Microsoft Dynamics NAV has been a trusted, reliable ERP for a long time for small and mid-sized businesses. It helped companies across various industries manage finance, supply chain, or operations efficiently. In the last decade technology has upgraded so fast, and today modern technologies like cloud, automation, and AI have completely transformed how businesses operate.
Dynamics 365 Business Central is a modern, AI-powered, cloud-based successor to NAV. It has been built on the same strong foundation as NAV, but designed for today’s connected world. Business Central now offers insights such as advanced analytics, better scalability, and also support for deeper integrations with Microsoft tools like Power BI, Teams, and Microsoft 365.
For businesses still running older versions like NAV 2009, NAV 2016, or NAV 2018, upgrading to Business Central isn’t just a technical upgrade. It’s a strategic move toward digital growth.
The Journey from Dynamics NAV to Business Central
Microsoft released Dynamics 365 Business Central in 2018 as part of its cloud-first strategy. It combined the familiar functionality of NAV with the flexibility of the cloud and a modern user interface.
While NAV was primarily an on-premise system, Business Central brings hybrid and full cloud deployment options.
You get the same ERP capabilities — financial management, inventory, manufacturing, and service — but with Business Central, it can be accessible from anywhere, with real-time updates and easier integrations.
Business Central also connects directly with Microsoft’s ecosystem:
- Power BI for reporting and dashboards
- Power Automate for workflow automation
- Teams and Outlook for direct collaboration and approvals
This shift represents more than an upgrade — it’s a transition from a traditional ERP to a connected, intelligent business platform.
Data Migration vs. Business Central Upgrade: What’s the Difference?
The terms “migration” and “upgrade” are often used interchangeably, but they’re not the same.
- Data Migration means moving data — such as customers, vendors, and transactions — from one version (like NAV 2016) to Business Central. The focus here is on transferring information.
- Upgrade includes both the data migration and the technical modernization of your system. It involves converting code, reports, and customizations so everything works seamlessly in Business Central.
In simple terms, migration is about moving your data, while an upgrade is about moving your system forward — both technically and functionally.
Why Upgrading from Dynamics NAV to Business Central Matters
Many businesses delay upgrades because their NAV setup “still works.” But legacy systems can hold you back in more ways than you realize.
Here’s why the move to Business Central is worth it:
- Cloud Benefits
You gain mobility, automatic updates, and easier scaling — no more server maintenance or manual patches. - Better Security
Business Central uses Microsoft’s Azure cloud, offering enterprise-grade security, data encryption, and compliance with global standards. - AI-Powered Insights
Built-in AI and analytics tools help you spot trends, manage cash flow, and improve forecasting accuracy. - Modern User Experience
The clean, intuitive interface helps teams navigate faster and learn quickly, reducing training time. - Integration with Microsoft Ecosystem
Seamless links with Teams, Power BI, and Microsoft 365 simplify communication and decision-making. - Cost Efficiency
Moving to the cloud reduces IT costs, eliminates hardware dependency, and keeps your system automatically updated.
Simply put, Business Central helps you work smarter — not just faster.
The Dynamics NAV to Business Central Upgrade Process
Every upgrade is unique, but most follow a structured roadmap to ensure a smooth transition.
Here’s what a typical process looks like:
1. Assessment and Planning
Start with a complete review of your existing NAV system — including version, database size, extensions, and integrations. This helps decide whether to go for a clean start or an upgrade with full data migration.
2. Database Upgrade and Conversion
Data from your NAV version (e.g., NAV 2009, 2016, or 2018) is prepared for Business Central. Older objects and extensions are converted to AL language — the modern development environment used in BC.
3. Data Migration
Master data (customers, vendors, items, GL entries) and open transactions are migrated using tools like the Business Central Cloud Migration Setup. This ensures accuracy and continuity.
4. Testing and Validation
Your team tests core processes — sales, purchasing, inventory, and finance — to confirm everything runs smoothly before go-live.
5. Training and Go-Live
Once the system is validated, users are trained, and the Business Central environment goes live. Most companies start with a pilot rollout before scaling company-wide.
