issues day by day. In terms of the features I have found most valuable, I don't think that there is any lack or any gap process-wise. SAP is a very good tool."

    A Project and Service delivery Manager at a tech services company comments, "One of the most valuable features, which we used the most, was the FI module, for finance. It involved controlling, account receivables, account payables, and complete financial steering."

    A Senior Architect at a construction company states, “The POD applications are very useful to us. There are a few POD apps which we are using for different business scenarios. They are quite interesting.” He also adds, “The initial setup is pretty straightforward. The documentation is very good. The solution can scale well. The solution is stable.”

    Sample Customers
    Harris Farm Markets, Mister Spex GmbH, Bounce Foods, Eurofin Services SA, Medica Medizintechnik, Associated Gaskets, Onduline, Sitka Surfboard Corporation, World Animal Protection
    Nestle, O.C. Tanner, Sabre, New York Life Insurance Co., MEMEBOX, Siemens AG.
    Top Industries
    REVIEWERS
    Manufacturing Company24%
    Financial Services Firm10%
    Computer Software Company10%
    Government10%
    VISITORS READING REVIEWS
    Computer Software Company14%
    Comms Service Provider9%
    Manufacturing Company8%
    Financial Services Firm6%
    REVIEWERS
    Manufacturing Company13%
    Computer Software Company13%
    Financial Services Firm10%
    Retailer10%
    VISITORS READING REVIEWS
    Educational Organization34%
    Computer Software Company9%
    Manufacturing Company8%
    University4%
    Company Size
    REVIEWERS
    Small Business55%
    Midsize Enterprise18%
    Large Enterprise27%
    VISITORS READING REVIEWS
    Small Business36%
    Midsize Enterprise16%
    Large Enterprise47%
    REVIEWERS
    Small Business38%
    Midsize Enterprise21%
    Large Enterprise41%
    VISITORS READING REVIEWS
    Small Business16%
    Midsize Enterprise41%
    Large Enterprise43%
    Buyer's Guide
    Microsoft Dynamics 365 Business Central vs. SAP S/4HANA
    March 2024
    Find out what your peers are saying about Microsoft Dynamics 365 Business Central vs. SAP S/4HANA and other solutions. Updated: March 2024.
    765,386 professionals have used our research since 2012.

    Microsoft Dynamics 365 Business Central is ranked 4th in ERP with 61 reviews while SAP S/4HANA is ranked 2nd in ERP with 65 reviews. Microsoft Dynamics 365 Business Central is rated 8.4, while SAP S/4HANA is rated 8.2. The top reviewer of Microsoft Dynamics 365 Business Central writes "Easy to deploy, extremely stable, and highly scalable". On the other hand, the top reviewer of SAP S/4HANA writes "The solution is highly scalable, with solid performance and integration". Microsoft Dynamics 365 Business Central is most compared with Microsoft Dynamics AX, SAP Business One, SAP ERP, Oracle E-Business Suite and Odoo, whereas SAP S/4HANA is most compared with SAP ERP, SAP Business One, Oracle Fusion Cloud ERP, NetSuite ERP and Oracle E-Business Suite. See our Microsoft Dynamics 365 Business Central vs. SAP S/4HANA report.

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