Your Dynamics 365 for Finance and Operations licensing questions answered

Last year, Microsoft announced changes to Microsoft Dynamics 365 for Finance and Operations licensing. On October 1, 2019, Microsoft Dynamics 365 for Finance and Operations was divided into two separate applications: Dynamics 365 Supply Chain Management and Dynamics 365 Finance. Microsoft Dynamics 365 for Finance and Operations applications existed under the banner of Microsoft Dynamics 365 Unified Operations. Microsoft has removed this bundled plan.

If you are using Dynamics 365 for Finance and Operations, this article will help to answer questions you may have that will affect your organisation.

What is changing?

There are two main changes that started on 1 October 2019.

Removal of the bundled plans

Microsoft Dynamics 365 for Finance and Operations applications existed under the banner of Microsoft Dynamics 365 Unified Operations. Customers have the option of buying each app individually, bundling the apps with the Unified Operations plan or purchasing the entire Microsoft Dynamics 365 Plan, which also includes all Customer Engagement applications.

Splitting up Dynamics 365 for Finance and Operations

Dynamics 365 for Finance and Operations is split into two standalone applications, Supply Chain Management and Finance, which enables organisations to purchase the Unified Operations workloads separately. With this change, the Dynamics 365 Unified Operations portfolio now consists of 4 applications: the new Supply Chain Management and Finance, and the existing Retail and Talent applications.

Why has Dynamics 365 for Finance and Operations licensing changed?

According to Microsoft, 70 per cent of Dynamics 365 for Finance and Operations customers use only one or two apps in the Unified Operations plan. Less than 10 per cent use all Unified Operations apps. In moving from a plan model toward a “Base + Attach” model, Microsoft is ensuring that you only pay for apps you use.

What functionality is included in the new Dynamics 365 for Finance and Operations license model?

The underlying Dynamics 365 for Finance and Operations functionality will remain the same. Below is a split of functionality in Supply Chain Management and Finance.

Functionality in Dynamics 365 for Supply Chain Management

  • Distribution
  • Transportation
  • Manufacturing
  • Cost Accounting
  • Engineering
  • Quality Control
  • Procurement
  • Sales Orders

Functionality in Dynamics 365 for Finance

  • Financials and Accounting
  • Budgeting
  • Project Management

Contact us today for help with any Dynamics 365 for Finance and Operations licensing queries.