Steps to Take Before a Technical Upgrade
Preparation is key to a successful migration. Before you upgrade, here’s what you should do:
- Clean Your Data
Remove inactive customers, old items, and unnecessary transactions. This reduces errors and speeds up migration. - Document Customizations
Note all extensions and custom reports currently used in NAV. Some may already be available as standard features in Business Central. - Review Integrations
Check external systems connected to NAV — payroll, banking, or CRM tools — and plan how they’ll connect in the new setup. - Backup Everything
Always have a full database backup before any migration step. - Partner with Experts
Work with a certified Microsoft Dynamics 365 partner like Dynamics Square UK to plan, execute, and support your upgrade.
Dynamics NAV to Business Central Migration: Clean Start vs. Upgrade
When moving from NAV to Business Central, you can choose between two approaches — Clean Start or Full Upgrade.
- Clean Start (Fresh Implementation):
This means starting from scratch with a new Business Central system. Only key master data (like customers and items) are imported. It’s ideal if your NAV database is old or filled with unused data. - Full Upgrade (Data Migration):
This includes migrating historical transactions, customizations, and configurations. It’s a better choice if you want continuity in reports and complete historical visibility.
Your decision depends on how complex your current NAV system is and how much legacy data you need to retain.
Key Benefits of Upgrading from NAV to Business Central
- Continuous Updates:
Get automatic updates twice a year, ensuring you always run the latest version without downtime. - Real-Time Insights:
Gain instant visibility into your operations with built-in analytics and dashboards. - Improved Productivity:
Simplify workflows with automation, AI suggestions, and integrated Microsoft tools. - Better Collaboration:
Everyone works in the same connected system — finance, operations, and sales — reducing delays and confusion. - Scalability:
Easily add new users, companies, or features as your business grows without heavy technical setups.
Challenges of Dynamics NAV to Business Central Upgrade
While the upgrade delivers huge value, it’s not without challenges. Common ones include:
- Custom Code Conversion:
Old C/AL code must be reworked into AL language, which can take time for heavily customized systems. - Data Cleanup:
Old or inconsistent data can slow the migration if not cleaned early. - User Adoption:
Teams may need time to adapt to the modern interface and new processes. - Integration Adjustments:
External tools and third-party apps may need reconfiguration.
With the right partner, these challenges are manageable and well worth the long-term benefits.
Dynamics 365 Business Central Licensing
Licensing for Business Central is simple and flexible. It’s available as a cloud subscription with two main license types:
- Essentials: Covers finance, sales, purchasing, inventory, and project management.
- Premium: Adds manufacturing and service management.
Both come with full integration to Microsoft 365 and Power Platform tools. You can also add users or modules as your needs grow.
Final Thoughts
Dynamics NAV to Dynamics 365 Business Central upgrade is more than a software change—it’s a step toward a more connected, data-driven future. After upgrading, you gain access to latest features, such as advanced reporting, automation, and cloud flexibility while reducing maintenance costs and security risks.
Whether you’re moving from NAV 2009, NAV 2016, or NAV 2018, the right migration approach which is supported by an experienced partner, not only ensures a smooth transition but will also boost your business growth.
FAQs
- Data migration and an upgrade: what is the difference?
Data migration is a technique to move your existing data to Business Central, while an upgrade includes data, system code, and functionality updates.
- How long Dynamics NAV to Business Central migration take?
It depends on your version and data size, but most upgrades usually take between 4–12 weeks.
- Is it possible to move from NAV 2009 directly to Business Central?
Yes, it certainly is, but it usually follows a two-step upgrade (NAV 2009 → NAV 2018 → Business Central).
- What happens to my customizations?
They’re reviewed and converted into extensions compatible with Business Central’s AL environment.
- Business Central on-premise still an option?
Yes. Business Central offers both cloud and on-premise deployments. You can pick any based on your preference.
- Can I only move my data and not the whole system?
You can choose a Clean Start migration, where only key master data is imported; it will give you a simpler setup.
