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Microsoft Dynamics GP Versus NAV: Which ERP Solution Is Best For You?

Posted by Steve Anderson

Jun 4, 2014

gp versus navDetermining which ERP solution is best for your business requires extensive research, a targeted list of desired features and a provider to answer any and all questions you may have. Microsoft has earned its place as a top ERP software provider: Dynamics GP and Dynamics NAV are exceptional solutions with great track records of success. But, when it comes to deciding between the two, there are a few key qualifiers you should consider.

Add-On Modules

One of the biggest differences between Dynamics NAV and Dynamics GP is the add-on functionality. NAV is considered to be the more adaptive solution, enabling small and mid-sized enterprises to use modules to solve the various business issues they encounter in daily operations. GP features unbeatable accounting software, but does not have add-ons built into its infrastructure. Extending the capabilities of Dynamics GP requires "bolt-on" modules provided by software vendors. Let's drill down into specific functions and the respective capabilities of GP and NAV to accommodate those operations.

Financial Accounting

NAV is an excellent choice for managing a majority of the financial accounting functions your business requires, including:
  • General ledger
  • Accounts receivable and payable
  • Analytical accounting
  • Fixed assets
  • Inventory
  • Cash flow
Dynamics NAV is a flexible solution aimed at helping you identify key improvement opportunities, monitor your performance and maximize your cash flow.

Dynamics GP offers superior functionality to NAV in the following respects:
  • Fixed assets
  • General ledger
  • Payables, receivables
  • Multicurrency
  • National accounts
  • Cash flow
  • Budgeting
  • Collections

For businesses having difficulty managing the wildly varying aspects of financial accounting, Microsoft Dynamics GP is likely the better choice.


When it comes to your sales performance, order processing is one of the most integral considerations. Microsoft Dynamics NAV requires add-ons to generate, manage and integrate sales orders. Because NAV is set up to cooperate well with add-on modules, this implementation is minimally inconvenient.

Dynamics GP may not "play well" with add-ons, but it doesn't need to: Sales order processing is built into its core functionality. GP enables a range of sales process-related functions, including:
  • Automation of sales order processing
  • Customer service improvements
  • Minimized labor costs
  • Reduced shipping costs
  • Controlled order fulfillment

Despite the preconception that Microsoft Dynamics GP is rigid, it is actually the superior solution to NAV for businesses looking for comprehensive sales software.


Dynamics NAV comes equipped with exceptional distribution software, featuring:
  • Order entry and processing
  • Warehouse management
  • Inventory control
  • Forecasting
  • Ecommerce integration
  • SKU management
  • Batch and lot tracking
Like NAV, Dynamics GP is well suited for distribution functions, including:
  • Enhanced pick-and-pack
  • Requisition management
  • Demand planner
  • Purchase order processing
  • Inventory management

For wholesale and distribution businesses, the choice between Dynamics NAV and GP is difficult: While NAV offers superior features in regard to ecommerce, GP provides automated workflow to improve your efficiency. Creating a list of priorities may be a useful exercise for businesses attempting to differentiate the two.

Project Management

Microsoft Dynamics NAV offers reliable resource management and planning capabilities, and its ability to accommodate modules helps extend its functionality. Out of the box, NAV is able to perform:
  • Expense tracking
  • Availability analysis
  • Job planning
Dynamics GP, on the other hand, delves into more detail on the fiscal aspects of project management, such as:
  • Time sheets
  • Expense reports
  • Resource control
  • Accurate billing
Both solutions help you control project direction, cost and execution. GP provides more financial functionality, but NAV is more of an overarching solution.

Microsoft Dynamics GP and Dynamics NAV are both excellent choices for businesses in search of a comprehensive ERP solution to improve enterprise performance. The right choice for you depends on your unique business, its needs and your expectations.

To learn more about Dynamics-driven cloud ERP packages, contact an expert at SMB Suite. Call 888.525.6398 or click the link below for a free quote.

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