Dynamics SL end of support (2028): moving US project-based firms to ERPNext Projects and Accounting

Short answer

Microsoft’s lifecycle page shows Dynamics SL 2018 Extended Support ending July 11, 2028 (mainstream support already ended in January 2024), and Microsoft says that on January 15, 2030 Service Plan coverage for SL ends and you can no longer add perpetual users (checked Nov 14, 2026). Microsoft’s recommended path is Dynamics 365 Business Central online, and its migration tool brings over SL ledgers, open receivables and payables, items and Project Controller master data (projects, tasks, resources), not your project transaction history. For a US project-based firm or contractor of roughly 20 to 150 users, the decision comes down to one question: can the replacement reproduce your project costing and billing? Business Central is the low-risk default if you want to stay with Microsoft. ERPNext is worth a serious look if you want no per-user licence fee, your billing is mostly time and materials, fixed fee or milestones, and you are not relying on SL for government-contract indirect rate work. ERPNext has no licence fee (GPL-3.0); Frappe Cloud hosting starts at $5 a month for a site and $40 for a server. Business Central lists Essentials at $80 / £61.50 and Premium at $110 / £84.60 per user per month, paid yearly (UK prices exclude VAT).

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Who this guide is for

This guide is for controllers, CFOs, project accounting leads and IT managers at US project-based firms that still run Microsoft Dynamics SL (the product many people still call Solomon): engineering and professional services firms, specialty contractors, and other businesses where the project, not the product, is the unit of profit. We have written it for sites of roughly 20 to 150 SL users on SQL Server, usually with a long-standing partner.

We build and support ERPNext. That does not make it the right answer for every SL site, and we say clearly below where Business Central or a specialist project ERP is the better move. What we want to give you is a practical way to check whether ERPNext can carry your project costing and billing, because that is where SL replacements succeed or fail.

This guide is part of our series on legacy ERP deadlines; the legacy ERP end-of-support hub lists every vendor date we have confirmed. Many SL customers also run Dynamics GP elsewhere in the group, so our Dynamics GP to ERPNext guide may also apply. If you are an architecture or engineering firm comparing project ERPs, the Deltek Vision guide covers the same fit test from another angle.

Sources, all checked on Nov 14, 2026: Microsoft Lifecycle: Dynamics SL 2018, the Microsoft Lifecycle FAQ for Dynamics, the Microsoft Dynamics SL Directory and Microsoft’s GP and SL migration options post (June 5, 2025) for dates; Microsoft’s Dynamics SL to Business Central online migration overview and Microsoft’s list of Dynamics SL data migrated to Business Central for the Business Central path; Business Central pricing page (US) and Business Central pricing page (UK) for prices; the Frappe Cloud pricing page, ERPNext repository on GitHub and the ERPNext documentation linked in each section for ERPNext.

What we do not do here

We do not estimate implementation fees for either option, and we do not quote any partner’s rates. Business Central licence prices below come from Microsoft’s own pricing pages. Everything else depends on your modules, data volume and billing rules.

What Microsoft actually says about SL

MilestoneDateSource
Dynamics SL 2018 mainstream support endedJanuary 9, 2024 (shown as 1/10/2024 6:59:59 AM PT on the lifecycle page; moved from July 11, 2023)Microsoft Lifecycle: Dynamics SL 2018
Dynamics SL 2018 Extended Support ends (end of support)July 11, 2028 (shown as 7/12/2028 6:59:59 AM PT)Microsoft Lifecycle: Dynamics SL 2018 and Microsoft Lifecycle FAQ for Dynamics
Service Plan coverage (for example Enhancement Plan) ends for SLJanuary 15, 2030Microsoft Dynamics SL Directory and Microsoft’s GP and SL migration options post (June 5, 2025)
Last day to license more perpetual users on existing SL systemsJanuary 15, 2030Microsoft’s GP and SL migration options post (June 5, 2025)
SL through SPLA subscriptionsExpected to end January 15, 2030 (Microsoft’s wording is “expected”)Microsoft Dynamics SL Directory

Two things are worth reading carefully. First, Microsoft’s 2025 post says mainstream support ended July 11, 2023, while the lifecycle page and FAQ say the mainstream date was moved to January 9, 2024. The lifecycle page is the authoritative record, so we use January 2024. Either way, SL is already in Extended Support today.

