Microsoft Dynamics 365 Business Central vs. Odoo: A Detailed Cost Comparison

Enterprise resource planning (ERP) software is essential for driving business growth by enhancing processes. A Business ERP investment is a strategic move to accelerate digital transformation. But where should you start? Which ERP should you choose? These questions often cause confusion.

On the path to empowering operations, organizations will have multiple ERP options to choose from. Microsoft Dynamics 365 Business Central or Odoo? Here is a comparison between these two ERP software.

What is Microsoft Dynamics 365 Business Central?

Business Central is a good choice for organizations looking for complete business management software. It combines core business processes including finance, sales, customer service, and supply chain operations along with advanced analytics, AI, and reporting capabilities. Business Central holds a significant position in the ERP space due to its capabilities to transform operations and its adaptable nature.

What is Odoo?

Odoo ERP caters to smaller enterprises. It integrates multiple business applications into a single platform. With flexible licensing models, the ERP helps organizations manage core business operations including finance, inventory, purchase, eCommerce, manufacturing, project operations, HR, and customer service. The ERP platform fits well for complex business operations. And the customization capabilities allow users to tailor the system to their specific needs.

Business Central Vs Odoo

For organizations looking to streamline their operations, comparing Business Central vs Odoo is a good idea. Here, we take a closer look at how these two ERP solutions differ in their functionality.  

1. Financial Management 

• Business Central provides comprehensive financial management which helps you manage cash flow, predict risky payments, create smart budgets, and more. 
• Odoo ERP provides financial management feature that includes general ledger, accounts payable and receivable, bank reconciliation, budgeting, and real-time financial reporting.

2. Supply Chain Management 

• Business Central provides visibility into supply chain operations with improved inventory management, procurement, demand planning, AI-powered insights, warehouse management, and optimized transportation.
• Odoo also supports efficient supply chain management. It provides real-time visibility into inventory levels, order statuses, delivery timelines, and more. It also facilitates data-driven decision making across supply chain operations.

3. Manufacturing 

• Business Central offers a range of features that streamline manufacturing process. It includes capabilities such as capacity planning, bill of materials, demand forecasting, preventive maintenance, and inventory control.
• Odoo streamlines manufacturing operations through a range of features. It allows businesses to plan, schedule, and track manufacturing processes actively. Key features include Bill of Materials, word orders, scheduling, and more.

4. Integration Capability 

• Business Central offers seamless integration with Microsoft technologies such as Microsoft 365, Azure, Dynamics 365 apps, and the Power Platform. It also supports third-party app integration, often without requiring developer support.
• Odoo ERP, on the other hand, often requires custom development to integrate with external systems, which can be time-consuming and costly.

ERP Pricing

1. Dynamics 365 Business Central Cost 

Dynamics 365 Business Central is available in different licensing models at different pricing. The plans include Dynamics 365 Business Central free trial, Dynamics 365 Business Central Essentials, Dynamics 365 Business Central Premium, and Dynamics 365 Business Central Team Members.

Dynamics 365 Business Central Essentials: From $70.00 for each user per month.

This licensing plan provides comprehensive business management solution for finance, sales, and operations with Microsoft Copilot.

Dynamics 365 Business Central Premium: From $100.00 for each user per month, paid yearly.

This licensing plan includes everything in the Essentials plan. But it comes with enhanced capabilities for customer service operations and manufacturing.

Dynamics 365 Business Central Team Members: From $8.00 for each user per month, paid yearly.

This plan provides limited access to read data, approve workflows, and create or update select data.

2. Odoo ERP Cost 

Odoo ERP is available in various licensing plans at different pricing.

Odoo Enterprise is the paid version that comes with a subscription-based model. Odoo Community is free and open-source.

3. Odoo Enterprise Edition

Odoo offers a paid, subscription-based offering. The pricing depends on the number of users or the specific apps you need. It includes various plans, including One App plan, Standard Plan, and Custom plan.

• One App Plan: This plan is free and allows users to install one Odoo application
• Standard Plan: This plan includes all Odoo applications and is priced per user per month
• Custom plan: This plan is suitable for businesses that need customized solutions. It may cost higher for each user.

To know the exact pricing for the integrated ERP solution, you can visit Odoo website and connect with their team.

The selection of a suitable ERP—whether Microsoft Dynamics 365 Business Central or Odoo—depends on your business size, budget, and operational complexity.

Microsoft Dynamics 365 Business Central is ideal for small to large enterprises that require advanced financial and supply chain capabilities along with seamless integration. It offers extensive built-in features, minimizing the need for customization, and integrates smoothly with the broader Microsoft ecosystem.

Odoo, on the other hand, is well-suited for small to midsize businesses with limited budgets and fewer users. However, integration with Microsoft technologies or external systems often involves significant development effort and cost.