Business Central vs Dynamics NAV

What changed in the move from Dynamics NAV to Business Central, and what that means for organisations still running NAV.

Updated 2026-05-04

Business Central is the direct successor to Dynamics NAV — same posting routines, same dimensions, same general ledger logic — but the operating model around it is fundamentally different. If you're still running NAV, understanding those differences is the key to scoping a sensible upgrade project.

Deployment. NAV was overwhelmingly on-premise, installed on customer-managed Windows servers and SQL Server. Business Central is SaaS-first: Business Central Online runs on Azure in Microsoft data centres, with Microsoft owning patching, infrastructure, and twice-yearly platform updates. On-premise Business Central exists but the vast majority of new implementations are cloud.

Customisation model. This is the biggest single change. NAV was customised through the C/AL language and the base object model: partners modified Microsoft's own objects directly. Upgrades were slow and expensive because every modification had to be re-merged. Business Central replaces C/AL with AL and an extension model — partners ship code as separate, side-by-side AL extensions, and the base application stays untouched. Upgrades happen automatically twice a year, with extensions tested against the new platform in advance.

User interface. NAV's Windows client is gone. Business Central is fully web-based, with first-class mobile, Outlook, and Teams experiences, plus an embedded Copilot for sales line suggestions, bank reconciliation, and other tasks.

Release cadence. NAV shipped roughly once a year with a long support tail. Business Central ships two major updates per year (Wave 1 in April, Wave 2 in October) plus monthly hotfixes, with mandatory updates on a customer-defined window.

Licensing. NAV was a perpetual license with annual maintenance. Business Central is a per-user subscription — Essentials, Premium, or Team Member.

The upgrade path. Microsoft provides tooling that lifts NAV data into Business Central, but custom C/AL modifications must be re-built as AL extensions. For heavily customised NAV deployments, the project often looks more like a re-implementation than a database upgrade, which is why many customers use the move as an opportunity to clean house.

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