ERPNext vs Dynamics 365 ERP

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Our analysts compared ERPNext vs Dynamics 365 ERP based on data from our 400+ point analysis of ERP Software, user reviews and our own crowdsourced data from our free software selection platform.

Product Basics

ERPNext is an open-source business solution that caters to small, medium and large-scale industries. It implements with minimum budget and resource usage, making it feasible for start-ups. It offers comprehensive processes to streamline retail management, track inventory, manage customers and increase ROI.

It has a multilingual website builder to manage content and eCommerce needs. It provides built-in integrations with Google, Slack, PayPal, Shopify and more to centralize business operations.
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Dynamics 365 ERP is a suite of cloud-based applications designed to optimize key functions such as finance, supply chain management, project operations, human resources, sales and customer service.

According to our data, it stands out in Customer Relationship Management (CRM) and Finance and Accounting in our product directory. It also delivers 81% of essential features out of the box, ensuring robust functionality. Its modular structure allows growing businesses to select and customize components to match specific needs.

Users praise Dynamics 365 ERP for its seamless CRM and ERP integration that simplifies workflows, enhances collaboration, and provides actionable insights through advanced analytics and AI-powered tools.

Dynamics 365 ERP offers a 30-day free trial for a few of the apps within the ERP suite. Pricing depends on the selected modules, user licenses and deployment options. For example, Dynamics 365 Business Central’s standard license costs about $70 per user per month, while Dynamics 365 Finance and Operations starts at $210 per user per month for a full license.

Implementation costs vary widely, from $16,000 for smaller projects to over $1,000,000 for large-scale deployments. Ongoing support and maintenance fees depend on service agreements with Microsoft or its certified partners. To ensure the best fit, you should evaluate your needs and consult a Microsoft partner for tailored recommendations.

Our Research Process for Dynamics 365 ERP

A 30-day free trial is available for only a handful of the 10 apps that make up the ERP suite, and only one trial can be active at a time. Due to these limitations, I felt that a trial wouldn’t provide a comprehensive end-user experience to fully evaluate the suite.

Instead, I relied on their user reviews, product demo videos, detailed documentation, and success stories to explore the software’s strengths and unique features.

