Microsoft Dynamics 365 Business Central
by Microsoft
Microsoft's small-business ERP, with finance, purchasing, inventory and supply planning in every plan, and production BOMs, routings, production orders and MPS/MRP planning in the Premium plan. Sold and implemented through Microsoft partners.
Why it is classified this way
We call this a Manufacturing ERP product. A broad business system (accounting, sales, purchasing) with a substantial manufacturing or planning module attached.
This product meets our Full MRP tests, but we classify it by its center of gravity rather than its planning engine alone. The capability table below shows the detail.
The six Full MRP tests, and how Microsoft Dynamics 365 Business Central does on each (6 of 6)
- YesIt represents a bill of materials, recipe, or formula.Evidence: learn.microsoft.com › Production manage manufacturing(opens in a new tab)
- YesIt accepts dated demand, sales orders, a forecast, or a master production schedule.Evidence: learn.microsoft.com › Production how to run mps and mrp(opens in a new tab)
- YesIt nets that demand against stock on hand and orders already incoming.Evidence: learn.microsoft.com › Production how to run mps and mrp(opens in a new tab)
- YesIt explodes requirements through at least one level of the bill of materials.Evidence: learn.microsoft.com › Production about planning functionality(opens in a new tab); learn.microsoft.com › Production how to run mps and mrp(opens in a new tab)Demand includes "a component need for assembly or production orders", and MRP is "the calculation of material requirements based on actual demand for components", generated "one level at a time, for each item's low-level code". Scope: Premium plan.
- YesIt uses lead times or required dates.Evidence: learn.microsoft.com › Production about planning functionality(opens in a new tab); learn.microsoft.com › Purchasing date calculation for purchases(opens in a new tab)
- YesIt produces dated buy, make, transfer, release, or reschedule recommendations.Evidence: learn.microsoft.com › Production how to run mps and mrp(opens in a new tab)
These rules are applied identically to every product and enforced at build time, a record cannot be published as Full MRP unless all six pass with a source attached. Read the methodology.
Best for
- Growing manufacturers that want finance, planning and production in one ERP with public documentation
- Discrete and assembly shops that plan from sales orders and forecasts with MPS and MRP
- Companies that already work with a Microsoft partner or run Microsoft 365
Not a fit when
- Very small shops: manufacturing needs Premium at $110 per user a month, plus partner implementation
- Recipe and process manufacturers who need formulas out of the box; that usually comes from a partner vertical such as Aptean Food & Beverage, not the base product
Pricing facts
What it costs to do manufacturing in this product.
Advertised from
$80/user/month
Useful entry price
$110/user/month
Billing basis
Per user
Why the useful price is higher
Essentials at $80 per user a month has no manufacturing: the pricing page's comparison table lists Manufacturing and Service order management under Premium only, at $110 per user a month, paid yearly.
Free trial: 30 days.
What moves the real bill
- Priced per user. The monthly figure multiplies by every person who needs an account.
- Annual billing assumed. The advertised rate requires paying for a year up front. Monthly billing costs more.
Plans
| Plan | Price | Add-ons and setup |
|---|---|---|
| EssentialsBilled yearly, shown per month | $80 per user/mo | — |
| No manufacturing: production BOMs, routings and production orders are Premium features. Team Members at $8 per user a month can be added for light users. | ||
| PremiumBilled yearly, shown per month | $110 per user/mo | — |
| Team Members at $8 per user a month can be added for light users. Partner implementation is usually needed and is not priced here. | ||
Cheapest paid plan that manufactures, by paid users
- 1 user: Premium, $110 a month (billed yearly, shown per month); first year $1,320.
- 5 users: Premium, $550 a month (billed yearly, shown per month); first year $6,600.
- 10 users: Premium, $1,100 a month (billed yearly, shown per month); first year $13,200.
Pricing detail
Essentials $80.00 and Premium $110.00 per "user/month, paid yearly"; Team Members $8.00 per user a month for people who read data, approve workflows and "create or update select information". Premium "Includes everything in the Essentials plan, plus enhanced capabilities for service management and manufacturing." Supply chain planning is ticked on both plans. There is a free 30-day trial. Business Central is normally bought and set up through a Microsoft partner, and partner implementation fees are not published here.
Checked on October 9, 2026. Source: microsoft.com(opens in a new tab). Prices change. Check before you buy.
Manufacturing capability
22 of 25 fields resolved. "Unknown" means we have not found first-party evidence. It is not a No.
