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Understanding Dynamics GP Licensing

Unless you deal with it every day, deciding which of the various Dynamics GP 2018 licensing options is best for your business can seem confusing. So, for those of you considering Dynamics GP for your business, but aren’t sure what you’re licensing options are, or which one might best fit your needs, you’ve come to the right place.

Step 1: Which modules do you need?

Modules Available in GP 2018 In order to understand Dynamics GP licensing it’s important for new users to understand how Dynamics GP is packaged. The functionality in Dynamics GP is divided into a variety of modules. Microsoft has packaged these modules into four bundles called packs. Each pack offers specific functionality.

  1. Starter Pack— The Starter Pack offers everything many businesses need from their ERP system, including financial management, business intelligence and reporting, supply chain management and more. Every Microsoft Dynamics GP 2018 user automatically receives access to all of the modules included in the Starter Pack.

  2. Extended Pack—The Extended Pack adds to the functionality by offering manufacturing, project management and customer relationship management capabilities, plus advanced business intelligence and supply chain features.

  3. Customization Pack—Intended for organizations that want to customize their Dynamics GP enterprise resource planning system or integrate it with other business management systems.

  4. Extended Human Resources and Payroll Pack— The Extended Human Resources and Payroll pack delivers everything needed to manage your employees. It handles payroll, benefits and more.

Step 2: What kind of access will your users require?

GP 2018 User Types Dynamics GP 2018 licensing options include 3 user types, designed to meet the needs of individuals working in a wide variety of roles.

  1. Full Users— Full Users receive unrestricted direct or indirect access to all of the functionality in the modules your organization owns. These are for individuals who will depend on Dynamics GP to do key aspects of their jobs ie. members of their accounting/finance staff. Since these licenses are the most robust, they’re also the most expensive.

  2. Limited Users– Limited Users can enter a limited set of information such as requisitions, payroll expenses, timesheets, timecards and project expenses. In addition, they can also view inquiries, reports and smart lists. Limited User accounts can be set up for individuals in a variety of roles, including inventory, sales, purchasing, financial and payroll.

  3. Put simply, Limited Users can only enter specific types of information and report on the transactions and files they had been given access to. At an 80% reduction in cost compared to Full User licenses, these can be a real budget saver if you have lots of employees who just need to access certain data to report on it.

  4. Self Serve Users— Self-Service Users are designed for users that need to only enter their own information, specifically their timesheets, project expenses, timecards and requisitions. Many project centric organizations use Dynamics GP to keep track of their project expenses, including their employees’ time spent working on each project. Self-Service Users are perfect for those employees whose only reason for accessing Dynamics GP is to enter their own time and project related expenses such as mileage, lodging or meals.

Step 3: Dynamics Licensing Models – Perpetual or Subscription Dynamics GP offers two main licensing models: Perpetual and Subscription.

  1. Perpetual Licensing – Licensing Microsoft Dynamics GP on the Perpetual License model means that the customer owns the software perpetually, or into perpetuity. In other words, you license the software with permanent usage rights and can use the software for as long as you choose. You need to maintain your investment with an annual renewal fee.

  2. Subscription Licensing – With Subscription Licensing, you never own the software license. You subscribe to it and you attain usage rights for a specific term, with the minimum commitment term being one month. In short, you can use the software only while you maintain your monthly subscription payments.

For those of you who are planning on connecting Dynamics GP 2018 R2 to the Intelligent Cloud through Dynamics 365 Business Central, there is an additional license needed that allows GP data to be viewed in D365 Business Central. We will get into more detail on these licenses in a future post.

Not sure which Dynamics GP 2018 licensing options are right for you? Contact our experienced consultants for more information. We are always available to help!


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