Dynamics 365 Explained: The Complete 2026 Guide

Key Takeaways

• Dynamics 365 ERP is a family of separate cloud applications under one brand.
• One brand covers both ERP and CRM apps. ERP runs internal operations like finance and inventory while CRM manages customer relationships.
• Business Central fits small and mid-sized companies, while Dynamics 365 Finance and Supply Chain Management suit larger enterprises with more complex operations.
• MetaViewer’s AP automation connects to Dynamics GP, Business Central, and D365 Finance and Operations through MetaConnect, automating invoices without replacing the ERP.

Dynamics 365 ERP is Microsoft’s suite of cloud-based enterprise resource planning (ERP) applications for managing finance, accounting, supply chain, manufacturing, sales, and human resources. It includes products such as Dynamics 365 Finance, Dynamics 365 Supply Chain Management, and Dynamics 365 Business Central, each designed for different business sizes and operational requirements.

The challenge is that Dynamics 365 is a product family, not a single ERP application. Under the Dynamics 365 brand, Microsoft offers separate ERP, CRM, customer service, sales, marketing, and industry-specific applications. Understanding which product fits your business can be difficult without knowing how these applications differ.

This guide explains what Dynamics 365 ERP is, how the different Dynamics 365 applications compare, which products are designed for specific business needs, and how to determine the right solution for your organization. 

The Dynamics 365 ERP Family Tree

Dynamics 365 is a result of Microsoft bringing together several business applications that came from different product lines, including Dynamics GP, Dynamics NAV, Dynamics AX, and Dynamics SL.

The family tree below shows where the major Dynamics products came from, how they evolved into Dynamics 365 applications, and where each system fits in Microsoft’s current ERP strategy.

Caption: Legacy Dynamics systems and their current Dynamics 365 equivalents

The Current Dynamics 365 ERP Apps: Explained

The first step in choosing a Dynamics 365 ERP is identifying your primary business requirement. Whether you’re managing financial operations, manufacturing, retail, projects, or human resources, Microsoft offers a dedicated application for each. 

The sections below explain what each Dynamics 365 ERP application does and when it’s typically used.

1. Dynamics 365 Business Central

Dynamics 365 Business Central is Microsoft’s cloud ERP solution for small and mid-sized businesses that combines finance, accounting, sales, purchasing, inventory, project management, and light manufacturing in one integrated platform. It is the successor to Dynamics NAV.

2. Dynamics 365 Finance

Dynamics 365 Finance is Microsoft’s enterprise ERP application for managing financial operations, accounting, budgeting, reporting, and compliance across complex organizations with multiple entities, currencies, and global operations.

3. Dynamics 365 Supply Chain Management

Dynamics 365 Supply Chain Management is Microsoft’s ERP application for managing procurement, manufacturing, inventory, warehousing, planning, and distribution processes for organizations with complex supply chain operations.

4. Dynamics 365 Project Operations

Dynamics 365 Project Operations is Microsoft’s project management ERP application that helps organizations manage project sales, resource planning, project accounting, scheduling, and delivery from a single platform.

5. Dynamics 365 Commerce

Dynamics 365 Commerce is Microsoft’s retail ERP application that helps businesses manage online and in-store commerce operations, including retail sales, customer engagement, merchandising, inventory, and order management.

6. Dynamics 365 Human Resources

Dynamics 365 Human Resources is Microsoft’s HR management application that helps organizations manage employee records, benefits, leave, compliance, and workforce processes in a centralized system.

Caption: Dynamics 365 ERP Applications, Capabilities, and Ideal Use Cases

Dynamics 365 ERP vs. CRM: What’s the Difference?

The Dynamics 365 name becomes confusing because Microsoft groups ERP and CRM applications under the same umbrella. However, they solve different problems: 

ERP applications are built to manage the internal side of a business: 

• Finance
• Accounting
• Inventory
• Purchasing
• Supply chain, and 
• Operations. 

CRM applications focus on the external side: 

• Managing customer relationships
• Sales activities
• Marketing, and 
• Service interactions.

Understanding these differences makes it easier to identify the type of application your business needs. The table below summarizes the key differences:

Caption: How ERP and CRM Systems Differ

Which Dynamics 365 ERP Solution Fits Your Business?

The right Dynamics 365 ERP fit depends on factors such as your company size, number of entities, industry requirements, operational complexity, and how much flexibility your teams need.

For many small and mid-sized businesses, Dynamics 365 Business Central is the natural starting point. It provides core ERP capabilities across finance, sales, purchasing, inventory, and operations without the complexity of an enterprise platform. 

Organizations moving from legacy systems such as Dynamics NAV or looking to replace disconnected accounting tools often evaluate Business Central as their next step.

Larger organizations with more complex requirements typically look toward Dynamics 365 Finance and Dynamics 365 Supply Chain Management. These applications are designed for companies managing multiple legal entities, global operations, advanced financial processes, manufacturing, distribution, and complex supply chains.

A simple way to think about the options:

Caption: Dynamics 365 ERP Solutions Mapped to Common Business Needs

Organizations using Dynamics NAV typically evaluate Business Central because it continues that product lineage. 

Companies running Dynamics AX usually move toward Dynamics 365 Finance and Supply Chain Management. Dynamics GP users have a different decision point, as they evaluate whether to remain on GP longer or plan a transition to another ERP platform.

The ERP decision should also consider the processes surrounding the system. Areas such as accounts payable, document management, reporting, and integrations often determine whether a new ERP delivers the expected value after implementation. A system that fits your business requirements on paper still needs the surrounding workflows and connected applications to work together in practice.