Planning
Working out what to buy or make, and when.
| Capability | Finding | What we found |
|---|---|---|
| Accepts dated demandYou can tell it what is due and when, sales orders with dates, a forecast, or a production schedule. | Yes | "The calculation is based on actual and forecasted demand." MPS covers items "that have a forecast or a sales order line". Manufacturing features need the Premium plan.Reviewed October 9, 2026. Source: learn.microsoft.com › Production how to run mps and mrp(opens in a new tab)Question this |
| Nets against stock on handIt subtracts what you already have before telling you to buy more. | Yes | "The planning system process examines what is, or will be, needed (demand) and what's on-hand or expected (supply). When you net these quantities against each other, Business Central provides action messages."Reviewed October 9, 2026. Source: learn.microsoft.com › Production how to run mps and mrp(opens in a new tab)Question this |
| Counts incoming ordersIt knows about purchase orders and production orders already placed, so it does not tell you to order twice. | Yes | Expected supply counts in the netting, and the algorithms cover "reusing existing replenishment orders" by rescheduling or changing them rather than always adding new ones.Reviewed October 9, 2026. Source: learn.microsoft.com › Production how to run mps and mrp(opens in a new tab)Question this |
| Uses lead timesIt works backwards from when you need something to when you must order or start it, using supplier and production lead times. | Yes | "Net requirements drive planned order releases, which are scheduled based on the routing information (manufactured items) or the item lead time (purchased items)." On purchases, "requested receipt date - lead time calculation = order date".Reviewed October 9, 2026. Source: learn.microsoft.com › Production about planning functionality(opens in a new tab); learn.microsoft.com › Purchasing date calculation for purchases(opens in a new tab)Question this |
| Produces dated buy/make suggestionsThe output is an actionable list with dates, order this much by this date, start this batch on this date. | Yes | The planning worksheet gives action messages: "suggestions to create a new order, change an order (quantity or date), or cancel an order", for purchase, assembly, production and transfer orders.Reviewed October 9, 2026. Source: learn.microsoft.com › Production how to run mps and mrp(opens in a new tab)Question this |
| Capacity planningChecks whether your people and machines can do the work in the time available. | Partial | Work and machine centers "model capacity and costs", and planned orders are scheduled from routings. The capacity-load pages were not read, so finite loading is not confirmed here. Manufacturing features need the Premium plan.Reviewed October 9, 2026. Source: learn.microsoft.com › Production manage manufacturing(opens in a new tab); learn.microsoft.com › Production about planning functionality(opens in a new tab)Question this |
Production
Recipes, bills of materials, and running the work.
| Capability | Finding | What we found |
|---|---|---|
| Bill of materialsA list of the parts and quantities needed to make one of something. | Yes | "Use production BOMs to define components." Manufacturing features need the Premium plan.Reviewed October 9, 2026. Source: learn.microsoft.com › Production manage manufacturing(opens in a new tab)Question this |
| Multi-level BOMSub-assemblies inside assemblies, a part that is itself made from other parts, nested as deep as you need. | Yes | Planning runs level by level: "The generation of action messages occurs one level at a time, for each item's low-level code." Manufacturing features need the Premium plan.Reviewed October 9, 2026. Source: learn.microsoft.com › Production how to run mps and mrp(opens in a new tab)Question this |
| Recipes & formulasBatch-style production by weight, volume, or percentage, including scaling a batch up or down. | Unknown | Not yet researched. We would need: documentation of recipe or formula records, ideally with batch scaling.Know the answer? |
| Work / manufacturing ordersA record authorising and tracking the making of a specific quantity. | Yes | "Production orders coordinate material consumption, operation time, output, and finished goods from planned demand through completion." Manufacturing features need the Premium plan.Reviewed October 9, 2026. Source: learn.microsoft.com › Production manage manufacturing(opens in a new tab)Question this |
| Routings & operationsThe ordered steps a product goes through, and which machine or station does each one. | Yes | "Routings to define operations, and work and machine centers to model capacity and costs." Manufacturing features need the Premium plan.Reviewed October 9, 2026. Source: learn.microsoft.com › Production manage manufacturing(opens in a new tab)Question this |
| Shop-floor trackingOperators report progress, time, and completions as the work happens. | Partial | Consumption, output, scrap and operation time are recorded "manually in production journals" or by flushing and warehouse activities. No operator terminal is described in the base product. Manufacturing features need the Premium plan.Reviewed October 9, 2026. Source: learn.microsoft.com › Production manage manufacturing(opens in a new tab)Question this |
| Quality controlsChecks, tests, holds, and non-conformance records tied to production or receiving. | Partial | The manufacturing overview says it "connects with ... quality management", but the quality pages were not read, so inspection and non-conformance handling are not confirmed here.Reviewed October 9, 2026. Source: learn.microsoft.com › Production manage manufacturing(opens in a new tab)Question this |
Inventory & traceability
Knowing what you hold and being able to trace it.
