Dynamics 365 Business Central vs SAP Business One is a common comparison for growing businesses trying to find an ERP that fits both their current needs and future plans.

Both of these ERPs are proven systems, both support manufacturing, and both give much more control than older on-premise setups or spreadsheet-driven operations.

But they’re not built for the same kind of business.

SAP Business One has long been famous among small manufacturers for its stable running, structured processes. Microsoft Dynamics 365 Business Central, on the other hand, has seen rapid adoption across the UK because of its cloud-native design, strong integration with Microsoft 365, and great ability to scale with growing operations.

As more manufacturers move toward cloud ERP and automation, this choice matters more than ever.

Let’s break down and compare how both systems work — in a practical, straightforward way.

Overview: What Each ERP Is Designed For

Microsoft Dynamics 365 Business Central

Business Central is a cloud-first ERP built for SMEs and mid-sized manufacturers. It offers finance, supply chain, production, inventory, warehouse, service, and reporting all in one place.

It’s flexible, easy to extend, and integrates seamlessly with tools most teams already use: Outlook, Excel, Teams, Power BI, and Power Apps.

Manufacturers choose it when they want:

• A cloud system that scales without big IT overhead
• Faster deployment and easier updates
• A modern UI that staff can pick up quickly

SAP Business One

SAP Business One is usually adopted by smaller manufacturers who want a stable ERP with essential manufacturing features.

It was originally designed for on-premises deployment, though cloud options exist through partners.

Manufacturers choose SAP B1 when they:

• Want a system for basic manufacturing and finance
• Don’t need complex workflows, multi-site operations, or heavy automation
• Can manage local servers or rely on partner-hosted cloud
  

Dynamics 365 Business Central vs SAP Business One: Core Capabilities for Manufacturers

Below is a practical comparison of Business Central vs SAP B1 features that matter to UK manufacturing firms today.

1. Manufacturing & Production Control

Business Central

Business Central supports discrete, process, and mixed-mode manufacturing.
It handles:

• production orders
• BOMs and routings
• finite capacity planning
• shop-floor data capture (via add-ons)
• subcontracting
• demand planning and forecasting

It also integrates well with Microsoft’s Power Platform for custom shop-floor apps.

SAP Business One

SAP B1 supports core BOMs, routings, production orders, and material requirements planning (MRP).
It’s reliable for simpler manufacturing, but scenarios involving:

• multi-level production
• multiple plants
• advanced planning and scheduling
• connected factory data

It usually requires third-party extensions.

2. Cloud ERP vs. On-Premises ERP Flexibility

Business Central

• Cloud-native with automatic updates
• No server maintenance
• Easy to scale from 5 users to hundreds
• Works smoothly across multiple locations
  

SAP Business One

• Originally built for on-premises; cloud is mostly partner-hosted
• Updates and patches depend on the partner
• Scaling to multiple sites can require extra infrastructure

Manufacturers aiming for a long-term cloud strategy usually lean toward Business Central.

3. Integrations & Customizations

Business Central

Manufacturers get native integrations with:

• Microsoft 365
• Power BI
• Power Automate
• Teams
• Azure services
• Shop-floor and WMS add-ons from AppSource

Customisation is easier through extensions, not code edits so upgrades stay smooth.

SAP Business One

SAP B1 does integrate with tools, but:

• integrations often rely on middleware
• customisation can affect upgrades
• real-time data connections require careful setup

For companies using Microsoft tools daily, Business Central offers a more straightforward ecosystem.

4. End-of-Support Concerns for SAP Business One

SAP has officially announced that older versions of SAP Business One (SQL version) will receive limited maintenance going forward, with a stronger push toward SAP HANA.

This raises concerns for manufacturers still running:

• SAP Business One SQL
• Heavily customised on-premise deployments
• older add-ons not compatible with new versions

Many UK SMEs are revisiting their long-term ERP plans because ongoing support, hosting, and upgrade costs are increasing.

Business Central, by comparison, receives twice-yearly updates directly from Microsoft, with no extra upgrade fees.

5. Business Central vs SAP Business One ERP Pricing & ROI

Business Central Pricing (UK)

Business Central typically costs less upfront and scales on a monthly subscription model. 

Manufacturers also reduce IT costs because there’s:

• no server hardware
• no upgrade projects
• fewer customisation issues

SAP Business One Pricing

Costs depend heavily on deployment type:

• on-premises requires servers and maintenance
• Cloud hosting is often handled by a partner
• upgrades can be costly, especially for older versions
  

ROI tends to come faster with Business Central, especially for multi-site manufacturers or those with growth plans.

6. Performance, Scalability & Future Growth

Business Central

Built for growing SMEs and mid-market firms.
Handles multi-company, multi-warehouse, multi-currency, and multi-location operations easily.

SAP Business One

Stable for small teams with simpler needs, but scaling beyond a certain point often requires:

• add-ons
• manual processes
• heavier partner involvement

Manufacturers planning expansion usually find Business Central more future-proof.

7. Implementation Experience

Business Central Implementation UK

• Faster deployment
• Cloud-first approach
• Modular rollout
• Easier user adoption
• Large network of UK partners like Dynamics Square
  

SAP Business One Implementation

• Depends heavily on partner hosting
• More complex upgrades if customisations exist
• On-prem setups require ongoing IT involvement

8. Business Central vs SAP Business One Licensing

Business Central

• Subscription-based licensing.
• Simple monthly per-user pricing with hosting and updates included.
• Easy to scale up or down as the business grows.

SAP Business One

• Uses traditional perpetual licences for most deployments.
• Upfront licensing plus annual maintenance and partner-hosted cloud fees.
• Scaling often increases long-term ownership costs.

For manufacturers wanting predictable costs and flexible growth, Business Central usually offers a cleaner and more modern licensing model.

Which ERP Should UK Manufacturers Choose in 2026?

If your manufacturing business is:

• growing
• multi-site
• focused on automation
• using Microsoft tools daily
• planning to move fully to cloud

Then, Dynamics 365 Business Central usually offers the better long-term path.

But if your business:

• is small
• has steady, predictable processes
• doesn’t need advanced planning or automation
• prefers a simpler manufacturing setup

then SAP Business One can still work well.

The real deciding factor is how much your business will grow and how much complexity you expect to manage over the next 3–5 years.

Ready to Evaluate Business Central for Your Manufacturing Operations?

If you’re comparing Dynamics 365 Business Central vs. SAP Business One and want practical guidance, our team can help you evaluate both options based on your processes, budgets, and growth plans.

Many UK manufacturers come to us when they outgrow SAP B1 or want a cloud ERP that scales without heavy IT work.

If you’d like a quick assessment or a walkthrough of Business Central:

Book a consultation with Dynamics Square UK.

We’ll help you understand what makes the most sense for your business today and in the long term.

FAQs

1. Which ERP is better for UK manufacturers: Business Central or SAP Business One?
Business Central fits growing or multi-site manufacturers better, while SAP B1 works for smaller firms with simpler needs.

2. Is SAP Business One being phased out?
Older SQL versions have reduced support, and SAP is pushing customers toward HANA, which means higher upgrade costs.

3. Is Business Central more modern than SAP B1?
Yes, Business Central is cloud-native with regular updates and deep Microsoft 365 integration.

4. Which is cheaper: Business Central or SAP Business One?
Business Central usually has lower long-term costs because there’s no server maintenance or expensive upgrades.

5. Can Business Central handle manufacturing complexity?
Yes, it supports BOMs, routings, capacity planning, forecasting, and subcontracting, and it integrates with APS and WMS tools easily.

See Also – Migrating from Sage 200 to Business Central , | Switching from QuickBooks to Business Central