Dynamics 365 F&O vs BC - Which ERP solution is right for you?

Inciper are frequently asked the question, what are the main differences between Dynamics Business Central (BC) and Dynamics Finance and Operations (F&O)?

Both Dynamics BC and Dynamics F&O are products within Microsoft's Dynamics suite of Enterprise Resource Planning (ERP) products, with both solutions offer similar features and capabilities, but there are some differences in their applications, functionality and intended user-base.


  1. Target market:

Dynamics BC targets small and medium-sized enterprises (SMEs) with 10-500 employees. Whilst Dynamics F&O can be suitable for growing enterprises it typically targets larger enterprises with more than 500 employees.

  1. Focus on specific industries:

Both Dynamics BC and Dynamics F&O are designed for a broad range of industries. Dynamics F&O has a deeper focus on manufacturing, supply chain management, retail, and distribution industries.

  1. Deployment options:

Dynamics BC is still offered for both cloud-based and on-premises deployment models. Dynamics F&O is now only available as a cloud-based service.

  1. User interface:

Dynamics F&O has a highly configurable user interface supported by advanced configuration. Dynamics BC offers a simpler user interface that is also simpler to configure.

  1. Functionality:

Dynamics F&O has a greater breadth and depth of function, such as batch order processing, quality control, and warehouse management, compared to Dynamics BC.

  1. Reporting capabilities:

Dynamics F&O has a range of advanced financial and analytical reporting capabilities that are designed for larger multinational enterprises. Dynamics BC focuses more on basic financial reporting.

  1. Cost:

Dynamics F&O has a higher cost than Dynamics BC due to its broader and deeper functionalities, customisation options, and infrastructure requirements.


While both Dynamics BC and Dynamics F&O are powerful ERP solutions, Dynamics BC is designed for SMEs with simpler needs while Dynamics F&O is focused on larger and more complex organisations, with more diverse needs.

Want to know more? Download our new eBook - A Comparison of the major ERP offerings from Microsoft.

Dynamics 365 ERP - BC vs F&O

A comparison of the major ERP offerings from Microsoft

Dynamics 365 ERP - BC vs F&O

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