Migrating from NAVISION: Choosing Between Business Central and Finance & Supply Chain Management
If your UK-based business is running Microsoft Dynamics NAV 2013–2018, migrating to a modern cloud ERP is crucial.
Dynamics 365 Business Central offers an ideal upgrade path for most SMEs with moderate complexity, providing cost-effective, scalable solutions without excessive disruption.
For larger, complex enterprises with global operations or extensive customisations, Dynamics 365 Finance & Supply Chain Management (F&SCM) delivers robust, enterprise-grade functionality.
This guide helps CFOs and business leaders choose the right ERP migration path from Dynamics NAV to Dynamics 365.
Introduction: The Need to Upgrade from Dynamics NAV
As Microsoft’s support for older versions of Dynamics NAV (versions 2013 to 2018) winds down, UK businesses using these legacy systems face significant operational and compliance risks. Extended support for these NAV versions has either ended or will end soon, leaving businesses exposed to security vulnerabilities, regulatory non-compliance (such as Making Tax Digital), and limited system integration capabilities.
Business leaders and CFOs must now consider upgrading their ERP systems to future-proof their organisations, improve operational efficiencies, and maintain compliance.
The recommended Microsoft ERP migration paths for NAV users are Dynamics 365 Business Central or Dynamics 365 Finance & Supply Chain Management (F&SCM). But how do you choose between these options? This comprehensive guide explains the best fit based on your business needs and strategic goals.
Related Article: Is Navision Still Supported?
Understanding Dynamics 365 ERP Options for NAV Customers
Dynamics 365 Business Central: Tailored for SMEs
Dynamics 365 Business Central is essentially the modern evolution of Dynamics NAV. It’s an all-in-one cloud-based ERP solution explicitly designed for small and medium-sized enterprises (SMEs).
Business Central carries forward the familiar NAV features—financial management, sales, inventory, purchasing, basic manufacturing, and project management. But significantly enhances them through integration with other Microsoft tools, such as Office 365, Power BI, and Azure.
For UK businesses, Business Central is fully compliant with local regulations, including HMRC’s Making Tax Digital for VAT.
It is designed for organisations with moderate complexity, typically ranging from 10 to 250 users, managing single or straightforward multi-entity structures. If your business uses NAV with relatively standard processes and moderate customisations, Business Central offers the smoothest, most cost-effective transition.
Dynamics 365 Finance & Supply Chain Management (F&SCM): For Complex Enterprises
In contrast, Dynamics 365 Finance & Supply Chain Management (F&SCM)—formerly Dynamics 365 Finance & Operations and based on Dynamics AX—is Microsoft’s enterprise-grade ERP system.
It is built for large, complex organisations with global or multi-site operations. F&SCM provides advanced functionality such as multi-entity financial consolidation, complex supply chain management, advanced manufacturing processes, retail capabilities, and extensive warehouse management.
F&SCM supports hundreds to thousands of users and very high transaction volumes, making it ideal for businesses that have outgrown NAV’s capabilities due to scale or complexity.
If your NAV system has extensive customisations or external integrations due to complex business processes, F&SCM could be the right strategic choice.
When Dynamics 365 Business Central is the Ideal ERP Upgrade Path
Company Size and Complexity
Business Central is best suited to SMEs that require comprehensive ERP capabilities without excessive complexity.
If your UK business has fewer than 300 users and operates primarily within the UK or has limited international exposure, Business Central aligns perfectly with your needs. Its user-friendly interface and familiar processes mean minimal disruption during migration.
Industry Alignment
Typical industries benefiting significantly from Business Central include wholesale distribution, professional services, discrete manufacturing, retail, construction, and healthcare services.
The core capabilities such as integrated financial management, straightforward inventory management, and robust reporting make it a strong solution for these sectors.
For example, a medium-sized UK wholesaler using NAV 2016 with moderate inventory management needs will find Business Central a perfect match, allowing them to streamline warehouse operations without additional complexity.
Cost Efficiency and Licensing
One of the key benefits of Business Central is its cost-effective subscription-based model, which is substantially lower than F&SCM. Pricing typically ranges from £58 to £78 per user per month, offering predictable budgeting for SMEs.
This lower total cost of ownership makes Business Central an attractive, affordable ERP solution for small businesses and mid-market companies seeking a scalable yet economical solution.
