Saturday, 20 April 2019 19:47

Dynamics 365 VS Dynamics NAV in a Nutshell

Here at Metisc, our solutions are all based on Microsoft Dynamics 365, and lately we have been getting questions about the diference between Microsoft Dynamics 365 and Microsoft Dynamics NAV. This blog post has been written ini order to help you better understand the difference.

Looking for ERP system can be very tricky if you are not equipped with good knowledge and insight about the program. It can get trickier when one of big software company offers two modern systems yet with almost similar name. Microsoft has chosen their flagship brand, Dynamics, for 5 different products. It consisting of 4 ERP system (Enterprise Resource Planning) and one CRM system (Customer Relationship Management). So, how do you choose the best software that suits your organisation the most?


What is Dynamics 365 ?

Microsoft Dynamics 365 unifies CRM and ERP capabilities by delivering new purpose built applications to help manage specific business functions, including Sales, Customer Service, Field Service, Operations, Marketing, Project Service Automation and Financials.

Dynamics 365 provides end – to – end business application functionality – all of it delivered as Software as a Service (SaaS) in the cloud.


Dynamics 365 comparison Dynamics NAV

Dynamics 365 Editions

Dynamics 365 is available in these editions:

Dynamics 365, Business editions:

  • Founded on 'Project Madeira' (same code base as Dynamics NAV)
  • Optimised for organisations with 10 – 250+ employees

Dynamics 365, Enterprise edition:

  • Made up of Dynamics CRM and Dynamics AX
  • Optimised for organisations with 250+ employees

Both editions leverage capabilities from across Microsoft's wider portfolio of products and services. In addition, they come with connectors that let you integrate with applications and services from Microsoft and their partners. Metisc developed a product that seamlessly sync Dynamics 365 with MYOB or Xero Accounting. This add ons connector will help user automatically keep the data between two systems synced at all time. Find out here for more information about MiSync for Xero or MiSync for MYOB.


What is Microsoft NAV?

Microsoft NAV was released in 1987 and currently served over 100,000 users globally. It started as an on-premises application, although clients now have the option of hosting the application on a private or public cloud. It is designed for small to medium – sized businesses, but the price tag often hinders very small businesses from using it. NAV has a variety of functions for financials, manufacturing and warehousing.


How Similar They Are?

Microsoft Dynamics 365 and Microsoft Dynamics NAV share the same codebase, meaning they are similar products. Both will give you the following benefits:

  • Anytime and anywhere access
  • Purchasing, Service Management, Jobs, Item management
  • Full integration with Office products like Excel and Outlook
  • Similar interface on desktop, mobile and tablet
  • The same basic financial management features such as General Ledger, Accounts Receivable and Payable, Inventory and Fixed Assets

We would like to discuss further on the last feature about basic financial management. At present, not all functionality available for Dynamics NAV is available for Dynamics NAV in Dynamics 365 for Financials. Starting 2018 however, Microsoft is expected to include Financials expanded capabilities on-par with Dynamics NAV except for the industry specific editions like Manufacturing.


Current Feature

Dynamics 365

for Finance and Operations



  • Financial Management
  • Inventory management
  • Sales
  • Purchasing
  • Project Management
  • Additional Capabilities

Dynamics NAV

(Starters Pack)



  • Financial Management
  • Customer Relationship Management
  • Project Management
  • Configuration and Development
  • Supply Chain Management
  • Human Resource Management
  • Languages
  • Other

After we discussed their similarity, let's discuss over their differences. There are two key differences between these applications. Those are Deployment Options and Customisation.

Deployment Options

NAV can be hosted on-premises or on the cloud. Also, NAV, software is purchased and each user has to purchase a license. There is limited flexibility.


NAV is highly customisable and it is one of the reason users love this product. They actually can go into the source code and customise the application based on their specific needs.


So, In a Nutshell, What Are the Difference?

The differences are really in terms of deployment options; how the 'out of the box' solutions can be extended, how you pay for them and how they are integrated with other products from the start.


Dynamics 365 is the pay-per-user per-month, software-as-a-service range of products that start with pre-built integrations. They are not a separate range of products to the Dynamics range but are instead 'powered by' the Dynamics range of products.