In my experience, this question is rarely about functionality.

It is usually about confidence.

Manufacturing leaders want to know whether Business Central can support the realities of their operation: production schedules that cannot slip, inventory that must be accurate, customer commitments that must be met, and teams that depend on reliable information every day.

The concern isn't whether Business Central has manufacturing features. The concern is whether those features can support the business when complexity increases.

In the first article, "Why Manufacturers Using Dynamics GP Are Hesitant to Move to Business Central," we explored why manufacturers tend to approach ERP modernization differently from other Dynamics GP customers.

The conversation was never really about Microsoft Dynamics GP.

It was about risk.

Manufacturing executives rely on ERP systems to orchestrate production, inventory, scheduling, procurement, cost control, quality assurance, and fulfillment of customer commitments. Given this centrality to daily operations, any platform change is a strategic move.

That is why one question comes up in almost every manufacturing ERP assessment:

Can Business Central really handle manufacturing complexity?

Most manufacturers are not simply asking about Business Central's manufacturing functionality.

They have a more important concern.

Can it support how we operate today and where we need to go tomorrow?

Can it enable our targeted growth and evolving strategies?

One operations leader recently told us:

“We’re not worried about replacing GP. We’re worried about replacing everything we’ve built around GP.”

That concern is understandable.

Many manufacturers have spent years building processes, customizations, reports, integrations, and workarounds around Dynamics GP. The ERP system is only part of what is being evaluated.

The good news is that many perceptions about Business Central's manufacturing capabilities are based on outdated information.

Microsoft has invested heavily in Business Central manufacturing functionality, and the platform has evolved significantly over the last several years.

Before making a decision, executives should understand Business Central’s capabilities within a broader, long-term manufacturing technology strategy.

What We See Most Often

Most manufacturers do not begin ERP evaluations by asking whether Business Central can create a production order.

They begin by asking whether it can support the operational complexity they have accumulated over years of growth.

We frequently hear concerns about:

• multi-site production
• custom scheduling processes
• production costing
• quality management
• warehouse operations
• engineer-to-order requirements

In many cases, the concern is not that Business Central lacks functionality. It is uncertainty about how current processes will translate into a modern ERP environment.

One manufacturer we worked with was particularly concerned about production costing. Over the years, the company had built custom reports, spreadsheets, and review processes around Dynamics GP to analyze product profitability and monitor cost variances across multiple product lines.

Their leadership team initially assumed those processes would be difficult to replicate in Business Central. However, after evaluating the requirements more closely, they discovered that much of the complexity was not tied to the ERP platform itself. It was tied to reporting practices and manual processes that had evolved over time.

That realization shifted the conversation from "Can Business Central handle our costing requirements?" to "Which parts of our costing process actually create value today?"

Table of Contents

What We See Most Often

Four Questions Every Manufacturer Should Ask Before Evaluating Business Central

Can Business Central Support Make-to-Stock, Make-to-Order, and Engineer-to-Order Manufacturing?

How Does Business Central Handle Production Orders and Routings?

Can Business Central Provide Shop Floor Visibility?

What Manufacturing Functionality Is Native Versus Requiring ISVs?

Is Business Central Robust Enough for Complex Manufacturing Operations?

Why Manufacturers Should Stop Comparing Business Central to GP Feature-by-Feature

What Manufacturers Should Do Next

The Bottom Line

Frequently Asked Questions

Four Questions Every Manufacturer Should Ask Before Evaluating Business Central

The Wrong Question

Many manufacturers ask:

"Can Business Central do what GP does?"

A better question is:

"Can Business Central support where the business needs to go next?"

The most successful ERP modernization projects focus less on replicating existing processes and more on creating a platform that supports future growth.

When evaluating Business Central, executive discussions should start with strategic business objectives rather than features.

It should begin with a strategy.

Leadership teams should examine four essential questions before focusing on software capabilities.

1. Are We Solving for Today’s Processes or Tomorrow’s Growth?

Many ERP evaluations focus on recreating current workflows.

The more powerful consideration is whether those workflows will support the business’s strategic direction over the next five years.

2. Which Manufacturing Capabilities Truly Differentiate Our Business?

Not every customization creates value.

Some drive competitive advantage.

Others simply preserve historical habits.

Many manufacturers assume every customization is mission-critical. During assessments, we often discover that only a small percentage of custom processes actually create competitive advantage.

The goal is to separate what truly differentiates the business from what has simply become familiar over time.

3. Which Customizations Have Become Technical Debt?

Many manufacturers discover that years of modifications have created complexity that slows innovation rather than enabling it.

Over the years, many ERP environments accumulate reports, integrations, spreadsheets, and custom workflows that were created to solve legitimate business problems.

The challenge is determining which of those solutions still provide value and which now create unnecessary complexity. What once improved efficiency can eventually make modernization more difficult and expensive.

4. What Is the Cost of Waiting?

The risk is rarely that Dynamics GP suddenly stops working.

The greater executive risk lies in postponing modernization until operational bottlenecks translate into business constraints.

These questions guide executive decision-making more effectively than a functionality checklist.

Most organizations evaluate the cost of modernization. Far fewer evaluate the cost of waiting. Delaying decisions can mean continuing to invest in aging customizations, manual workarounds, and increasingly complex support requirements.

The earlier organizations begin planning, the more options they typically have available.

Can Business Central Support Make-to-Stock, Make-to-Order, and Engineer-to-Order Manufacturing?

One of the most common misconceptions we encounter is that Business Central only supports simple manufacturing environments.

The reality is far different.

Business Central supports multiple manufacturing models, including make-to-stock, make-to-order, and many engineer-to-order environments.

Make-to-Stock Manufacturing

Manufacturers operating a make-to-stock model rely on forecasting, inventory optimization, and production planning to meet customer demand.

Business Central supports:

• Demand forecasting
• Inventory replenishment planning
• Production scheduling
• Material requirements planning
• Capacity management
• Supply chain visibility

These capabilities help manufacturers balance inventory investment with customer service requirements.

Make-to-Order Manufacturing

A make-to-order environment requires close alignment between customer demand and production activity.

Business Central supports:

• Sales-order-driven production
• Demand linking
• Material allocation
• Production scheduling
• Order tracking

This enables manufacturers to maintain visibility into customer-specific production while managing inventory and capacity constraints.

Engineer-to-Order Manufacturing

Engineer-to-order environments often represent the highest level of manufacturing complexity.

Business Central can support many engineer-to-order requirements, particularly when paired with complementary engineering, configuration, or product lifecycle management solutions.

The key takeaway is straightforward.

Business Central supports multiple manufacturing models.

The more strategic question is whether it aligns with your operating model and vision.

During one assessment, a manufacturer assumed Business Central would struggle with its engineer-to-order environment because of the number of custom processes involved.

After mapping the workflows, we discovered that most of the complexity was not in the ERP system itself. It existed in approvals, spreadsheets, reporting processes, and engineering handoffs that had evolved around the ERP over time.

Once the team separated true ERP requirements from historical workarounds, the Business Central evaluation became much more straightforward.

How Does Business Central Handle Production Orders and Routings?

Production management sits at the core of every manufacturing ERP platform.

Without strong production controls, manufacturers struggle to maintain efficiency, visibility, and profitability.

Business Central provides native support for:

• Planned production orders
• Firm planned production orders
• Released production orders
• Finished production orders
• Work centers
• Machine centers
• Routing management
• Capacity planning

Manufacturers can build routings that reflect real-world production processes while tracking labor, machine time, and operational progress.

For many organizations moving from Dynamics GP, these capabilities exceed expectations.

One plant manager recently summarized the issue this way:

“I don’t need another report. I need to know what’s happening on the floor before the shift ends.”

That expectation is becoming increasingly common across manufacturing organizations.

Can Business Central Provide Shop Floor Visibility?

Manufacturing leaders want more than historical reporting.

They want operational visibility while decisions can still influence outcomes.

Business Central provides access to:

• Production status
• Inventory availability
• Material consumption
• Capacity utilization
• Work center performance
• Order progress

However, Business Central is not a manufacturing execution system.

One misconception is that ERP systems should perform every manufacturing function.

Modern manufacturing technology strategies increasingly rely on connected platforms. ERP, MES, quality systems, warehouse systems, and analytics tools each play distinct roles.

The goal is not to force Business Central to become everything. The goal is to ensure it serves as the operational and financial foundation connecting those systems.

Organizations requiring advanced machine monitoring, automated data collection, barcode-driven reporting, or detailed production execution often supplement Business Central with MES solutions.

This is not a weakness.

It reflects a modern technology strategy.

Business Central serves as the operational and financial foundation, while specialized solutions extend functionality where necessary.

What Manufacturing Functionality Is Native Versus Requiring ISVs?

One of the most important ERP evaluation questions is understanding what is included natively and what may require third-party solutions.

Native Business Central Manufacturing Features

Business Central includes:

• Bills of materials
• Routings
• Production orders
• Inventory management
• Warehouse management
• Planning worksheets
• Capacity planning
• Demand forecasting
• Supply planning
• Standard costing

For many manufacturers, these capabilities satisfy most operational requirements.

Where ISVs Extend Functionality

Independent software vendors commonly enhance Business Central in areas such as:

• Advanced planning and scheduling
• Quality management
• Product configuration
• Manufacturing execution
• Compliance management
• Warehouse automation

This flexibility allows manufacturers to create a solution ecosystem aligned to their specific needs.

Manufacturers can also leverage Microsoft's AppSource ecosystem to extend Business Central with industry-specific manufacturing capabilities when required.

Is Business Central Robust Enough for Complex Manufacturing Operations?

The answer depends on how complexity is defined.

Complex manufacturing environments may include:

• Multiple facilities
• International operations
• Engineer-to-order workflows
• Highly regulated industries
• Large product catalogs
• Complex supply chains
• Automation initiatives

Business Central successfully supports manufacturers operating in each of these environments today.

Success is determined by strategy and leadership, not just software capabilities.

Implementation strategy matters.

Business process design matters.

Organizational readiness matters.

Manufacturers that view ERP modernization as a business transformation initiative often achieve stronger outcomes than those treating it as a software replacement project.

Why Manufacturers Should Stop Comparing Business Central to GP Feature-by-Feature

This is one of the most important lessons manufacturers learn during ERP evaluations.

Many organizations begin by comparing every screen, report, customization, and workflow between GP and Business Central.

At first, this feels logical.

In practice, it often creates unnecessary limitations.

Feature comparisons feel objective because they can be measured.

Unfortunately, they often focus attention on the past rather than the future.

The manufacturers that achieve the best outcomes rarely ask whether every screen looks the same. They ask whether the new platform enables better decisions, greater visibility, and stronger scalability.

One CFO recently told us:

“We’re spending too much time asking whether Business Central has the same features as GP and not enough time asking whether our current processes still make sense.”

That observation captures the challenge perfectly.

ERP modernization should not focus on rebuilding the past.

It should focus on building the future.

The manufacturers that gain the most value from Business Central are often the ones willing to challenge assumptions, simplify workflows, reduce customization debt, and embrace better ways of operating.

Business Central provides an opportunity to:

• Simplify workflows
• Reduce customization debt
• Improve visibility
• Increase automation
• Enhance reporting
• Improve decision-making

Modern capabilities such as AI-assisted workflows, automation, and cloud-based analytics are increasingly becoming part of manufacturing technology roadmaps.

The goal is not to recreate Dynamics GP in a new environment.

The goal is to create a more agile foundation for long-term growth.

What Manufacturers Should Do Next

If you're evaluating Business Central, begin by documenting your manufacturing processes rather than your software requirements.

Identify which capabilities create competitive advantage, which customizations create complexity, and which operational challenges are limiting growth today.

The objective is not to determine whether Business Central can replicate the past.

The objective is to determine whether it can support the future.

The Bottom Line

Can Business Central handle manufacturing complexity?

