Dynamics GP vs Business Central: Features, Costs & Migration Tips for Australia

For over two decades, Dynamics GP (Great Plains) has powered finance and operations for Australian mid-sized businesses across manufacturing, wholesale distribution, and professional services. While GP has been a reliable workhorse, Microsoft’s focus has shifted to its cloud-first ERP solution, Dynamics 365 Business Central.

As of 2025, Microsoft has announced that Dynamics GP will remain under extended support until 2029, but no major feature updates will be released. This means businesses relying on GP will face rising maintenance costs, limited innovation, and security concerns.

This guide helps Australian businesses compare Dynamics GP vs. Business Central, understand costs, plan migration, and avoid common pitfalls.

What is Dynamics GP?

Dynamics GP is an on-premises ERP solution that offers:

• Financial management (GL, AP, AR)
• Payroll & HR
• Inventory and warehouse management
• Basic reporting and analytics

Its strengths lie in stability, mature functionality, and customizability. However, GP is server-based, requires manual upgrades, and lacks modern cloud benefits like AI-driven automation and real-time collaboration.

What is Dynamics 365 Business Central?

Dynamics 365 Business Central is Microsoft’s cloud-based ERP designed for small and mid-sized businesses. It offers:

• End-to-end finance, supply chain, project, service, and manufacturing management
• Seamless integration with Microsoft 365 (Outlook, Excel, Teams)
• Built-in AI and Copilot features for forecasting, late payment prediction, and reporting
• Automatic updates with minimal IT overhead

Business Central is hosted on Microsoft Azure, ensuring data security, compliance with Australian data residency laws, and disaster recovery.

GP vs Dynamics Business Central: Core Feature Comparison

Feature	Dynamics GP (On-Prem)	Dynamics 365 Business Central (Cloud)
Deployment	On-premises	Cloud (SaaS) or hosted
Updates	Manual upgrades	Automatic, monthly updates
AI & Automation	Limited	Built-in AI & Copilot
Licensing	Perpetual	Subscription (OpEx)
Mobility	VPN / RDP	Accessible anywhere (browser, mobile)
Integrations	Limited	Native with Power Platform & 3rd-party apps

Cloud vs On-Premises: Which is Better for Australia?

For Australian businesses, cloud ERP adoption is accelerating due to:

• Rising server and IT maintenance costs
• Greater need for remote access
• Cybersecurity requirements under Australian Privacy Principles (APPs)

Business Central provides a predictable cost model (AUD $90–120 per user per month) and eliminates hardware replacement cycles.

Scalability, Security & AI Capabilities

Business Central scales as your business grows, supports multiple entities and currencies, and leverages Microsoft’s enterprise-grade security. AI-powered insights help finance teams improve cash flow forecasting and automate repetitive tasks — a game-changer for growing SMEs.

Why Australian Businesses Should Consider Migrating

1. Microsoft Roadmap & End of GP Support

• GP mainstream support ended in 2021.
• Extended support continues till 2029 but covers only bug and security fixes.
• No new features like AI, Copilot, or modern compliance automation will be added.

2. Compliance with Australian Tax & Accounting Standards

Business Central is fully aligned with BAS, GST, Single Touch Payroll (STP Phase 2), and ATO eInvoicing requirements, helping you stay compliant.

3. Cost Efficiency of Cloud Subscription

Switching to a subscription model (OpEx) spreads costs evenly, removes the burden of server upgrades, and ensures predictable budgeting.

4. Remote Work & Collaboration Benefits

Business Central works seamlessly with Microsoft Teams and Office 365, making hybrid and remote work easier.

Dynamics GP to Business Central Migration Roadmap

1. Assess Current GP Environment

Document all modules, customizations, and integrations in use.

2. Choose Migration Strategy

• Full Migration – Ideal for businesses ready to switch completely.
• Phased Migration – Migrate finance first, operations later.
• Hybrid Approach – Keep GP for historical data while running BC for new transactions.

3. Data Migration & Cleanup

Remove duplicate vendors, inactive items, and old transactions before migration.

4. Integration with Third-Party Tools

Ensure payroll, BI, and payment gateways integrate smoothly with BC.

5. Testing & User Training

Conduct user acceptance testing (UAT) and train key users before go-live.

6. Go-Live & Post-Migration Support

Plan for hypercare support in the first 4–6 weeks post go-live.

Key Considerations Before Migrating

• Licensing & Pricing – Understand Essential vs Premium licenses (AUD $90–120 per user/month).
• Hosting Options – Public cloud (SaaS) vs private cloud.
• Security & Compliance – Ensure data residency in Australia.
• Customization vs Standardization – Minimize custom code to reduce costs.

Role of Microsoft Partners in Migration

Why You Need a Local Partner

Local Microsoft Partners understand Australian compliance (BAS, GST) and offer faster support across Sydney, Melbourne, Brisbane, and Perth.

Top Qualities to Look For

• Microsoft-certified expertise
• Experience in GP-to-BC migrations
• Local presence for workshops and training

GP to Business Central Migration Checklist for Australian Businesses

• Inventory current GP modules & customizations
• Clean up data
• Select migration approach
• Choose a certified Microsoft Partner
• Plan UAT & end-user training
• Schedule go-live and hypercare support

Cost of Upgrading from GP to Business Central in Australia

• Licensing: AUD $90–120 per user/month
• Implementation: AUD $20K–60K depending on complexity
• Ongoing Support: Typically 10–15% of project cost annually

Risks of Not Migrating

• Security vulnerabilities as GP nears end-of-life
• Higher IT costs for server maintenance
• Missed opportunities for automation and AI
• Difficulty attracting younger talent used to cloud tools

Case Studies / Success Stories in Australia

• Melbourne Wholesale Distributor – Reduced IT costs by 40% after migrating to BC.
• Sydney Construction Firm – Automated job costing and payroll compliance.
• Brisbane Healthcare Provider – Improved STP Phase 2 compliance and payroll reporting.

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Frequently Asked Questions (FAQs)

Is Dynamics GP completely discontinued or still supported?

It is still supported under extended support until 2029, but no new features are being added.

Do I need a Microsoft partner in Australia to migrate from GP to BC?

Highly recommended. Local partners understand tax compliance and offer on-ground support.

How long does it take to migrate from GP to Business Central?

Typically 3–6 months, depending on complexity.

Do I lose my historical GP data if I upgrade?

No. Historical data can be archived or migrated selectively.

What is the cost of Business Central in Sydney/Melbourne/Perth/Brisbane?

Licensing starts from AUD $90 per user/month.

What are hidden costs in a GP to BC migration?

Custom development, data cleanup, and post-go-live support can add to the budget — plan ahead.

Can I migrate in-house without external consultants?

Possible for very small environments, but risky. Most businesses use a Microsoft Partner for smoother execution.

Conclusion

Migrating from Dynamics GP to Business Central is no longer just an IT upgrade — it’s a strategic move that positions Australian businesses for future growth, compliance, and innovation. With lower infrastructure costs, built-in AI, and ongoing Microsoft support, Business Central is a future-ready ERP for Australian SMEs.

Ready to plan your GP-to-BC migration? Speak to a certified Microsoft Dynamics Partner in Australia today.