Your Full Service Technology Partner

“ Dynamics 365 HR is merging with Finance & Operations ”

The planned “infrastructure merge” of Microsoft Dynamics 365 HR with its financial & operations suite is making rounds on the news. Microsoft plans a set of structural changes to Dynamics 365 Human Resources (D365 HR) to update the application, align the management of the application with the other finance and operations suite, integrate applications across the entire feature set, and update them.

The so-called D365 HR infrastructure merging will result in a single set of capabilities for D365 HR that accounts for overlapping HR features in the other Dynamics 365 Finance and Operations (D365FO) apps: Finance, Supply Chain Management, Commerce, and Project Operations.

 

Dynamics 365 Finance And Operations

What you should know: 

Isn’t it true that everything eventually comes full circle? With Human Resources and Dynamics 365, it surely adds up. For those who like to keep track: 

  • HR was the module of Dynamics AX.
  • HR was maintained in Dynamics 365 Finance and Operations.
  • Separate HR functionalities were built by Dynamics 365 Talent.
  • Dynamics 365 Human Resources was renamed from Dynamics 365.
  • The Dynamics 365 Finance and Operations Apps and the existing HR module are “infrastructure merging” with Dynamics 365 Human Resources.
  • Custom interfaces between Dynamics 365 Human Resources and Dynamics 365 Finance’s HR module will be obsolete. All HR information will be stored in the same database as other Finance and Operations applications.
  • HR environments will be transferred to the new infrastructure for firms that use D365 HR but not Finance.
  • “You should plan more time to validate the data so that your data is properly transferred back to the new environment,” advises Microsoft for organizations that use both D365 HR or the other Finance and Operations apps. Data mapping and merging will be required, and each client will need to decide how to resolve disputes.
  • After the merge is applied via the One Version update procedure, organizations employing D365 Finance HR features will receive the upgraded HR features, which they may enable using Feature management.
  • To understand the impact of the merge, ISV integration and other custom integrations to D365 HR will need to be evaluated on a case-by-case basis.
  • If the D365 HR and target F&O systems are currently connected to the same Power Apps environment, Power Apps, Power Automate flows, and other Microsoft Power Platform customizations will continue to work.

Is this good or bad news?

Most people may consider it indifferent. The HR module that is now available will not result in a capacity loss due to the functional differences between Dynamics 365 Human Resources and the D365 Finance and Operations applications. Indeed, it may result in a few new benefits for both Dynamics 365 Human Resources users and those who use the HR module in the D365 F&O apps.

Except for a few exclusions, most integrations and customizations will migrate with the change or become obsolete. Dynamics 365 Finance and Operations users who currently have the HR module as part of their licensing may be at a disadvantage. Certain users will be required to purchase Human Resources licenses beginning in February 2025 or sooner if cost savings end.

 

Good and Bad
Obligations of Employers

Bottom Line

It’s a good idea to discuss the changes and options with our team of Experts. Even if the merger’s impact is functionally favorable but not tremendously important, it’s worth discussing! Let’s talk about the future changes if you’re using Dynamics 365 Human Resources, the HR module of Dynamics 365 F&O, or both.

INTERESTED

You consent to the processing of your personal data by clicking on the button. Terms of Use

HR & Payroll Software For Finance

Download Template

You consent to the processing of your
personal data by clicking on the button.
Terms of use.

Download Template

You consent to the processing of your
personal data by clicking on the button.
Terms of use.

Download Template

You consent to the processing of your
personal data by clicking on the button.
Terms of use.

Download Template

You consent to the processing of your
personal data by clicking on the button.
Terms of use.

Download Template

You consent to the processing of your
personal data by clicking on the button.
Terms of use.

Download Template

You consent to the processing of your
personal data by clicking on the button.
Terms of use.

Download Template

You consent to the processing of your
personal data by clicking on the button.
Terms of use.

Download Template

You consent to the processing of your
personal data by clicking on the button.
Terms of use.

Join The Team

You consent to the processing of your
personal data by clicking on the button.
Terms of use.

Download Template

You consent to the processing of your
personal data by clicking on the button.
Terms of use.