We recently published an article highlighting the 5 Best Cloud Manufacturing ERP systems, and it sparked our curiosity to dive deeper into some of the products that are frequently mentioned alongside Microsoft Dynamics 365 Business Central.
Choosing the best ERP software for manufacturing businesses can be challenging, but selecting the right solution—whether it’s Microsoft Dynamics 365 Business Central vs SAP Business One—can dramatically improve operational efficiency, reduce costs, and optimize your supply chain.
In this article, I will try my best to provide an unbiased comparison of Business Central and SAP Business One. However, it’s important to note that my company, Sabre Limited, specializes in implementing Business Central for manufacturers, which does introduce a bias. I’ll do my best to avoid too much of my own opinion.
By the end of this guide, you should have a clearer understanding of how each system can align with your business goals to help you make an informed decision.
Introduction to SAP Business One for Manufacturing
SAP Business One is the ERP from the German software house, SAP. The huge difference between SAP B1 and SAP ERP or SAP S/4HANA is the size of the target customer. B1 is designed for small and medium-sized businesses. S/4HANA is designed for huge corporations that are generating billions of dollars in revenue.
The cover charge to get into the ‘SAP S/4HANA bar’, is $5 million. The cover charge to get into the ‘SAP B1 bar’, is $100,000.
SAP Business One is positioned as an ERP for small to medium-sized businesses. However, it might not always be the best fit for a small to medium-sized manufacturing company.
Note: SAP Business One is primarily an on-premise ERP solution with cloud-hosted options available, but it is not a cloud-native platform built exclusively for the cloud environment.
Additionally, while SAP Business One includes basic manufacturing functionalities, it may not fully cover complex manufacturing processes out of the box. Manufacturers comparing Business Central vs SAP Business One should be aware that they might need to integrate additional modules or third-party extensions with SAP Business One to meet all their manufacturing requirements.
This is technically true for Business Central as well, but the core Business Central features for manufacturing are much more robust than the SAP B1 features. The Business Central addons are more peripheral than core. The SAP addons are core manufacturing.
Benefits of SAP Business One:
- Highly customizable to suit diverse business needs
- Powered by the robust SAP HANA database for advanced business analytics
- Has strong core financial capabilities out of the box
- Supports multi-currency transactions for global operations
- Well-documented with detailed guides and resources
Challenges of SAP Business One:
- Core manufacturing is often insufficient and requires addons or customization
- It is quasi-cloud but technically not a true cloud ERP
- Doesn’t have automatic upgrades (see above)
- Lacks pricing transparency
- Experience with SAP S4/HANA is not translated to Business One (most employees look like they have SAP experience but it’s not the same as Business One)
- Although popular, is not growing as quickly as Business Central
NOTE: The faster a system is growing, the faster new features, addons, etc. will roll out
Introduction to Business Central for Manufacturing
Business Central is Microsoft’s ERP solution for small to medium-sized businesses. It does a great job of handling the requirements of manufacturing companies. Usually manufacturing companies need Premium user licenses for manufacturing capabilities.
Business Central is an excellent ERP solution for small to medium-sized manufacturers, particularly those already familiar with Microsoft products. Its seamless integration and reduced learning curve make it an ideal choice for businesses seeking efficiency and ease of use. Plus, Business Central is a cost-effective ERP.
ASIDE: Learn more about Business Central Pricing.
Benefits of Business Central:
- Cloud Native ERP
- More cost-effective compared to other leading ERP systems
- Hosted in state-of-the-art Microsoft Azure data centers
- Very easily customized
- Access over 5,500 apps from AppSource to enhance functionality
- Intuitive Microsoft interface minimizes training time
- Transparent, publicly posted pricing
Challenges of Business Central:
- May require additional apps to support specific manufacturing processes
- There is a tendency to over-customize, leading to support problems later
- Microsoft relies on AppSource partners for many functional areas, resulting in more addons being used than most competitors
- Implementation service quality can vary significantly
Key Differences Between Business Central vs SAP B1
When comparing SAP Business One vs Business Central, there are several significant differences that might impact your decision. Both platforms offer robust features and functionalities, but the way they deliver these capabilities can vary considerably.
The choice you make will depend on several factors, including your customization needs, budget constraints, user-friendliness requirements, integration capabilities, and the depth of reporting you require.
The top six differences between Business Central and SAP Business One include:
- Customization
- Pricing
- Interface
- Addons
- Reporting
- Implementation
Below, we’ll explore these differences in depth to help guide your decision-making process.
1. Customization: SAP Business One offers customization options but may require more technical expertise. On the other hand, Business Central provides extensive customization capabilities through personalization features, extensions, Power Platform, and AppSource marketplace apps.
2. Pricing: SAP Business One doesn’t offer standard subscription tiers or flat rates. Instead, SAP tailors the solution to each business’s unique needs, providing customized quotes based on specific requirements. This can make it difficult to research the product and understand budgetary information. On the other hand, Business Central offers transparent, subscription-based pricing – Essentials and Premium licenses. This makes it very easy to calculate your ERP budget.
3. Interface: SAP Business One features an older and more traditional interface that newer users may find less intuitive. It’s functional and can be customized to some extent. Business Central boasts a modern, intuitive web-based interface that’s easily customizable. There are also native apps for iPhone, iPad, Android, and many other devices. Users can personalize their role centers and navigate efficiently.
4. Addons: SAP Business One has the SAP Business One Integration Hub, which helps connect cloud-based applications and services to the platform. This is an integration-oriented model. Business Central offers a wide range of third-party addons through Microsoft AppSource. Addons are embedded in the application, this is considered a better approach.
