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Anya Ciecierski, CAL Business Solutions

Unofficial Guide to the Two Microsoft Dynamics GP 2013 Upgrade Policies

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    Before any important decision involving money you should read all the long boring policy documents involved. But sometimes it helps to get a summary, just to get you on the right track. This is my unofficial summary of the official “Microsoft Dynamics Transition Upgrade Policy for Microsoft Dynamics GP 2013” with the most important facts every current Microsoft Dynamics GP customer should know. And if you are considering buying Microsoft Dynamics GP 2010 now, before the release, this applies to you too.

    Microsoft Dynamics GP 2013 = Perpetual Licensing

    For the past several releases Microsoft Dynamics GP upgrades did not impact licensing at all. With the release of Microsoft Dynamics GP 2013 Microsoft will introduce the Perpetual Licensing Model. This new licensing model is not compatible with previous versions because the security layer was redesigned to accommodate two distinct concurrent user types. So when you upgrade to Microsoft Dynamics GP 2013 you MUST upgrade to Perpetual Licensing. And there are some rules associated with that.

    Existing Microsoft Dynamics GP customers with an active Microsoft Dynamics service plan will be able to upgrade to Microsoft Dynamics GP 2013 from prior versions of the product via a Transition Upgrade path. There are two transition upgrade options – and the one that applies to your company is based on when you first purchased and registered your Microsoft Dynamics GP system.

    License Migration Transition Upgrade (LMT Upgrade): For customers who have a first registration date BEFORE October 1, 2012.

    With the LMT Upgrade, when you move to Microsoft Dynamics GP 2013 you will automatically be mapped to the equivalent (or higher) functionality that you have now, with the same number of full users. You will receive a lot of new functionality, at no extra cost. (Read Dynamics GP 2013 Modules Every Customer Will Get For Free)

    License ModelWhat You Have Now:What You Get in GP 2013:
    MBLStandard EditionStarter Pack + Extended Pack
    MBLProfessional EditionStarter Pack + Extended Pack
    BRLBusiness EssentialsStarter Pack
    BRLAdvanced ManagementStarter Pack + Extended Pack
    AnyHR Advanced, Payroll Advanced, PTO Manager, Benefits Self Service SuiteExtended HR and Payroll Pack
    ($7000 value)
    AnySmartList BuilderSmartList Builder Pack
    ($2000 value)
    AnyIntegration Suite, Dexterity, Customization SuiteCustomization Pack
    ($6000 value)

    This upgrade path is especially advantageous for companies who are still on the old Standard or Professional versions of Microsoft Dynamics GP. (Read Microsoft Dynamics GP Standard and Professional Users Get $10K Worth of Software Free for more details.)

    Insider tip: Since Microsoft will look at your current system when mapping to the new system you are strongly encouraged to review your functionality, and goals for future functionality, with your Dynamics partner BEFORE your upgrade. There are some creative ways to save money by buying modules or users on your old price list. (Read 5 Ways Existing Customers Can Save Money Before New Microsoft Dynamics GP 2013 Pricing Begins for some examples)

    Important details for the LMT Upgrade:

    • When you upgrade to Microsoft Dynamics GP 2013 your Business Ready Enhancement Plan (BREP) expiration date and your Protected List Price (PLP) will not change. (Even though most companies will transition to a system with a much higher list price.) Just don’t let your Enhancement Plan expire because when you want to renew, your annual fee will be calculated on the new list price.
    • If you have reduced the value of your Protected List Price you must repurchase any combination of users and functionality to get you back to the highest PLP within 36 months prior to your upgrade request (but not earlier than July 11, 2012).

    License Credit Transition Upgrade (LCT Upgrade): For customers who have a first registration date on or AFTER October 1, 2012.

    With the LCT Upgrade, when you move to Microsoft Dynamics GP 2013 you will receive a dollar for dollar license investment credit. This is calculated at 100% of your Protected List Price. (Generally your Protected List Price is the full list price not including any discounts you may have received.) The value of your Protected List Price is used as a credit toward the purchase of Microsoft Dynamics GP 2013. You could end up with a balance owed or a credit.

    This applies to new customers who are still buying Microsoft Dynamics GP 2010, which will still be sold even AFTER the release of Microsoft Dynamics GP 2013.

    Important details for the LCT Upgrade:

    • If the Dynamics GP 2013 system is more than your PLP credit value, you will need to pay the difference.
    • If the Dynamics GP 2013 system is less than your PLP credit value, you may apply the excess towards additional users or functionality. But this money can NOT be refunded, can NOT be used to pay Enhancement fees or be used to purchase products on Volume Licensing Programs. Plus, you must use this license credit at the time of the LMT Upgrade, you can NOT save it for later. Use it or lose it.
    • When you upgrade to Microsoft Dynamics GP 2013 it is almost as if you are buying a new system (using your credit) so like a new customer, you are required to purchase a minimum of a 1 year Enhancement plan.
    • Any value remaining on your current Enhancement plan prior to the upgrade will be applied to the renewal of the plan. (This will be prorated based on the value and the number of days remaining in the plan).
    • With this type of LCT Upgrade it is possible that the full license credit may not be used. This would result in a lower system list price. The renewed Enhancement plan will be calculated based on the new system list price.

    Six important points that apply to both Dynamics GP 2013 Transition Upgrade plans:

    1) The LMT and LCT Upgrades to Microsoft Dynamics GP 2013 must be ordered for you, through Order Central, by your Dynamics VAR partner of record. You will not automatically receive the registration keys for the new version as was the case in the past. And since you can choose to upgrade at any time you must be current on your Enhancement plan when this order is placed, not when Dynamics GP 2013 is released.

    2) If you are running any module that has been discontinued and is no longer offered in Microsoft Dynamics GP 2013 you will lose that functionality when you do your upgrade. And as always, Microsoft is not responsible for the upgrade compatibility of ISV products. So do your homework before you place the order for your upgrade.

    3) When you do your Transition Upgrade you will continue to have access to your prior version license keys but you will not be able to add users and/or modules to the prior version.

    4) After your Transition Upgrade is processed you will not be able to retrograde to a prior version. The license key issued for Dynamics GP 2013 will not work with prior versions of the product.

    5) Customers keep their existing license entitlements for Microsoft Dynamics CRM Server when upgrading to Microsoft Dynamics GP 2013.

    6) Customers who licensed Microsoft SharePoint Server Runtime from the Microsoft Dynamics GP price list prior to October 1, 2012 can continue to use and acquire Runtime licenses in Microsoft Dynamics GP 2013.

    This is my summary of the Microsoft Dynamics Transition Upgrade Policy for Microsoft Dynamics GP 2013 as I understand it. Certainly you would need to read the official policy for yourself before making any decisions. But I hope this puts you on the right track and inspires you to meet with your Dynamics GP partner to review your Dynamics GP 2013 upgrade options.

    Read more about Microsoft Dynamics GP 2013 Pricing, New Features, Hardware Specs and more on our GP 2013 launch site.

    By Anya Ciecierski, CAL Business Solutions, Microsoft Dynamics GP 2013 Partner Serving Connecticut and New England,

    One Response to “Unofficial Guide to the Two Microsoft Dynamics GP 2013 Upgrade Policies”

    1. Adrian Shiel says:

      CRM – The document from the microsoft site suggests it is Microsoft Dynamics CRM (Server including in SP,Additional Licenses Apply).

      I have one partner who has quoted it included in GP2013 and 2 who haven’t. We want to acquire both.