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Product Assistance

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Product Insights

  • Automate Stock Replenishment: Create a material request automatically when the inventory level goes below a certain level. Replenish inventory at the right time, mitigating the risk of stock exhaustion. 
  • Improve Customer Management: Maintain credit limits, view receivables, gauge total billing amount and analyze average customer revenue to manage customers better and make informed business decisions. 
  • Customize On-the-Fly: Add custom fields in the form, fetch values to customize form behavior and hide specific fields based on user roles. Enable users to grab relevant information from the vendors or clients. 
  • Facilitate Retail Management: Register a new branch with a couple of clicks and monitor various dimensions such as expenses, stock movements, profit and loss to assess business profitability as a whole. Facilitate the use of local language to ensure interaction with diverse customers. 
  • Automate Routine Tasks: Set up assignment rules like load balancing to distribute leads among the team automatically. It reduces overheads and empowers the sales teams to meet deadlines while dedicating more time to respond to customers. 
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  • Enhanced Operational Efficiency: Streamline core business processes across finance, supply chain, manufacturing, operations, and customer service. Automate workflows, reduce manual tasks and increase productivity.
  • Improved Financial Control: With a best-in-class award and a 99 score for its financial management capabilities in our assessment, it provides real-time visibility into financial data, tracks expenses, and manages budgets to support informed financial decisions. It also strengthens financial reporting and ensures compliance with industry standards.
  • Optimized Inventory Management: This functionality scores a perfect 100, equaling top solutions like Visibility ERP and Cetec ERP. You can track inventory levels, manage stock locations, optimize purchasing and reduce stockouts. There are also tools to improve supply chain visibility and responsiveness to customer demand.
  • Enhanced Customer Experience: With a score of 99 for CRM features in our assessment, Dynamics 365 ERP has a lot to offer to improve customer experiences. It also streamlines service delivery and simplifies order fulfillment, while providing a 360-degree view of customer interactions for personalized, impactful experiences.
  • Strengthened Data-Driven Decision Making: Access real-time data insights, generate reports, identify trends and make informed business decisions. Leverage predictive analytics to forecast demand and optimize resource allocation.
  • Improved Collaboration and Communication: Break down silos, foster collaboration across departments, and streamline communication. Improve teamwork, knowledge sharing and decision-making.
  • Enhanced Mobility and Accessibility: Access information and manage tasks from anywhere, on any device. Empower employees to work remotely and stay productive.
  • Better Scalability and Flexibility: Adapt to business growth and changing needs with a scalable cloud-based platform. Add or remove modules, users and features as needed.
  • Robust Integration With Microsoft Ecosystem: Seamlessly integrate with other Microsoft products like Office 365, Power BI and Azure. Extend functionality and create a unified business environment.
  • Complete Security and Compliance: This capability earns a perfect 100 from our analyst team for its ability to provide secure accounting views and restrict manual adjustments. Safeguard sensitive data with advanced security features designed to meet strict compliance and regulatory standards.
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  • Financial Accounting: Manage accounts, transactions and taxes through the accounting module. Manage income and expenses, set up notifications and track cash flow. Manage transactions, send invoices and view reports in multiple currencies. Auto-generate invoices for subscription orders via the subscription module. 
  • Customer Relationship Management: Track the presales process from lead capturing and digital marketing to customer emails and calls. Get live desktop notifications of incoming calls to facilitate omnichannel interactions. Distribute leads among the team via assignment rules to reduce work overhead. Monitor the sales teams’ performance, analyze lead traffic and facilitate sales pipeline visibility. 
  • Human Resources: Recruit talent, plan manpower needs, post jobs, review and email candidates, and store documents in a centralized location. Track expenses, travel requests and employee advances through configurable workflows. Leverage the HR module to manage leaves, submit attendance records and define employee shifts. 
  • Sales and Purchasing: Manage sales tasks such as material requisition, quotations, orders and delivery tracking. Track inventory levels and manage suppliers, shipments and deliverables. Offer a real-time view of sales and purchases with dashboards to analyze critical information in one place. 
  • Project Management: Organize, schedule and track project activities to speed up work. Break down vast projects into manageable tasks and assign them to team members to facilitate collaboration. Assess project progress and efficiency with clearly defined priorities, deadlines and milestones. 
  • Asset Management: Manage and store asset information, including status, location, warranty, insurance, depreciation and more. Configure asset depreciation schedules, calculate amounts and dates and create accounting entries. 
  • Order Management: Maintain a single view of products and stocks across multiple locations. Use serial numbers to track item lifecycle from procurement to delivery. 
  • Manufacturing: Capture operations on the shop floor. View real-time job status, workstation location, employee assignments and more on a single screen. Manage batched items and scan item barcodes through device cameras to find stock. Track material consumption to mitigate expenses and utilize optimum resources. 
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  • Financial Management: Comprehensive financial management suite for general ledger, accounts payable, accounts receivable, cash management, budgeting, and financial reporting.
  • Supply Chain Management: Integrated supply chain management for procurement, inventory management, production planning, warehousing, logistics, and quality control.
  • Sales and Customer Service: Tools for sales force automation, customer relationship management, lead management, opportunity tracking, order management, and customer service.
  • Project Management and Accounting: Project planning, resource scheduling, time and expense tracking, billing, and project accounting.
  • Business Intelligence and Analytics: Built-in reporting and analytics tools, including Power BI integration for advanced data visualization and analysis.
  • Workflow Automation: Visual designer for automating business processes across departments, eliminating manual tasks, and streamlining operations.
  • Mobile Accessibility: Native mobile apps for iOS and Android devices for accessing data and managing tasks on the go.
  • Cloud-Based Deployment: Scalable cloud-based platform with automatic updates and continuous innovation.
  • Customization and Integration: Low-code tools for customization and integration with other business systems and applications.
  • Industry-Specific Modules: Specialized modules for manufacturing, retail, professional services, and other industries.
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Product Ranking

#6

among all
ERP Software

#1

among all
ERP Software

Find out who the leaders are

Analyst Rating Summary

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Analyst Ratings for Functional Requirements Customize This Data Customize This Data

ERPNext
Dynamics 365 ERP
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Analytics And Reporting Asset Management Customer Relationship Management Finance And Accounting Human Resource Management Inventory Management Manufacturing Order Management Procurement Project Management Service Management Supply Chain Management Warehouse Management 97 76 99 99 83 100 79 96 90 99 78 64 73 0 25 50 75 100
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Analyst Ratings for Technical Requirements Customize This Data Customize This Data

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User Sentiment Summary

Excellent User Sentiment 223 reviews
Great User Sentiment 8415 reviews
91%
of users recommend this product

ERPNext has a 'excellent' User Satisfaction Rating of 91% when considering 223 user reviews from 4 recognized software review sites.