Second, the January 2030 date is not an extension of support. Microsoft is clear that Extended Support, which covers security updates, ends on July 11, 2028. The 2030 date is about licensing: when the Service Plan stops and when you can no longer add users.

Why “Extended Support” already matters for a US firm

Microsoft’s Dynamics lifecycle FAQ says tax and regulatory updates for supported Dynamics products are released, generally each fiscal year or as needed, for software in the Mainstream Support phase, and that you need an active Enhancement Plan or Software Assurance to receive non-security updates and tax and regulatory releases. SL 2018 left mainstream support in January 2024. In practice that means you should not plan on new functionality, and you should check with your partner exactly what tax, 1099 and payroll updates your SL estate will still receive between now and July 2028.

Microsoft’s own recommendation, in the FAQ, is that SL customers “should consider migrating to Dynamics 365 Business Central online”.

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The real question: can the new system carry your project accounting?

An SL replacement is rarely about the general ledger. Every serious ERP can post journals, run payables and produce a trial balance. SL earned its place in US project firms because of the project modules around the ledger: Project Controller for the project and task structure, budgets by project and task, time and expense entry, project billing and revenue recognition, and, at some firms, allocation of overhead and other indirect costs onto projects.

So the evaluation has to start there. Before you look at a single demo, write down the answers to these questions, using your actual SL configuration:

Your SL project profile

  • How many active projects and tasks do you carry, and how deep is the work breakdown you actually report on?
  • Which billing types do you use: time and materials, fixed fee, percent complete, milestone, cost plus, retainage, unit billing?
  • How do you recognise revenue, and does your auditor care about the method?
  • Do you allocate fringe, overhead or G&A onto projects, and do contracts depend on those rates?
  • Who enters time and expenses, and how are they approved?
  • Which project reports do your project managers and owners read every month?
  • Which integrations feed SL: payroll, CRM, document management, scheduling, a construction estimating tool?

Firms whose answers are mostly “time and materials, fixed fee and milestones, standard reports, approvals by project manager” are good ERPNext candidates. Firms with heavy cost-plus government work, provisional indirect rates and incurred-cost reporting are usually not, and we say so again in the decision section.

The Microsoft path: Business Central, and what the migration tool moves

Microsoft provides a cloud migration tool from SL 2015 or later to Business Central online. Its documentation describes how it works: data is replicated from your on-premises SQL Server database into the Business Central online database through Azure Data Factory, table by table, with success and failure tracked per table. Microsoft recommends a test run in a sandbox first and warns against setting up cloud migration for a production environment that is already in use. It also provides SL Analysis and Repair tools on GitHub to assess your database before you start.

What the tool migrates, according to Microsoft:

SL dataIn Business Central after migration
Fiscal periodsAccounting periods (historical years arrive open and must be closed)
Chart of accounts and subaccount segmentsAccounts, with subaccount segments set up as dimensions (two global, the rest shortcut dimensions)
GL historySummary transactions per fiscal period, from the oldest historical year you choose
Customers and open receivablesCustomers (all or active only) and open documents at the remaining amount
Vendors and open payablesVendors (all or active only) and open documents at the remaining amount
Inventory itemsItems with cost method, locations, quantity on hand, and serial or lot information
Project ControllerMaster data only: projects (Active or Plan), tasks (Active) and resources (Active or On Hold)
Historical detail (optional)A read-only “Dynamics SL Detail Snapshot” in extension tables for GL, AP, AR, sales order, purchase receipts and inventory transactions

Read the last two rows twice. Project master data comes across. The snapshot list Microsoft publishes covers GL, payables, receivables, sales orders, purchase receipts and inventory, but it does not list Project Controller transactions, project budgets, unbilled work in progress or billing history. Whichever destination you choose, plan to rebuild open project budgets and carry unbilled time and costs across deliberately. That is a point in ERPNext’s favour only in the narrow sense that the Microsoft path is not “lift and shift” for the project side either.

