NetSuite vs. Dynamics 365 Business Central: Which ERP Solution is Best For Your Business?
To help you evaluate Netsuite vs Dynamics 365 we compared each system against critical factors: flexibility, reporting, and price.
The Oracle NetSuite vs. Microsoft Dynamics 365 Business Central debate isn’t so much about which ERP solution is best. It is about which platform is better aligned with the needs of your business, employees, and the customers you serve.
Oracle NetSuite vs. Dynamics 365 Business Central: Basic Overview
Dynamics 365 Business Central (BC) is Microsoft’s ERP solution for SMBs. We’ve covered this before, so we won’t dig in too much here. But essentially, BC is a modular system that unifies all core processes and business functions in a central hub. It’s typically the best choice for organizations looking to upgrade an outdated on-prem system or have outgrown entry-level solutions like QuickBooks.
Like Business Central, NetSuite ERP is a top ERP built to support the needs of growing SMBs. This platform also centralizes and streamlines business operations. It allows users to run core financial processes. It offers customizable reporting tools to help you better understand the health of your business and take the right actions to ensure lasting success.
Per Microsoft, BC is a portfolio of intelligent business applications that delivers superior operational efficiency and breakthrough customer experiences enabling businesses to become more agile and reduce complexity without increasing costs. Key benefits include:
• End-to-end connectivity
• Embedded Microsoft productivity tools
• Improved operational flexibility
• Faster decision-making
• Better customer outcomes
According to the NetSuite website, the ERP system manages core functions, including finance and accounting, inventory, orders and procurement. Customers can add options including CRM for sales, service and marketing automation, human resources (HR) for personnel records, performance management and payroll, professional services automation (PSA) to plan and track projects and omnichannel commerce for both online and in-store sales. All these modules share a common database. Thanks to that central data source, information from across the system updates in real time and is accessible to authorized users across business functions. Key benefits include:
• Increased inventory visibility
• Ability to automate financial processes
• Greater control over supply chain operations
• Improved warehouse efficiency
• Error-proof order management
ERP Masterclass: Comparing Dynamics 365 BC to Oracle NetSuite Webinar
Tuesday, November 19th | 2PM ETUnlock the insights you need to choose the right ERP solution with our ERP Masterclass: Comparing Dynamics 365 Business Central to Oracle NetSuite. Join industry experts as they break down the features, strengths, and real-world applications of these leading platforms to help you make an informed decision for your business.
Dynamics 365 Business Central and NetSuite ERP: Core Modules & Features Comparison
Microsoft Dynamics 365 Business Central and Oracle NetSuite have similar features and functionality that cover 99% of what a business needs, but there are some differentiators in that final 1%. For example, Microsoft Dynamics 365 Business Central shines in its integration with Microsoft 365, pricing, common data platform, partner ecosystem, and more. NetSuite has the advantage with features such as matrix inventory management and more CRM functionality out of the box. We dig deeper into these differentiators below.
Microsoft 365 Integration and Interoperability
Business Central natively connects with Microsoft 365 including Outlook, Excel, Word, Teams, and OneDrive to collaborate on business data.
NetSuite has basic Outlook integration and several Excel integration features but doesn’t support Teams or OneDrive integration.
Process Automation
Business Central has native integration with Power Automate, allowing users to streamline repetitive tasks and business processes using the industry’s leading automation tool, with 959 connectors.
NetSuite SuiteFlow only lets users create and execute workflows within NetSuite.
Cloud Platform
Business Central is built on a common platform across Dynamics 365 and Microsoft 365 with a common Azure tenant to administer and assign licenses and includes a 99.9% SLA.
NetSuite runs on Oracle Cloud Infrastructure yet doesn’t share administration with other Oracle products or services and offers a 99.7% service level commitment.
Third Party Ecosystem
Business Central has a large partner ecosystem to deliver the last mile of functionality for the solution. There are over 3,500 Business Central apps on Microsoft AppSource that meet unique vertical or business specific requirements and 3,800 partners around the world.
NetSuite offers twenty industry specific solutions, 637 SuiteApps (third party apps), and 264 consulting and reseller partners. “SuiteApps” are ISV solutions that are sold by and billed by NetSuite but the support of them is handled by the ISV or partner.
