Why should you Migrate from Dynamics 365 HR to Finance and Operations?
Microsoft has announced that Dynamics 365 Human Resources will be merged into Dynamics 365 for Finance and Operations cross-app capabilities!
This is fantastic news since organizations will no longer have to worry about D365 Human Resources and D365 Finance and Operations integration while still having access to all of D365 Human Resources’ capability. When thinking about the shift, though, there are a few things to keep in mind.
How does this affect new or existing D365 customers?
New Customers:
The recommendation is to use the HR module within Dynamics 365 for Finance and Operations rather than the standalone Dynamics 365 Human Resources app in the future.
Existing clients are divided into the following groups:
- Human Resources in Dynamics 365 is already in place; however, Finance and Operations aren’t. According to Microsoft, these customers will be migrated from Dynamics 365 Human Resources to the FinOps Human Resources module.
- When a customer has Dynamics 365 Human Resources as well as FinOps.
The customer’s data will be transferred from Dynamics 365 Human Resources to the FinOps Human Resources module. However, several areas in HR and FinOp overlap and must be aligned before the solution can be consolidated within the FinOps architecture. These are known as cross-app capabilities, and they must be taken into account while transitioning from D365 Human Resources to D365 FinOps to ensure that they are compatible.
However, you may still have many questions in mind; let us help you with them.
Dynamics 365 Human Resources infrastructure merge FAQ
New Customers:
The recommendation is to use the HR module within Dynamics 365 for Finance and Operations rather than the standalone Dynamics 365 Human Resources app in the future.
Existing clients are divided into the following groups:
- Human Resources in Dynamics 365 is already in place; however, Finance and Operations aren’t. According to Microsoft, these customers will be migrated from Dynamics 365 Human Resources to the FinOps Human Resources module.
- When a customer has Dynamics 365 Human Resources as well as FinOps.
The customer’s data will be transferred from Dynamics 365 Human Resources to the FinOps Human Resources module. However, several areas in HR and FinOp overlap and must be aligned before the solution can be consolidated within the FinOps architecture. These are known as cross-app capabilities, and they must be taken into account while transitioning from D365 Human Resources to D365 FinOps to ensure that they are compatible.
Dynamics 365 Human Resources is a standalone application that runs on a different infrastructure than other Finance and Operations apps like Dynamics 365 Finance, Dynamics 365 Supply Chain Management, Dynamics 365 Commerce, and Dynamics 365 Project Operations. Dynamics 365 Human Resources will be integrated into the same infrastructure as other Finance and Operations apps as a result of the infrastructure merge.
- These changes in Dynamics 365 eliminate multiple sets of human resources (HR) capabilities.
- They enable Microsoft Power Platform extensibility as well as the extension of business logic and feature options.
- They ensure consistency in terms of Application Lifecycle Management (ALM), Microsoft Dynamics Lifecycle Services (LCS), geographic availability, extensibility, and other features between Dynamics 365 Human Resources and other Finance and Operations apps.
- They enable you to take advantage of shared services and tooling while also lowering costs.
Customers who use the HR module in Dynamics 365 Finance will now have access to the capabilities and investments made in Dynamics 365 Human Resources. These capabilities include leave and absence management, benefits management, and task management, to name a few.
Functional parity will be achieved between Dynamics 365 Human Resources and the HR module in the Finance and Operations apps. For similar features, Dynamics 365 Human Resources will take precedence.
Feature management will be used to manage the new HR capabilities. Customers will choose whether or not to use them. Capabilities may be altered in some cases. Documentation will be provided in those cases.
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.
Your Human Resources environment will be transferred to the new infrastructure if your organization employs Dynamics 365 Human Resources but not any other Finance or Operations apps. A large portion of the migration will be automated. There will be procedures in place to migrate and synchronize your database with the new infrastructure.
Tooling will also be in place so that you may test the migration process and validate your data and experience before moving your production system.
