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

 

Comparison Buyer's Guide

Executive SummaryUpdated on Nov 3, 2024

Review summaries and opinions

We asked business professionals to review the solutions they use. Here are some excerpts of what they said:
 

Categories and Ranking

Microsoft Dynamics 365 Busi...
Ranking in ERP
3rd
Average Rating
8.2
Reviews Sentiment
7.0
Number of Reviews
64
Ranking in other categories
Activity Based Costing Software (2nd)
SAP S/4HANA
Ranking in ERP
1st
Average Rating
8.4
Reviews Sentiment
6.4
Number of Reviews
119
Ranking in other categories
No ranking in other categories
 

Mindshare comparison

As of February 2025, in the ERP category, the mindshare of Microsoft Dynamics 365 Business Central is 6.3%, down from 6.9% compared to the previous year. The mindshare of SAP S/4HANA is 14.4%, down from 15.6% compared to the previous year. It is calculated based on PeerSpot user engagement data.
ERP
 

Featured Reviews

StefaanVandesompele - PeerSpot reviewer
Provides end-to-end accounting and finance module at reasonable pricing
365 Business Central integrates with Office 365 to streamline the invoice approval process. This allows businesses to manage and approve invoices efficiently within a unified system. Our organization plans to transition to the Dynamics 365 environment, where various functions will be centralized. We will consolidate everything into one system instead of maintaining multiple databases for each country with local data. Dynamics 365 is fully integrated, which should address many of our challenges when we migrate to this new environment. We look forward to seeing how it performs in practice. The project is progressing well overall, though integrating it with other tools and ensuring Dynamics 365 operates smoothly can be challenging. Dynamics 365 is user-friendly and effective. However, a deeper understanding of its technical capabilities and architecture might be necessary to optimize its use fully. The software landscape is evolving, and achieving the best reporting and functionality with just a click can be complex. A clear vision of what you want to achieve with Dynamics 365 is essential. Proper preparation and configuration are crucial to achieving the desired outcomes. This principle applies not only to Dynamics 365 but to all software packages. Understanding the system's flexibility and adaptability based on your specific business needs is key to its successful implementation. Overall, I rate the solution an eight out of ten.
Deepak Madhavan - PeerSpot reviewer
Implementation simplifies ERP management with comprehensive data integration and visibility
A lot of people would say the pricing. SAP is seen as quite expensive even now. It doesn't work for smaller or medium optimizations. The licensing and pricing could be looked at. In Brownfield migration, the trade-off between greenfield and brownfield means you either keep it clean or match the business requirements. Sometimes, it's not possible to do both. While ValixAPI provides significant support in making those decisions and the SAP consultant is very useful, we are still dependent on past history and how it was originally set up. I wouldn't call that a real disadvantage, yet more accessible consulting would be beneficial. Incorporating all other cloud products, like APO or IPP, into the S/4 house might also help.

Quotes from Members

We asked business professionals to review the solutions they use. Here are some excerpts of what they said:
 

Pros

"The solution has good dashboard functionalities and export functionalities."
"The tool covers most of the business requirements that most companies have, especially financial institutions."
"The vertical covers all aspects of functionality and integrates easily with the existing Office products."
"The selling feature is the most valuable."
"The platform offers a robust and comprehensive cycle for supply chain and inventory management, with features like minimum and maximum settings, dynamic monitoring of inventory levels, and integration with Microsoft's AI capabilities."
"The most valuable feature of Microsoft Dynamics 365 Business Central is cloud accessibility."
"The solution is easy to use, flexible, and customizable."
"We like the manufacturing and case management modules."
"You don't have to worry too much about volumes of data, even if your transaction volumes go up."
"SAP S4HANA has good performance and has allowed us to combine our systems."
"It seamlessly integrates with all the SAP Business Suite products such as IoT, AI, Analytics and all other SaaS solutions. The product is very robust and comprehensive."
"It's helped with business aspects and improved material planning and RMA processes."
"It is a scalable solution."
"The Order-to-Cash feature is indispensable"
"SAP S/4HANA dominates around 70 percent of the ERP market in Chile, and I believe this isn't merely coincidental. I've always maintained that if someone believes SAP S/4HANA lacks a certain functionality, they haven't explored it thoroughly. However, there's a widespread lack of understanding regarding its full potential and how to configure it."
"This tool helps us to manage business in a faster and smarter way."
 