Multi-entity Management
Business Central requires third party solutions for multi-entity management, which means that a single chart of accounts, vendors base, customer base, inventory and fix asset base shared across multiple companies as required.
NetSuite offers multi-entity management out of the box, but there is a cost for additional companies.
CRM functionality
Business Central comes with CRM functionality out of the box without adding Microsoft Dynamics 365 Customer Engagement, but the user interface needs to be updated, and the functionality is limited.
NetSuite’s native CRM has full integration out of the box but is lacking marketing functionality.
Matrix Inventory Management
Business Central requires third party solutions for matrix inventory management in industries where color, size, style, or pattern variations occur – apparel, jewelry, footwear, paint manufacturing, flooring, sporting and more.
NetSuite handles matrix inventory management out of the box.
Payroll Management
Business Central has multiple robust third-party payroll processing solutions that integrate with other business functions. Organizations can streamline their payroll operations, ensure compliance, and make informed business decisions.
NetSuite’s payroll module is not fully integrated into the product and is outsourced to a Ceridian Payroll and Tax engine. This makes payroll a bit distant and harder to use, with extra steps involved in adding an employee and paying them.
Artificial Intelligence
Business Central includes multiple AI features such as auto-generation of compelling creative product descriptions, enhanced bank reconciliation processing, late customer payment predictions, sales and inventory forecasting, cash flow analysis and Microsoft Dynamics 365 Copilot plain-English inquiries.
NetSuite has limited AI functionality.
NetSuite vs Dynamics 365 Business Central Pricing
NetSuite’s list price is $99 per user per month plus a base license fee of $999 per instance per month plus additional module costs plus the potential to upgrade service tiers (if needed). The per/user pricing jumps up significantly with 10 or more users.
NetSuite includes core CRM, Financials, and ERP functionality with extra charges for advanced modules.
The exact price is dependent on how many users and optional modules you’ll be adding to the plan, and you’ll need to contact Velosio for a custom quote.
Dynamics 365 Business Central Essentials plan is $70 per user per month, while the Premium plan, including Manufacturing and Service Management, is $100 per user per month. There is no instance fee or charge for advanced modules. Business Central offers all-in-one licenses encompassing Finance, Sales, Service Management, Program Management, Manufacturing, Supply Chain and much more in one price.
Like NetSuite, the total price is determined by how many users are on the plan, whether you’ll be adding additional modules to the mix, etc.
Final Thoughts
We hope that the features and functionality comparison is helpful to you when considering Microsoft Dynamics 365 Business Central and NetSuite. Velosio sells and supports both solutions, and we are happy to clarify any information for you or answer any questions that you may have.
Our experts can help you weigh each option and make the right decision for your business.
Want more detailed insights to help make your decision? Download our latest comparison guide for SMBs, designed to help you weigh your options and choose the ERP solution that best fits your business needs.
Frequently Asked Questions
Is Business Central better than NetSuite?
Whether Business Central is better than NetSuite depends on your business’s specific needs. Business Central is often preferred by businesses looking for a more modular, cost-effective solution that integrates seamlessly with other Microsoft products like Office 365, Power BI, and Power Automate. It’s great for SMBs that need a flexible, scalable system without overpaying for features they don’t need right away. NetSuite, on the other hand, may be a better fit for larger businesses or those with more complex financial, supply chain, and e-commerce needs, as it offers more robust features out-of-the-box. The key is to evaluate which system aligns with your growth goals and operational requirements.
What is the Microsoft alternative to NetSuite?
The Microsoft alternative to NetSuite is Dynamics 365 Business Central. Like NetSuite, Business Central is a comprehensive ERP solution that helps businesses manage finance, sales, operations, and customer service. However, Business Central stands out by offering deep integration with other Microsoft applications, making it a natural choice for companies already using Microsoft’s ecosystem. For larger enterprises with more complex needs, Dynamics 365 Finance & Supply Chain Management is another Microsoft alternative, comparable to NetSuite’s offerings for larger organizations.
Does Microsoft Dynamics integrate with NetSuite?
Yes, Microsoft Dynamics can integrate with NetSuite, although this typically requires third-party tools or custom development. For example, some businesses may use NetSuite for financial management and Dynamics 365 for CRM and customer service. While it’s possible to integrate the two, many businesses find it more efficient to work within one unified system to reduce complexity and fragmentation.
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