The ultimate guide to Microsoft Dynamics NAV

Microsoft Dynamics NAV has been a foundational ERP system for mid-market organizations around the world. For many years, it supported core financial and operational processes across industries such as manufacturing, distribution, and professional services. Although Microsoft has discontinued Dynamics NAV and no longer sells new licenses, many organizations still run the platform today. This guide to Microsoft Dynamics NAV explains what the system is, how it evolved, where it stands now, and what options organizations should consider next.

Microsoft Dynamics NAV is an enterprise resource planning (ERP) system designed for small and mid-market organizations. It brings core business functions into a single platform, including finance, supply chain, inventory, manufacturing, projects, and basic reporting. For many years, NAV served as Microsoft’s primary ERP offering for organizations that needed more control than entry-level accounting systems but did not require large enterprise software.

Dynamics NAV was primarily deployed on-premises and implemented through Microsoft partners. This model allowed organizations to tailor the system to their specific processes through customization and third-party solutions. As a result, NAV became widely adopted across industries such as manufacturing, distribution, professional services, and retail. Although Microsoft no longer sells NAV, many organizations continue to run it today, which is why understanding its role and lifecycle remains important.

Dynamics NAV provides a broad set of ERP capabilities that support day-to-day financial and operational processes. It is designed to centralize data, enforce accounting controls, and support operational workflows across departments. While the user experience reflects its on-premises roots, the underlying functionality is robust and flexible. Many organizations relied on NAV’s core modules and customization framework to manage complex requirements without moving to a large enterprise system.

Core Dynamics NAV capabilities include:

• Financial management: General ledger, accounts payable and receivable, fixed assets, budgeting, and multi-company accounting
• Supply chain and inventory: Purchasing, sales order processing, inventory tracking, and basic warehouse management
• Manufacturing: Bills of materials, production orders, capacity planning, and demand forecasting
• Projects and job costing: Project accounting, time and expense tracking, and profitability analysis
• Reporting and analysis: Built-in reports, account schedules, and tight integration with Microsoft Excel for financial analysis

When Dynamics NAV was actively sold and supported by Microsoft, it delivered clear advantages for growing organizations. Companies adopted NAV because it provided stronger financial control than entry-level systems while remaining more flexible than large enterprise ERP platforms. Its partner-led implementation model allowed businesses to shape the system around their processes, rather than forcing major operational change upfront.

Key benefits of Dynamics NAV included:

• Reliable core accounting: Strong general ledger structure, dimensional accounting, and financial controls
• Customization flexibility: Ability to tailor workflows, reports, and logic through custom code and extensions
• Industry adaptability: Broad ISV ecosystem supporting manufacturing, distribution, retail, and services
• Scalability for mid-market growth: Support for increasing transaction volume, users, and business complexity
• Familiar Microsoft experience: Integration with Excel, Outlook, and other Microsoft tools reduced user friction

Dynamics NAV evolved over several decades from a European accounting system into Microsoft’s primary mid-market ERP platform. Understanding this progression helps explain NAV’s architecture, customization model, and the technical decisions that shaped its long-term use.

Dynamics NAV began as Navision, an ERP system developed in Denmark in the late 1980s for small and mid-sized businesses. Its European origins contributed to strong multi-currency and multi-language capabilities early on. Microsoft acquired Navision in 2002, incorporating it into its growing business applications portfolio alongside other ERP products. In 2005, the product was rebranded as Microsoft Dynamics NAV, becoming a core part of Microsoft’s mid-market ERP strategy with tighter alignment to technologies such as SQL Server, Windows, and Office.

Microsoft released multiple versions of Dynamics NAV over several decades. While the core ERP model remained consistent, a handful of milestones introduced structural and architectural changes that shaped how the platform was deployed and customized.

Notable milestones included:

• 1987: Navision origins. Early versions established the foundation for multi-currency and multi-language capabilities that remained important as the product expanded globally.
• 2002: Microsoft acquires Navision. This brought the product into Microsoft’s business applications portfolio and accelerated alignment with Microsoft technologies.
• 2005: Rebranded as Microsoft Dynamics NAV. The NAV name and product identity became part of the Microsoft Dynamics suite.
• 2009: NAV 2009 introduced the RoleTailored Client, changing the user interface and navigation model and introducing a three-tier architecture (server, application tier, client) that modernized how NAV was deployed.
• 2013: NAV 2013 improved reporting, web client availability, and development tooling, including the introduction of the Web Client and broader access beyond the desktop.
• 2015: NAV 2015 expanded integration options and performance improvements and marked a shift toward more frequent, annual release cycles.
• 2017: NAV 2017 introduced events and subscriptions to better isolate customizations from the base application, reducing the need to modify core code.
• 2018: NAV 2018, the final NAV release, was delivered alongside the initial launch of Business Central, and introduced the AL extension model to reduce direct code modification
• 2019: Microsoft stopped selling new Dynamics NAV licenses, formally ending NAV availability for new customers.

