Smart licensing choices for Microsoft Business Central and Login Systems apps
Licensing Business Central can sometimes feel complex — but it doesn’t have to be confusing.
This page gives you a clear explanation of Essentials, Premium, Team Members and Device licenses, as well as how licensing works for the Login Systems apps used for Macedonian localization, API integrations, HR & Payroll, Retail, Service, and e‑Invoice.
Our role is to help you select the right licensing model, avoid unnecessary costs, and secure a stable ERP platform that supports long‑term growth.
Why proper licensing matters?
Proper licensing is the foundation of a stable and compliant ERP system. With the right licensing model in place, your company:
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Remains fully aligned with Microsoft licensing rules
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Pays only for functionality it truly needs
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Ensures security and proper access control for every user
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Avoids hidden costs and future corrections
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Plans the required Login Systems apps on time — especially for localization and regulatory compliance in Macedonia
With professional planning, licensing becomes a strategic advantage rather than a cost.
Licensing models for Business Central
Business Central is licensed per user. Each license type provides different access rights depending on the user's role in the company.
🧩 Essentials – core ERP functionality
For organizations that need finance, sales, purchasing, inventory, assembly, and project management.
A perfect foundation for most companies.
⭐ Premium – advanced ERP operations
Includes everything from Essentials, plus:
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service management
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manufacturing
Used by companies with more complex operational or production processes.
👤 Team Members – light access
For users who need to:
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read data,
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submit simple entries (time, expenses),
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interact with selected documents.
Ideal for users who do not require full access.
🖥️ Device License – shared devices
One license for a shared device (warehouse terminal, POS, production station).
Licensed per device, not per user.
Online (SaaS) vs OnPrem – what’s the difference?
Although Business Central is the same ERP system in both the Online and OnPrem versions, there are important differences in licensing, technology, and integrations. These differences help companies determine which model best fits their processes.
Online (SaaS) – Microsoft Cloud
In the SaaS model, Business Central operates entirely in the Microsoft cloud. Data and processing are executed on Microsoft servers, and the company receives:
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1 production and 3 sandbox environments included with the licenses
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Centralized storage in the Microsoft cloud (80 GB base + additional capacity per user)
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Automatic updates and always the latest version of the system
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Access to AI and Copilot features, which are available only in the Online version
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The easiest integration with Microsoft 365, Power Platform and other cloud services
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Access via Microsoft Entra ID (Microsoft accounts)
This model provides cloud benefits without the need for local configuration.
OnPrem – installed on servers of your choice
In the OnPrem model, Business Central is installed on servers selected or controlled by the company. This model provides:
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Full control over where data is stored and processed
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The possibility for the company to choose: (1) Microsoft Entra ID (with additional configuration), (2) Active Directory, or (3) username/password authentication
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Extensions, integrations, or data scenarios that require more flexibility
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More efficient handling of data transformations (especially during migrations)
In OnPrem, certain cloud services operate but require additional configuration. For example:
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Power BI is supported, but requires specific settings
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Some cloud integrations and AI features are not available or have limitations
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Updates are not automatic – the company decides when they are performed
When should you choose each model?
☑️ Choose Online (SaaS) if:
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you want AI, Copilot and cloud integrations;
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you want automatic updates without maintenance;
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you use Microsoft 365 and Power Platform;
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you want future growth without technical complexity.
☑️ Choose Onprem (SaaS) if:
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you are migrating from another ERP and need to import large amounts of historical data;
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you have specific customizations that must be confirmed as compatible with Online;
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you have internal data‑location policies;
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you want to run OnPrem temporarily and move to Online later.
Growth and migration strategy
Many companies start with OnPrem because:
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historical data can be transformed and prepared more easily,
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customizations can be tested,
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compatibility with the Online environment can be confirmed.
Then, once the system is stabilized, the company moves to Online (SaaS) to gain the cloud advantages.
Licensing the Login Systems apps
The Login Systems apps for Business Central provide localization, human resources and payroll, retail, service processes, API integrations, and other extended functionalities.
Licensing is tied to the number of full users in Business Central.
Core licensing principle
For every active Login Systems app, the company purchases as many licenses as it has full users (Essentials or Premium).
Team Member and Device User accounts do not affect the number of required licenses.
Core localization package
The most commonly used combination for companies operating in North Macedonia includes:
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LSM Macedonian Language App
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LSM Reusables App
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LSM Base App
These three apps provide translation, structural components, and local rules required for compliant operation.
Add‑on apps
Additional apps may be used depending on the needs of the company, such as:
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human resources and payroll (LSM People App)
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retail (LSM Retail App)
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service processes (LSM Service App)
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API integrations (LSM API App)
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other functional extensions
These apps are also licensed according to the number of full users.
Exception: LSM e‑Invoice App
This app is not licensed per user.
It follows a model of monthly subscription per company with an included number of e‑invoices (for example: 5,000 or 10,000 per month).
Specific conditions will be defined for companies with exceptionally high volumes of e‑invoices.
