Migrating from Dynamics GP to Dynamics 365

For businesses using Microsoft Dynamics GP, the conversation around modernization and cloud migration is becoming more urgent. With Microsoft’s recent announcements on GP’s end of life and the shift towards Dynamics 365 Business Central (D365 BC), many organizations are evaluating their options. While GP has been a reliable on-premises ERP system, its limitations in scalability, integration, and cost-effectiveness make it challenging for modern businesses to keep up. Migrating to Microsoft Dynamics 365 Business Central offers a powerful alternative, providing automation, cloud-based access, and seamless integration with the broader Microsoft ecosystem.

Discover the Velosio Difference

As one of the largest and most trusted support partners for Dynamics GP, SL and D365 BC, we want to prove it to you. Get 8 hours of free training or support trial to make the decision that much easier.

Get Started

Why Migrate to Dynamics 365 Business Central?

Many organizations using Dynamics GP face common challenges such as:

Strained growth – GP struggles to handle increasing transaction volumes, requiring workarounds that slow processes.
Disconnected systems – Lack of integration with other business applications hinders remote work and collaboration.
Limited reporting capabilities – Many GP users find reporting cumbersome, delaying critical decision-making.
High maintenance costs – On-premises systems require costly infrastructure, IT support, and manual upgrades.

The Benefits of Migrating to Business Central

Cloud environment enables anywhere/anytime access (on the road, at home, in the office) from any device (Microsoft, iOS, Android). This is particularly helpful for inquiries and access to dashboards to check on order status and customer info.
Streamlined business processes with two-way access between Business Central and any Office app, Outlook, OneDrive, and Teams. When in Teams, for example, users can access and share ERP info. They can also embed Power BI reports into Business Central and email quotes, invoices, purchase orders, and service updates through the link to Outlook.
Dimensional foundation allows for multi-level reporting that goes beyond the segmentation of the chart of accounts in GP. You can report at multiple levels in the organization (department, division, business unit) to analyze activity in a particular dimensional area such as GL transactions or by customer, project, or vendor.
Advance inventory and warehouse capabilities let you build a structure for processes to handle receiving, shelving, picking, and shipping so the warehouse team can work more efficiently and increase throughput.
Personalized roles facilitate a more efficient work environment. You can set things up the way your team works with the ability to modify screens, hide fields/columns or move them around, or add fields. You can also create roles to show screens pertaining to each person’s job responsibilities.

How to Migrate Data from GP to Dynamics 365 Business Central

GP users can migrate to Business Central using Microsoft’s built-in migration tools to move data into the cloud. The migration wizard can only be used with GP versions 2015 or later. So, if you’re using an older version, you’ll need to upgrade to GP 2015 first–or opt for a full implementation instead.

You’ll also need to ensure that your on-prem system is using a version of SQL Server 2016 or later. And, you’ll need to make sure your current database has a compatibility level of 130 or higher before getting started.

Beyond the system requirements, here’s a look at what’s involved in bringing your GP data into BC:

Using the Data Migration Wizard

This tool simplifies the process of bringing GP data into the new system. It’s designed for a one-time move away from your on-prem system for companies ready to start using BC as their primary solution.

The cloud migration tool brings the following GP data into the cloud:

Chart of Accounts master records
Customer records & outstanding transactions from the Receivables module
Vendor master records & outstanding transactions from the Payables module
Inventory items
Checkbook master data
Historical data from Inventory, Payables, Receivables, PO processing, and Sales Order processing

Do note that this tool doesn’t migrate everything from your on-prem system.

For example, the wizard doesn’t migrate data related to closed transactions, POP, SOP, & Manufacturing transactions. It also doesn’t migrate the breakdowns of the accounts. In that case, totals are recorded in the account number. So, if you want to distribute them across different segments, you’ll need to create journal entries.

Migrating the Rest of Your Data to Business Central

Here’s a look at some of the other ways you can move critical financial data to the cloud:

Migrate with RapidStart. The RapidStart service allows you to import transactional data not covered by the wizard. Users can create Configuration Packages in Excel to migrate transactions, batch create journal entries, and create quick-start templates to help you set up the new system faster.

Move the GP database to Azure Data Lake. When you upgrade from GP to the cloud, you’ll need to make a decision about what happens with your historical data. Moving your database to Azure Data Lake allows you to securely store data in the cloud for later review/use. You don’t necessarily have to use a data lake, but it allows you to access historical data that wasn’t migrated with the wizard.

You can then set up Azure Data Factory to re-host data in the cloud and use Azure’s pre-built connectors to automate the process of integrating data from ISV solutions with Dynamics 365.