As cloud adoption increased across the ERP market, Microsoft began reassessing its long-term on-premises strategy. Maintaining traditional ERP systems required slower release cycles and significant infrastructure management. At the same time, customer expectations shifted toward continuous updates, improved security, and easier integration with cloud services.

Several factors contributed to Microsoft’s move away from Dynamics NAV:

• Growing demand for cloud-based ERP deployment
• Rising complexity of maintaining on-premises platforms
• Slower innovation cycles tied to major version releases
• Increasing need for native integration with modern Microsoft services

This shift marked the beginning of a new direction for Microsoft’s mid-market ERP strategy, which would eventually replace Dynamics NAV as a forward-looking platform

Dynamics NAV has been discontinued and is no longer sold by Microsoft. While many organizations still run NAV today, all versions are out of mainstream support, and extended support is limited to the most recent releases.

Microsoft no longer sells Dynamics NAV. New NAV licenses are not available, and the product is officially discontinued for new customers. Organizations running NAV today are existing customers that purchased licenses before sales ended. While NAV systems can continue to operate, they are no longer part of Microsoft’s active ERP sales or product roadmap.

Microsoft Dynamics NAV follows a defined support lifecycle that includes two phases: mainstream support and extended support. Mainstream support is the phase when a product receives full attention from Microsoft, including feature updates, functional improvements, security fixes, and complete technical support. This is when the platform actively evolves alongside Microsoft’s broader technology stack.

Once mainstream support ends, a product enters extended support. During extended support, Microsoft no longer delivers new features or enhancements. Support is limited primarily to security updates and critical fixes, and technical assistance becomes more constrained. Extended support is intended to give organizations time to plan a transition, not to serve as a long-term operating model.

All versions of Dynamics NAV are now out of mainstream support. However, NAV 2016, NAV 2017, and NAV 2018 remain in extended support. Among those, NAV 2018 is the most recent release and will remain in extended support until January 2028. Earlier versions are fully out of Microsoft support.

The table below summarizes the current Dynamics NAV support lifecycle status:

When a Dynamics NAV version reaches end of support, Microsoft fully stops maintaining the product. This goes beyond the absence of new features. It means the software no longer receives updates that keep it aligned with changing technology and security standards.

When extended support ends, organizations are no longer protected by Microsoft security updates. In one example involving a Dynamics NAV client, the organization was running an older version of NAV that was no longer in extended support. That environment relied on unsupported versions of Windows and SQL Server, which were also no longer receiving security updates. As a result, the server was compromised, the system was lost, and the organization faced a costly recovery operation.

In practical terms, end of support can lead to:

• No feature updates: Business requirements evolve, but the system does not
• Limited or no security fixes: Vulnerabilities may remain unresolved
• Increased compliance and audit risk: Unsupported systems can create issues with regulators, insurers, and auditors
• Growing integration challenges: New versions of Microsoft tools, operating systems, and third-party applications may not be compatible
• Higher long-term support costs: Organizations often rely more heavily on partner-based support to keep systems running

For many organizations, these risks drive the need to define a clear plan for what comes after Dynamics NAV, rather than continuing to operate in an unsupported state.

Organizations still running Dynamics NAV generally face two practical paths forward. One option is to continue supporting the existing system for a limited period. The other is to plan a migration to a modern ERP platform. The right choice depends on business priorities, risk tolerance, and long-term strategy, especially as extended support timelines continue to narrow.

Some organizations choose to maintain Dynamics NAV with partner-based support. This approach can make sense in the short term when the system is stable, heavily customized, and not facing immediate change. A trusted partner can provide break-fix support, manage small enhancements, and help keep the system operational while the business plans next steps.

However, this option has clear limits. NAV no longer receives new features, and long-term reliance increases security, compliance, and integration risk. Support costs often rise as skilled resources become harder to find. Over time, maintaining NAV becomes a risk management exercise rather than a growth strategy.

Migrating off Dynamics NAV allows organizations to move away from a platform that is no longer actively developed by Microsoft. This option is often driven by extended support timelines, security requirements, and the need for better integration with modern tools. Migration also creates an opportunity to simplify customizations and align processes with current business needs.

Timing is critical. Planning a migration before support ends provides more flexibility, lower risk, and better outcomes. Organizations that act early are better positioned to future-proof their operations and avoid rushed decisions as support deadlines approach.