For many manufacturers, yes.

Business Central supports make-to-stock, make-to-order, and many engineer-to-order environments. It provides production planning, inventory management, routing control, capacity management, and operational visibility while integrating effectively with specialized manufacturing technologies.

The better question is not whether Business Central can support manufacturing.

The better question is whether your organization is prepared to take advantage of what ERP modernization makes possible.

Manufacturers that approach Business Central strategically often discover the platform supports both current requirements and future growth.

Ready to Evaluate Business Central for Your Manufacturing Operation?

Every manufacturer is different.

The right ERP strategy depends on your operational complexity, growth objectives, production model, and long-term vision.

At Liberty Grove Software, we help manufacturers assess manufacturing ERP modernization capabilities against real-world business requirements so they can make informed decisions with confidence.

Schedule a Manufacturing ERP Assessment with Liberty Grove Software today and discover whether Business Central is the right platform to support your next stage of growth.

Coming Next in This Series: The Real Fear Behind Leaving Dynamics GP in Manufacturing

Technology is rarely the biggest obstacle to ERP modernization.

People are.

In the next article, we’ll explore what manufacturers are afraid of when considering a Dynamics GP migration. We’ll examine concerns about operational disruption, employee resistance, implementation risk, user adoption, and change management.

More importantly, we’ll discuss why some manufacturing ERP implementation projects succeed while others struggle, and what leaders can do to reduce risk before migration begins.

Frequently Asked Questions

Can Business Central handle manufacturing?

Yes. Business Central includes native manufacturing functionality for production orders, routings, bills of materials, inventory management, capacity planning, and forecasting.

Is Business Central good for manufacturing?

Business Central is a strong manufacturing ERP platform for many small- and mid-sized manufacturers, particularly when combined with industry-specific extensions as needed.

Can Business Central support make-to-order manufacturing?

Yes. Business Central supports make-to-order manufacturing through sales-order-driven production, demand linking, scheduling, and material planning.

Can Business Central integrate with MES systems?

Yes. Business Central integrates with many manufacturing execution systems to provide enhanced shop floor visibility and operational control.

What manufacturing functionality is native in Business Central?

Native capabilities include bills of materials, routings, production orders, planning worksheets, inventory management, warehouse management, forecasting, and capacity planning.

Is Business Central better than Dynamics GP?

Business Central offers modern cloud architecture, continuous innovation, enhanced Microsoft integration, and greater scalability. The right choice depends on your organization’s requirements and long-term strategy.

How difficult is a Dynamics GP migration?

Migration complexity varies based on customizations, integrations, data quality, manufacturing processes, and organizational readiness. Proper planning significantly reduces risk.

About Andrew Good

Andrew Good, CEO, Liberty Grove Software

Andrew Good, CEO of Liberty Grove Software, a leader in digital transformation, directs the company with strategic insights that deliver impactful results. With over two decades of expertise in Microsoft technologies, Andrew has guided businesses through digital transformation across manufacturing, finance, and healthcare.

Andrew's extensive knowledge comes from personal experiences with various companies. His hands-on operational knowledge comes from Engineering, Maintenance, and operational roles at Unilever and Sony Music. Fourteen years of working with Microsoft Dynamics BC/NAV follows successful projects in ERP, Computerized Maintenance Management Systems (EAM), and quality systems.

His passion for technology is matched by his love for sailing, which inspires his leadership. Andrew parallels the precision of navigating the seas and the challenges of steering a successful company. Under his leadership, Liberty Grove Software thrives, offering tailored solutions to empower clients and optimize operations with innovative Microsoft-based systems.

Connect with Andrew on LinkedIn

Subscribe to Andrew’s Newsletter on LinkedIn

Dynamics GP Has Been the Backbone of Manufacturing Operations for Years

For many manufacturers, Dynamics GP is far more than an accounting system. It supports critical business functions, including inventory management, procurement, production planning, cost accounting, warehouse operations, and financial management.

Over the years, and often decades, manufacturers have customized Dynamics GP to reflect the realities of their operations. Processes have been refined, integrations have been built, and teams have developed workflows that rely heavily on the system.

This deep operational integration explains why manufacturers often approach a Dynamics GP to Business Central migration differently than other organizations.

While distributors, professional services firms, and other Dynamics GP customers may see a relatively straightforward path to modernization, manufacturers face a more complex reality. Their ERP environments are often tightly connected to production processes, supply chains, inventory management, and operational performance.

As Microsoft continues investing in cloud-based ERP innovation through Dynamics 365 Business Central, manufacturing leaders are increasingly evaluating what that shift means for their organizations.

The challenge is not determining whether Dynamics GP still works today.

For most manufacturers, it does.

The real question is whether it will continue to support the business objectives, technology initiatives, and competitive requirements that will define success over the next decade.

Table of Contents

Why Are Manufacturers More Hesitant Than Other GP Customers to Move to Business Central?

What Does Microsoft's Dynamics GP Roadmap Mean for Manufacturing Companies?

Can Manufacturers Stay on GP Safely, and for How Long?

What Are the Biggest Risks of Delaying ERP Modernization?

How Should Manufacturers Evaluate Hosted GP Versus Business Central?

Should Manufacturers Move from Dynamics GP to Business Central?

Frequently Asked Questions

Why Are Manufacturers More Hesitant Than Other GP Customers to Move to Business Central?

Having spent time in manufacturing environments myself, I've learned that ERP decisions are rarely technology decisions. They're production decisions. Every change gets evaluated through the lens of operational continuity.

Unlike businesses that primarily rely on ERP systems for financial management, manufacturers depend on ERP platforms to support:

• Production planning and scheduling
• Bills of materials (BOMs)
• Routings and work centers
• Inventory and warehouse management
• Cost accounting
• Quality management processes
• Procurement and supply chain coordination
• Shop floor operations

Over time, many manufacturers have invested heavily in customizations and third-party solutions that extend Dynamics GP beyond its original capabilities.

As a result, one question consistently arises:

Will Business Central support the way we run our business today?

This concern is valid.

A manufacturing ERP system is rarely just software. It represents years of operational knowledge, process optimization, and institutional expertise.

I recently spoke with a manufacturer whose scheduling process depended on a series of custom GP workflows that had evolved over more than a decade.

Their concern wasn't whether Business Central could replace Dynamics GP.

Their concern was whether it could support the operational habits, planning processes, and production routines the business had built around it.

That's a common theme in manufacturing. ERP systems often become deeply embedded in day-to-day operations, making modernization as much an operational decision as a technology decision.

Manufacturing executives often worry that modernization could require:

• Rebuilding critical integrations
• Replacing customized functionality
• Retraining users
• Disrupting production workflows
• Introducing unnecessary operational risk

For manufacturers, hesitation is not about resisting change.

It is about protecting operational continuity while preparing for the future.

What Does Microsoft’s Dynamics GP Roadmap Mean for Manufacturing Companies?

One reason ERP modernization discussions have become more urgent is Microsoft’s continued focus on cloud-first business applications.

While Dynamics GP remains supported, Microsoft’s innovation investments are increasingly concentrated on Dynamics 365 Business Central, Power Platform, Microsoft Fabric, Copilot, and the broader Microsoft cloud ecosystem.

Understanding the Microsoft Dynamics GP roadmap is now a critical component of long-term ERP planning.

This distinction is important because support and innovation are not the same thing.

An ERP platform can remain fully supported while gradually becoming disconnected from emerging technologies and modern business capabilities.

Manufacturers evaluating their long-term ERP strategy should therefore consider more than support timelines. They should evaluate how future initiatives align with Microsoft’s technology roadmap.

Key considerations include:

Talent Availability

As fewer organizations implement new Dynamics GP systems, experienced GP consultants, developers, and administrators may become increasingly difficult to find.

Technology Integration

Modern Microsoft technologies, including AI-powered Copilot capabilities, Power BI, Power Automate, and cloud services, are increasingly optimized for Business Central.

Microsoft’s manufacturing technology strategy also emphasizes AI, industrial data integration, automation, and connected operations delivered through cloud platforms.

Software Ecosystem Evolution

Many ISVs and technology vendors are directing product development toward cloud ERP environments rather than traditional on-premises systems.

Long-Term Strategic Planning

Manufacturers making ERP decisions today must consider where the business will be in five to ten years, not simply where it is today.

The Microsoft Dynamics GP roadmap provides continued support for existing customers while clearly signaling Microsoft’s long-term direction toward cloud ERP innovation.

The question is no longer whether Dynamics GP can support current operations.

The question is whether it can support future transformation initiatives as effectively as modern cloud ERP platforms.

Can Manufacturers Stay on GP Safely, and for How Long?

For many organizations, the answer is yes.

A stable Dynamics GP environment can continue operating successfully for years when properly maintained and supported.

However, the long-term viability of remaining on GP depends on several factors.

Infrastructure Readiness

Organizations with secure, well-maintained infrastructure may have greater flexibility in determining modernization timelines.

Customization Complexity

Highly customized environments often require careful evaluation to ensure long-term maintainability and supportability.

Regulatory Requirements

Manufacturers operating in highly regulated industries may face evolving compliance and cybersecurity requirements that influence technology decisions.

Growth Objectives

Companies pursuing acquisitions, expansion, automation, advanced analytics, or digital transformation initiatives may encounter limitations sooner than organizations focused primarily on maintaining existing operations.

The risk is not that Dynamics GP will suddenly stop functioning.

While Microsoft has not announced an immediate Dynamics GP end-of-life, manufacturers should recognize that support timelines and innovation roadmaps are distinct considerations.

The larger concern is whether remaining on GP continues to align with the organization’s long-term strategic goals.

What Are the Biggest Risks of Delaying ERP Modernization?

Many organizations assume that delaying ERP modernization reduces risk.

In reality, postponing modernization often shifts risk rather than eliminating it.

Several challenges tend to increase over time.

Growing Technical Debt

During a recent ERP assessment, a leadership team came to an important realization.

Their biggest challenge wasn't Dynamics GP itself.

It was the growing number of spreadsheets, manual workarounds, disconnected applications, and shadow processes that had developed around the ERP system over time.

In many cases, technical debt isn't created by the ERP platform alone. It's the result of years of incremental fixes designed to compensate for evolving business requirements.

Years of customizations, integrations, and workarounds create complexity that becomes increasingly difficult and expensive to maintain.

As technical debt grows, organizations often spend more time maintaining legacy processes and less time investing in innovation.

Increasing Support Challenges

As the pool of experienced Dynamics GP resources shrinks, maintaining specialized environments may require greater investment.

Security and Infrastructure Demands

Older systems often require additional effort to maintain modern security, reliability, and performance standards.

Reduced Agility

Today’s manufacturers increasingly rely on:

• Real-time analytics
• Cloud collaboration
• Process automation
• AI-driven insights
• Connected business applications

Legacy environments can make these initiatives more difficult to implement and scale.

Competitive Pressure

Organizations that postpone ERP modernization for manufacturers for too long often face larger, more disruptive projects later when change becomes unavoidable.

The objective is not modernization for its own sake.

The objective is to reduce risk, increase agility, and position the business for future growth.

How Should Manufacturers Evaluate Hosted GP Versus Business Central?

One of the most important decisions manufacturers face today is whether to move Dynamics GP to a hosted environment or migrate to Business Central.

Although these options are often discussed together, they solve different business challenges.

Hosted GP

Hosted GP moves an existing Dynamics GP environment to cloud infrastructure while preserving the current application.

Benefits often include:

• Reduced on-premises infrastructure management
• Improved remote accessibility
• Enhanced disaster recovery
• Extended life of existing investments
• Lower short-term disruption

For organizations seeking operational continuity, hosted GP can be an attractive option.

One CFO described hosted GP to me as "buying time." The organization wasn't ready for a full ERP transformation, but it needed to address aging infrastructure, improve remote accessibility, and reduce the burden of maintaining on-premises systems.

