Microsoft Dynamics 365 Business Central – All Features

Dynamics 365 Business Central is a comprehensive business management solution designed specifically for small and mid-sized organizations. It automates and streamlines various business processes, including finance, sales, purchasing, inventory, project management, services, and more. Business Central is highly adaptable and customizable, allowing companies to add functionality that is relevant to their region of operation and specialized industries. It is also fast to implement, easy to configure, and user-friendly. Below are the main modules covered in Dynamics Business Central: 

  • Finance
  • Purchase
  • Inventory
  • Project Management
  • Fixed Asset Overview
  • Relationship Management
  • Human Resources
  • Production Planning
  • Assembly Management
  • Manufacturing
  • Warehouse Management
  • Service Management


The finance module of Business Central offers a standard configuration for most financial processes, which can be easily customized to suit the specific needs of a business. It includes a chart of accounts and standard posting groups that make it easier to assign default general ledger posting accounts to customers, vendors, and items. Financial reporting and analytics in Business Central enable financial and business professionals to create, maintain, deploy, and view financial statements, going beyond traditional reporting constraints to help efficiently design various types of reports.

Managing receivables is an essential part of any financial rhythm. Business Central simplifies the process by allowing you to reconcile bank accounts and apply incoming payments to customer or vendor ledger entries to close sales invoices and purchase credit memos as paid. Sales module of Business Central allows you to create sales invoices or sales orders to record your agreement with a customer to sell certain products on certain delivery and payment terms. Sales orders must be used when parts of an order quantity are shipped, and items are sold directly from vendors to customers as a drop shipment.


The purchasing module of Business Central allows you to create purchase invoices or purchase orders to record the cost of purchases and track accounts payable. Purchase orders must be used if partial receipts of an order quantity are recorded, and items are sold directly from vendors to customers as a drop shipment. To simplify the process, Business Central allows you to have purchase invoices created automatically by using the OCR service to convert PDF invoices from your vendors to electronic documents.


The inventory module of Business Central allows you to create an item card of the Inventory type for each physical product you trade in. You can increase or decrease the quantity of an item in inventory by posting directly to the item ledger entries or posting purchase and sales documents. Transfers between locations change inventory quantities across your company’s warehouses. You can categorize items and give them attributes to search and sort by.

Project Management

Project management module of Business Central enables you to perform common project management tasks, such as configuring a job and scheduling a resource, and providing the information needed to manage budgets and monitor progress. You can track machine and employee hours on the project by using time sheets. Business Central also allows project managers to have a good overview, not only of individual jobs, but also of the allocation of employees, machinery, and other resources being used in all projects.

Fixed Assets 

The Fixed Assets functionality in Business Central provides a comprehensive overview of the fixed assets in your company and ensures accurate periodic depreciation. It allows you to track maintenance costs, manage insurance policies, post fixed asset transactions, and generate various reports and statistics. You must set up a card for each fixed asset containing its relevant information. You can group them by class, department, or location, and even set up budgeted assets to include anticipated acquisitions and sales in reports. Business Central supports several depreciation methods, and you can set up multiple depreciation books per fixed asset for different purposes, such as tax reporting or internal reporting.

Relationship Management

Business Central’s Relationship Management features assist in managing and supporting your sales efforts. These features provide complete and accurate information, allowing you to focus on preferred customer/contact segments. By setting up the marketing area to manage certain aspects of your contacts, you can decide whether to synchronize the contact card with other relevant cards, define number series, or establish a standard salutation. Properly managing your contacts and having a strategy in place to identify, attract, and retain customers will optimize your business and increase customer satisfaction.

Human Resources

Business Central allows you to maintain detailed records of your employees, such as employment contracts, confidential information, qualifications, and employee contacts. You can also register employee absences to analyze them as necessary. To start using the Human Resources functionality, you must set up employees and other basic information. You can then associate various codes with an employee, allowing you to filter information for specific employees.

Production Planning

Business Central offers features to plan for anticipated and actual demand from sales, assembly, and production, as well as features for distribution planning using stockkeeping units and location transfers. Planning involves balancing demand and supply to ensure timely and cost-efficient production. Demand refers to any gross requirement, such as sales orders or forecasts, while supply refers to any replenishment, such as inventory, purchase orders, or production orders. The planning system also ensures that inventory does not grow unnecessarily and suggests actions to take in the case of decreasing demand.

Assembly Management

Business Central includes features to assemble items that integrate with existing features, such as sales, planning, reservations, and warehousing. An assembly item is a sellable item that contains an assembly BOM. Assembly orders are internal orders, used to manage the assembly process and connect sales requirements with warehouse activities. The link between the sales demand and assembly supply allows for customization of the assembly item on the fly, promise delivery dates according to component availability, and direct posting of output and shipment of the assembled item from the sales order interface. You can sell a combination of quantities available from stock and quantities to be assembled on one sales order line, and certain rules govern the distribution of such quantities.


Business Central’s manufacturing functionality requires planning for demand and issuing materials according to production BOMs before actual production operations can begin. Output posting can be done manually or automatically with backward flushing. Before production begins, various setups such as work centers, routings, and production BOMs must be made.

Warehouse Management

Business Central provides features to ensure effective flow through the warehouse and to organize and maintain company inventories. Warehouse activities include putting items away, moving items inside or between warehouses, and picking items for assembly, production, or shipment. Before performing warehouse activities, you must set up the system for relevant warehouse processing.

Service Management

Providing ongoing service to customers is important for customer satisfaction, loyalty, and revenue. Business Central offers tools to support repair shop and field service operations in various business scenarios. These tools enable scheduling of service calls, tracking of repair parts and supplies, assigning of service personnel based on skill and availability, and providing service estimates and invoices. Additional features include standardizing coding, setting up contracts, implementing discounting policies, and creating route maps for service employees. Service management involves configuring and setting up the system, as well as using it for pricing, contracts, orders, personnel dispatch, and job scheduling.

Business Central offers dedicated functionality for typical business areas, such as finance and sales. Various general business functionalities are available to support these tasks, such as defining extended text for document lines and organizing connecting business tasks in workflows. Business Central has a combined localization strategy that includes both Microsoft-led and partner-led models. The section on local functionality describes features that apply to the countries where Microsoft provides regulatory compliance and other local functionality, Localization apps developed by Microsoft partners are also available for other markets and regions, which can be found in AppSource.

In summary, Dynamics 365 Business Central is a comprehensive business management solution that provides various modules such as finance, sales, purchasing, inventory, project management, services, and more. With its highly adaptable and customizable features, Business Central allows companies to manage their business more efficiently, simplify complex business processes, and increase productivity.

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