How Much Does a Typical Microsoft Dynamics GP Implementation Cost?

Like snowflakes, no two Microsoft Dynamics GP implementations are the same as each business is unique and has different needs and specifications. Providing a one-price-fits-all cost estimate is virtually impossible and this can cause some frustrating for companies trying to gauge the implementation cost of Dynamics GP.

The pricing information below is put together with the objective of providing prospective Dynamics GP buyers an idea of what to expect from a pricing standpoint.

(Additional Microsoft Dynamics GP 2015 Resources)

Cost of Software

Before diving into the costs of services, let’s start with the basic license costs for Microsoft Dynamics GP 2015. Out-of-the-box licensing starts off at $5,000 for the Dynamics GP Starter Pack which includes three concurrent full user licenses, and $10,000 for the Extended Pack which includes over 50 GP modules (see list of modules here). Please note, the Extended Pack is not a requirement, and depending on the complexity of your business you might be just fine with the core functionality included in the Starter Pack.

The costs of adding additional Dynamics GP users are as follow:

• Full Concurrent CAL- $3000
• Limited Concurrent CAL- $600
• Self Serve User CAL- $60

For companies requiring integration to other business systems or heavy customization the Dynamics GP Customization Pack is required:

• Customization Pack- $6,000
  • Integration Suite
  • Customization Suite

While the HR and Payroll capabilities in the Starter Pack meet the needs of the majority of companies doing payroll in-house, Microsoft does offer a package with enhanced HR and Payroll features.

• Extended Human Resources and Payroll- $7000
• HR Advance
• Payroll Advance
• PTO Manager
• Benefits Self Service

Software Maintenance Plan

Another cost factor is Microsoft’s annual maintenance plan which is calculated based on the GP solution’s total list price. Microsoft requires customers to purchase at least the Business Ready Advantage plan for the first year.

In addition to software updates, released on a quarterly basis, the maintenance plans provide customers six support incidents directly from Microsoft. After the first year on the Mandatory Business Ready Advantage plan, clients are eligible to choose any one of the three plans offered:

• Business Ready Enhancement Plan- 16% of the total system price
• Business Ready Advantage Plan- 18% of the total system price
• Business Ready Advantage Plus Plan- 25% of the total system price

FMT we offers different Customer Care Plans starting at $349/month – all of which include unlimited Dynamics GP support. Accordingly, most of our Dynamics GP clients prefer the Business Ready Enhancement Plan, which offers all the software updates but does not include any direct Microsoft support incidents. Learn more about our unlimited Dynamics GP support plans.

Dynamics GP Implementation Services

While researching a solution, you may have seen the rule of thumb ratio of software dollars to services, i.e. for every dollar of software you purchase, you will need two dollars of consulting. While this might be the case in some situations, the cost of a Dynamics GP implementation is influenced by multiple factors such as the number of modules required, the complexity of your business model, the need for customization, scope of integration with other platforms and the availability of your employees to participate in the implementation process, to mention but a few. For example, a medical device manufacturer operating in a highly regulated industry with rigid requirements for documentation, traceability and reporting will typically need more consulting service than, say a cleaning company running core financials.

Cost Scenario: Migrating from QuickBooks to Microsoft Dynamics GP

A growing company is considering to migrate from QuickBooks to Microsoft Dynamics GP 2015. The company is interested only in Core Accounting functionality and would need a total of six users. The company’s Dynamics GP consulting firm (pricing below is based on FMT Consultants’ current rates and subject to change) will migrate one year of historical data (including historical General Ledger, open AP and AR, open Purchase Orders and current inventory balances) as well as master records (vendors, customers, fixed assets, inventory items and charts of accounts) from QuickBooks to Dynamics GP. The migration of this data is estimated to take 2 to 3 months.

Software

Professional Services

I hope that reading this blog helped you gain a more informed understanding of the cost of a typical Microsoft Dynamics GP implementation. Please do not hesitate to reach out to me should you have any questions, or if you’d like a no-obligation quote based on your specific business and needs.