What Licensing Options are Available for Microsoft Dynamics?

by | Dec 8, 2017 | Manufacturing, Microsoft Dynamics NAV

When it comes to buying licenses for Microsoft Dynamics NAV, Microsoft offers a number of options to suit the needs of your business. This ensures that the investment is sustainable, allowing you to get the best results from your solution. Though it may seem confusing at first, you’re essentially choosing between the long-term cost saving of owning your licenses and the flexibility of leasing them. Your Dynamics partner should be able to guide you through this process so, if you’re unsure, just ask.

Perpetual licensing

Microsoft’s Perpetual licensing model involves licensing the desired solution functionality and securing access to that functionality through access licenses. You own the licenses and make a one-time payment when you purchase (though finance options are available). This model can work out more cost-effective in the long run.

Starter and Extended Packs

To license the functionality, you’ll need the Starter Pack. This Pack is a prerequisite when buying Dynamics NAV licenses on the Perpetual model, so you just need to decide whether or not you require the optional and additive Extended Pack. The Starter Pack covers most of the core Dynamics NAV functionalities, including Financials and Distribution. If you’re deploying something more complex or using NAV’s Manufacturing features, you may need to add the Extended Pack – your Microsoft partner will be able to tell you if this is necessary.

The good news is that you’ll only need one Starter Pack (and one Extended Pack if you choose to add it) per ERP Solution deployment, even if your installation is deployed over multiple servers. So long as you own all the servers involved and they are in the same physical location, you’ll only pay once.

Full and Limited Users

Since the Starter Pack includes 3 Full Concurrent licenses, some businesses won’t need to purchase any additional licenses. If you need more than 3 users to access your solution at once, you’ll need extra licenses. These can be split across Full and Limited Users to reduce the cost.

Full Users have unrestricted read and write access to everything in the solution.

Limited Users also receive full read access but can only write certain tables. Microsoft’s licensing guide includes a list of basic tables that Limited Users can read and write, no questions asked. You can then select a maximum of 3 additional table objects to be written by your Limited Users. These nominated tables cannot include General Ledger Entry, Permission Set, Permission or Access Control.

Subscription licensing

Subscription customers subscribe to the right to use Microsoft’s software and services instead of owning them. Payment is monthly, spreading the cost and offering flexibility if you need to scale the solution quickly.

Standard and Limited Users

Unlike Perpetual, Subscription licensing only involves users, rather than licensing the functionality itself. Also unlike Perpetual, these users are named rather than concurrent. This means that if you have 5 users you’ll need 5 licenses, even if they don’t all access NAV at the same time.

At least one of your users must hold a Standard User license. Standard Users can perform tasks across the ERP solution using all of NAV’s core functionalities (like Full Users in Perpetual licensing).

You can then add additional Limited Users, who have the ability to perform limited tasks across the solution.

Other licenses

You can also add Extended Use Additive licenses. This is an optional license, purchased on top of Standard User licenses to expand the rights of all users to include the use of NAV’s Extended Functionality (like the Extended Pack in Perpetual licensing). In order to use this additional functionality, every Standard User must also have an Extended Use Additive license.

Microsoft Dynamics NAV includes one External Accounting User license free of charge. This allows your accountant to access your system for the sole purpose of providing accounting or bookkeeping services related to the auditing process. Also included is one System Administrator license so your Microsoft Dynamics partner can manage your application and provide support.


To learn more about licensing for Microsoft Dynamics NAV, download the full Pricing & Licensing Guide.

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