Microsoft Dynamics ERP: Key Products and Features for Australia

Microsoft Dynamics ERP is a cloud-first suite that unifies finance, operations, supply chain, HR, and commerce - all built on Microsoft Azure. With native AI, real-time reporting, and integration with Microsoft 365 and Power BI, it supports growth, compliance, and smarter decision-making.

Australia is forecast to spend A$22.4B on public cloud by 2026 (Microsoft, 2023), and Microsoft is investing A$5B to triple its local capacity (Austrade, 2024). These milestones make Dynamics ERP a future-ready platform for transformation in Australia.

This guide helps Australian businesses evaluate key Dynamics ERP products, features, and localisation fit. We also provide a buyer’s checklist covering licensing, compliance with ATO rules, and what to expect when planning implementation with a trusted partner.

6+ Key Products of Microsoft Dynamics ERP

Microsoft Dynamics ERP includes six core applications, each designed for a specific business function.

1. Dynamics 365 Business Central for SMEs

Dynamics 365 Business Central is an all-in-one business management solution tailored for small and medium-sized businesses (SMBs) in Australia. It is built upon Microsoft NAV and now available as a cloud-first ERP designed for local conditions, as explored in our guide on Business Central ERP for Australia. This solution offers end-to-end capabilities across finance, inventory, sales, service, and project management.

Ideal for Australian SMBs moving off spreadsheets or legacy systems, Business Central simplifies billing, stock control, and cash flow in one place. Key modules include financial management (general ledger, accounts payable/receivable), sales and marketing, purchasing, inventory management, and project management.

2. Dynamics 365 Finance

Dynamics 365 Finance serves large Australian enterprises and multi-entity operations with complex financial needs. This dedicated breakdown of Dynamics 365 Finance & Operations outlines its features, pricing tiers, and integrations. The system delivers advanced financial insights, automation, and reporting to support complex operations across multiple entities or international branches.

The product is ideal for mid to large enterprises across sectors, including public services, manufacturing, construction, finance, or other similar businesses. They often require precise control over financial performance, multi-entity operations, and regulatory compliance. Core capabilities include general ledger, accounts payable, accounts receivable, budgeting, fixed assets, and financial reporting.

3. Dynamics 365 Supply Chain Management

Dynamics 365 Supply Chain Management (SCM) delivers end-to-end visibility and control over supply chain operations for Australian businesses, from planning and procurement to production and logistics. Companies like JB Hi‑Fi digitised warehouse operations in under 4 months using Dynamics 365 SCM (Microsoft, 2020).

This solution is crucial for manufacturers, distributors, and retailers seeking to optimise their supply chain efficiency, reduce operational costs, and improve delivery times. Key features of Dynamics 365 SCM include inventory management, warehouse management, master planning, production control, and transportation control.

4. Dynamics 365 Project Operations

Dynamics 365 Project Operations unifies project planning, time tracking, resource allocation, and billing. Integrating with Finance and SCM, it equips Australian teams with tools and insights into profitability per project and optimises delivery lifecycle from quote to revenue.

The solution is ideal for Australian service-centric businesses such as professional services firms, consulting agencies, and construction companies.

5. Dynamics 365 Human Resources

Dynamics 365 Human Resources (HR) streamlines HR processes for Australian businesses, from recruitment, onboarding, leave and absence tracking, to performance and organisational planning. This solution helps organisations manage their workforce effectively, ensure compliance with local labour laws, and foster employee engagement.

It is suitable for businesses of all sizes, especially mid-size firms and regional government agencies, looking to centralise their HR functions.

6. Dynamics 365 Commerce

Dynamics 365 Commerce provides a comprehensive solution for retailers in Australia, integrating back-office, in-store, call centre, and e-commerce experiences. It enables omnichannel sales, efficient inventory management, and consistent customer experiences across multiple channels.

The solution supports Australian market requirements in retail and hospitality sectors, including integration with local EFTPOS systems, combining data consistency with operational ease.

7. Other Products (Dynamics 365 Sales, Customer Insights, Field Service)

Beyond the core ERP applications, Microsoft Dynamics 365 offers a range of complementary products that integrate seamlessly to provide a holistic business solution.