Example 1
Scenario:
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2 full users
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5 Team Members
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4 Device Users
Active apps:
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core localization (Language, Reusables, Base)
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HR/Payroll
Required licenses:
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2 × LSM Macedonian Language App
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2 × LSM Reusables App
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2 × LSM Base App
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2 × LSM People App
Why?
Licensing is based only on the number of full users.
Example 2
Scenario:
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1 full user
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3 Team Members
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2 Device Users
Active apps:
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Core localization
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Retail
Required licenses:
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1 × LSM Macedonian Language App
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1 × LSM Reusables App
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1 × LSM Base App
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1 × LSM Retail App
Why?
Only one full user → one license per active app.
Example 3
Scenario:
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6 full users
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4 Team Members
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1 Device User
Active apps:
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Core localization
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API integrations
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Service processes
Required licenses:
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6 × LSM Macedonian Language App
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6 × LSM Reusables App
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6 × LSM Base App
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6 × LSM API App
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6 × LSM Service App
Why?
Each active app is licensed according to the number of full users.
Frequently asked questions (FAQ)
Buy licenses from Login Systems
Login Systems is your reliable partner for complete licensing of Microsoft Dynamics 365 Business Central and the Login Systems apps for Business Central.
With a single point of purchase, you receive professional recommendation, correct configuration, and alignment with all Microsoft licensing rules.
Licenses for Business Central (Online and OnPrem)
As a CSP partner for Business Central Online and a Microsoft partner for OnPrem licenses, we offer:
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Essentials, Premium, Team Member, and Device User licenses
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Online (SaaS) or OnPrem model – according to the company’s needs
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Recommendation for the optimal combination of licenses
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Compliance with Microsoft licensing policy
You receive correct configuration from the first day.
Licenses for the Login Systems apps
We are the publisher and maintainer of all LSM Apps.
Through Login Systems you can obtain:
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Core localization apps (Language, Reusables, Base)
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Apps for human resources and payroll, retail, service processes, and API integrations
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e‑Invoice App (separate licensing model)
Complete licensing centralizes the process and minimizes the risk of incorrect or insufficient configuration.
Why buy through Login Systems?
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A single point for all types of licenses (Microsoft + Login Systems)
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Accurate calculations according to the number of full users
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Correct license configuration from the first contact
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Avoiding over‑licensed or under‑licensed scenarios
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Support for growth, upgrades, and functionality expansion
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Recommendations based on real processes, not marketing descriptions
By purchasing directly from Login Systems, you receive ERP licensing that is accurate, compliant, and prepared for growth.
Licensing in combination with hosting and support
Proper licensing is directly connected to the level of support and hosting the company will use. With correct license configuration, a stable system and predictable support costs are ensured from day one.
Connection with hosting models
Business Central uses two types of licenses:
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Online licenses (for Microsoft Cloud – SaaS)
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OnPrem licenses (for local hosting – OnPrem scenarios)
Online licenses (Online)
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Work exclusively in Microsoft Cloud (SaaS)
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Cannot be used in Login Systems Hosting or Client‑Hosted environments
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Provide automatic upgrades, AI/Copilot, and cloud integrations
OnPrem licenses
Work in:
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Login Systems Hosting (OnPrem licenses in a controlled hosted environment)
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Client‑Hosted (OnPrem licenses on servers selected by the client)
They cannot be used in Microsoft Cloud (SaaS).
What does this mean for the company?
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First, the hosting model is selected
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Then, the appropriate type of licenses is selected
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Combining is not possible (for example: Online licenses with OnPrem hosting)
With correct choices from the start, limitations, technical obstacles, and additional costs are avoided.
Connection between licensing and SLA packages
Licenses do not determine the price of SLA support, but they influence:
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system categorization (SaaS / Login Systems Hosting / Client‑Hosted)
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the amount of support that will be needed
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required configurations and integrations
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planning of upgrades and test environments
How this looks in practice:
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SaaS (Online licenses): the most predictable SLA model, with automatic Microsoft upgrades
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Login Systems Hosting (OnPrem licenses): structured environment with clear SLA conditions
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Client‑Hosted (OnPrem licenses): the company carries greater responsibility for infrastructure, which affects SLA conditions
Proper licensing enables an SLA model that is stable, predictable, and aligned with the real processes of the company.
Are you ready for an accurate licensing recommendation?
Enter your details and we will respond with guidance that fits your processes, number of users, and the way your organization operates.
EULA & Legal Information
For the use of Microsoft Dynamics 365 Business Central and the Login Systems apps, the official legal documents from Microsoft and Login Systems apply. 💡 Microsoft – legal terms for Business Central (Online and OnPrem) Business Central is governed through the Microsoft Cloud agreements and the Product Terms documents for the Dynamics 365 products. These documents define the licensing, entitlements, and conditions for the use of Business Central. Link to the official Microsoft legal terms: https://www.microsoft.com/en-us/dynamics-365/business-applications/legal 💡 Login Systems – EULA for all LSM Apps A single official EULA document covers all Login Systems apps for Business Central (localization, API, retail, service, human resources and payroll, Premium functionalities, e‑invoice, and others). Link to the Login Systems EULA: https://www.loginsystems.biz/business-central-lsm-extension-terms-conditions