Preparing for the implementation of Dynamics 365 Business Central, you may encounter concepts such as modifications, extensions, and applications. What do they serve, and how do they differ? When should you consider using them? Let's explain!

Extension, Modification, or Application? What are the differences?

An extension is the most general term and includes all functional add-ons to Business Central. In the case of extensions created from scratch, tailored to the specific needs of a particular company, we refer to them as modifications. The last option is applications. These are ready-made extensions prepared by external providers and publicly available on the Microsoft store called AppSource. Applications cover the vast majority of needs and standard processes that occur in organizations across various industries.

Cloud solutions offer more possibilities

It is essential to emphasize that the extensions available on AppSource are only compatible with cloud-maintained systems. In the case of on-premises Business Central (maintained within a company's infrastructure), making functional changes is much more complicated. Creating modifications requires direct changes in the code. The most significant challenge comes with system updates, as they may remove modifications from the code. To preserve them, they must be manually transferred to the new system version. As a result, updates for on-premises systems with modifications are time-consuming and costly. In contrast, Business Central in the cloud (SaaS) receives two major updates per year and several minor updates in between. Everything happens automatically, without users' knowledge. Therefore, there is no room for traditional, attention-demanding modifications. Hence the idea of extensions, which are add-ons to the system rather than changes and are kept outside the core code. System updates have no impact on such extensions. Thus, the cloud resolves one of the significant problems that users of on-premises systems face.

Modification or Application - What does your company need?

As mentioned earlier, applications are universal and cover almost all standard needs of companies in most industries. However, if your organization has specific processes unique to your industry or company, creating modifications may be necessary. It will be more time-consuming and costly, but you gain the certainty that the created tool will perfectly fit your needs. The decision about which option to choose depends on individual expectations.

Is using AppSource necessary?

Applications are available in the Microsoft AppSource store. In principle, it is no different from the app stores we know from smartphones. However, installing applications in a system like Dynamics 365 Business Central is much more demanding than on phones. It's worth seeking support from an implementation partner. Moreover, the partner may have applications in their portfolio that meet your needs but are not available on AppSource. An example is Nav24 Products - ready-to-install, verified, and tested solutions prepared by our team of specialists. These products are based on practical ideas from system users, best implementation practices, or our own experiences. Their high quality is evidenced by the "Preferred Solution" designation, awarded by Microsoft to applications from partners with deep, proven expertise and the ability to meet specific customer needs. Recently, our Nav24 Shop Floor Pack received such recognition. You can find more extensions on our Business Central Extensions page.