Business Central prices (official, checked Nov 14, 2026)

PlanUS (per user / month, paid yearly)UK (per user / month, paid yearly, excl. VAT)
Business Central Essentials$80.00£61.50
Business Central Premium (adds service management and manufacturing)$110.00£84.60
Team Members (read, approve workflows, update select information)$8.00£6.20

Licence list price for a year, from those figures (users × monthly price × 12; no discounts, partner fees or add-ons):

Full usersEssentials (US / UK excl. VAT)Premium (US / UK excl. VAT)
20 full users$19,200 / £14,760$26,400 / £20,304
50 full users$48,000 / £36,900$66,000 / £50,760
100 full users$96,000 / £73,800$132,000 / £101,520

Both GBP columns are Microsoft’s own UK prices, not conversions. Most US project firms would buy Essentials; Premium matters if you also need service management or manufacturing. Add any project-accounting ISV app your partner recommends, which is priced separately by its publisher.

Where ERPNext fits a project-based firm

ERPNext is open source under GPL-3.0, so there is no per-user licence. Its Projects module sits on the same ledger as accounting, buying, selling, stock and HR. From the ERPNext documentation:

That covers the core of SL project accounting for most commercial firms: structure, budgets, time, expenses, costing and invoicing. What it does not give you out of the box is SL’s depth in revenue recognition methods and indirect cost allocation. Those either become configuration and journal discipline, a scoped custom build, or a reason to choose something else.

Mapping SL project costing and billing to ERPNext

This is the table we use in discovery. It is a starting point, not a promise: your SL configuration decides the details.

Dynamics SLERPNextWhat to check
Project Controller: projectProject (linked to customer, cost center and optionally a sales order)Keep your SL project IDs as ERPNext project names; staff know them
Project tasks (work breakdown)Tasks and sub-tasks under the projectLoad only the levels you budget and report on
Account categories (labour, travel, subcontract, materials)Expense accounts plus accounting dimensions or item groupsDecide whether categories live in the chart of accounts or in a dimension
Subaccount segmentsCost centers and accounting dimensionsMap one SL segment to one dimension; do not mix
Project budgetsBudget against project and account, warn or stopBudget at the level PMs manage; revisions become amended budgets
Labour rates and employee costActivity Type and Activity Cost (billing and costing rate per employee)Fully burdened rates need an agreed method
Time entryTimesheet against project and task, billable flagMobile entry and approval route
Expense entryExpense Claim linked to projectCard feeds and receipts
Subcontractor and vendor costsPurchase Order and Purchase Invoice coded to projectRetainage on payables needs a design
Project billing: time and materialsSales Invoice from timesheetsRate overrides and markup rules per contract
Project billing: fixed fee and milestonesSales Order with payment terms, invoice per milestonePercent-complete billing needs a report or a custom step
Revenue recognitionJournal entries driven by project reports, or a custom routineThe biggest design item for most SL sites
Allocator (overhead, fringe, G&A onto projects)Periodic allocation journals or a custom allocation routineIf contracts depend on these rates, see the decision section
Customers, vendors, AR and APCustomer, Supplier, open invoices via the Opening Invoice Creation ToolLoad open items at remaining amounts
General ledger historyOpening balances plus summarised monthly history if neededKeep SL read-only for detail

The three hardest items

  • Unbilled work in progress. Every hour and cost worked but not billed at cutover must arrive in ERPNext as billable timesheets or costs against the right project and task, or be billed in SL first. Reconcile unbilled WIP to the penny in each dress rehearsal.
  • Revenue recognition. If you recognise revenue on percent complete or cost-to-cost, agree the method with your auditor and build the monthly routine before go-live, not after.
  • Indirect rates. If SL’s allocation runs drive what you bill, prove the ERPNext equivalent reproduces last quarter’s numbers before you sign anything.