That perspective highlights an important distinction.

Hosted GP can solve infrastructure challenges relatively quickly, but it does not necessarily address the broader modernization opportunities many manufacturers are evaluating.

However, it is important to recognize that hosted GP is primarily an infrastructure strategy, not necessarily a Dynamics GP migration strategy.

The underlying ERP platform remains Dynamics GP.

Business Central

Business Central represents a broader transformation of the ERP platform itself.

Potential benefits include:

• Continuous cloud updates
• Modern user experience
• Native Microsoft ecosystem integration
• Advanced reporting and analytics
• Greater scalability
• Access to AI-enabled capabilities

Many executives evaluating Business Central manufacturing capabilities are also looking for stronger analytics, improved automation, and greater flexibility to support future growth.

However, achieving these benefits typically requires more organizational change, planning, and process evaluation.

The Strategic Question

Rather than asking:

“Which option is less expensive?”

Manufacturing leaders should ask:

“Which option best supports our business goals over the next five to ten years?”

For some organizations, hosted GP may provide an effective transitional strategy.

For others, a Dynamics GP-to-Business Central strategy for manufacturers may offer a stronger long-term foundation for growth and innovation.

The right answer depends on operational requirements, business objectives, risk tolerance, budget, and organizational readiness.

Should Manufacturers Move from Dynamics GP to Business Central?

There is no universal answer.

Some manufacturers are excellent candidates for Business Central today.

Others may benefit from a phased modernization approach that includes hosted GP, infrastructure improvements, process optimization, or organizational preparation before a full ERP migration.

The most successful ERP initiatives begin with business strategy, not software selection.

Manufacturing leaders should evaluate:

• Current operational challenges
• Future growth plans
• Technology roadmap requirements
• Existing customizations
• Integration dependencies
• Internal resource availability
• Change management readiness

The goal is not simply to replace Dynamics GP.

The goal is to establish an ERP foundation that supports long-term business success.

When approached strategically, a Dynamics GP-to-Business Central initiative for manufacturers becomes less about software replacement and more about enabling business transformation.

The Bottom Line

Manufacturers have legitimate reasons to approach ERP modernization cautiously.

Their environments are more complex, their operational risks are higher, and the consequences of disruption can be significant.

However, delaying the conversation indefinitely is not a strategy.

Microsoft’s ERP roadmap, evolving technology expectations, increasing technical debt, and growing competitive pressures are prompting manufacturers to evaluate their options more carefully than ever.

Whether the path forward involves hosted Dynamics GP, Business Central manufacturing solutions, or a phased ERP modernization strategy for manufacturers, the most important step is understanding the business implications before making a technology decision.

Organizations that begin planning today will have far more flexibility than those forced to react later.

Ready to Evaluate Your ERP Future?

If you’re currently running Dynamics GP and wondering what your next move should be, start with a strategic assessment rather than a software demo.

At Liberty Grove Software, we help manufacturers evaluate their ERP landscape, understand modernization risks, and build practical roadmaps that align technology decisions with business goals.

Schedule a Dynamics GP Modernization Assessment with Liberty Grove Software and gain a clear understanding of your options, risks, and opportunities before making your next ERP decision.

Frequently Asked Questions

Is Dynamics GP being discontinued?

Microsoft continues to support Dynamics GP and provide updates. However, Microsoft’s primary ERP innovation investments are focused on Dynamics 365 Business Central and cloud-based technologies.

What is replacing Dynamics GP?

For most small and mid-sized organizations, Dynamics 365 Business Central is considered Microsoft’s strategic successor ERP platform.

Should manufacturers move from GP to Business Central?

It depends on operational complexity, existing customizations, growth plans, and modernization goals. Every manufacturer should conduct a strategic assessment before making a migration decision.

Can Business Central handle manufacturing?

Yes. Business Central includes native manufacturing functionality and supports make-to-stock, make-to-order, and other production processes. The suitability depends on operational complexity and specific business requirements.

Is Business Central better than Dynamics GP?

Neither platform is universally better. The right choice depends on business goals, technology strategy, scalability requirements, and future growth plans.

How difficult is it to migrate from GP to Business Central?

Migration complexity varies based on customizations, integrations, manufacturing processes, data quality, and organizational readiness. Proper planning significantly reduces risk.

Can I move GP to the cloud without moving to Business Central?

Yes. Hosted GP environments allow organizations to gain the benefits of cloud infrastructure while continuing to use Dynamics GP.

What are the biggest ERP migration risks for manufacturers?

The most common risks include inadequate planning, unsupported customizations, integration challenges, operational disruption, user adoption issues, and insufficient change management.

Coming Next in This Series

Can Business Central Really Handle Manufacturing Complexity?

One of the most common concerns among manufacturing leaders is whether Business Central's manufacturing capabilities can support complex production environments.

In the next article, we’ll examine:

• Manufacturing functionality in Business Central
• Production orders, routings, and BOM management
• Make-to-stock and make-to-order capabilities
• Inventory visibility and planning tools
• When third-party manufacturing solutions may be required

We’ll also explore:

• The Real Fear Behind Leaving Dynamics GP in Manufacturing
• Why Manufacturing Customizations and ISVs Become ERP Migration Roadblocks
• Cost Accounting Differences Between GP and Business Central
• Hosted GP vs Business Central: What Manufacturers Need to Consider

Together, these articles will help manufacturers build a practical roadmap for ERP modernization and make informed decisions about their long-term technology strategy.

About Andrew Good

Andrew Good, CEO, Liberty Grove Software

Andrew Good, CEO of Liberty Grove Software, a leader in digital transformation, directs the company with strategic insights that deliver impactful results. With over two decades of expertise in Microsoft technologies, Andrew has guided businesses through digital transformation across manufacturing, finance, and healthcare.

Andrew's extensive knowledge comes from personal experiences with various companies. His hands-on operational knowledge comes from Engineering, Maintenance, and operational roles at Unilever and Sony Music. Fourteen years of working with Microsoft Dynamics BC/NAV follows successful projects in ERP, Computerized Maintenance Management Systems (EAM), and quality systems.

His passion for technology is matched by his love for sailing, which inspires his leadership. Andrew parallels the precision of navigating the seas and the challenges of steering a successful company. Under his leadership, Liberty Grove Software thrives, offering tailored solutions to empower clients and optimize operations with innovative Microsoft-based systems.

Connect with Andrew on LinkedIn

Subscribe to Andrew’s Newsletter on LinkedIn

The latest Wave 1 2026 update to Microsoft Dynamics 365 Business Central is not just another incremental release; it is a clear signal of where ERP is headed. Microsoft continues to invest in AI, usability, and extensibility in ways that are practical for mid-market organizations, not theoretical.

I spend a lot of time with CFOs, CIOs, and operations leaders who are trying to separate real innovation from marketing noise. This release makes that distinction easier. There are tangible improvements here that can drive efficiency, reduce friction, and improve decision-making without requiring a complete transformation initiative.

Let’s break down what matters most.

AI That Actually Fits into Business Workflows

The continued expansion of Copilot capabilities is one of the most important themes in this release. What stands out is not just that AI exists in Business Central, but how it is being applied.

Microsoft is embedding AI into everyday workflows; not as a separate tool, but as a natural extension of how users already work.

Key enhancements include:

• Improved financial summarization
  Users can generate contextual summaries of financial data directly within the application. This reduces the need to export reports or to interpret large datasets manually.
• Enhanced forecasting support
  AI-assisted forecasting continues to evolve, helping finance teams model scenarios more quickly and with greater confidence.
• Context-aware assistance
  Copilot can now provide more relevant suggestions based on user activity and data context, making it more useful in real operational situations.

The important point here is governance. AI in ERP must operate within defined permissions and controls. Microsoft is clearly building these capabilities with enterprise-grade security in mind; that should give leadership teams confidence to adopt, not hesitate.

A More Intuitive and Personalized User Experience

User adoption remains one of the biggest barriers to ERP success. Microsoft is addressing this directly with meaningful UX improvements.

Wave 1 2026 introduces:

• Enhanced role-based experiences
  Interfaces are becoming more tailored to specific roles: finance, operations, and sales. This reduces cognitive overload and shortens training cycles.
• Improved navigation and search
  Finding data and actions is faster and more intuitive. This may sound minor, but over time, it has a significant impact on productivity.
• Better data presentation
  Lists, dashboards, and reports are easier to interpret, helping users move from data to insight more efficiently.

These are not cosmetic changes. They directly affect how quickly teams can execute and how effectively they can use the system.

Deeper Integration Across the Microsoft Ecosystem

Business Central continues to strengthen its integration with the broader Microsoft stack; this is one of its most strategic advantages.

In this release, we see:

• Tighter integration with Microsoft 365 tools
  Users can interact with ERP data in familiar environments such as Excel and Teams, reducing context switching.
• Improved Power Platform connectivity
  Enhancements to Power BI, Power Automate, and Power Apps integrations enable organizations to extend functionality without heavy development.
• Streamlined data sharing
  Data flows more seamlessly across systems, supporting a more unified digital architecture.

For organizations thinking about long-term scalability, this matters. ERP should not be a silo; it should be part of a connected ecosystem that supports the entire business.

Automation That Reduces Manual Work

Automation is not new in Business Central, but it is becoming more intelligent and easier to implement.

Wave 1 2026 includes:

• Expanded workflow automation capabilities
  More processes can be automated out of the box, reducing reliance on custom development.
• Improved approval processes
  Approval workflows are more flexible and easier to manage, supporting better governance.
• Background processing enhancements
  Tasks can run more efficiently in the background, improving system performance and user experience.

The goal here is clear: eliminate repetitive tasks so teams can focus on higher-value work.

Stronger Development and Extensibility Framework

For partners and organizations that customize Business Central, this release brings important improvements.

Highlights include:

• Enhanced AL development environment
  Developers have better tools for building, testing, and deploying extensions.
• Improved APIs and integration points
  Easier connectivity with external systems supports more complex business scenarios.
• Upgrade-friendly customizations
  Microsoft continues to prioritize extensibility models that survive upgrades; this is critical for long-term sustainability.

From my perspective, this is one of the most underappreciated areas of innovation. A modern ERP must be adaptable without becoming fragile.

Data, Reporting, and Decision-Making

Data remains at the core of ERP value, and Microsoft is continuing to improve how organizations access and use it.

This release introduces:

• More powerful reporting capabilities
  Users can generate insights faster without relying heavily on IT.
• Better integration with analytics tools
  Power BI connectivity continues to improve, enabling richer visualizations and real-time dashboards.
• Improved data consistency and governance
  Enhancements help ensure that decision-makers work with accurate, reliable data.

For leadership teams, this translates directly into better decisions and faster response times.

What This Means for Your Organization

It is easy to look at a release like this and focus on features. The more important question is what it enables.

Wave 1 2026 reinforces several strategic realities:

• AI is becoming embedded in core business processes; not optional but expected.
• User experience is a competitive advantage; systems must be intuitive to drive adoption.
• Integration is no longer a nice-to-have; it is foundational to digital transformation.
• Automation is essential for scalability; manual processes do not scale.

Organizations that embrace these shifts will move faster and operate more efficiently than those that do not.

A Practical Approach to Adoption

One mistake I see companies make is trying to adopt everything at once. That rarely works.

Instead, focus on:

• Identifying high-impact use cases for AI and automation
• Prioritizing user experience improvements that drive adoption
• Leveraging integrations that eliminate data silos
• Ensuring governance and security are in place from the start

This is not about chasing features. It is about aligning technology with business outcomes.

Final Thoughts

Microsoft Dynamics 365 Business Central Wave 1 2026 is a strong release; not because it introduces flashy capabilities, but because it delivers practical improvements that organizations can use today.

As ERP continues to evolve, the gap between companies that effectively leverage these tools and those that do not will widen.

The opportunity is clear. The question is whether organizations are ready to take advantage of it.