5. Reporting: The SAP Business One reporting tools perform well when minimal customization is needed. Reporting in SAP Business One uses older technology platforms. Some users find the reports rigid and visually lacking. Business Central, on the other hand, offers robust reporting capabilities using modern reporting techniques such as native Power BI.
6. Implementation: SAP Business One training providers are certified by SAP and required to maintain a certain level of capabilities. The subscription nature of Microsoft makes it easier for partners to sell Business Central but makes it harder for Microsoft to audit their capabilities. The quality of Business Central partners varies more. People considering Business Central need to research their partner selection carefully.
Manufacturing Product Features
Let’s take a minute to compare the manufacturing product features that come in the base products: Microsoft Dynamics 365 Business Central vs SAP Business One.
| Feature | Business Central Essentials | Business Central Premium | SAP Business One |
|---|---|---|---|
| Unlimited Users | ✔ | ✔ | ✔ |
| Customization | ✔ | ✔ | ✔ |
| Multiple Environments | ✔ | ✔ | ✔ |
| Multiple Companies | ✔ | ✔ | ✔ |
| Finance Management | ✔ | ✔ | ✔ |
| Sales & Marketing | ✔ | ✔ | ✔ |
| Fulfillment & Delivery | ✔ | ✔ | Add-on is Needed |
| Purchasing & Payables | ✔ | ✔ | ✔ |
| Reconciliations | ✔ | ✔ | ✔ |
| Inventory Tracking | ✔ | ✔ | ✔ |
| Supply Planning & Availability | ✔ | ✔ | Supply Chain Management (SCM) Module Needed |
| Project Management | ✔ | ✔ | ✔ |
| Warehouse Management | ✔ | ✔ | ✔ |
| Service Management | X | ✔ | SAP Field Service Management Needed |
| Manufacturing (Assembly management, standard cost worksheet, production bill of materials, basic capacity planning, machine centers, version management, production orders, and finite loading) | X | ✔ | Supply Chain Management (SCM) Module Needed |
Most manufacturing companies can efficiently run their operations with Business Central Premium licenses. However, the same doesn’t hold true for SAP Business One.
A manufacturer requiring supply chain management and manufacturing capabilities would need to purchase the Supply Chain Management module, along with an additional add-on for fulfillment and delivery.
As these extra modules and add-ons are necessary, the cost of SAP Business One quickly begins to add up. I contacted SAP asking about pricing for purchasing additional modules and was told that any pricing would be handled by SAP implementation partners and the SAP Specialist Team.
“The majority of the budgeting is handled by our implementation partners in collaboration with the SAP Specialist Team. This topic is discussed later in the purchasing process. Unfortunately, I don’t have any information on that at the moment. I apologize for any inconvenience.”
Pricing and Licensing (Business Central vs SAP Business One)
Business Central licenses are priced for a month-to-month subscription, so to keep things consistent I’ll use a monthly cost to compare the two ERPs.
While SAP Business One licenses can be purchased as a monthly subscription or perpetual licensing, we will only cover the monthly costs in this article. You can read more about SAP Business One perpetual license pricing on Clients First website.
It is also important to note that SAP Business One licenses vary depending on whether they are cloud or not, user type, and user count.
| Feature | Business Central (per user/month) | SAP Business One (per user/month) |
|---|---|---|
| Essential License | $70 | N/A |
| Premium/Professional License | $100 | $108 |
| Implementation Costs | Similar in price | Similar in price |
| Cloud Hosting Fees | Included in the subscription | The pricing of cloud hosting varies depending on the model, subscription type, user count, and deployment. |
Keep in mind, pricing can vary based on deployment, support, user count, and addons for your specific business needs. Pricing for ERP systems can be complex. Check out our in-depth article that explores how to achieve a Business Central affordable implementation.
User Reviews and Ratings
Below is an overview of the overall ratings for Business Central and SAP Business One from Gartner, G2, Capterra, Forbes, and TrustRadius.
| Website | Business Central | SAP Business One |
|---|---|---|
| Gartner | 4.2/5 ⭐ | 4.2/5 ⭐ |
| G2 | 3.9/5 ⭐ | 4.3/5 ⭐ |
| Capterra | 4.0/5 ⭐ | 4.3/5 ⭐ |
| Forbes | 5.0/5 ⭐ | 4.5/5 ⭐ |
| TrustRadius | 3.8/5 ⭐ | 4.0/5 ⭐ |
To keep things fair and unbiased, I only included the sites that had reviewed both ERPs. Interestingly, SAP Business One does beat Business Central in user reviews quite a few times. This might be due to the quality of the implementation teams being more reliable.
SAP Business One is Not a Cloud ERP
My definition of a cloud ERP means that it checks the box on these four criteria:
- Runs on many devices natively
- Server-less
- Upgrades are seamless and automated
- Includes an App Store
By this definition, SAP Business One is not a cloud ERP. It does not satisfy bullet one “there are no mobile and tablet device clients.” It also does not satisfy bullet three, “ERP upgrades are seamless and automated.”
If you’re still researching ERP systems, be sure to read our other comparison articles:
Conclusion: Business Central vs SAP Business One
Ultimately, choosing between Business Central vs SAP Business One depends on your specific needs, budget, and the complexity of your manufacturing operations. If you need a highly scalable, cloud-based solution with seamless Microsoft product integration, Business Central is likely the best choice. However, if you prioritize robust financial and inventory management in a more traditional ERP setup, SAP Business One may be a better fit for smaller manufacturers.
At Sabre Limited, I’ve helped numerous manufacturers implement Business Central, leveraging its strengths to optimize their operations. If you’d like to learn how Business Central can transform your manufacturing business, feel free to contact us for a free consultation.