The new feature from Dynamics 365 Human Resources is being applied to your environment by the standard One version update process for organizations that use the HR module in finance and operations applications. You can expect to see the new feature when it is available for each update in your environment. Feature Management can be used to enable new features. You should, however, plan to validate these characteristics. Follow your processes to validate your environment for other updates.
Each organization’s migration will be determined by its current configuration and readiness to move to the new infrastructure. These dates are tentative and may change.
- As part of the usual One Version update process, organizations that presently use the HR module in Finance and Operations apps will acquire the HR capability for Dynamics 365 Human Resources. Beginning in October 2021, new Microsoft Dynamics 365 finance features will be made broadly available.
- The deadline for completing the transfer to the new infrastructure has yet to be set. Organizations that utilize Dynamics 365 Human Resources solely will have access to migration tooling in mid-2022, allowing them to begin testing and preparing for the move. However, migration tooling will not be accessible for at least a year beyond that date.
- The deadline for completing the transfer to the new infrastructure has yet to be set. Organizations that utilize Dynamics 365 Human Resources and other Finance and Operations apps will have access to migration tooling in late 2022, allowing them to begin testing and preparing for the transfer. However, migration tooling will not be accessible for at least a year beyond that date.
Yes, all Dynamics 365 Human Resources modules will work as-is in Finance and Operations apps, and feature parity will be 100 percent. Customer data will be migrated as part of the overall migration strategy for customers who now utilize these capabilities in HR so that they can continue to work on the Finance and Operations infrastructure.
During the move, it’s likely that your Human Resources environment will stay in the same Azure region. The sole exception is when the Human Resources environment is integrated with a Finance and Operations environment in another location. The Human Resources environment will be moved to the Finance and Operations environment’s Azure region in this situation.
Each step of the migrating process will be described in-depth in the full documentation. Depending on the requirement, additional training tools such as films and workshops may be offered.
Customers will have much more options in terms of ALM and service updates after the move. Human Resources environments will no longer receive automated service upgrades. Instead, the service will be updated using One Version’s processes and functionalities. As a result, LCS will provide configuration options for updates.
Microsoft Power Platform extensibility options, as well as Finance and Operations extensibility options, will be accessible for development.
All import and export BYOD configured will be migrated to new infrastructure.
Any legal documentation pertaining to usage rights is neither superseded nor replaced by this documentation.
Existing users of Dynamics 365 apps and standalone Dynamics 365 Finance, Supply Chain Management, Commerce, and Project Operations licenses will have access to Human Resources until February 2025, or until the current licensing agreement ends, whichever comes first. You have the option of switching to Human Resources licenses sooner if it helps you save money. To take advantage of the additional capabilities being added to the Finance and Operations apps, all existing CSP and EA clients must roll off the HR module and purchase Human Resources licenses starting in February 2025.
All Finance and Operations apps, such as Dynamics 365 Finance, Dynamics 365 Supply Chain Management, Dynamics 365 Human Resources, and Dynamics 365 Commerce, have cross-app capabilities.
Cross-app capabilities must be coordinated in an overarching Dynamics 365 implementation to ensure that all Dynamics 365 solutions perform appropriately and smoothly. For example, HR data managed in Dynamics 365 Human Resources and used in FinOps for costs, resourcing, and so on must be considered if the cross-app capabilities are not aligned to avoid difficulties.
Personalization is a term used in Dynamics 365 for Finance and Operations to describe non-code changes to the system, particularly in the user interface.
D365 HR has been realigned within Dynamics 365 FinOps, bringing together a variety of data integration capabilities that may be used with Human Resource data.
Improved extensibility — Partners, value-added resellers (VARs), and even some customers can customize Dynamics 365 Finance and Operations apps, including Finance, Supply Chain, and Commerce. We obtained a huge improvement with this merger, in addition to Power Platform extensibility: FinOps customization!
Market Clarity – Elimination of several sets of HR Capabilities within Dynamics 365 for market clarity.
Consistency — Application Lifecycle Management, Geo availability, Fast track, and other features will provide consistency between HR and other FinOps programs.
For more information about the power apps, dynamics 365 finance and operations Dataverse or merger, get in touch with the team of DHRP now!