• Dynamics 365 Sales empowers sales teams with tools for lead management, opportunity tracking, and sales forecasting.
• Dynamics 365 Customer Insights helps businesses unify customer data to create comprehensive profiles and deliver personalised experiences.
• Dynamics 365 Field Service optimises field service operations with scheduling, dispatch, and remote assistance capabilities, crucial for mobile workforces.

If you're still exploring Microsoft Dynamics applications, pricing and benefits, start with our overview: What Is Microsoft Dynamics 365? The Evolution, Advantages, Products and Pricing.

This modular architecture, illustrated by deployments such as the City of Joondalup’s cloud migration and BlueScope’s legacy consolidation, empowers Australian organisations to adopt only the tools they need while expanding (Microsoft, 2023).

9 Key Features of Microsoft Dynamics ERP

Microsoft Dynamics ERP delivers nine core capabilities that integrate finance, operations, sales, and service into a single system. These features are built to support growth, meet local standards, and reduce complexity across industries.

1. Unified Financial & Operational Management

With Dynamics ERP, all transactions - from inventory to projects - automatically flow into finance, giving you real-time accuracy across the business. This provides a real-time, accurate view of business performance - essential for cash flow management, profitability analysis, and informed decision-making across all functions.

For Australian businesses, this means real-time reporting, streamlined financial statements, simplified BAS submissions, and accurate inventory valuation. These features automate data flow from operations to finance, enabling real-time insights and cutting reconciliation by up to 40%—as seen in EY’s faster forecasting and close (Microsoft, 2025).

2. AI-Powered Insights

Dynamics ERP utilises embedded Copilot and Azure AI within products like Dynamics 365 Finance, SCM, and Customer Service to forecast trends, detect anomalies, and automate decision-making.

For Australian businesses, this delivers better forecasting, automated decision-making, and proactive issue detection in supply chains and customer service. Natural language prompts, predictive alerts, and scenario modelling encourage Australian teams to anticipate demand, flag project risks, and reduce inventory waste - part of Microsoft’s generative AI investment strategy (Business Insider, 2025).

3. Scalable & Modular Architecture

Dynamics ERP is built on Azure, allowing businesses to start small and expand system capabilities as they grow, without disruption. Microsoft Azure enables this through elastic cloud infrastructure, global data centre availability, and built-in services like identity, security, and API management.

This approach suits Australian organisations, from logistics firms to health providers, whether they prefer full cloud deployment or hybrid models for compliance or legacy integration. Many begin with Finance and later integrate modules like Supply Chain as their needs evolve, minimising disruption and risk.

4. Seamless Integration with Microsoft 365 & Power Platform

Microsoft Dynamics ERP solutions are deeply integrated with the broader Microsoft ecosystem, including Microsoft 365 and the Power Platform. Users can manage approvals from Outlook or Teams, export and edit data in Excel, and build interactive Power BI dashboards embedded in Dynamics 365.

This seamless integration streamlines workflows, boosts data accessibility, and drives rapid adoption. With Power Apps and Power Automate, users can build custom apps and automate tasks. For instance, Australian finance teams can approve invoices in Microsoft Teams, while warehouse staff use mobile apps—boosting efficiency, compliance, and mobility.

5. Industry-Focused Capabilities

Dynamics ERP provides tailored tools for sectors like retail, manufacturing, and services - streamlining compliance, planning, and execution across various industries.

For example, in retail, Dynamics 365 Commerce supports point-of-sale operations, unified inventory across channels, and customer loyalty programs. Manufacturers benefit from tools for production planning, quality control, and support for process, discrete, or mixed-mode operations via Dynamics 365 SCM. Service-based businesses leverage project management, resource scheduling, and field service features through Project Operations and Field Service.

These integrated capabilities reduce reliance on patchwork systems and help businesses meet sector demands while advancing digital transformation.

6. GST & Tax Automation (Australian-Specific Highlight)

Dynamics ERP automates GST, BAS reporting, and ATO compliance with built-in features designed specifically for Australian tax and payroll requirements.

For entities using Single Touch Payroll (STP), Dynamics 365 Human Resources can be integrated with payroll systems (i.e. Employment Hero), streamlining compliance and emissions of real-time payroll data.

7. Real-Time Dashboards & Reporting

Dynamics ERP supports embedding Power BI visuals directly across Dynamics 365 products like Finance, SCM, Project Operations, and Business Central. This enables department-specific visual analytics directly within ERP workspaces.