Ready to turn the latest Business Central innovations into real business value?

Let’s talk.

At Liberty Grove Software, we work with clients to turn these capabilities into measurable business value. That is where the real impact lies.Contact Liberty Grove Software today to identify the highest-impact opportunities for AI, automation, and integration in your organization, and build a practical roadmap that delivers measurable results.

About Andrew Good

Andrew Good, CEO, Liberty Grove Software

Andrew Good, CEO of Liberty Grove Software, a leader in digital transformation, directs the company with strategic insights that deliver impactful results. With over two decades of expertise in Microsoft technologies, Andrew has guided businesses through digital transformation across manufacturing, finance, and healthcare.

Andrew's extensive knowledge comes from personal experiences with various companies. His hands-on operational knowledge comes from Engineering, Maintenance, and operational roles at Unilever and Sony Music. Fourteen years of working with Microsoft Dynamics BC/NAV follows successful projects in ERP, Computerized Maintenance Management Systems (EAM), and quality systems.

His passion for technology is matched by his love for sailing, which inspires his leadership. Andrew parallels the precision of navigating the seas and the challenges of steering a successful company. Under his leadership, Liberty Grove Software thrives, offering tailored solutions to empower clients and optimize operations with innovative Microsoft-based systems.

Connect with Andrew on LinkedIn

Subscribe to Andrew’s Newsletter on LinkedIn

Artificial intelligence has become one of the most discussed topics in enterprise technology, but for CIOs and CTOs evaluating ERP modernization, the real question is not whether AI matters. The question is whether AI within Business Central ERP delivers measurable value without introducing unnecessary risk.

For organizations considering a move from Microsoft Dynamics GP to Microsoft Dynamics 365 Business Central, AI is increasingly part of that evaluation.

Boards are asking about AI readiness. CEOs want automation gains. Finance leaders want faster forecasting and sharper insights.

The challenge for IT leadership is separating hype from operational reality.

What does AI in Business Central actually do today?

How risky is it?

And can it scale as your organization grows?

Does Business Central Include AI?

Yes.

Microsoft Dynamics 365 Business Central includes AI-powered capabilities through Microsoft Copilot and embedded intelligent features designed to improve productivity across finance, operations, and supply chain workflows.

Current AI-enabled capabilities include:

• Cash flow forecasting
• Predictive inventory insights
• Sales forecasting assistance
• AI-generated summaries of records and reports
• Automated content suggestions for product descriptions and communications

Microsoft continues expanding these capabilities through Copilot releases integrated into Business Central’s roadmap.

For reference, Microsoft’s official overview of Copilot in Business Central explains how these tools are evolving within ERP workflows.

The important distinction for executives is this:

AI in Business Central is not experimental bolt-on technology.

It is becoming embedded in core ERP workflows.

What AI in ERP Actually Changes

Traditional ERP systems require users to search, navigate dashboards, build reports, and manually interpret data.

AI changes that interaction model.

Instead of only retrieving data, users can increasingly:

• Ask natural-language questions
• Generate summaries instantly
• Identify anomalies faster
• Receive predictive recommendations

This shifts ERP from a passive record system into an active decision-support platform.

For CIOs, this means AI is not simply a feature enhancement.

It is a transformation in how enterprise systems are used.

Is AI in ERP Risky?

AI in ERP introduces real governance considerations, but the associated risks are often misunderstood.

The core issue is not that AI creates uncontrolled access.

The issue is whether your existing permissions, governance policies, and validation processes are mature enough to support AI-assisted workflows.

AI should always operate within:

• Defined role-based permissions
• Identity governance controls
• Audit logging frameworks
• Human review checkpoints

In Business Central, Copilot works within the user’s existing permission model.

That means that if users already have overly broad ERP access, AI may make that problem more visible.

AI does not create weak governance.

It reveals it.

For Microsoft guidance on responsible AI governance, the Microsoft Trust Center provides useful security and compliance context.

Accuracy Still Requires Human Oversight

One concern many executives raise is:

What happens if AI gets it wrong?

This is the right question.

AI-generated forecasts, summaries, and recommendations should support human decision-making, not replace it.

Examples:

• Forecast models still require a finance review
• Summaries may omit nuance
• Suggested actions require business validation

The strongest AI governance models use what is often called: Human-in-the-loop validation.

This ensures that critical ERP decisions remain accountable, explainable, and reviewable.

AI Governance Is Becoming a CIO Responsibility

As AI adoption expands, CIO and CTO leadership responsibilities grow accordingly.

AI in ERP now requires oversight across:

Identity and Access

Who can use AI features, and what data can they access?

Data Governance

Is sensitive data properly classified and protected?

Prompt and Usage Policies

What kinds of queries are acceptable?

Auditability

Can AI-driven outputs be traced and reviewed?

These governance layers are becoming as essential as cybersecurity frameworks.

Is Business Central Scalable?

Yes.

One of the strongest advantages of Microsoft Dynamics 365 Business Central is that it runs on Microsoft Azure, providing scalable capacity as organizations grow.

Business Central scales across:

• Expanding user counts
• Additional legal entities
• Growing transaction volumes
• Multi-location operations
• International business expansion

Because Azure infrastructure dynamically scales resources, organizations avoid many of the hardware constraints common in legacy on-premises ERP systems.

For CIOs planning long-term ERP modernization, scalability is not just about system size.

It is about ensuring that AI capabilities continue to perform reliably as operational complexity increases.

Why AI and Scalability Are Connected

AI performance depends heavily on the scale of the infrastructure.

As data volumes grow, AI models require:

• Faster compute resources
• Reliable uptime
• Elastic processing capacity
• Secure cloud storage integration

Legacy systems often struggle here.

Cloud-native ERP platforms like Business Central are designed for this future state.

That is one reason AI readiness increasingly overlaps with cloud ERP readiness.

What We Covered Earlier in This Series

In Blog #1, we examined the strategic modernization question facing GP leaders: how to evaluate ERP readiness before 2029 and assess whether Business Central aligns with long-term business goals.

In Blog #2, we addressed cloud ERP security, financial governance, and control, including how CIOs can evaluate cloud risk, subscription predictability, and compliance readiness.

Together, those discussions create the foundation for this third question:

What role should AI play in ERP decision-making today?

AI Hype vs AI Reality: What CIOs Should Focus On

Not every AI feature creates immediate value.

CIOs should prioritize AI use cases that improve measurable business outcomes, such as:

• Faster month-end close reporting
• Reduced manual forecasting effort
• Improved demand planning accuracy
• Faster exception detection in operations

The right AI question is not:

“Do we have AI?”

The better question is:

“Where does AI create controlled, measurable operational advantage?”

A Practical Liberty Grove Resource

For organizations evaluating how AI fits into ERP modernization, Liberty Grove’s Business Central solutions page provides a useful overview of platform capabilities and deployment options.

This is especially valuable for leadership teams as they compare current GP environments with future AI-enabled ERP models.

Key Takeaways

• Business Central already includes meaningful AI capabilities through Copilot
• AI in ERP is powerful, but only safe within strong governance frameworks
• Human oversight remains essential for accuracy and accountability
• Business Central scales effectively through Azure infrastructure
• AI readiness should be evaluated as part of a broader ERP modernization strategy

The Balanced View: AI Is Real, But Governance Determines Value

AI in ERP is no longer theoretical.

It is already reshaping how organizations forecast, summarize, automate, and make decisions.

But for CIOs and CTOs, successful AI adoption is not about quickly turning on features.

It is about implementing them responsibly.

Organizations that gain the most value from AI in Business Central will be those that combine innovation with governance, automation with oversight, and scalability with strategic discipline.

Assess Your ERP AI Readiness

If your organization is evaluating whether AI-enabled ERP belongs in your modernization roadmap, Liberty Grove Software can help assess:

• AI governance readiness
• Security and permissions posture
• Business Central scalability fit
• Strategic migration timing from GP

The goal is simple:

Adopt AI where it creates measurable value, without introducing avoidable risk.

Contact Liberty Grove Software today to begin a practical assessment of your AI-ready ERP future.

If you’d like to understand where your organization stands before enabling BC Copilot, let’s talk.

Schedule a BC Copilot Readiness Discussion

About Andrew Good

Andrew Good, CEO, Liberty Grove Software

Andrew Good, CEO of Liberty Grove Software, a leader in digital transformation, directs the company with strategic insights that deliver impactful results. With over two decades of expertise in Microsoft technologies, Andrew has guided businesses through digital transformation across manufacturing, finance, and healthcare.

Andrew's extensive knowledge comes from personal experiences with various companies. His hands-on operational knowledge comes from Engineering, Maintenance, and operational roles at Unilever and Sony Music. Fourteen years of working with Microsoft Dynamics BC/NAV follows successful projects in ERP, Computerized Maintenance Management Systems (EAM), and quality systems.

His passion for technology is matched by his love for sailing, which inspires his leadership. Andrew parallels the precision of navigating the seas and the challenges of steering a successful company. Under his leadership, Liberty Grove Software thrives, offering tailored solutions to empower clients and optimize operations with innovative Microsoft-based systems.

Connect with Andrew on LinkedIn

Subscribe to Andrew’s Newsletter on LinkedIn

For many CIOs and CTOs running Microsoft Dynamics GP, the conversation about modernization is no longer theoretical, and the phrase on everyone’s lips is “Cloud ERP Security”.

It’s operational.

With 2029 on the horizon, leadership teams are being asked to evaluate what comes next, and increasingly, that conversation leads to the cloud.

But alongside that opportunity comes a familiar set of concerns:

• Is cloud ERP actually secure?
• Are we giving up control over our systems?
• Will subscription pricing become unpredictable over time?

These are not objections to dismiss.

They are the right questions to ask.

Moving from an on-premises ERP like GP to a cloud platform such as Microsoft Dynamics 365 Business Central is not just a technology shift.

It’s a transformation of the governance, security, and financial models.

With these questions in mind, let's turn to the bigger context: is taking on cloud ERP truly about risk – or about reallocating responsibility?

When executives ask whether cloud ERP is “worth the risk,” the more accurate question is:

Where does the responsibility for risk sit today – and where should it sit in the future?

In on-premises environments like Microsoft Dynamics GP, your organization is responsible for:

• Infrastructure security
• Patch management
• Backup and disaster recovery
• System availability
• Compliance readiness

In a cloud model powered by Microsoft, much of that responsibility shifts to a provider operating at a global scale.

This doesn’t remove control.

It’s a reallocation of operational burden, from internal IT teams to enterprise-grade infrastructure.

With this mind shift, security remains at the forefront. Is cloud ERP secure?

The short answer: yes, but not automatically.

Platforms like Microsoft Dynamics 365 Business Central are built on Microsoft Azure, which provides enterprise-grade protection through its Microsoft Azure security infrastructure:

• Global data centers with physical and network security
• Continuous monitoring and threat detection
• Built-in encryption at rest and in transit
• Compliance with international standards (ISO, SOC, GDPR, and more), supported by Microsoft compliance and certification standards

For most mid-market and enterprise organizations, replicating this level of security internally is not realistic.

However, cloud security still depends on how the system is configured and governed.

Key areas that remain your responsibility:

• User access and identity management
• Role-based permissions
• Data governance policies
• Monitoring and audit processes

Cloud ERP is secure by design and effective with strong governance.

Identity Is the New Security Perimeter

In cloud environments, the traditional network perimeter disappears.

Security shifts to identity.

Using Microsoft Entra ID, organizations can enforce:

• Multi-factor authentication (MFA)
• Conditional access policies
• Device and location-based restrictions
• Centralized identity governance

This creates a more dynamic and controllable security model than traditional on-premises systems.

But it also introduces a new leadership requirement:

Identity strategy is now core to ERP security.

Security isn't the only concern – control also matters. Can we still control updates in the cloud?

One of the most common concerns among GP users is loss of control over system changes.