Replicate GP data with the intelligent cloud. The replication process allows you to store GP data in the BC tenant in the cloud. This allows you to access GP data from Business Central, but you’ll still need to perform data entry in the on-prem system and update the system manually or by scheduling them in advance. It’s better to look at this solution as temporary–it allows you to start using financial data in the cloud as you finish up the migration process/figure out what you want to do with your historical data.

Finally, it’s worth noting that you can still keep GP data on-prem to maintain historical records.

GP Migration Methods and Tools

Microsoft provides several tools to assist with migration:

Cloud Migration Tool – Moves master records and open transactions to Business Central, best for organizations ready for a full transition.
Intelligent Cloud Replication – Syncs GP data to Business Central on a scheduled basis, allowing businesses to gradually adapt.
RapidStart Services – Enables batch data migration via Excel, ideal for importing historical transactions and custom records.
Azure Data Lake – Stores historical GP data in a cloud environment for long-term access without burdening the ERP system.

Challenges You Might Experience During Migration

While moving to the cloud represents a significant step toward business transformation, it’s not a straightforward path–and there’s a lot that can go wrong.

Here are some of the biggest challenges you can expect to face during the Microsoft GP to Dynamics 365 migration journey:

You May Need Workarounds to Replace GP Functionality

GP relies on 3rd-party integrations and customizations that introduce many layers of complexity to the ERP system.

Business Central has largely eliminated the challenges that come with managing multiple solutions at a time–though automation, streamlined customization development, and a more robust suite of tools out-of-the-box.

However, you won’t reap those benefits until you deal with your legacy system. In the short term, that complexity adds extra time and resources to updates and upgrades.

The big challenge here is, you’ll need to untangle existing customizations and integrations and figure out which have been replaced with BC features and where gaps still exist.

While Dynamics 365 covers most of the basic functionalities you’ll find in GP out-of-the-box, you may find that some core features are missing.

For example, BC doesn’t include payroll processing out-of-the-box and the Account Schedules tool is not as robust as GP’s Management Reporter. If core GP features aren’t included in the new system, you may need to invest in an ISV solution or 3rd-party apps to fill in those gaps.

Adapting to New Functionality

One of the key advantages of Dynamics 365 is that it makes it easier for all users to pull reports and customize individual apps. For example, its “dimensional accounting” capabilities and embedded intelligence simplify the process of managing and analyzing financial data.

Essentially, Dimensions allow you to look at the full picture and make more informed decisions about how to allocate resources, purchase inventory, and course-correct the parts of the strategy that just aren’t working.

At the same time, those changes might still be hard to get used to–especially for GP users with decades of experience. If your team is overwhelmed by these changes, you may want to take a phased approach to migration, and transition them one process at a time.

Converting GP Financial Records to Dynamics 365

Moving data from GP to D365 isn’t a one-off event, it’s a multi-step process that often takes place over the course of several smaller migrations. The process is clunky, in part, because it’s not a true upgrade. You’re working with two separate systems.

Which means, the data migration wizard can only do so much when it comes to bringing financial records into the cloud.

Again, it only migrates open transactions and master records and leaves out a lot of critical information that you’ll need to implement through other means. Luckily, solutions like Azure Data Lake & Data Factory and the intelligent cloud make this a bit easier. But, you’re still looking at a complicated process you’ll need to start mapping out from the very beginning.

Post-Migration Considerations

Once migration is complete, businesses should:

Conduct an annual system assessment to align Business Central with evolving business needs.
Take advantage of Microsoft’s Power Platform (Power BI, Power Automate, and Power Apps) for automation and analytics.
Regularly update workflows and user permissions to optimize system performance and security.

Final Thoughts

Migrating from Dynamics GP to Business Central is more than a technical upgrade—it’s a strategic move toward a more agile, scalable, and cost-effective ERP system. With the right preparation, tools, and support, businesses can unlock the full potential of Business Central and position themselves for long-term success in the cloud era.

Frequently Asked Questions (FAQ)

Why is Microsoft discontinuing support for Dynamics GP?
Microsoft is focusing its ERP strategy on cloud-based solutions like Dynamics 365 Business Central. While Dynamics GP has served businesses for many years, it was built on older architecture that doesn’t integrate well with modern cloud-based solutions. Microsoft sees cloud ERP as the future, offering scalability, flexibility, and better long-term security.

The Right Microsoft Partner Can Drive Business Success

How should I start planning for this transition?
The first step is to start budgeting for a migration in 2025 or 2026, as it can be a lengthy process. Velosio’s ClearPath Consultation Program is available to help you assess your needs, understand your options, and guide you in creating a customized migration plan that fits your timeline, budget, and business goals.

Will I still be able to use Dynamics GP after 2029?
Yes, you will still be able to use Dynamics GP after 2029, but without support from Microsoft. This means no new updates, technical support from Microsoft, and minimal security updates, limited only to critical issues, until 2031 which could leave your system vulnerable to security risks and operational inefficiencies.