Essentials, Premium and Team Members explained

Business Central online is sold per user, and there are several licence types. It can be hard to see who needs which and what is included. This article explains what the types are for, how licence and company are connected, and which questions you should ask before you count users. Prices and the full terms are in Microsoft's current licensing guide. Check it.

The three types most often mentioned

Microsoft Learn says that the primary licence types are Essentials, Premium, Device and Team Members. Essentials covers the core functions in finance, sales, purchasing and inventory. Premium adds further functions. Team Members is a lighter licence for users who mainly read and do limited tasks.

Exactly what each type may do, you should check in the licensing guide, because the limits can change. Do not take a reseller's overview as your only source.

The licence follows the person, not the workstation. The exception is the Device licence, which Microsoft Learn mentions, and which is for a device shared by several people. Check in the licensing guide when it can be used.

Licence and company are connected

According to Microsoft Learn, Premium functionality is switched on at company level. On the Company Information page, the User Experience field is set to Essentials or Premium. This determines both which functions the company has and which licence a user needs to open it.

An Essentials user can open only companies with the Essentials user experience. A Premium user can sign in to all companies but cannot use Premium functions in an Essentials company. The reverse is not possible.

This means that how you divide your companies can affect which licences you need. Ask your partner how the companies are set up and whether a change of user experience affects the bill.

Other licences and items that can affect the bill

Microsoft Learn mentions that with the online solution you do not pay for objects, but there can be costs for extra production environments and extra database capacity. An external accountant must have the External Accountant licence, and delegated administrators from your partner do not, as a starting point, need a licence. See the article on remote support.

Microsoft Learn also describes that users with a relevant Microsoft 365 licence can get read-only access to Business Central data shared in Teams without a Business Central licence, if it is set up. Check the conditions before you count on it.

How to prepare your user list

Go through the list with the department heads. This is often where you discover that someone does not need the system at all, or that two people can share the task.

Make a list of everyone who will use the system, and for each add:

Which tasks the person performs: posting, approval, reading, warehouse, production
How often the person is in the system
Whether the person uses Premium functions
Whether a shared device can be used by several people, for example in the warehouse
Whether the role can be covered by a Team Members licence

Ask the partner, and check the prices

Ask your reseller to write down which licence each user gets, and why. Ask what happens if a user later needs more functions and whether you can change the type along the way. Check the termination and change terms of the subscription. See also the article on who owns your licences.

Prices are in Microsoft's current licensing guide (Dynamics 365 Licensing Guide), and the reseller's price may differ. Check both. See also the budget article for a template for running costs.

Ask for the list to be reviewed again after the first quarter in operation. Then you can see whether anyone uses more or less than you had counted on, and adjust the licences.

At Addverk

You will find information about our services and prices on the page about services and prices.