In on-premises environments, upgrades are:

• Infrequent
• Highly customized
• Often delayed due to cost and complexity

In the cloud, updates in Microsoft Dynamics 365 Business Central follow a different model.

Microsoft provides:

• Scheduled release waves (typically twice per year), aligned with the Dynamics 365 release wave schedule
• Advance visibility into upcoming changes
• Sandbox environments for testing
• Configurable update windows

This allows organizations to:

• Validate updates before production deployment
• Train users ahead of changes
• Reduce disruption through smaller, incremental improvements

The result isn’t less control, but more predictable control.

Subscription vs CapEx: The Financial Shift

For many executives, the move to cloud ERP raises an equally important question:

How does the financial model change?

With Microsoft Dynamics GP, costs are typically:

• Upfront license purchases (CapEx)
• Infrastructure investments
• Ongoing maintenance and upgrade costs

With Microsoft Dynamics 365 Business Central, the model shifts to:

• Subscription-based pricing (OpEx)
• Per-user licensing
• Bundled infrastructure and platform services

Is Subscription Pricing Predictable?

In most cases, yes.

Subscription pricing is:

• Tied to user count and license type
• Scalable with organizational growth
• Easier to forecast based on hiring plans

This creates financial alignment between ERP cost and business activity.

However, predictability depends on governance.

Organizations must manage:

• License allocation and usage
• Role-based licensing tiers
• Expansion of environments or integrations

Without oversight, costs can drift.

With governance in place, they remain highly controllable.

Hidden Costs vs Visible Costs

One of the most important shifts in moving to cloud ERP is cost transparency.

On-premises systems often carry hidden costs:

• Server maintenance
• Downtime risk
• Security tooling
• IT labor for patching and upgrades

Cloud ERP consolidates these into a visible, recurring model.

This doesn’t necessarily reduce total cost in every case.

But it does make measuring cost:

• More predictable
• Easier to align with value
• Simpler to justify at the executive level 

Governance in the Cloud Era

Cloud ERP does not eliminate governance; it elevates it.

Executives must think beyond infrastructure and focus on:

• Access governance: Who can see and do what
• Data governance: How information is classified and protected
• Financial governance: How licensing and usage are controlled
• Operational governance: How updates and changes are managed

This is particularly important for organizations transitioning from legacy systems like Microsoft Dynamics GP, where governance may have evolved organically over time.

Cloud platforms provide the tools.

Leadership provides the discipline.

Compliance and Audit Readiness

For organizations in regulated industries, cloud ERP introduces an important advantage:

Built-in compliance capabilities.

With Microsoft Dynamics 365 Business Central and the broader Microsoft ecosystem, organizations can leverage:

• Audit trails and activity logging
• Role-based access controls
• Data retention policies
• Integration with compliance and security tools

This makes it easier to:

• Demonstrate control during audits
• Maintain consistent policies across systems
• Respond to regulatory requirements

The Balanced View: Control Without Complexity

It’s understandable to think cloud ERP reduces control, but that’s incomplete.

The change is in how control is exercised.

Instead of managing infrastructure manually, organizations define control through:

• Policies
• Identity frameworks
• Governance structures
• Monitoring systems

The result is often:

• Stronger security
• Greater visibility
• More predictable costs
• Reduced operational burden

Key Takeaways

• Cloud ERP shifts responsibility, not risk elimination.
• Security is strengthened through Microsoft Azure infrastructure and identity controls.
• Updates are structured, predictable, and testable.
• Subscription pricing is scalable and forecastable with governance.
• Cloud platforms improve transparency across both cost and compliance.

What Comes Next in This Series?

In our first article, we explored the strategic question many executives are asking: what does long-term ERP readiness look like as 2029 approaches, and how should leaders evaluate modernization beyond urgency alone?

This article addressed a core operational concern:

“Is cloud ERP secure, controllable, and financially viable?”

The next step is more strategic:

How do we decide when – and how – to move from GP to Business Central? In the next article, we’ll explore:

• Migration timing considerations
• Risk-aware transition strategies
• How to evaluate readiness for modernization

Because the decision is not just about technology.

It’s about aligning your ERP platform with where your business is going next.

Assess Your ERP Strategy with Confidence

If your organization is evaluating whether to remain on Microsoft Dynamics GP or transition to Microsoft Dynamics 365 Business Central, Liberty Grove Software can help you assess:

• Security and compliance posture
• Cost modeling and licensing strategy
• Governance readiness for cloud ERP

The goal is simple: make a clear, informed decision, without unnecessary risk.

You can also explore Microsoft Dynamics 365 Business Central solutions to better understand how a modern cloud ERP platform supports security, cost control, and governance.

Contact Liberty Grove Software today to schedule a personalized assessment and determine the best path to a secure, cost-effective cloud ERP future for your organization.

If you’d like to understand where your organization stands before enabling BC Copilot, let’s talk.

Schedule a BC Copilot Readiness Discussion

About Andrew Good

Andrew Good, CEO, Liberty Grove Software

Andrew Good, CEO of Liberty Grove Software, a leader in digital transformation, directs the company with strategic insights that deliver impactful results. With over two decades of expertise in Microsoft technologies, Andrew has guided businesses through digital transformation across manufacturing, finance, and healthcare.

Andrew's extensive knowledge comes from personal experiences with various companies. His hands-on operational knowledge comes from Engineering, Maintenance, and operational roles at Unilever and Sony Music. Fourteen years of working with Microsoft Dynamics BC/NAV follows successful projects in ERP, Computerized Maintenance Management Systems (EAM), and quality systems.

His passion for technology is matched by his love for sailing, which inspires his leadership. Andrew parallels the precision of navigating the seas and the challenges of steering a successful company. Under his leadership, Liberty Grove Software thrives, offering tailored solutions to empower clients and optimize operations with innovative Microsoft-based systems.

Connect with Andrew on LinkedIn

Subscribe to Andrew’s Newsletter on LinkedIn

Boards are asking about AI. CEOs are asking about AI. And increasingly, CIOs and CTOs are being asked a new question: “When are we turning on Business Central Copilot?” As organizations evaluate Business Central Copilot implementation, the real challenge is not simply about enabling a new AI feature within the ERP. It’s ensuring the organization has the governance, security controls, and operational discipline required to deploy AI responsibly.

Microsoft Dynamics 365 Business Central (BC) Copilot is one of the most significant advancements in modern ERP platforms. Embedded AI can streamline reporting, accelerate decision-making, and automate time-consuming tasks across finance, operations, and supply chain workflows.

But implementing Business Central Copilot is not simply enabling a new feature.

It represents a shift in how organizations interact with their ERP systems.

The organizations that realize the most value from AI in ERP environments are not the ones that deploy it fastest; they are the ones that deploy it with governance, security design, and operational discipline.

Copilot is powerful. Responsible implementation amplifies value while minimizing avoidable risk.

Why Business Central Copilot Is a Strategic ERP Shift

Historically, ERP systems required users to navigate menus, reports, and dashboards to find the information they needed.

Business Central Copilot changes that model.

AI now sits inside the application experience, helping users:

• Generate financial summaries
• Draft reports and documentation
• Identify operational insights
• Analyze data faster than traditional reporting workflows

This shift transforms ERP from a system of record into a decision intelligence platform.

For CIOs and CTOs, that means AI adoption inside ERP is not simply a technical deployment. It is an organizational change initiative involving governance, identity management, security controls, and user training.

Before enabling Copilot broadly, leadership teams must ensure their ERP environment is ready.

The Six Leadership Questions CIOs Must Answer

Before deploying Business Central Copilot, IT leadership should evaluate six key questions.

These questions form a practical readiness framework for responsible AI adoption inside ERP systems.

1. Where Can Microsoft Business Central Copilot Safely Add Value?

Not every workflow should be AI-assisted immediately.

Early Copilot use cases often include:

• Financial reporting summaries
• Operational insights
• Draft documentation
• Data exploration

Starting with low-risk, high-productivity scenarios allows organizations to learn how Copilot interacts with their ERP data.

2. What Data Should Microsoft Business Central Copilot Access?

MS BC Copilot operates within the permissions of the user interacting with it.

That means existing role-based permissions define ERP data access.

If permission sets are overly broad, Copilot may surface data users technically have access to but rarely see in normal workflows.

Before rollout, organizations should review:

• Permission sets
• Role assignments
• Sensitive financial fields
• Vendor and payroll data access

Data exposure risk often comes from configuration decisions, not from Copilot itself.

3. How Will Identity and Permissions in BC Copilot Be Controlled?

Strong identity controls are foundational for AI-enabled systems.

Organizations deploying Business Central Copilot should confirm:

• Microsoft Entra ID identity governance
• Multi-factor authentication enforcement
• Role-based access control
• Least-privilege permission design

These controls ensure BC Copilot interactions respect the same security boundaries as traditional ERP activity.

We’ll explore the full Copilot data security framework in the next article of this series.

4. How Will Usage of Dynamics 365 Copilot Be Monitored?

As with any emerging technology, visibility matters.

CIOs should ensure the organization can monitor:

• BC Copilot interactions
• Data access patterns
• Reporting queries
• Export activity

Audit logging and monitoring capabilities provide accountability and help organizations detect unusual usage patterns early.

5. How Will Users Be Trained on BC Copilot?

AI tools change how employees interact with enterprise systems.

Users must understand:

• When BC Copilot suggestions should be validated
• What types of data should not be shared in prompts?
• How to interpret AI-generated summaries

Without proper guidance, employees may over-trust AI-generated outputs or misuse the tool unintentionally.

Training and acceptable-use policies are critical for responsible adoption.

6. How Will We Measure the ROI of Microsoft BC Copilot?

The fastest way to undermine an AI initiative is to deploy it without measuring results.

Business Central Copilot should be evaluated against measurable outcomes such as:

• Reduced report generation time
• Faster financial analysis
• Improved operational insight
• Increased productivity for finance and operations teams

Structured adoption programs help CIOs demonstrate real business value.

Data Security and Oversharing Considerations

A common concern when deploying AI within ERP systems is data oversharing.

In most cases, the underlying issue is not the AI technology; it is the organization’s permission model.

Many ERP environments accumulate permission complexity over time:

• Broad roles granted for convenience
• Legacy permission sets
• Shared accounts or overprovisioned users

Before enabling BC Copilot, CIOs should review their least-privilege access model and verify that users have access only to the data required for their roles.

Identity governance through Microsoft Entra ID, combined with disciplined permission management inside Business Central, helps ensure Copilot interactions remain within appropriate boundaries.

Many organizations are moving away from legacy on-premises ERP systems like GP toward cloud platforms that offer stronger security and scalability. Learn more about the benefits of cloud vs on-premises ERP systems.

In our next article, we’ll explore a more comprehensive Business Central Copilot security framework to protect sensitive ERP data.

Governance, Compliance, and Auditability in BC Copilot

Beyond access control, organizations must also consider how AI usage aligns with governance and compliance obligations.

Key considerations include:

• Audit logging of BC Copilot interactions
• Data retention policies
• Data loss prevention (DLP) controls
• Regulatory reporting requirements

For organizations in regulated industries, establishing clear oversight mechanisms before deploying BC Copilot ensures AI activity remains defensible and compliant.

Governance is not about slowing innovation.

It is about enabling responsible AI adoption.

Operational and Cultural Readiness for BC Copilot

Technology readiness alone does not ensure successful AI adoption.

Organizations must also prepare for the operational and cultural impact of Copilot.

This includes:

• Change management planning
• Acceptable-use policies for AI tools
• Human-in-the-loop validation workflows
• Clear guidance on when AI suggestions require review

AI should assist decision-making, not replace human accountability.

In the third article of this series, we’ll explore an operational rollout checklist for Business Central Copilot, including adoption strategies and productivity measurement.

