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Microsoft Dynamics GP Licensing Announcement

Microsoft recently made an important Dynamics GP licensing announcement. Learn more about what it means for new and existing GP customers.
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On April 4, 2023, Microsoft made an important announcement about Dynamics GP licensing. In this article, we want to help you understand what this means, whether you’re considering purchasing Dynamics GP or if you already own it.

First-Time Dynamics GP Purchases

Microsoft announced it will discontinue first-time purchases of Dynamics GP on April 1, 2026. It’s very important to note that this does not affect current Dynamics GP customers.

For those considering a first-time purchase of Dynamics GP, it’s available for purchase with the perpetual license option (one-time purchase plus annual maintenance) through March 31, 2025. Perpetual licensing is when a software vendor sells a license to a customer for a one-time fee. Subscription licensing is when a customer purchases a subscription to a product for a certain amount of time (often annual) from a software vendor. The Dynamics GP subscription license option will be available through March 31, 2026.

Existing Dynamics GP Customers

If you’re an existing Dynamics GP customer, you’ll continue to receive all your existing benefits:

  1. You can still purchase additional licenses. 
  2. You will have access to continuing GP updates, including the year-end tax and compliance update.
  3. Microsoft will continue to provide product support.

For information about future updates, make sure you refer to Microsoft’s Lifecycle plans for Dynamics GP. Visit the Microsoft site for details about the Modern Lifecycle Policy for Dynamics GP.

Although existing customers will continue to receive the same benefits as always, there is an important change to your enhancement plan pricing. The amount paid for your annual enhancement plan is increasing by one percentage point. For example, customers paying 18% will now pay 19%.

To make it clear, though: if you’re an existing Dynamics GP customer, you will be able to continue to use GP and purchase additional functionality beyond April 1, 2026.

What’s Next

If you’re already using GP, you don’t need to do anything other than be current on your maintenance plan and software to take advantage of the Modern Lifecycle Policy for Dynamics GP.

However, if you’re considering a migration to Dynamics 365 Business Central, Dynamics 365 Finance, or another enterprise resource planning solution, Business Technology Solutions professionals at FORVIS are here to talk with you about how to make a migration and what the migration may involve. Use the Contact Us form below to get in touch.

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