How Dynamics 365 Integrates With Microsoft’s Business Ecosystem

Dynamics 365 connects with tools such as Microsoft 365, Excel, Outlook, Teams, Power BI, Power Automate, Power Apps, and Dataverse. These integrations help teams access ERP data in familiar workflows instead of switching between disconnected systems.

For example, finance teams can analyze ERP data through Power BI dashboards, collaborate around financial information in Teams, and work with data exports and analysis in Excel. Organizations can also use Power Automate to build workflows and automate processes that extend beyond the ERP itself.

Caption: How Dynamics 365 Connects With Microsoft Tools

However, integration alone does not guarantee a smooth operation. Businesses still need to evaluate how connected systems such as AP automation, document management, reporting tools, and industry-specific applications will work with their Dynamics environment. These supporting systems often determine how efficiently teams can use the ERP after implementation.

How MetaViewer Adds AP Automation to Dynamics

MetaViewer adds AP automation to Dynamics ERP without requiring you to replace your existing system. Whether you run Dynamics GP, Dynamics 365 Business Central, or Dynamics 365 Finance, it automates invoice capture, approval workflows, document management, and invoice visibility through MetaConnect™.

Accounts payable challenges remain largely the same across Dynamics environments. Invoices arrive through multiple channels, approvals rely on manual follow-up, and finance teams spend valuable time tracking invoice status instead of focusing on higher-value work.

Moving to a newer Dynamics ERP doesn’t automatically improve these processes. AP workflows often remain manual unless they’re redesigned alongside the ERP implementation. The table below shows how MetaViewer supports AP automation across different Dynamics ERP applications.

How MetaViewer Supports Different Dynamics ERP Applications:

Caption: How MetaViewer Supports Different Dynamics ERP Environments

The ERP remains the system of record, while MetaViewer handles the manual work that surrounds it.

1. How AP Processes Change with MetaViewer

MetaViewer replaces repetitive AP tasks with automated workflows and real-time visibility. Finance teams can move from manual invoice handling to a more controlled, touchless process:

The table below compares how day-to-day invoice processing changes after implementation

Caption: Before and After AP Automation With MetaViewer

2. Key AP Automation Capabilities for Dynamics Users

Whether you’re using Dynamics GP, Business Central, or Dynamics 365 Finance, the following capabilities help reduce administrative work while giving your team greater visibility into the Accounts Payable process: 

• Intelligent Invoice Capture: MetaViewer uses AI-powered OCR and intelligent recognition to extract invoice data, including vendor details, invoice numbers, line items, and amounts. This reduces manual entry and improves accuracy before information reaches your ERP.
• Automated Approval Workflows: Instead of manually forwarding invoices or tracking approvals through email, MetaViewer routes invoices based on rules such as department, amount, vendor, or purchase order requirements.
• ERP-Connected Processing: Through MetaConnect™, MetaViewer integrates with Dynamics GP, Business Central, and Dynamics 365 Finance and Operations, allowing invoice data and documents to flow between AP processes and your ERP.
• Real-Time Invoice Visibility: Finance teams can quickly see where an invoice is in the process, whether it is waiting for approval, ready for payment, or already posted. This makes vendor inquiries easier to answer and reduces approval bottlenecks.
• Centralized Document Management: Invoices and supporting documents remain connected to the financial records they support, making retrieval faster for audits, compliance checks, and internal reviews.

Why AP Automation Matters During a Dynamics Migration

For organizations moving from older Dynamics platforms such as GP or NAV, AP automation can be part of the migration strategy rather than an afterthought.

Stabilizing invoice processes before a migration helps organizations:

• Document existing approval workflows before they change
• Reduce dependence on manual processes and individual knowledge
• Maintain visibility during the transition
• Carry cleaner AP processes into the new ERP environment

A new ERP can modernize your financial system, but automation ensures the day-to-day processes around that system work efficiently too.

Get More Value From Your Dynamics ERP Investment

Dynamics 365 is a family of applications designed for different business requirements. Understanding how products such as Business Central, Finance, and Supply Chain Management fit together makes it easier to choose an ERP that aligns with your organization’s size, operations, and long-term goals.

However, selecting the right ERP is only part of the equation. The efficiency of your finance operations also depends on the processes that surround it. If invoice processing, approvals, and document management remain manual, many of the benefits of a modern ERP can be lost to unnecessary administrative work and limited visibility.

Schedule a demo with MetaViewer today!

FAQs

1. How early should I start planning a Dynamics GP migration?

Ideally, begin planning 12–18 months before your target go-live date. This gives you enough time to evaluate ERP platforms, clean and validate data, test integrations, train users, and avoid rushing the project around critical financial periods.

2. Should I migrate every historical transaction from Dynamics GP?

Not necessarily. Many organizations migrate only open transactions, master data, and recent financial history while archiving older records in a read-only repository. This reduces migration complexity without sacrificing audit or compliance requirements.

3. What are the biggest reasons ERP migrations exceed budget?

The most common causes include underestimated customizations, poor data quality, scope changes during implementation, additional ERP modules, and rebuilding integrations that weren’t identified during project planning.

4. How can I prepare employees for a new ERP system?

Involve business users early in requirements gathering, testing, and training. Giving finance, AP, and operations teams hands-on experience before go-live improves adoption and helps uncover workflow issues before they affect daily operations.

5. What should I do with legacy reports after leaving Dynamics GP?

Review which reports are still actively used before migration. Some can be recreated in your new ERP, while others may be better retained in a reporting or document archive if they’re only needed for audits or historical reference.

6. How do I measure whether my ERP migration was successful?

Success goes beyond completing the migration on time. Track metrics such as financial close time, invoice processing efficiency, user adoption, reporting accuracy, system performance, and reductions in manual work during the months following go-live.