The Balanced View: Value With Responsibility

When implemented thoughtfully, Business Central Copilot can deliver meaningful business benefits:

• Faster financial reporting
• Improved operational visibility
• Reduced administrative workload
• More informed decision-making

But successful organizations approach AI deployment with a balanced perspective.

They combine innovation with governance, security with productivity, and automation with human oversight.

Copilot is powerful.

Responsible implementation ensures that power translates into sustainable value.

Key Takeaways

• Business Central Copilot represents a strategic shift in ERP workflows.
• Governance and identity controls should precede broad rollout.
• Permission design and least-privilege access define risk posture.
• Human validation remains essential for AI-assisted insights.
• Measured adoption enables sustainable ROI.

A successful Business Central Copilot implementation begins with strong governance, validated identity controls, and a clear operational rollout strategy.

Executive BC Copilot Readiness Checklist

Before enabling Business Central Copilot, CIOs should confirm:

1. Inventory current permission sets
2. Audit sensitive ERP data fields
3. Validate Microsoft Entra ID identity policies
4. Confirm multi-factor authentication enforcement
5. Define an AI acceptable-use policy
6. Establish audit logging review processes
7. Implement data loss prevention controls
8. Define human validation workflows
9. Train power users first
10. Pilot in a low-risk department
11. Track productivity KPIs
12. Document governance framework

What Comes Next in This Series

In the next article, we’ll explore a deeper question many CIOs are asking:

In our next blog, we'll discuss Cloud ERP Security & Cost, and the final article in this series will address AI in Business Central

Most organizations evaluating Microsoft BC Copilot fall into one of three categories:

• Ready to move forward but unsure how to govern it
• Interested, but concerned about security and data exposure
• Under pressure to adopt AI without a clear rollout strategy

If you’re evaluating Copilot for your organization, the most valuable first step is not licensing; it’s readiness.

At Liberty Grove Software, we help CIOs and CTOs conduct a Copilot Strategic Readiness Assessment, examining:

• Data exposure and permission structure
• Identity and security controls
• Governance and acceptable use policies
• Practical rollout and adoption strategy

The goal is simple: enable AI adoption with confidence, not uncertainty.

If your organization is considering leaving Dynamics GP, following a structured ERP migration roadmap to Business Central can help reduce risk and ensure a smooth transition.

If you’d like to understand where your organization stands before enabling BC Copilot, let’s talk.

Schedule a BC Copilot Readiness Discussion

About Andrew Good

Andrew Good, CEO, Liberty Grove Software

Andrew Good, CEO of Liberty Grove Software, a leader in digital transformation, directs the company with strategic insights that deliver impactful results. With over two decades of expertise in Microsoft technologies, Andrew has guided businesses through digital transformation across manufacturing, finance, and healthcare.

Andrew's extensive knowledge comes from personal experiences with various companies. His hands-on operational knowledge comes from Engineering, Maintenance, and operational roles at Unilever and Sony Music. Fourteen years of working with Microsoft Dynamics BC/NAV follows successful projects in ERP, Computerized Maintenance Management Systems (EAM), and quality systems.

His passion for technology is matched by his love for sailing, which inspires his leadership. Andrew parallels the precision of navigating the seas and the challenges of steering a successful company. Under his leadership, Liberty Grove Software thrives, offering tailored solutions to empower clients and optimize operations with innovative Microsoft-based systems.

Connect with Andrew on LinkedIn

Subscribe to Andrew’s Newsletter on LinkedIn

Global manufacturing isn’t simple anymore, and multi-entity consolidation in Business Central has become a critical capability for companies operating across legal entities, currencies, and geographies.

You might have a U.S. parent company, a Canadian distribution arm, a European sales entity, and an Asian contract manufacturing partner. Add multiple currencies, intercompany transactions, tax jurisdictions, and reporting standards, and suddenly your finance team is spending more time reconciling numbers than analyzing performance.

I see this often when speaking with manufacturing CFOs and COOs. The growth strategy works. The operational strategy works. But financial consolidation across entities becomes the bottleneck.

The good news? If you’re running Microsoft Dynamics 365 Business Central (BC), you already have more capability than most executives realize.

With these challenges and opportunities in mind, let’s walk through what managing multi-entity and global consolidations should look like, and explore how embedded AI and predictive analytics are changing the game.

Why Multi-Entity Consolidation Becomes a Strategic Risk

When manufacturers expand into new regions or operate multiple legal entities, four issues usually surface:

1. Intercompany transactions don’t reconcile cleanly.
2. Currency fluctuations distort financial visibility.
3. Consolidated reporting takes too long.
4. Leadership decisions rely on lagging data.

At that point, it’s no longer just an accounting challenge. It’s a strategic one.

If it takes 20 days to close the books, your executive team is steering the business using last month’s dashboard.

Modern consolidation isn’t just about compliance. It’s about speed, clarity, and confidence.

How Business Central Handles Multi-Entity & Multi-Currency Consolidations

Many mid-market manufacturers assume they need a separate consolidation tool. In many cases, they don’t.

Business Central includes built-in capabilities for:

1. Consolidation Companies

You can create a dedicated consolidation company that pulls financial data from each legal entity. This enables the consolidation of income statements, balance sheets, and other financial reports without manual spreadsheet stitching.

2. Multi-Currency Management

BC uses exchange rate tables and automated currency adjustments to translate financial data across entities. Currency revaluation can be automated during close, reducing manual errors and audit risk.

3. Intercompany Automation

Intercompany journals automatically mirror transactions between entities. That means fewer mismatches, fewer reconciliation headaches, and stronger audit trails.

For many manufacturing organizations with standard ownership structures and reporting requirements, this native functionality is more than sufficient.

The real question is not just whether BC can consolidate, but whether it's configured strategically from the start.

Intercompany Transactions: Where Most Manufacturers Struggle

Intercompany errors are one of the biggest pain points in multi-entity manufacturing environments.

Common challenges include:

• Timing differences in postings
• Mismatched accounts between subsidiaries
• Currency rounding variances
• Manual journal entries outside system controls

When these issues pile up, your finance team spends days reconciling what should have been automated.

Business Central addresses this with:

• Automated intercompany postings
• Configurable approval workflows
• Standardized chart of accounts mapping
• Clear audit trails

But technology alone isn’t enough.

The leadership decision that makes the biggest difference? Standardization.

When entities use aligned charts of accounts and consistent posting rules, consolidation becomes mechanical instead of investigative.

That shift alone can dramatically reduce month-end close time.

Given these ongoing challenges, a common question arises: Do you need a separate consolidation tool?

This is a question I hear often.

The answer depends on complexity, not size.

Business Central is typically sufficient if:

• You operate within a relatively straightforward ownership structure.
• You report under one primary accounting framework (e.g., GAAP).
• You need consolidated financials, but not overly complex minority-interest modeling.

You may need extensions or additional tools if:

• You manage multiple reporting standards (GAAP and IFRS simultaneously).
• You have complex ownership percentages or holding structures.
• You require highly specialized consolidation reporting.

The good news is that BC sits within the broader Microsoft ecosystem.

Power BI enhances executive visibility.
Power Platform enables workflow automation.
Copilot brings AI-driven insight into financial and operational data.

For most mid-market manufacturers, this combination is more scalable and effective than using multiple disconnected systems.

Where Embedded AI Changes the Equation

This is where the conversation shifts from accounting to leadership.

Consolidation tells you what happened.

AI and predictive analytics do more than show trends; they enable proactive decision-making by forecasting future business scenarios. This helps manufacturers anticipate demand shifts, manage risks, and optimize resources across global operations.

1. Cash Flow Forecasting

Business Central includes AI-driven cash flow forecasting that analyzes historical receivables and payables to project future liquidity.

For manufacturers operating across entities and currencies, this matters enormously.

You gain:

• Visibility into global cash position
• Early warning on working capital gaps
• Improved capital allocation decisions

Instead of reacting to cash constraints, you anticipate them.

2. Demand Planning and Inventory Forecasting

Manufacturing success depends on aligning production with demand.

Embedded forecasting tools in BC analyze historical sales and seasonality to project future demand.

When applied across multiple entities, this allows you to:

• Balance inventory globally
• Reduce excess carrying costs
• Improve service levels
• Align procurement with true demand signals

AI-driven forecasting enhances operational leadership.

3. Operational KPIs Across Entities

One of the biggest leadership blind spots in multi-entity environments is inconsistent visibility into KPIs.

With BC integrated into Power BI and Copilot, executives can monitor:

• Gross margin by entity
• Inventory turns by geography
• Production efficiency trends
• Consolidated EBITDA performance

With unified dashboards, decision-making accelerates.

You move from reactive reporting to proactive performance management.

With these possibilities in mind, you may now wonder about the practical steps required to implement such a solution.

A fair question is: how hard is this to implement?

The answer depends largely on preparation.

Key areas of focus include:

• Chart of Accounts Alignment
• Entities must align account structures for seamless consolidation.
• Currency Configuration
• Exchange rate tables and posting rules need thoughtful setup.
• Intercompany Design
• Define standard processes for how entities transact with one another.
• Reporting Strategy

Determine early what leadership dashboards should show and build backward from there.

In most manufacturing environments, we recommend a phased rollout:

1. Standardize the finance structure.
2. Enable intercompany automation.
3. Activate consolidation.
4. Layer in AI forecasting and executive dashboards.

Trying to do everything at once increases risk; phasing builds momentum.

The Strategic Advantage of Getting This Right

When consolidation and forecasting are automated properly, three leadership benefits emerge:

1. Faster Close Cycles

Finance teams shift from reconciliation to analysis.

2. Better Capital Allocation

Cash forecasting improves investment timing.

3. Greater Executive Confidence

You see the full global picture, clearly and quickly.

That’s more than operational efficiency; it's a competitive advantage.

A Final Thought for Manufacturing Leaders

Growth creates complexity.

Complexity demands discipline.

But it shouldn’t demand chaos.

Multi-entity consolidation isn’t just a finance function. It’s a leadership capability.

When you combine:

• Structured intercompany automation
• Multi-currency consolidation
• AI-powered forecasting
• Unified KPI dashboards

You create an environment where global expansion strengthens your business rather than strains it.

That’s what a modern ERP enables.

And that’s why Business Central, when implemented thoughtfully, can be far more strategic than many manufacturers expect.

Still using spreadsheets for consolidation? It’s time to rethink.

Not about software. About leadership visibility.

Some Questions We Are Frequently Asked

1. Can Business Central handle multi-entity consolidation without third-party software?

In many cases, yes.

Business Central includes built-in consolidation capabilities that allow manufacturers to combine financial data across multiple legal entities. It supports intercompany eliminations, multi-currency translation, and consolidated reporting.

However, highly complex ownership structures or dual-reporting requirements (such as GAAP and IFRS) may require additional extensions.

For most mid-market manufacturers, native functionality is more than sufficient when implemented correctly.

2. How does Business Central manage intercompany transactions?

Business Central automates intercompany postings between entities.

When configured properly, a transaction entered in one company automatically generates the corresponding entry in the related entity. This reduces manual journal entries, reconciliation errors, and audit risk.

The key is standardized charts of accounts and clearly defined posting rules across subsidiaries.

3. Does Business Central support multi-currency consolidation?

Yes.

Business Central uses exchange rate tables and currency adjustment processes to translate financial data across entities operating in different currencies.

Currency revaluation can be automated during the close process, helping ensure that consolidated financial statements accurately reflect current exchange rates.

For global manufacturers, this significantly reduces the need for manual currency adjustments.

4. How can AI in Business Central improve cash flow forecasting?

Business Central includes predictive cash flow forecasting tools that analyze historical receivables and payables to project future liquidity.

For manufacturing executives, this provides:

• Early visibility into potential cash shortfalls
• Improved working capital planning
• Better timing of capital investments

Rather than reacting to cash constraints, leadership can proactively manage liquidity across global operations.

5. Can Business Central improve demand planning across multiple entities?

Yes! Especially when combined with embedded forecasting and Power BI analytics.

