Microsoft Dynamics 365 Business Central Licensing Guide

Dynamics 365 Business Central Licensing guide

D365 applications are licensed under various models consisting of assigned licenses dedicated to a user or device.

Dynamics 365 Business Central Licensing guide – What you need to know

Business Central is Microsoft’s ERP business system specially designed for small and medium-sized businesses, which combines a range of functionalities across operations, finance, and sales. It’s easy to use intuitive nature helps you connect your business, and make informed decisions with ease. But, the features and functionalities you get out of your Business central investments are defined by the type of license you choose. In this blog, we have put together some of the important licensing information you need to know about Dynamics 365 Business Central Licensing.

Microsoft Dynamics 365 – Licensing Overview

Microsoft Dynamics 365 applications are licensed under various models consisting of assigned licenses dedicated to a named user or device. At the same time, unassigned licenses provide access to a feature or service at the tenant level.

Assigned Licenses

Full user access licenses: These are the users whose work requires the use of the feature-rich business applications functionality. These are enterprise users or principal users (salespeople, customer service representatives, finance employees, controllers, human resources, and supply chain managers) or professional users (sales professional and customer service professional). Their work scenarios are generally less complicated, with streamlined capabilities to provide core support functionality.

Additional User Access Licenses: Additional users represent a large percentage of users in an organization who may consume data or reports to complete light tasks or be heavier users of the system but do not require full user capabilities.

Unassigned Licenses

These licenses provide tenant-level access to applications and resources and are not assigned to specific users or devices.

Dynamics 365 Business Central Licensing Models

Microsoft Dynamics 365 Business Central Licensing

  1. Team Member License

Dynamics 365 Business Central Team Members License is a user subscription designed for those who are not tied to any particular function but require basic functionality. This can often represent a significant proportion of users who need to consume data or reports from the business system and complete less demanding tasks. The team member license has access to basic features – the user interface, intelligence, and customization. It includes functionalities such as-

  • Read anything within Dynamics 365 Business Central
  • Update existing data, which are already created and entries, which are specifically allowed from an accounting perspective in Dynamics 365 Business
  • Enter timesheet for Jobs
  • Approve/ reject tasks in all workflows assigned to a user
  • Create, edit, or delete quote/ personal information
  • Use PowerApps for Dynamics 365
  1. Business Central Essentials License

With the Essentials license of Business Central, you can get stable business functionality across finance, supply chain management, CRM, HR, and many more. The Business Central Essentials License comes with the functionalities such as –

Financial Management

  • Account receivables and payables
  • Bank account management and Bank reconciliation
  • Fixed asset management
  • Cost accounting
  • Inter-company postings

Supply Chain Management

  • Inventory control
  • Shipment and distribution
  • Procurement and vendor management
  • Returns and cancellations
  • Purchase and Sales invoicing

Customer Relationship Management

  • Business Inbox for Outlook
  • Campaign Management
  • Contact Classification and management
  • Email logging
  • Interaction/ Opportunity/ relationship/ task management

Human Resources Management

  • All the basic human resource management

Project Management

  • Capacity planning
  • Estimates and Budgets
  • Job and process costing
  • Multiple cost and Timesheet

Warehouse Management

  • Automated Data Capture
  • Internal Picks and Putaway
  • Warehouse Shipment
  • Warehouse Management Systems

Artificial Intelligence

  • Cash Flow Forecast
  • Inventory Forecast
  • Sales Forecast
  • Image Recognition
  • Late Payment Prediction


  • Bank Feeds (US, CA)
  • Document Exchange Service
  • Document Management
  • Document Capture
  1. Business Central Premium License

The premium license of Business Central consists of all the functionalities that are available of the Essentials licenses plus a couple more efficient components that enhance the ERP application. The Business central premium license includes –

All the Essentials License Functionalities

Service Management

  • Service Order Management
  • Service Item Management
  • Planning and Dispatching
  • Service Price Management
  • Service Contract Management


  • Production Orders
  • Machine Centers
  • Finite Loading
  • Production Bill of Materials
  • Basic Supply Planning
  • Sales and Inventory Forecasting
  • Version Management
  • Basic Capacity Planning
  • Agile Manufacturing

Both the Essentials and Premium licenses include –

  • 3 external accountant licenses for customers who have external accountants with the same access as the Business Central Essentials license except for the access to the user set up or admin tasks and any other Business Central application. Unlimited companies
  • 1800 seconds/tenant of Cortana Intelligence
  • Configuration components, which are available for purchase for both Essentials and Premium users.

Related: How to Find the Perfect Dynamics 365 Business Central Consultant

Are you leveraging the most of your Dynamics 365 Business Central Licenses?

In addition to the benefits, features, and functionalities, Dynamics 365 offers various applications that extend the functionality to Business Central. If you are looking out for more information about Business Central, check out our ‘Ultimate Guide to Dynamics 365 Business Central – Features, Benefits & Licensing Types‘.

Microsoft recently has simplified their Business Central licensing plans. The pricing plan for Dynamics 365 Business Central is modified in such a way that it suits small and medium-sized businesses in need of an ERP application to meet their core business requirements.

If you are unsure whether your current vendor is not helping you leverage the complete benefits of your D365 licenses, here’s an opportunity for you to quickly review your licensing plans for a detailed analysis with our experts.

Avail it here.


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