In this blog, we will dive into some of the most common functionalities in Dynamics GP and compare them to the same or similar functionalities in Dynamics 365 Business Central.

You’ll find walkthroughs on how to perform common accounting tasks in both systems, providing a detailed function-to-function comparison to help streamline your transition from Dynamics GP to D365 Business Central.

For more information about the transition from Dynamics GP to D365 Business Central, visit our dedicated page to plan your transition with Encore.

Table of Contents

• General Ledger
• Bank Reconciliation
• Accounts Payable
• Accounts Receivable
• Inventory
• Multicurrency
• Sales Order Processing & Invoicing
• Purchase Orders
• Function Similarities
• Function Differences

General Ledger

Setting Up and Adding Accounts

One of the main differences when comparing General Ledger functionality between the two systems is that Dynamics GP uses fixed account segments while D365 Business Central offers flexible dimensions, allowing for more dynamic reporting and easier maintenance.

Watch the video below to see how account structures differ between Dynamics GP and Business Central:

Learn more in our blog article about Dimensions in Dynamics 365 Business Central.

Entering Journal Entries

Both systems allow for the creation of journal entries, but Business Central offers several enhancements. In Dynamics GP, journal entries can be entered manually or imported from Excel.

Business Central also supports Excel integration. Users can preview postings, apply filters, and edit entries directly in Excel using the “Edit in Excel” feature. This streamlines bulk updates and helps reduce errors.

Check out this video to understand how journal entries are managed in Dynamics GP versus Business Central. The video compares batch setup, dimension tagging, currency handling, and posting options, making it an ideal resource for monthly tasks like payroll or insurance entries. 

Learn more about this specific functionality in our blog post, “How to Enter a Journal Entry in Dynamics 365 Business Central.” Or review the bigger picture of moving from Dynamics GP to Dynamics 365 Business Central in our new guide.

Bank Reconciliation

Adding a Checkbook

In Dynamics GP, checkbooks are created with basic EFT and direct deposit setup options.

Dynamics 365 Business Central expands on this by integrating bank account setup with payment services, remittance advice tracking, and Positive Pay as a built-in feature rather than an add-on. Users can also define check formats and export payment files in various formats to meet regional banking standards.

Watch this video to see how both systems handle checkbooks:

Entering Bank Transactions

This video shows how to enter and post bank transactions in Dynamics GP and Business Central. Learn how to use checkbooks, general journals, and balance accounts to record payments and ensure accurate G/L entries.

Bank reconciliation

Watch how bank reconciliation works in Dynamics GP compared to Business Central. Compare how you would manually match transactions in GP to automated matching with Copilot in Business Central, plus learn how to import bank statements and generate reconciliation reports.

Read our blog article to learn how to do Bank Reconciliation in Dynamics 365 Business Central.

Accounts Payable

Vendor Setup & Posting Groups

Take a closer look at how vendor information is organized and maintained in Dynamics GP and D365 Business Central. From EFT details and remit addresses to posting groups and approval workflows, this video highlights the key differences in how each system handles vendor setup and account mapping.

Entering Transactions

Compare voucher entries in Dynamics GP to purchase invoices in D365 Business Central. This walkthrough covers selecting vendors and entering G/L codes, customizing dimensions, and posting transactions.

Check Creation

See how payment batches are created and managed in both Dynamics GP and Business Central. This video demonstrates how to build check runs, exclude vendors, generate EFT files, and post payments, while pointing out where the workflows differ between the two systems.

Accounts Receivable

Customer Setup & Posting Groups

In GP, customer setup is screen-based and relies on classes to define default settings and G/L accounts. Each customer can have unique G/L codes directly attached to their record. Business Central uses Customer Posting Groups and General Posting Groups to manage account mappings. These posting groups can be customized per customer, offering similar flexibility to GP classes but with a more structured and scalable approach.

Watch the video to see how customer setup and posting groups differ between Dynamics GP and Business Central:

Sales Transactions and Cash Receipts

Both systems support AR transactions through sales invoices and journals. In Dynamics GP, transactions are typically entered via Sales Transaction Entry or Transaction Entry screens, with batch processing and manual distribution checks. Business Central simplifies this with a grid-based invoice entry that supports direct G/L coding, tax calculation, and tagging by department or division.

Watch this video to compare how sales transactions and cash receipts are handled in Dynamics GP and Business Central:

Inventory

Item Card

Compare GP’s window-based layout with Business Central’s grid-based Item Card, and explore how each system handles costing methods, replenishment setups, and barcode support.

Inventory Posting Groups

Understand how GP’s item-level G/L account setup contrasts with Business Central’s posting group structure, including differences in interim accounts and manufacturing integration.

Location Cards and Vendor Setup

See how Business Central centralizes and enhances location and vendor setup compared to GP, with added flexibility in tax settings, bin policies, and vendor catalog management.

Item Journals

Explore how inventory adjustments are processed in GP compared to D365 Business Central, see how Business Central expands functionality with flexible transaction types, dimension codes, and preview posting options.