Cons

"In Thailand, the support here could be better. The process to get an answer is too long."
"The tool needs to work on reporting issues and user interface."
"As our company grew we had to switch from Microsoft Dynamics NAV to a solution that was suited for larger-sized companies."
"There is a need for improvement in consolidation and multi-country master data management."
"Implementing localizations when we use the system for multiple countries can be quite complex."
"I would like a more modular and user-friendly interface."
"Microsoft Dynamics NAV could be improved in terms of exporting income statements and balance sheets. Currently, there is a feature, but you can only have the last three years. I spent some time trying to improve the KPI portion that exports the data, that already calculates the sub forms or subtotals, but they weren't able to break that up into different dimensions. They've now managed to crowd the separate table and you can export that, but it's only for the last three years. So, they could improve this solution by getting the chart of accounts or the account schedules to be exported, where you can go further than just three years with it."
"The solution must provide more AI features."
"The solution could have a better user experience. However, they are working a lot on the user experience and they have come up with various applications, such as mobile applications. This was lacking over the last two years."
"SAP S/4HANA could improve by making the interface easier to use."
"Small businesses that have a small user base find this solution too expensive."
"The licensing of SAP S/4HANA needs to be improved"
"SAP S/4HANA is a robust front-end solution compared to other web technologies available. However, screen design in SAP EFI might not be as extensive."
"SAP S/4HANA is an expensive solution."
"The solution could improve by making customization easier. The on-premise version is a lot more flexible."
"There are areas for improvement. SAP needs to consider both global and regional requirements."
 

Pricing and Cost Advice

"The price of the solution is reasonable."
"The solution is on the cloud and they provide 50 gigabytes of free space on their Microsoft Drive. The reason for this is that Microsoft is requiring you to upgrade all of your systems to Microsoft Dynamics 365 Business Central in order to effectively use the cloud. This means that if you are currently using a different version of Microsoft for a specific purpose that does not require this solution, it can be frustrating to have to spend money to upgrade to this solution just for the purpose of syncing with the cloud. Additionally, even if you do purchase Microsoft Dynamics 365 Business Central, there can still be issues with syncing between the on-premise and cloud clients. This can be especially frustrating as the cloud storage is not free and can be difficult to access even after purchasing."
"The solution's cost is reasonable."
"Business Central charges a monthly fee of $70 to $100 per user."
"The tool’s licensing is yearly. The solution is cheaper compared to other ERP products from Oracle or SAP."
"You have to pay a yearly licensing fee for the solution."
"We have an agreement with Microsoft and pricing is okay for us."
"NAV might be a little pricey for a small or medium-sized company, but all the solutions out there are."
"The solution's pricing depends on customers and how much discount they can get. However, the list price is expensive."
"The solution's license cost is on the higher side."
"I don't think any company would find the product expensive"
"I would rate the pricing at around six to nine out of ten depending on the edition and deployment type."
"As for pricing, it depends on the business size and flow. If it's a medium-sized business, it might seem affordable, but for larger businesses with complex processes, it could be considered expensive."
"It is an expensive solution."
"SAP S/4HANA is expensive."
"The price of this product is an issue for some customers."
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Answers from the Community

AM
May 2, 2023
May 2, 2023
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 ...
2 out of 3 answers
MM
May 2, 2023
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 MustafeezSAP Solution Architect & Project Manager
Avigayil Henderson - PeerSpot reviewer
May 2, 2023
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."
 

Top Industries

By visitors reading reviews
Computer Software Company
15%
Manufacturing Company
10%
Government
6%
Financial Services Firm
6%
Educational Organization
40%
Computer Software Company
9%
Manufacturing Company
9%
University
4%
 

Company Size

By reviewers
Large Enterprise
Midsize Enterprise
Small Business
 

Questions from the Community

What do you like most about Microsoft Dynamics NAV?
The platform offers a robust and comprehensive cycle for supply chain and inventory management, with features like minimum and maximum settings, dynamic monitoring of inventory levels, and integrat...
What is your experience regarding pricing and costs for Microsoft Dynamics NAV?
The pricing for Dynamics 365 Business Central is reasonable. The value for money is very high.
What needs improvement with Microsoft Dynamics NAV?
There is a need for improvement in consolidation and multi-country master data management.
Are there any advantages of SAP S4 HANA over SAP Business One (SAP B1) apart from the cost?
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 com...
What needs improvement with SAP S4HANA?
With the public cloud, now everything is being pushed into BTP. This has created challenges, as it requires us to redo our coding and development. This presents a significant learning curve for our...
What is your primary use case for SAP S4HANA?
We work in a very niche area within the livestock industry. We have a SAP-certified solution for the poultry industry, and as part of our livestock solution, we cover poultry, dairy, and fishery. W...
 

Also Known As

Dynamics NAV, MS Dynamics NAV
SAP S4HANA
 

Overview

 

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.
Find out what your peers are saying about Microsoft Dynamics 365 Business Central vs. SAP S/4HANA and other solutions. Updated: January 2025.
837,501 professionals have used our research since 2012.