85%
of users recommend this product

Dynamics 365 ERP has a 'great' User Satisfaction Rating of 85% when considering 8415 user reviews from 4 recognized software review sites.

4.3 (8)
n/a
3.8 (17)
3.8 (1594)
4.6 (69)
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4.6 (129)
4.4 (5760)
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4.4 (120)
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3.9 (941)

Awards

ERPNext stands above the rest by achieving an ‘Excellent’ rating as a User Favorite.

User Favorite Award

SelectHub research analysts have evaluated Dynamics 365 ERP and concluded it earns best-in-class honors for Customer Relationship Management and Finance and Accounting.

Customer Relationship Management Award
Finance and Accounting Award

Synopsis of User Ratings and Reviews

Customization: The solution provides robust customization features, according to 80% of users. Based on the Frappe Framework, it’s easily customizable.
Usability: According to 100% of users who reviewed this pro, it’s easy to use. The tool has a powerful search field that allows users to find what they’re looking for quickly.
Reporting: About 100% of users who mentioned this pro said it has flexible reporting options.
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Streamlined Operations: Users praise Dynamics 365 ERP for simplifying complex processes, boosting efficiency, and reducing manual tasks.
Enhanced Visibility: Real-time data insights and improved reporting are lauded for providing better decision-making capabilities.
Scalability and Flexibility: The ability to adapt to changing business needs and integrate with other systems is a major plus for users.
Improved Collaboration: Seamless integration with Microsoft tools and mobile accessibility are seen as key strengths for teamwork.
Reduced Costs: Users report cost savings through optimized inventory management, streamlined processes, and improved efficiency.
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Customer Support: The support team isn’t knowledgeable and friendly, according to 67% of users.
Documentation: According to 75% of users who reviewed this con, detailed documentation about the system’s use isn’t provided.
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Implementation Complexity: Some users report challenges with initial setup and configuration, requiring technical expertise.
Cost Concerns: While cost-effective compared to some competitors, upfront licensing, implementation, extensive modifications and ongoing maintenance fees can be significant.
Learning Curve: The interface can be complex for new users, requiring training and adaptation.
Performance Issues: Handling large datasets or complex configurations can hinder overall efficiency and productivity.
Integration Challenges: While offering integration with Microsoft tools, seamless integration with non-Microsoft systems can be complex.
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It can be set up with a minimum infrastructure budget. It has advanced reporting capabilities to create dynamic reports on the go. Advanced reporting enables creating robust dashboards to display the important business metrics and KPIs accurately. However, some users complain of the lack of detailed documentation about the software. The customer support team needs to be more responsive and amicable towards the clients.

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Microsoft Dynamics 365 ERP is a suite of applications designed to help growing businesses manage Enterprise Resource Planning alongside CRM. After exploring user reviews, product demos, documentation and success stories, here’s what stood out:Its seamless integration with Microsoft tools like Power BI, Power Automate, and Teams improves productivity through better data visualization, automated workflows, and collaboration.For instance, Belgotex1, a global carpet manufacturer, faced challenges with outdated, disconnected systems. Critical data was scattered, and collaboration between departments was hindered. By implementing Dynamics 365 alongside Power Apps, Power Pages, Power BI and Microsoft Fabric, they unified operations and empowered employees to address these inefficiencies.Its modular structure is another major strength. It consolidates various processes into a single system, reducing data silos and improving collaboration across departments.Pricing is flexible and varies by application and licensing type. You should carefully assess your specific needs to determine the best solution.Another strong feature that stood out to me is its ability to automate repetitive tasks. It reduces manual errors and frees up time for more strategic activities. Customization options further improve its value, allowing you to tailor the system to your unique requirements. However, some users have reported challenges, including a learning curve for beginners, implementation hurdles and occasional performance issues.Overall, Dynamics 365 ERP is a versatile solution for businesses aiming to integrate operations across departments. With its robust features, AI-powered tools, and seamless integration with other Microsoft products, it stands out as a compelling choice for businesses looking to boost efficiency and drive growth.

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Screenshots

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