• Finance managers with cash flow and P&L overviews
• Sales teams with pipeline analytics
• Executives with enterprise-wide performance views

This connectivity enables transparent, data-driven decisions - crucial when facing market pressures or compliance audits. Please note that the Power BI Desktop application for building reports is free, but the ability to embed, view, share or collaborate with those reports requires Power BI and Dynamics 365 licenses.

8. Mobile & Field Capabilities

Dynamics ERP allows remote teams to access jobs, update records, and complete tasks via mobile devices within SCM, Commerce, and Project Operations. These capabilities are essential for Australia’s service geography.

Remote field teams stay connected, reducing travel downtime and improving first-time fix rates.

9. Sustainability & Traceability

Dynamics 365 Supply Chain Management provides an add-in for batch-level traceability, quality management, and data capture to meet environmental reporting requirements (Microsoft, 2024).

These capabilities are often enhanced when used with Power BI and Azure Data Lake for ESG analytics. This helps organisations prepare for regulations like the proposed Modern Slavery Act amendments.

Dynamics ERP brings clarity to operations. Let’s now explore how Australian teams can plan, choose, and implement the right-fit solution.

How To Get Started With Dynamics ERP For Australia Teams

Australian teams get started with Dynamics ERP by aligning product fit, compliance, licensing, and implementation with local business needs.

1. Choosing the Right Dynamics ERP Product for Your Business Model

The first step is matching the ERP product to your size, structure, and operational complexity. Start with Business Central if you're a growing SMB. Upgrade to Finance and SCM if you're scaling nationally or managing global operations. Modules like HR and Commerce can be added as needed.

2. What AU Teams Need to Know About Licensing and Costs

Microsoft Dynamics 365 uses user-based pricing. Most Australian businesses go through licensed Microsoft Partners to manage both billing and delivery. To manage your investment effectively, differentiate between user types:

• Full Users: Incur higher costs for full functionality.
• Team Members & Attach Users: Suit lighter use (i.e. limited access for light tasks such as viewing reports, entering timesheets, or updating contacts).

(Please refer to the latest Microsoft Dynamics 365 Licensing Guide for more information.)

3. Ensuring Local Compliance

Australian ERP deployments must meet GST, BAS, and STP requirements. Make sure your setup includes GST logic, BAS reporting tools, STP-ready payroll integration (e.g. Employment Hero), and an ATO-compliant chart of accounts.

4. Implementation Considerations for AU Teams

Successful ERP projects rely on local partners and internal readiness. Standard rollouts take 3–6 months; complex ones may exceed 12. Define clear goals, assign internal leads, and choose partners with Microsoft certifications and Australian industry experience.

In conclusion, Microsoft Dynamics ERP helps Australian businesses streamline operations, ensure compliance, and scale confidently - with localised features, flexible licensing, and strong implementation support. If you’re ready to explore whether a product or a modular stack is right for your needs, book a demo or talk with our Microsoft specialists today.

References:

• Austrade (2024). Microsoft’s A$5 billion investment to boost Australia’s digital capability. Australian Trade and Investment Commission.
• Microsoft (2023). Public cloud adoption set to surge in ANZ, creating multi-billion-dollar opportunity for adopters and suppliers. Microsoft News Centre Australia.
• Microsoft (2020). JB Hi-Fi accelerates efficiency and customer experiences in the transformation to cloud-native warehouse management. Microsoft News Centre Australia.
• Microsoft (2023). City of Joondalup selects Microsoft Dynamics 365 to replace legacy core business platform. Microsoft News Centre Australia.
• Microsoft (2023). BlueScope Australia consolidates 13 legacy systems into a customer-centric ERP environment. Microsoft News Centre Australia.
• Microsoft (2025). EY Finance transforms budgeting and forecasting using Dynamics 365 and Power BI. Microsoft Partner Case Studies.
• Business Insider (2025). Internal Microsoft memo lays out new strategy for selling AI.
• Microsoft (2024). Australia: Reporting third-party payments (TPAR). Microsoft Learn.
• Microsoft (2024). Introducing traceability for Dynamics 365 Supply Chain Management. Dynamics 365 Blog.
• Microsoft (2025). Dynamics 365 licensing guide. Microsoft.