Risk Reduction and Faster Implementation
Because Business Central shares its roots with NAV, upgrading is straightforward. Microsoft provides migration tools specifically designed for NAV to Business Central transitions, significantly reducing project timelines and implementation costs.
Most SMEs can complete a migration in six to nine months, minimising business disruption. NOTE: Larger NAV and heavily customised implementations can take more than 12 months.
Scalability and Continuous Improvement
Microsoft continually updates Business Central with new features, compliance updates, and enhancements. This evergreen approach ensures your ERP stays current and aligned with best practices, eliminating the periodic costly upgrades associated with NAV.
Related Article: NAV to BC Migration Steps
When Dynamics 365 Finance & SCM is the Ideal ERP Upgrade Path
Large-Scale Operations and Complexity
If your UK organisation has significantly grown in size or complexity; such as managing multiple international subsidiaries, thousands of daily transactions, or intricate global supply chains then Dynamics 365 F&SCM offers the depth and scalability required.
The system supports enterprises with multi-site operations, complex intercompany transactions, and advanced supply chain needs seamlessly.
Industry Fit for Enterprise Needs
Dynamics 365 F&SCM particularly excels in sectors with highly complex manufacturing, extensive distribution networks, process manufacturing (e.g., chemicals or pharmaceuticals), advanced warehouse management, or multi-channel retail.
A global manufacturer with production facilities across Europe, North America, and Asia using highly customised NAV 2013 could significantly simplify operations by consolidating their processes into F&SCM.
Advanced Analytics and Enterprise-Level Governance
F&SCM provides built-in advanced analytics, predictive forecasting, and robust compliance tools designed for enterprise-level governance.
Companies that require deep financial insights, global reporting standards like IFRS compliance, or detailed audit trails benefit immensely from migrating to F&SCM.
Strategic Scalability and Future-Proofing
Businesses expecting substantial growth, mergers and acquisitions, or aggressive international expansion find F&SCM strategically advantageous.
Its architecture allows virtually unlimited scalability, supporting thousands of concurrent users, extensive transaction volumes, and sophisticated operational requirements without performance degradation.
Cost vs. Long-term Value
While the licensing costs for Dynamics 365 F&SCM (approximately £135–£150 per user per month) and higher implementation fees reflect its enterprise scope, the long-term ROI can significantly outweigh these costs for complex enterprises.
Operational efficiencies, compliance cost reductions, and the elimination of custom systems typically result in considerable long-term financial benefits.
Comparison at a Glance: Business Central vs. Finance & SCM
| Factor | Business Central | Dynamics 365 F&SCM |
|---|---|---|
| User Capacity | Up to ~300 users | 300+ users, high volume, enterprise-level |
| Complexity | Moderate | High complexity, multi-entity |
| Industries | SMEs, wholesale, retail, professional services | Large-scale manufacturing, retail, global distribution |
| Implementation Complexity | Lower, simpler migration | Higher, reimplementation |
| Licensing Cost (approx.) | £58-£78 per user/month | £135-£150 per user/month |
| Data Migration | Straightforward | Complex, reimplementation required |
| Process Alignment | Familiar NAV processes with enhancements | New processes, advanced ERP capabilities |
| Future Scalability | Scalable for SMEs | Virtually unlimited scalability |
Making the Right Choice: Strategic Recommendations for UK Businesses
For most SMEs currently using Dynamics NAV, the transition to Dynamics 365 Business Central will offer substantial benefits: a smoother migration path, lower implementation costs, predictable ongoing expenses, and a strong alignment with typical SME needs.
However, if your company has grown significantly, operates internationally, or has complex processes that have stretched NAV beyond its limits, migrating directly to Dynamics 365 Finance & Supply Chain Management is the most strategic option, ensuring your ERP platform will sustain your future business growth effectively.
Conclusion: Upgrade for Strategic Advantage
Ultimately, moving from Dynamics NAV to Dynamics 365 Business Central or F&SCM is a strategic imperative for UK businesses facing the risks associated with outdated ERP software. Making the right choice depends on your business’s scale, complexity, growth ambitions, and strategic goals.
Both Dynamics 365 solutions ensure future-proof technology, improved operational efficiencies, compliance assurance, and robust integration with modern productivity tools.
By proactively migrating now, CFOs and business leaders position their companies to thrive in a competitive, digitally-driven marketplace, turning an ERP upgrade into a long-term strategic advantage.
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