How Companies Implement and Use Business Central

Overview of Microsoft Dynamics 365 Business Central Understanding Implementation vs Usage

Many people assume that implementing an ERP system means simply installing software and starting to use it. In reality, ERP implementation is a structured business transformation process, while ERP usage is the disciplined day-to-day execution of that process. In Business Central, companies do not “just use features”; they implement controlled business flows and then operate within those flows consistently.

Business Central is designed to adapt to how a company works, but only within defined rules. Implementation is the phase where those rules are designed, validated, and configured. Usage is the phase where employees follow those rules through daily transactions such as sales orders, purchase orders, production orders, jobs, and postings.

Understanding this distinction is critical to understanding how companies succeed—or fail—with Business Central.


What “Implementation” Really Means in Business Central

Implementation in Business Central is not about enabling all modules at once. It is about deciding how the company wants to run its business inside the ERP system and then configuring Business Central to enforce that behavior.

During implementation, companies decide:

• Which business processes will be standardized
• How transactions should flow between departments
• What level of control is required before posting
• How inventory, costs, revenue, and profitability should be tracked

Once these decisions are made, Business Central is configured so that users are guided into the correct way of working, rather than relying on individual judgment.

Typical Phases of a Business Central Implementation

Most companies implement Business Central in clear phases, even if they do not explicitly name them.

Business Understanding Phase

The company documents how it currently operates and identifies inefficiencies, gaps, and risks. This phase is about understanding reality, not the software.

Process Design Phase

Future-state processes are defined. Decisions are made about how sales, purchasing, inventory, production, jobs, service, and finance should work together.

System Configuration Phase

Business Central is configured to support those processes. This includes setup of posting groups, dimensions, inventory structure, workflows, approvals, and controls.

Data Migration Phase

Master data such as customers, vendors, items, opening balances, and fixed assets are brought into the system.

Testing and Validation Phase

End-to-end scenarios are tested to ensure the system behaves as expected.

Go-Live and Usage Phase

The system becomes the official system of record, and daily business operations begin inside Business Central.

The Most Important Part: A Realistic Implementation and Usage Example

To truly understand how companies implement and use Business Central, it is essential to look at a realistic end-to-end scenario, not abstract phases.

Example: How a Manufacturing Company Implements and Uses Business Central

Business Scenario

A mid-sized manufacturing company produces furniture and sells to retailers and direct customers. Before Business Central, the company used spreadsheets for inventory, separate accounting software, and manual coordination between departments. Management faced issues such as inventory mismatches, delayed financial reporting, and unclear profitability.

The company decides to implement Business Central with the following objectives:

• Standardize sales, purchase, inventory, and production processes
• Ensure inventory and finance are always in sync
• Track production costs accurately
• Get real-time visibility into profitability

Step 1: Deciding What to Implement (Scope Definition)

The company does not implement everything at once. It decides to start with:

• Sales
• Purchase
• Inventory
• Manufacturing and Production
• Finance

Jobs and Service are planned for a later phase.

This decision is critical because Business Central implementations succeed when scope is controlled.

Step 2: Designing Business Processes Inside the ERP

Before configuring the system, the company defines how work should happen.

Examples of decisions made:

• Sales orders must be approved before release
• Inventory must be tracked by location
• Production must consume materials through production orders
• Financial postings must be automatic and controlled

These decisions are business-driven, not software-driven.

Step 3: Configuring Business Central to Enforce the Process

Business Central is then configured to reflect these decisions.

Configuration includes:

• Item and inventory setup
• Posting groups and chart of accounts
• Production BOMs and routings
• Dimensions for department and product analysis
• Approval workflows

At this stage, Business Central becomes a control system, not just a transaction system.

Step 4: Testing an End-to-End Business Flow

Before go-live, the company tests a complete scenario:

• Create a sales order
• Trigger production
• Purchase missing raw materials
• Receive goods
• Execute production
• Ship and invoice the customer

This testing ensures that:

• Inventory moves correctly
• Costs flow properly
• Financial entries are accurate
• Reports reflect reality

Only after this validation does the company proceed.

Step 5: Go-Live – Using Business Central Daily

After go-live, Business Central becomes the only system used for daily operations.

Sales teams:

• Create and manage sales orders
• Check inventory availability in real time

Purchase teams:

• Create purchase orders based on system requirements
• Receive and post goods directly into inventory

Production teams:

• Execute production orders
• Post consumption and output

Finance teams:

• Monitor postings automatically generated by operations
• Close periods without manual reconciliation

At this stage, usage is disciplined. Employees do not “work around” the system; they work inside it.

Step 6: Management Uses ERP Output, Not Raw Data

Management does not operate the system directly. Instead, they rely on ERP output:

• Inventory valuation
• Profit and loss statements
• Production cost reports
• Sales and margin analysis

Because all data originates from a single ERP system, decision-making becomes faster and more reliable.

Step 7: Continuous Improvement After Implementation

Implementation does not end at go-live. Over time, the company:

• Refines processes
• Adds new modules such as Jobs or Service
• Improves reporting and analysis
• Tightens controls where needed

Business Central supports this evolution without requiring a new system.

What This Example Demonstrates

This example shows that companies use Business Central successfully when they:

• Implement processes, not just software
• Control scope and phase the rollout
• Enforce discipline through configuration
• Rely on ERP output for decisions
• Continuously improve after go-live

How Companies Actually Use Business Central Day to Day

After implementation, Business Central becomes the backbone of daily operations:

• Every department works on the same data
• Transactions flow automatically into finance
• Errors are prevented by system rules
• Visibility replaces guesswork

At this stage, Business Central stops being an “ERP project” and becomes how the company runs its business.

Summary

Companies implement Business Central by first deciding how they want to operate, then configuring the system to enforce those decisions. They use Business Central by performing daily business activities inside a single, integrated ERP system where operations and finance are always aligned.

Successful companies do not customize heavily or bypass the system. They trust the ERP design, follow disciplined processes, and let Business Central deliver control, visibility, and scalability.

Hot Topics in Business Central

Next Steps in Business Central