Microsoft Dynamics 365 Business Central is the modern evolution of the original Dynamics NAV software. Microsoft used NAV’s codebase as the foundation for a new ERP platform, while redesigning the architecture to support cloud delivery, ongoing innovation, and easier maintenance. The result is an ERP system that retains familiar NAV functionality but operates within a modern, browser-based environment.

Business Central is delivered primarily as a cloud-based ERP with automatic upgrades on a biannual release cadence. These updates occur without the long, disruptive upgrade projects commonly associated with Dynamics NAV, which could take months depending on system complexity. Extensions and third-party add-ons in Business Central are designed to remain compatible through updates, reducing upgrade risk.

While cloud deployment is available, organizations that prefer an on-premises deployment similar to Dynamics NAV can also run Business Central on-premises with the same core functionality. Business Central uses a subscription licensing model, allowing companies to pay monthly or annually rather than through large upfront license purchases.

Organizations often see the following benefits from a Dynamics NAV to Business Central migration:

• Reduced infrastructure and upgrade management
• Improved security and compliance posture
• Native access to AI capabilities through Microsoft Copilot and the Power Platform
• Easier integration with Microsoft 365, Power Platform, and other cloud services
• More predictable update cycles and long-term support

Dynamics NAV and Dynamics 365 Business Central share a common foundation, but they differ in delivery, support status, and long-term direction. Dynamics NAV is a discontinued, on-premises ERP with manual upgrades, while Business Central is an actively developed platform designed for automatic updates, cloud integration, and ongoing innovation. These differences are critical when evaluating long-term support, security, and scalability.

For a deeper comparison, read our blog Dynamics NAV vs Business Central, or explore Top 10 reasons to upgrade from Microsoft Dynamics NAV to Dynamics 365 Business Central to understand common migration drivers in more detail.

Rand Group has worked with Microsoft Dynamics NAV for many years, supporting organizations across finance, manufacturing, distribution, and professional services. We understand how NAV environments evolve over time, including heavy customizations, complex integrations, and long-term operational dependencies. That experience allows us to support NAV where it still makes sense and guide organizations toward modern ERP platforms when the timing is right. As a multi-platform solution provider, our team works across several ERP systems, which ensures recommendations are driven by business requirements rather than a single product.

Our services are designed to reduce risk and provide clarity at every stage, whether an organization is maintaining NAV or planning a transition. We focus on practical decision-making, realistic timelines, and business continuity. This approach helps organizations avoid rushed migrations and unsupported systems while creating a clear path forward.

Rand Group services include:

• Dynamics NAV support: Ongoing Dynamics NAV support to keep existing environments stable and secure
• NAV lifecycle planning: Version reviews and roadmap planning aligned with support timelines and business priorities
• ERP migration strategy: Requirements-driven evaluation and planning to define the right path off NAV
• Data and integration services: Migration of historical data and integration with surrounding business systems
• Post-go-live support: Ongoing support and optimization following new ERP implementations

• Is Dynamics NAV still supported?
  Dynamics NAV is no longer in mainstream support from Microsoft. NAV 2016, NAV 2017, and NAV 2018 remain in extended support, which provides limited security updates only. In addition, many organizations continue to rely on partner-based support for ongoing maintenance, issue resolution, and operational assistance. NAV 2018 extended support ends in January 2028.
• Can I buy new Dynamics NAV licenses?
  Microsoft no longer sells new Dynamics NAV licenses. The product is officially discontinued for new customers. Only organizations with existing licenses can continue to run NAV.
• Can I continue running NAV after 2028?
  Yes, but with increasing risk. Organizations can continue running Dynamics NAV after extended support ends, but Microsoft will no longer provide updates, fixes, or security patches. This can create security, compliance, and integration challenges that grow over time.
• Is Business Central the same as Dynamics NAV?
  Dynamics 365 Business Central is the successor to Dynamics NAV, but it is not the same product. Business Central builds on NAV functionality while using a cloud-based architecture, continuous updates, and modern integration capabilities.
• Do I have to move to Business Central?
  Business Central is a common next step for Dynamics NAV customers, but it is not the only option. Rand Group is a multi-platform solution provider that helps organizations evaluate requirements, compare ERP systems, and choose the solution that best fits their business, whether that is Business Central or another platform.

Dynamics NAV remains part of many organizations’ day-to-day operations, even as its support lifecycle continues to wind down. Whether the right path is short-term partner support or a planned move to a modern ERP platform, the most important step is having a clear plan based on business needs and risk tolerance. Contact Rand Group today to evaluate your Dynamics NAV environment and define the right path forward.