Accounting Software Blog

Comparing Microsoft Dynamics GP and AX

Is GP right for your business?

Author: Jennifer Levy/Tuesday, March 18, 2014/Categories: Announcements, Dynamics GP, Information Technology, Tech News

According to recent Microsoft customer figures, Dynamics GP is leading the growth in the Microsoft Dynamics ERP space, adding new customers at the rate of 9.3%. Meanwhile, in the last year, AX has added new customers at the rate of 5.6%.


Each product has its target markets and areas of strengths. Microsoft has been pushing AX very strongly for large scale deployments, and GP for small to mid-sized organizations.

Microsoft's recommendation on GP vs AX

If you go to Microsoft's ERP Selection page, you are directed to Dynamics GP for Small and Mid-Sized Businesses, and AX for Enterprise Organizations (this exact structure may vary by country). See the next table for a breakdown.

Drilling down further, the recommendations for GP and AX are as following -

Dynamics GP

Dynamics AX

Target Market: Small to Mid-Size ERP (0 to 500 users)

Target Market: Mid to Large Size ERP (50 to 500 +)


  • Core Financial and Accounting capabilities
  • Quick to implement
  • Rich reporting with direct integration with Excel and Business Intelligence tools
  • More out of the box modules and ISV products


  • Manufacturing, distribution, Retail, Shop Floor Control, Environment Management
  • Global organizations across locations, languages, and countries
  • More customized and Advanced work flows


  • Single Server and multi-server based on requirements


  • Multi-servers recommended
  • Often requires significant development effort (X++)

There are, in fact, very large Dynamics GP customers, and some very small AX installations.


However, in my experience of working with Dynamics GP over the last 3-4 years, most Dynamics GP installations are 2-150 core users. Core users are in the system almost all day long. They are often supplemented by a lot more HR/payroll, requisition, reporting, and mobile users who access the system periodically.

Dynamics GP Modules:

Financial Management

General Ledger with AFA
Account Level Security
Cash Flow Management
Fixed Asset Management
National Accounts
Multicurrency Management
Analytical Accounting
Revenue/Expense Deferrals
Bank Reconciliation
Electronic Banking Suite
Safe Pay
Cashbook Bank Management
Electronic Bank Management
Electronic Reconciliation Management
Payables Management
Receivables Management
Customer/Vendor Consolidations
Lockbox Processing
Refund Checks
Grant Management
Encumbrance Management
Field Level Security
Process Server


Multiple Language Pricing

Business Intelligence & Reporting

Unlimited Mgmt Reporter Designer User
Unlimited Mgmt Reporter Viewer User
Analysis Cubes Library
Advanced Analysis Cubes Library

Human Resource Management

Human Resources Unlimited Employees
Payroll (US) Unlimited Employees
Payroll (Canada) Unlimited Employees
Payroll Direct Deposit
Federal Magnetic Media
Payroll Connect
Position Control
HRM Self Service Suite

Supply Chain Management

Sales Order Processing w/ Adv Invoicing
Extended Pricing
Order Management
Inventory Control
Bill of Materials
Purchase Order Processing/Receivings
Landed Cost
PO Generator
Requisition Management
Time and Expense

Workspace Collaboration

Unlimited Business Portal

Configuration and Development

Modifier with Visual Basic for Applications
Customization Site License
Integration Manager – Conversions
Connector for Microsoft Dynamics


Dynamics AX Modules

Below is a list of Microsoft Dynamics AX Modules:

  • Financial Management
  • Requisitions and Purchase Orders
  • Expense Management
  • Project Management and Project Accounting 
  • Supply Chain Management
  • Inventory Management and Warehousing
  • Sales Orders
  • Service Management
  • Production and Manufacturing
  • HR Management and Payroll
  • Fixed Assets
  • CRM and Sales and Marketing
  • Web Portals
  • Workflow and Alerts
  • Reporting and Business Intelligence
  • Development and Integration
  • Summary

    Both Dynamics GP and AX have extremely strong core functionalities running on the Microsoft platform. GP is intended to do more for its customers out of the box and has a large suite of add-on solutions, some of which have been around for decades. AX is built towards large scale implementations, and often requires customizations based on your business. GP will typically have a shorter implementation time compared to AX.


    Ultimately, more important than the product are the capabilities of your implementation partner, and the consultants you will be working with. Great GP partners can handle GP solutions for larger scale needs if required. Conversely, an unprepared AX implementer would struggle with a small scale project. And vice versa. Request references for past implementations in similar industries, and custom demonstrations for the areas your company specializes in. If a partner has done it successfully before, and you like what you see - you increase the chance of a successful implementation significantly.


    Please feel free to call us to see if Microsoft Dynamics GP is right for your business!




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