A four-week fit test before you choose

We recommend running this on your own data before you request either a Business Central or an ERPNext implementation quote. It costs a few weeks of finance and project manager time and saves months of argument later.

Week 1: structure

Pick six live projects that represent your mix: one large multi-phase project, one fixed-fee job, two time-and-materials projects, one with heavy subcontract costs and one internal or overhead project. Rebuild their structure, budgets and rates in ERPNext.

Weeks 2 and 3: one month of transactions

Load one closed month of real time, expenses and vendor costs for those projects. Run the costing, then produce the invoices you actually sent for that month.

Week 4: reconcile and decide

Pass criteria

  • Project cost for the month matches SL by project and task, or every difference is explained.
  • Invoices match SL line for line for time-and-materials work, and milestone invoices follow the contract.
  • Budget versus actual by project and task is readable by a project manager without help.
  • The revenue recognition method you use can be produced for the month, even if by a documented journal routine.
  • Any indirect rate allocation reproduces SL’s result for the month.
  • Finance can close the month in ERPNext without exporting to spreadsheets.

How to read the result

If revenue recognition or allocations need significant custom code, count that as a permanent maintenance cost. A Business Central project that keeps those routines inside a supported ISV app may be worth more than an ERPNext licence saving.

Cost: what can be compared honestly

ItemBusiness CentralERPNext
LicenceEssentials $80 / £61.50, Premium $110 / £84.60, Team Members $8 / £6.20 per user / month, paid yearly (UK excl. VAT)No licence fee (GPL-3.0)
HostingIncluded in Business Central onlineFrappe Cloud sites from $5 / month, servers from $40 / month, or self-host
Migration toolingMicrosoft cloud migration tool for ledgers, AR/AP, items and project mastersData Import templates and opening-balance tools; project history rebuilt
Project accounting depthStandard projects plus optional ISV apps (priced by the publisher)Projects module; revenue recognition and allocations configured or built
ImplementationPartner quotePartner quote

Frappe Cloud publishes USD prices: site plans from $5 a month (about £3.78) and servers from $40 a month (about £30.22), checked on Nov 14, 2026. The GBP figures are indicative conversions, not Frappe prices.

Indicative GBP conversions use the Bank of England daily spot rate (series XUDLUSS) of US$1.3238 per £1 for 12 Nov 2026, the latest published figure when we checked on Nov 14, 2026. They are not official UK prices: the vendor does not publish a GBP list price for these items, and your invoice currency, rate and VAT treatment may differ.

Because implementation is the larger cost on both sides, the honest comparison is two written quotes for the same scope and the same fit-test results, over five years. Licence savings on ERPNext become meaningful as user counts rise, but only if the fit test showed little custom work on billing and revenue recognition.

If you choose ERPNext: an SL migration plan

PhaseWorkDone when
Fit test (4 weeks)Six projects and one month, as aboveWritten go or no-go, with a Business Central quote alongside
Discovery (4–6 weeks)Billing types per contract, revenue recognition, allocations, reports, integrations, history policySigned scope; every billing pattern has a configuration or a scoped build
Build (3–5 months)Chart of accounts and dimensions, projects and templates, rates, invoice formats, budget controls, reports, integrationsUser acceptance signed by finance and two project managers
Dress rehearsals (2 cycles)Trial loads of masters, open projects, budgets, unbilled WIP, open AR/AP and balancesUnbilled WIP, AR, AP and trial balance agree with SL
Cutover (month end, ideally year end)Close SL, load openings, go live, first billing runFirst month closed and invoices sent from ERPNext

These are planning ranges from our own projects for firms of this size, not a quote. Use ERPNext Data Import documentation for masters and ERPNext opening balance documentation guidance for opening balances and open invoices. Keep SL available read-only (or extract it to a reporting database) for project history and audit; do not try to migrate years of transaction detail.