Business Central can analyze historical sales and inventory data to generate demand forecasts. When applied across multiple entities, this enables manufacturers to balance inventory globally, reduce excess stock, and improve service levels.

Predictive insights strengthen operational decision-making; they don’t replace it.

6. How long does it take to implement multi-entity consolidation in Business Central?

Implementation timelines vary based on complexity, but success depends less on software and more on structure.

The most important steps include:

• Aligning the charts of accounts
• Standardizing intercompany processes
• Configuring currency management
• Defining executive reporting requirements

Many manufacturers phase implementation by region to reduce risk and accelerate adoption.

7. What are the biggest mistakes manufacturers make with global consolidations?

Three common pitfalls:

1. Allowing subsidiaries to operate with inconsistent account structures
2. Relying on spreadsheets for intercompany eliminations
3. Treating consolidation as a compliance exercise instead of a strategic capability

When consolidation is automated and aligned with leadership KPIs, it becomes a competitive advantage rather than just a reporting requirement.

Conclusion

Global expansion should increase your competitive advantage, not your financial complexity. When multi-entity consolidation in Business Central is structured correctly, it becomes more than an accounting function. It becomes a leadership asset.

Automated intercompany transactions, real-time multi-currency reporting, and AI-driven forecasting give manufacturing executives something far more valuable than clean books: clarity. And clarity drives better decisions.

If your team is still relying on spreadsheets, manual eliminations, or delayed reporting across entities, it may be time to rethink the approach.

At Liberty Grove Software, we help manufacturers turn Business Central into a strategic platform for growth, not just a system of record. If you’re ready to simplify global consolidation and gain true financial visibility, let's talk.

About Andrew Good

Andrew Good, CEO, Liberty Grove Software

Andrew Good, CEO of Liberty Grove Software, a leader in digital transformation, directs the company with strategic insights that deliver impactful results. With over two decades of expertise in Microsoft technologies, Andrew has guided businesses through digital transformation across manufacturing, finance, and healthcare.

Andrew's extensive knowledge comes from personal experiences with various companies. His hands-on operational knowledge comes from Engineering, Maintenance, and operational roles at Unilever and Sony Music. Fourteen years of working with Microsoft Dynamics BC/NAV follows successful projects in ERP, Computerized Maintenance Management Systems (EAM), and quality systems.

His passion for technology is matched by his love for sailing, which inspires his leadership. Andrew parallels the precision of navigating the seas and the challenges of steering a successful company. Under his leadership, Liberty Grove Software thrives, offering tailored solutions to empower clients and optimize operations with innovative Microsoft-based systems.

Connect with Andrew on LinkedIn

Subscribe to Andrew’s Newsletter on LinkedIn

In manufacturing, we spend a lot of time talking about machines, materials, and margins, but let’s be honest: none of it works without people. Your workforce is both your most significant investment and your biggest opportunity. Yet for many manufacturers, workforce planning and labor costing remain more guesswork than strategy.

That’s where better workforce planning, and the right tools in Microsoft Dynamics 365 Business Central can make a real difference.

Over the years, I’ve seen manufacturers transform their operations simply by getting clearer visibility into labor time, skills, capacity, and actual costs. In this article, I’ll talk about how that comes together in practice.

I remember working with a manufacturer who was convinced their margins were getting crushed by material costs. That’s where all the attention was going. But once we slowed down and really looked at labor – actual time on each operation, who was doing the work, and where the bottlenecks were – the picture changed.

The problem wasn’t effort or even headcount; it was visibility. Skilled people were getting pulled into the wrong jobs, teams hadn’t updated estimates in years, and overtime had quietly become the default solution.

Using Business Central, we helped them connect labor time, skills, and capacity directly to their production orders. Within weeks, conversations on the shop floor shifted from gut feel to real data, and the path forward suddenly became clear.

That’s the kind of clarity we focus on at Liberty Grove Software: practical, grounded improvements that help manufacturers make better decisions without overcomplicating the operation.

Labor Time Tracking: From Estimates to Reality

If you don’t know where labor time is actually going, everything else is built on shaky ground.

Too often, labor is tracked at a high level, by shift, by department, or worse, just rolled into overhead.

Business Central enables manufacturers to track labor time at the operational level, directly tied to production orders and routing steps.

This does a few critical things:

• It shows you the actual time spent on each operation.
• It highlights where estimates are consistently off.
• It gives supervisors and planners real data instead of assumptions.

When labor time is accurate, scheduling and costing improve, and conversations on the shop floor become fact-based rather than anecdotal, enabling lean manufacturing.

Skill-Based Routing: Putting the Right People on the Right Work

Not all labor is interchangeable, and pretending it is can get expensive fast.

Skill-based routing in Business Central allows manufacturers to assign operations based on required skills, certifications, or experience levels. That means:

• Complex or high-risk operations go to qualified employees.
• Less specialized work doesn’t get bottlenecked by overqualified (and higher-cost) labor.
• Training gaps become visible instead of hidden.

This isn’t just about efficiency; it’s about resilience. When you understand how skills map to your routings, you can plan for absences, turnover, and growth without scrambling.

Capacity Planning: Seeing Constraints Before They Hurt You

Capacity planning isn’t just about machines; it’s about people.

Business Central lets you look at labor capacity alongside work centers and machine capacity so that you can answer questions like:

• Where are we overloading key employees or teams?
• Do we have enough skilled labor to support increased demand?
• Is overtime solving a short-term problem or masking a long-term one?

When labor capacity is visible, planners can make smarter trade-offs between lead times, overtime, subcontracting, and hiring. That’s when workforce planning shifts from reactive to strategic.

Labor Costing: Understanding the True Cost of What You Make

Accurate labor costing is where everything comes together.

By tying labor time, skill levels, and rates directly to production orders, Business Central provides a much clearer picture of:

• Actual vs. standard labor costs
• Which products or customers are labor-intensive
• Where margins are eroding, and why

This insight supports better pricing, quoting, and decisions on automation, process improvement, or product mix. In my experience, this is one of the fastest ways manufacturers uncover “hidden” profit leaks.

Workforce Planning as a Competitive Advantage

Workforce planning and labor costing aren’t just back-office functions; they’re competitive advantages. Manufacturers who get this right can:

• Scale more confidently
• Respond faster to demand changes
• Protect margins in tight labor markets

Business Central provides the foundation, but the real value comes from how thoughtfully it’s implemented and used.

When labor data is accurate, visible, and trusted, it empowers everyone, from the shop floor to the executive team, to make better decisions.

At the end of the day, manufacturing will always be about people as much as it is about products. Manufacturers who recognize that and plan accordingly are best positioned for long-term success.

Ready to turn workforce data into a real competitive advantage?
At Liberty Grove Software, we help manufacturers get more from Microsoft Dynamics 365 Business Central, especially in labor tracking, capacity planning, and accurate costing.

If you’re ready to move beyond estimates and spreadsheets and start making labor a strategic asset, we’re here to help.

Let's talk. Schedule a conversation with Liberty Grove Software today to see how workforce planning in Business Central can work for your manufacturing operation.

About Andrew Good

Andrew Good, CEO, Liberty Grove Software

Andrew Good, CEO of Liberty Grove Software, a leader in digital transformation, directs the company with strategic insights that deliver impactful results. With over two decades of expertise in Microsoft technologies, Andrew has guided businesses through digital transformation across manufacturing, finance, and healthcare.

Andrew's extensive knowledge comes from personal experiences with various companies. His hands-on operational knowledge comes from Engineering, Maintenance, and operational roles at Unilever and Sony Music. Fourteen years of working with Microsoft Dynamics BC/NAV follows successful projects in ERP, Computerized Maintenance Management Systems (EAM), and quality systems.

His passion for technology is matched by his love for sailing, which inspires his leadership. Andrew parallels the precision of navigating the seas and the challenges of steering a successful company. Under his leadership, Liberty Grove Software thrives, offering tailored solutions to empower clients and optimize operations with innovative Microsoft-based systems.

Connect with Andrew on LinkedIn

Subscribe to Andrew’s Newsletter on LinkedIn

When I talk with food and beverage manufacturers, processors, and distributors, the conversation almost always turns to the same concerns: quality, traceability, and compliance.

These are not abstract ideas. They affect daily operations, customer trust, and in many cases, the survival of the business.

The Food Safety Modernization Act (FSMA) raised the bar, and rightly so. But meeting those requirements does not have to mean adding layers of complexity or spreadsheets that only one person understands.

At Liberty Grove Software, we believe quality management should be practical, visible, and built into how people already work.

Microsoft Dynamics 365 Business Central (BC) provides companies with a strong foundation for managing QA workflows, batch tracking, nonconformances, and recall processes that support both compliance and operational efficiency.

My goal in this article is to explain how these pieces fit together in real-world terms, without jargon, and from the perspective of someone who has spent years working alongside operations and quality teams.

Quality Management is a System, Not a Department

One of the biggest misconceptions I see is treating quality as something that lives only in the QA department.

In reality, quality management spans purchasing, production, warehousing, and shipping. FSMA reinforces this by requiring documented controls, traceability, and corrective actions across the entire supply chain.

Business Central supports this systems-based approach by centralizing data and workflows. When quality processes are embedded into purchasing receipts, production orders, and sales shipments, quality becomes part of daily operations rather than an afterthought.

This is critical for both compliance and consistency.

For example, when raw materials are received, BC can trigger quality checks tied to specific vendors, items, or risk profiles. Results are recorded against the lot or batch, creating an immediate audit trail.

This data then flows forward into production and finished goods, ensuring downstream decisions are based on verified information.

Batch and Lot Traceability is the Backbone of FSMA

Traceability is the cornerstone of FSMA compliance. The ability to track one step forward and one step back is no longer optional. Companies must know where ingredients came from, how they were used, and where finished products were shipped.

Business Central’s lot and serial tracking capabilities provide the backbone for this requirement.

When properly configured, BC allows you to track batches from supplier receipt through production, storage, and customer shipment.

What matters most is not just that tracking exists, but that it is easy and reliable enough for people actually to use.

In practice, this means associating lot numbers with purchase receipts, consumption in production orders, and output of finished goods. It also means ensuring warehouse transactions, such as transfers or repack operations, maintain lot integrity.

When traceability is built into these workflows, you can generate a complete lot genealogy in seconds rather than hours.

From a leadership perspective, this changes the conversation. Instead of worrying whether you could handle a trace request or recall, you know you can. That confidence matters.

Managing QA Workflows Without Slowing the Business Down

QA workflows often get a bad reputation for being slow or disruptive. In my experience, that usually means the process is disconnected from the system people use every day. When QA steps are managed through emails, paper forms, or spreadsheets, delays are inevitable.

Business Central allows QA workflows to be defined and automated. This includes inspection plans, test results, approvals, and holds.

For example, a received lot can be automatically placed on quality hold until inspection results are entered and approved. Production can be prevented from consuming that lot until it is released, protecting both compliance and product quality.

The key is flexibility. Not every item requires the same level of scrutiny.

BC supports rule-based workflows so high-risk materials receive more rigorous checks, while lower-risk items move more quickly. This risk-based approach aligns well with FSMA expectations and helps QA teams focus where it matters most.

Nonconformances as Learning Opportunities

No operation is perfect. Deviations happen. What separates strong organizations from struggling ones is how they handle nonconformances.

A nonconformance should not just be a record of something going wrong. It should be a tool for learning and improvement.

Business Central supports this by allowing nonconformances to be logged, categorized, and linked to specific lots, vendors, production orders, or customers.

When a nonconformance is recorded, corrective and preventive actions can be assigned and tracked. This creates accountability and visibility.

Over time, patterns emerge. You may see recurring issues with a specific supplier, process step, or piece of equipment.

That insight allows leadership to make informed decisions rather than reacting to symptoms.