| Capability | Finding | What we found |
|---|---|---|
| Batch & lot traceabilityWhich incoming material lots went into which finished batch, and where those finished goods went. | Yes | "You can assign serial numbers, lot numbers, and package numbers to outbound and inbound documents." Posted tracking entries show on the item ledger.Reviewed October 9, 2026. Source: learn.microsoft.com › Inventory how work item tracking(opens in a new tab)Question this |
| Expiry & shelf lifeBest-before dates on materials and finished goods, with warnings before they lapse. | Yes | With item tracking on, the "Lot No., Serial No., Expiration Date, Warranty Date, and Package No. fields are available".Reviewed October 9, 2026. Source: learn.microsoft.com › Inventory how work item tracking(opens in a new tab)Question this |
| Serial numbersUnique identifiers on individual units, for warranty or field service. | Yes | Serial numbers are part of item tracking on inbound and outbound documents.Reviewed October 9, 2026. Source: learn.microsoft.com › Inventory how work item tracking(opens in a new tab)Question this |
Commerce & accounting
Costs, purchasing, storefronts, and the books.
| Capability | Finding | What we found |
|---|---|---|
| Product costing & COGSWhat it costs you to make one, and the cost of the goods you sold. | Yes | Costing methods decide "whether an actual or a budgeted value is capitalized and used in the cost calculation", with average, FIFO and standard costing documented; finished production order costs are covered in the manufacturing docs.Reviewed October 9, 2026. Source: learn.microsoft.com › Design details costing methods(opens in a new tab); learn.microsoft.com › Production manage manufacturing(opens in a new tab)Question this |
| PurchasingRaising and tracking purchase orders to suppliers from inside the system. | Yes | Purchasing and payables are in both plans, and the planning worksheet's action messages create or change purchase orders.Reviewed October 9, 2026. Source: microsoft.com › Pricing(opens in a new tab); learn.microsoft.com › Production how to run mps and mrp(opens in a new tab)Question this |
| Accounting connectionSends financial data to bookkeeping software, or includes its own general ledger. | Yes | "The general ledger (G/L) stores your financial data", with a standard chart of accounts included.Reviewed October 9, 2026. Source: learn.microsoft.com › Finance general ledger(opens in a new tab)Question this |
| Ecommerce connectionPulls orders and pushes stock levels to a storefront or marketplace. | Yes | Microsoft's Shopify connector synchronizes items, prices and inventory with Shopify.Reviewed October 9, 2026. Source: learn.microsoft.com › Get started(opens in a new tab)Question this |
Openness & your data
Getting data in, out, and away if you leave.
| Capability | Finding | What we found |
|---|---|---|
| APIA documented programming interface so other software can read and write your data. | Yes | Public API v2.0 with documented endpoints.Reviewed October 9, 2026. Source: learn.microsoft.com › V2.0(opens in a new tab)Question this |
| WebhooksThe system can notify other software the moment something changes. | Yes | "Webhooks is the way to get notified if an entity changes in Business Central."Reviewed October 9, 2026. Source: learn.microsoft.com › Dynamics subscriptions(opens in a new tab)Question this |
| MCP supportA Model Context Protocol server, letting an AI assistant read or act on this data. Useful, but it has nothing to do with whether the product plans materials. | Unknown | Not yet researched. We would need: a first-party mcp server, or documentation of one.Know the answer? |
| CSV exportYou can get your lists out as spreadsheet files. | Unknown | Not yet researched. We would need: documentation of csv or spreadsheet export.Know the answer? |
| Full data exportYou can take everything, including history and relationships, not just a few screens' worth of rows. | Yes | Online environments can export the database "as BACPAC files to an Azure storage container" from the admin center, on a paid subscription and with explicit permission.Reviewed October 9, 2026. Source: learn.microsoft.com › Tenant admin center database export(opens in a new tab)Question this |
Deployment, licensing and your data
- Deployment
- Cloud (hosted for you), On-premise (vendor-supported)
- Licensing
- Proprietary SaaS
- Team sizes
- 6–20 people, 21–50 people, 51+ people
- Manufacturing styles
- Countable assembled products, Custom or job-shop work, Kits & bundles
Integrations
- Shopify
- Microsoft 365
Jobs this product qualifies for
Derived from the capability table above, not hand-assigned.
Editorial notes and cautions
Things we would want a friend to know before buying.
- Manufacturing is Premium only. Essentials at $80 has assembly and supply planning but no production BOMs, routings or production orders.
- This record covers Microsoft's base product. Partner add-ons and verticals built on it, including Aptean Food & Beverage ERP (listed separately here), add features that are not credited to this record.
- Almost every buyer goes through a Microsoft partner, and implementation cost is set by the partner, so budget for it separately.
Evidence and verification
Researched 2026-09-19 from Microsoft's pricing page and Microsoft Learn documentation, read in full. Planning evidence comes from the Run Full Planning, MPS, or MRP and About Planning Functionality articles. Scoped to the base product; partner verticals are not credited.
Sources we checked (6)
microsoft.com
What we still want to confirm
We publish our gaps rather than hiding them. If you can point us at a first-party page for any of these, we will update the record and credit the correction.
- Read the capacity-load and quality management pages to settle capacity planning and quality.
- Find documentation for CSV export and any first-party MCP server.
- Check whether recipes or formulas exist in the base product or only through partners.
Still unknown: recipes & formulas, mcp support, csv export.