Which Business Central licence do I need?
Before implementing Microsoft Dynamics 365 Business Central, the first question is almost always the same: which licence do I need, and how many? Here's a straight-talking rundown of the licence types, how they differ, and how to pick the combination that won't have you overpaying.
If your company manufactures or provides contract-based technical service, your full users need Premium. If you only manage finance, sales, purchasing, inventory and projects, Essentials covers you. For anyone who only views or approves things, use Team Members, and shared warehouse or POS terminals can run on a Device licence.
Business Central licence types
Business Central in the cloud (SaaS) is billed per user, per month, with an annual commitment. There are two «full» licences (Essentials and Premium) and several lighter options for people who don't need to operate the whole ERP.
Essentials
The most common licence. Gives full access to finance and accounting, sales and customers, purchasing, inventory, cash management and project management. It's the baseline for most SMEs.
Premium
Includes everything in Essentials plus the Manufacturing module (production orders, bills of materials, machine centres, capacity) and Service Management (service orders, contracts, scheduling).
Team Members
For anyone who only needs to view data, approve workflows, log hours or expenses and edit the occasional field. It doesn't allow creating or posting orders, invoices or journal entries. It costs a fraction of an Essentials licence.
Device
A licence tied to a device rather than a person. Ideal for shift-shared workstations: warehouse terminals, barcode scanners, POS tills or the shop floor.
External accountant
Microsoft offers up to 3 free licences so your accountant or auditor can securely access your data without using up a paid licence.
Essentials vs. Premium
This is the big decision between full users. The price difference comes down to exactly two modules: manufacturing and advanced service management.
| Feature | Essentials | Premium |
|---|---|---|
| Finance and accounting | Yes | Yes |
| Sales, purchasing and inventory | Yes | Yes |
| Cash management and projects | Yes | Yes |
| Basic warehousing | Yes | Yes |
| Manufacturing (production) | No | Yes |
| Service management (contracts) | No | Yes |
| Custom extensions (AL) | Yes | Yes |
How to choose your licence combination
The key to not overpaying is mapping licences to real roles, not to headcount. Follow this logic:
-
1
Do you manufacture or provide contract-based technical service?
If yes, your full users will need Premium.
-
2
Just finance, sales, purchasing and inventory?
Essentials comfortably covers most distribution and services SMEs.
-
3
Roles that only view or approve?
Management, sales staff checking reports, supervisors approving requests: Team Members.
-
4
Shift-shared workstations?
Warehouse, POS or shop floor with several operators per terminal: consider a Device licence.
-
5
Does your accountant need access?
Use the free external accountant licence instead of a paid one.
Ballpark 2026 pricing
Reference figures per user, per month, with an annual commitment, excluding VAT. Microsoft updated its pricing in November 2025, so always confirm current rates before signing up.
Remember: the licence is just access to the software. The real investment in a project includes implementation, data migration, development, integrations, training and support.
Frequently asked questions
Can I mix Essentials and Premium licences?
Within the same environment, all full users must be on the same plan. If you turn on manufacturing or service management, the whole environment becomes Premium. Team Members and Device licences can coexist with either plan.
Can a Team Members licence issue invoices?
No. It lets you view data, approve workflows and log hours or expenses, but it can't create or post sales or purchase documents. Invoicing requires a full licence (Essentials or Premium).
Does the licence price include implementation?
No. The licence only covers access to the cloud software. Implementation, migration, custom development and support are quoted separately.
How often is Business Central updated?
Microsoft releases two major update waves a year, included in the subscription at no extra cost. With well-built AL development, your customisations evolve without breaking.
How many licences do I need to get started?
It depends on your real roles. The usual setup is a mix: a few full users operating the ERP and several Team Members who only view or approve. We help you size it correctly so you don't overpay.