From an FSMA standpoint, documented corrective actions are essential. Regulators want to see not only that issues were identified, but that meaningful steps were taken to prevent recurrence. Having this information in BC makes audits far less stressful.

Recall Readiness Without Panic

No one likes to talk about recalls, but every responsible organization plans for them. The worst time to figure out your recall process is during an actual event.

Business Central supports recall readiness by combining traceability, inventory visibility, and customer shipment data. If a lot is identified as potentially unsafe, BC can quickly show which finished goods contain that lot and which customers received them. This dramatically reduces response time and limits exposure.

Equally important is documentation. FSMA requires timely communication and the maintenance of records during a recall. When all transactions are in BC, reports can be generated to support notifications, regulatory reporting, and internal review.

I often tell clients that recall capability is not just about compliance. It is about protecting your brand. A fast, precise response can preserve customer trust even under challenging situations.

Making Compliance Part of Daily Operations

One of the most encouraging trends I see is companies moving away from viewing FSMA compliance as a separate project. Instead, they are integrating compliance into their ERP workflows.

Business Central supports this shift by serving as a single source of truth for quality, inventory, and operations.

When QA data lives alongside purchasing, production, and sales data, teams can collaborate more effectively. Decisions are made with full context. Audits become confirmations rather than fire drills.

This integration also supports growth. As companies add new products, facilities, or markets, having standardized quality and traceability processes in BC allows them to scale without losing control.

A Practical Path Forward

Quality management, traceability, and FSMA compliance can feel overwhelming, especially for growing organizations.

My advice is to start with fundamentals. Ensure lot tracking is accurate and consistently used. Define clear QA workflows that match your risk profile. Treat nonconformances as opportunities to improve. And test your recall process before you need it.

Business Central provides the tools, but success comes from thoughtful configuration and alignment with how people actually work.

At Liberty Grove Software, we focus on bridging that gap. We help clients design solutions that support compliance while making day-to-day operations smoother, not harder.

At the end of the day, quality is about trust. Trust from regulators, customers, and your own team. When quality processes are transparent, reliable, and integrated into BC, that trust becomes a natural outcome rather than a constant concern.

That is what modern quality management should look like, and it is absolutely achievable.

Ready to Simplify FSMA Compliance and Strengthen Traceability?
Let's talk. Schedule a conversation with Liberty Grove Software today to see how Business Central can support practical, audit-ready quality management across your operations.

About Andrew Good

Andrew Good, CEO, Liberty Grove Software

Andrew Good, CEO of Liberty Grove Software, a leader in digital transformation, directs the company with strategic insights that deliver impactful results. With over two decades of expertise in Microsoft technologies, Andrew has guided businesses through digital transformation across manufacturing, finance, and healthcare.

Andrew's extensive knowledge comes from personal experiences with various companies. His hands-on operational knowledge comes from Engineering, Maintenance, and operational roles at Unilever and Sony Music. Fourteen years of working with Microsoft Dynamics BC/NAV follows successful projects in ERP, Computerized Maintenance Management Systems (EAM), and quality systems.

His passion for technology is matched by his love for sailing, which inspires his leadership. Andrew parallels the precision of navigating the seas and the challenges of steering a successful company. Under his leadership, Liberty Grove Software thrives, offering tailored solutions to empower clients and optimize operations with innovative Microsoft-based systems.

Connect with Andrew on LinkedIn

Subscribe to Andrew’s Newsletter on LinkedIn

One of the most exciting developments in the manufacturing world today is the integration of Lean Manufacturing principles into software systems such as Business Central. Lean concepts, such as Kanban, Just-in-Time (JIT) inventory, and waste reduction, have revolutionized the way manufacturers operate.

Still, there’s an even more significant opportunity when these concepts are applied directly in your Enterprise Resource Planning (ERP) system.

At Liberty Grove Software, we’ve always been passionate about helping businesses optimize their processes and run more efficiently.

As the CEO of a company that has spent years building custom solutions on Microsoft Dynamics 365 Business Central, I’ve seen firsthand how important it is for manufacturers to embrace modern, streamlined practices that enable Lean Manufacturing.

Today, I want to explore how Lean Manufacturing practices can be implemented in Business Central and why this approach is a game-changer for manufacturers looking to stay competitive in today’s fast-paced market.

What is Lean Manufacturing?

Before we dive into how Lean Manufacturing and Business Central can work together, let’s take a moment to define what Lean Manufacturing is and why it’s so crucial.

At its core, Lean is about eliminating waste, improving efficiency, and maximizing customer value.

The goal is to do more with less: fewer resources, less time, and reduced costs, while still delivering high-quality products to customers.

Some key concepts within Lean Manufacturing include:

• Waste Reduction: Identifying and eliminating processes that don’t add value.
• Just-in-Time (JIT) Inventory: Minimizing inventory by ordering only what is needed, when it is required.
• Kanban: A visual tool used to signal the need for materials or inventory, helping to maintain the flow of production and avoid overstocking.
• Continuous Improvement (Kaizen): The idea that minor, incremental improvements can lead to significant long-term results.
• Standardized Work: Developing precise and efficient processes for every task to reduce variability and errors.

Lean Manufacturing has been around since the mid-20th century. Still, with the rise of sophisticated ERP systems like Business Central, there’s a growing opportunity to leverage these concepts directly within your business operations.

The Benefits of Lean Manufacturing in Business Central

Business Central is a powerful ERP system that offers robust tools for financial management, supply chain optimization, sales, purchasing, inventory, and more. It’s designed to be flexible and customizable to meet your business's specific needs.

But what makes Business Central truly special for manufacturers is how easily it can integrate Lean Manufacturing practices into your daily operations.

By doing so, manufacturers can reduce waste, increase production flow, and improve profitability.

Let’s explore some specific Lean concepts that can be applied within Business Central:

1. Kanban and Visual Production Management

Kanban is one of the most popular Lean tools, and it’s all about creating a visual system that helps manage inventory and production schedules.

The idea is simple: use visual signals (such as cards or boards) to indicate when parts or materials are needed at various stages of production.

Business Central can integrate Kanban systems to help manage inventory and production workflows. For example, using Business Central’s built-in Kanban functionality, manufacturers can track inventory levels in real time.

When stock runs low, or demand for a particular component increases, Business Central can automatically generate a replenishment order or signal the production team to act.

What’s especially powerful about this is that Business Central’s Kanban integration doesn’t just help manage materials; it also allows for cross-department collaboration.

The visual boards can be accessed by everyone, from purchasing to manufacturing to shipping, ensuring that each department is aligned and aware of the current inventory status.

2. Just-in-Time (JIT) Inventory

JIT inventory is a central pillar of Lean Manufacturing. It’s about ordering and receiving materials only when they are needed, thereby reducing the need for excess inventory and the associated carrying costs.

Business Central makes it easier than ever to implement JIT inventory practices. Through the software’s demand forecasting and supply chain management tools, manufacturers can gain a more accurate picture of future inventory needs based on customer orders, production schedules, and historical data.

By leveraging Business Central’s intelligent inventory management features, manufacturers can implement automated reorder points to ensure they never order more than needed.

This reduces both the financial burden of carrying excess inventory and the risk of stockouts that can disrupt production.

3. Waste Reduction and Continuous Improvement

Waste reduction is the heart of Lean Manufacturing, and Business Central can help manufacturers identify inefficiencies across the entire value stream.

For example, Business Central allows manufacturers to track each step of the production process, from raw material procurement to the final shipment.

By closely monitoring production data, businesses can identify bottlenecks, redundant processes, or areas where materials are being wasted.

Additionally, Business Central’s reporting and analytics tools can provide insights into production performance, enabling teams to conduct regular reviews of key metrics (such as cycle times, production volumes, and downtime).

This information is invaluable for implementing the Kaizen approach to continuous improvement.

By encouraging a culture of ongoing process evaluation and using Business Central as a data hub, manufacturers can continually refine their operations, minimize waste, and increase overall productivity.

4. Demand Forecasting and Production Planning

Lean Manufacturing isn’t just about cutting costs; it’s also about being more responsive to customer demand.

By utilizing Business Central’s advanced forecasting and production planning capabilities, manufacturers can more accurately predict when demand will rise and adjust production schedules accordingly.

Using AI-powered demand forecasting tools, Business Central can help manufacturers understand which products will be in high demand and when, allowing them to better align production schedules and material procurement with market needs.

Incorporating Lean principles into production planning helps manufacturers meet customer demand without overcommitting resources.

By keeping production schedules flexible and responsive, businesses can maintain high customer satisfaction while optimizing inventory levels.

5. Production and Capacity Scheduling

Scheduling is another critical area where Lean Manufacturing principles intersect with Business Central.

Lean aims to reduce production downtime and improve the overall flow of goods through the system.

By using Business Central’s capacity planning features, manufacturers can ensure they use resources effectively and avoid production bottlenecks.

Business Central enables businesses to schedule production runs based on available resources and capacity, ensuring that the right products are being made at the right time. It also allows manufacturers to prioritize production runs based on customer orders, delivery deadlines, and inventory levels.

This ability to closely monitor capacity and production scheduling leads to reduced lead times, fewer delays, and a smoother production flow, all key tenets of Lean Manufacturing.

Why Lean Manufacturing in Business Central Matters

Now that we’ve explored how Lean concepts like Kanban, JIT, and waste reduction can be applied directly within Business Central, it’s time to address the big question: why does it matter?

For manufacturers, staying competitive in today’s market requires more than just making high-quality products; it requires making them efficiently and cost-effectively.

By embracing Lean principles and integrating them with Business Central, manufacturers can:

• Increase profitability by reducing waste and improving operational efficiency.
• Enhance customer satisfaction by delivering faster responses and improved product availability.
• Strengthen their supply chain by aligning production schedules with customer demand.
• Streamline decision-making with real-time data and analytics from Business Central’s reporting tools.

Ultimately, the combination of Lean Manufacturing principles and Business Central creates a robust framework for continuous improvement.

It empowers manufacturers to optimize every step of the production process while remaining flexible enough to respond to fluctuating market conditions and customer demands.

The Future of Lean Manufacturing with Business Central

As a manufacturer, you’re constantly looking for ways to improve. Whether it’s reducing production costs, optimizing your inventory management, or getting products to market faster, Lean Manufacturing and Business Central can help you achieve those goals.

The integration of Lean practices into Business Central is not just a trend; it’s the future of manufacturing.

As the business landscape evolves, manufacturers will need to be more agile, more data-driven, and more focused on delivering value to their customers.

Business Central, with its powerful tools for managing everything from supply chains to financials, is the perfect ERP system to help manufacturers navigate that journey.

Ready to Take Your Manufacturing Operation to the Next Level?

Let's talk. Schedule a conversation with Liberty Grove Software today, and let's discuss how Lean Manufacturing and Business Central can work together to unlock new levels of efficiency, profitability, and customer satisfaction.

About Andrew Good

Andrew Good, CEO, Liberty Grove Software

Andrew Good, CEO of Liberty Grove Software, a leader in digital transformation, directs the company with strategic insights that deliver impactful results. With over two decades of expertise in Microsoft technologies, Andrew has guided businesses through digital transformation across manufacturing, finance, and healthcare.

Andrew's extensive knowledge comes from personal experiences with various companies. His hands-on operational knowledge comes from Engineering, Maintenance, and operational roles at Unilever and Sony Music. Fourteen years of working with Microsoft Dynamics BC/NAV follows successful projects in ERP, Computerized Maintenance Management Systems (EAM), and quality systems.

His passion for technology is matched by his love for sailing, which inspires his leadership. Andrew parallels the precision of navigating the seas and the challenges of steering a successful company. Under his leadership, Liberty Grove Software thrives, offering tailored solutions to empower clients and optimize operations with innovative Microsoft-based systems.

Connect with Andrew on LinkedIn

Subscribe to Andrew’s Newsletter on LinkedIn