Check out our blog post to learn How to Perform a Physical Inventory Journal in Dynamics 365 Business Central.

Item Transfers

Learn how Business Central simplifies direct and in-transit transfers compared to GP, with more flexible site setups and integrated documentation for smoother movement of inventory.

Multicurrency

Setting up Currencies and Exchange Rates

Both Dynamics GP and D365 Business Central support multicurrency and exchange rates. GP manages multicurrency with manual rate entry, whereas Business Central sets rates per company and allows for automatic updates. The clip below shows setup steps and key differences:

Configuring Accounts for Currency Revaluation

In GP, you get a list view that you can toggle for account revaluation. In Business Central, it is similar to a list view; however, the Revaluation tab offers more flexibility, allowing you to select whether the valuation is unrealized or realized.

This video covers enabling revaluation, tracking gains/losses, and viewing currency details:

Multicurrency Journal Entries

Both systems have multicurrency journal entries. GP toggles between functional and originating currency views; Business Central displays both with more flexible options. The video demonstrates journal entry steps, currency selection, and posting in each:

Month-End Currency Revaluation

GP’s revaluation is manual and account-specific, whereas in Business Central, you can run batch revaluations for efficiency. This video explains running revaluation in both GP and BC:

Managing Realized Gain and Loss Accounts

See how GP and Business Central each manage realized gain and loss accounts, and how each applies exchange rates:

Sale Order Processing & Invoicing

Sales Order Entry

Dynamics GP and Business Central both support full sales order entry, with GP relying more on batch processing and Business Central offering a smoother, more automated workflow. Watch the video below to see how the two compare:

Shipping & Picking

Both solutions handle shipping and picking, but GP uses traditional picking tickets and packing slips, while Business Central offers more flexible pick instructions, Pro Forma Invoices (not available in GP), and automated document handling. See the video below for a side-by-side comparison:

See our blog: How To Return Items with Directed Put-away and Pick in Dynamics 365 Business Central.

Invoicing & Paper/Data Flow

GP handles invoicing through batch posting and standard templates. Business Central builds on this with electronic delivery, flexible posting, and improved audit tracking. See the differences in this short demo:

Purchase Orders

Issuing Purchase Orders

Both GP and Business Central support creating and processing purchase orders; however, GP requires printing to release, while Business Central releases through print or send options. Instead of additional fields and windows in GP, Business Central offers a grid-based system for your PO lines. See the full process for each:

Non-Inventory Purchase Orders

GP requires adjusting G/L codes on item details, while Business Central lets you pick item types and accounts directly:

Receiving Full and Partial Purchase Orders

Both support full and partial receipts, but GP posts expenses immediately, whereas Business Central posts non-inventory costs at invoicing:

Invoice Matching

GP uses a separate matching screen, while Business Central handles matching within the PO workflow:

Purchase Price Variance and Discounts

One of the biggest differences is that in GP, there is no way to set a price for the vendor. In Business Central, you can apply vendor-specific prices and discounts.

See how these differences apply to Purchase Orders:

Similarities

Smartlists and List Pages

SmartLists in Dynamics GP enable you to easily add and remove columns, define search criteria, and control what data users see on the screen. D365 Business Central has a feature called List Pages, where you can also add, remove, or rearrange columns.

Watch the brief video below to see how these functions work in both GP and D365 Business Central:

Fixed Assets

The Fixed Asset module in Dynamics GP allows you to bring data in from the Purchasing module and attach it to your fixed assets, so you’ve got a copy of the invoice attached to the actual document. Similar to GP, in D365 BC, you can have multiple depreciation books and various depreciation methods, including a custom method.

Watch below to see how this works in each solution:

Learn more about the fixed asset module in Business Central.

Financial Reports

Management Reporter comes with Dynamics GP, and it uses rows, columns, and trees. D365 Business Central also has a built-in financial tool, called Financial Reports.

See how financial statements are generated in GP and D365 Business Central in this video:

Fiscal Period Control

In Dynamics GP, Fiscal Period Control can be used to close down sales and purchasing for a certain month, but also leave that month open on the General Ledger. In D365 Business Central, there are also custom accounting periods, as well as what’s called Deferral Postings.

The video below shows how this process in D365 BC is slightly different from that in GP:

Other Similarities

Some other similarities worth noting in GP and D365 BC are:

• Manufacturing/Assembly
• Print Edit Listing/Preview Posting
• Inter-company Processing
• Project Accounts/Jobs
• Multiple Companies
• Landed Costs/Charge Items

Differences

Differences to note between Dynamics GP and D365 Business Central include available functions within each solution. 

Dynamics GP includes:

• Human Resources
• Depot Management
• Interfund
• Custom screens require a power user

D365 Business Central functionality not available in GP: 

• Built-in multicurrency updates
• Linked bank accounts
• Imports using Configuration Packages (Excel)
• Warehousing module/bar coding
• Consolidation companies
• Marketing/Campaigns
• Personalization done by users

If you’re ready to discuss your transition from Dynamics GP to Dynamics 365 Business Central, we’re here to help. Please contact us to start the conversation.