Three Options for Manufacturers using Microsoft Dynamics GP

Date February 21, 2024
Authors Amy M. Reynallt Justin Krentz
Categories

Manufacturers using Microsoft Dynamics GP may know that as of April 1, 2026, Dynamics GP will be limited to existing customers. This means that Microsoft will not issue new subscriptions as of this date. For manufacturers currently using this popular enterprise resource planning (ERP) package, what does this change mean?

In recent years, Microsoft has been shifting its software focus towards cloud-based programs. It is expected that all on-premise products – not just Microsoft Dynamics GP – will be phased out over time or replaced with a cloud-based package. As a result, Microsoft will phase out all support for Dynamics GP, leaving users to replace this program with another ERP package.

Because an end-of-support date has not yet been announced, users can expect that security updates and hotfixes will remain available to keep current version users of Dynamics GP up to date. Currently, Microsoft has a roadmap that projects updates through 2028; however, it is possible that this timeline can change. Further, regulatory (tax) updates are not being provided, which is especially critical for those users who meet the threshold for 1099 electronic filing compliance.

Even if Microsoft chooses to support Dynamics GP through 2028, manufacturers using the program should consider their options:

  1. Remain on Dynamics GP

    Those using Dynamics GP likely have invested significant time and money into using the program or perhaps even customizing it to the unique aspects of your organization. If the solution is providing a strong tool to support the business, staying with this solution may be the best option in the short term.

    However, users who choose to remain with Dynamics GP should ensure that they maintain the most up-to-date version so that enhancements or updates are included. Further, these users should know that only certain server versions will support Dynamics GP, which at some point may mean that servers cannot be upgraded. Therefore, it is important to consider risks to the organization if server upgrades must be halted. Lastly, Dynamics GP users should stay in tune with Microsoft announcements to ensure they understand any further changes that may be made to Dynamics GP.
  2. Explore Dynamics GP in the Cloud

    Current Microsoft Dynamics GP users may explore using the same program in the cloud. Many Microsoft features of the program will remain in place, and server maintenance no longer become a concern since the program is cloud-based. However, for those who have customized the program or have custom solutions connected to the program, the program may no longer operate in the same way. Therefore, it is critical to assess whether Dynamics GP in the cloud is a suitable option and whether any customizations or add-ons can be preserved or otherwise replicated.
  3. Explore other ERP Solutions

    Manufacturers may choose to explore other ERP solutions. Manufacturers considering other solutions must take time to evaluate other options and test them in their environment before implementing them. The process from evaluation to implementation generally can take at least six to twelve months, assuming that individuals in the company have dedicated time to the evaluation, testing, and implementation processes. While ERP partners are available to help manufacturers through this process, those who understand the company in-depth and have a clear understanding of management needs must be heavily involved in the process.

Manufacturers using Microsoft Dynamics GP must consider their options as Microsoft continues to make changes to this program. In partnership with HBK Manufacturing Solutions, Vertilocity – an HBK Company, works closely with manufacturers to help with ERP selection and implementation. To speak to a Vertilocity team member or for assistance with Dynamics GP and your options, please contact a member of HBK Manufacturing Solutions at 330-758-8613 or manufacturing@hbkcpa.com.

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