Timing matters. If you start in 2026 you can finish comfortably before July 2028 and avoid running SL without security updates. Starting in 2028 leaves no room for two dress rehearsals and a clean year-end cutover.

Business Central, ERPNext or something else: a decision table

If this is true for youLean towardsWhy
You want to stay with Microsoft and your partner, and use standard project billingBusiness CentralMicrosoft’s migration tool, familiar partner, published prices
You rely on Microsoft 365 and Power Platform integration across the businessBusiness CentralTighter fit with the Microsoft stack
Your billing is mostly time and materials, fixed fee and milestones, and you want no per-user licenceERPNext (price both)Projects, timesheets, budgets and invoicing on one ledger
You also run stock, fabrication or field work alongside projectsERPNext (price both)Projects, stock and manufacturing in the same open-source system
You want to self-host or control the code and databaseERPNextOpen source; self-host or choose a Frappe Cloud region
You are a US government contractor relying on SL for indirect rate allocations and incurred-cost reportingA specialist government-contract project ERP, or Business Central with a dedicated ISV appERPNext would need significant custom work to match that compliance depth
You are under 12 months from July 2028 with no planBusiness CentralThe Microsoft tool and an experienced SL partner are the fastest route

Best for, and wrong choice when

ERPNext is best for

US commercial project firms and contractors with roughly 20 to 150 users, whose billing is mostly time and materials, fixed fee or milestones, who want to stop paying per user, and who can give finance and project managers time for a fit test and two dress rehearsals.

Business Central is best for

SL customers who want the shortest supported path, value the Microsoft ecosystem and their existing partner, and are comfortable with a per-user subscription in exchange for Microsoft’s migration tooling.

ERPNext is the wrong choice when

Your revenue depends on government-contract indirect rates, provisional billing rates and incurred-cost submissions that SL handles today; your revenue recognition method is complex and nobody wants to redesign it; or you need to be off SL in a few months.

Frequently asked questions

When does Dynamics SL support end?

Microsoft’s lifecycle page shows Extended Support for Dynamics SL 2018 ending July 11, 2028. Mainstream support ended January 9, 2024 (checked Nov 14, 2026).

What happens on January 15, 2030?

Microsoft says Service Plan coverage for Dynamics SL ends, you can no longer add perpetual users to existing SL systems, and use of SL through SPLA subscriptions is expected to end. It is not an extension of security support.

Will SL keep working after July 2028?

An on-premises system does not switch off, but Microsoft will no longer provide security updates or support for it. Running finance and payroll on unsupported software is a risk most auditors and insurers will ask about.

Does Microsoft’s migration tool move SL project data to Business Central?

It moves Project Controller master data: projects in Active or Plan status, active tasks and resources. Microsoft’s published list of migrated history covers GL, AP, AR, sales orders, purchase receipts and inventory, not project transactions, budgets or billing history.

Can ERPNext handle project costing and billing for a contractor?

ERPNext projects track costs from timesheets, expense claims, purchases and materials, and invoice on time logs, milestones or fixed values. Budgets can warn or stop overspend by project. Revenue recognition methods and indirect cost allocations need design and should be proven in a fit test.

How much does Business Central cost?

Microsoft lists Essentials at $80 and Premium at $110 per user per month, paid yearly, in the US; the UK prices are £61.50 and £84.60 excluding VAT. Team Members are $8 / £6.20 (checked Nov 14, 2026).

How much does ERPNext cost?

ERPNext has no licence fee under GPL-3.0. Frappe Cloud lists sites from $5 a month and servers from $40 a month (USD, checked Nov 14, 2026). Implementation and support are extra.

Running Dynamics SL?

We rebuild one month of your SL projects, time and billing in ERPNext and reconcile it to SL, so you can compare it with a Business Central quote on your own numbers.

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