Dynamics 365 Finance & Operations: Introduction, Integrations, Pricing & Features

Dynamics 365 Finance and Operations stands out as a leading business solution. However, it’s quite challenging to navigate its features, additional systems it integrates with, and different pricing options.

If you’re a business leader, you might be wondering: “Is this solution worth the investment?” or “Will it stand what I do when my business grows bigger”. This blog therefore aims at simplifying these aspects to assist you make a decision that is most suited to your business requirements. Continue reading to learn how Dynamics 365 Finance & Operations fits in with your growth plan and what factors you need to bear in mind.

What Is Dynamics Finance And Operations?

1. Explaining Dynamics Finance & Operations (F&O)

Before becoming Microsoft Dynamics 365 Finance, the solution was known as Axapta and later as Dynamics AX in 1998. It has grown into a full-fledged ERP solution starting from a core accounting solution. It was in 2017 that it was added to the Dynamics 365 family, which integrates ERP and CRM for small, medium, and large-scale organisations. In 2020, Dynamics F&O were separated into Dynamics 365 Finance and Dynamics 365 Supply Chain Management.

Today, Dynamics 365 Finance is a very flexible system that helps users improve their financial management, planning, and performance reporting with up-to-date tools such as AI and BI. This is where Dynamics 365 Supply Chain Management supports it by focusing on the supply chain, from logistics and manufacturing to inventory control.

2. Powerful integration between Dynamics 365 Finance, Supply Chain Management, Project Operations, and other products

These integrations enable organisations to develop a single hub of data and enable the seamless connection for financial processing, supply chain management, project costings, and resource allocation.

For instance, integrating Dynamics 365 Finance with the Supply Chain Management application allows the financial team to analyse procurement costs, inventory, and vendor activities to make the right decisions about spending and resources. When connected with Project Operations, it also provides better budget control and expenses to help users maintain project profitability in real time.

Are you looking to integrate Dynamics 365 Finance & Operations with other Microsoft CRM products? Read more: A Guide To Dynamics 365 CRM Applications.

How Much Is Microsoft Dynamics CRM Finance & Operations?

In this part, we will explore different pricing plans for two main applications: Dynamics 365 Finance and Supply Chain Management. We hope to help you get an overall understanding of the differences between each plan and take important considerations before choosing one. Please also refer to the Dynamics 365 Licensing Guide for the latest information.

Read more: 5 Best Microsoft Partners In Australia.

*Note: The prices and licensing features/requirements/capacity presented below may vary depending on the time you’re researching and the location where you’re running your business. Please also go to Microsoft’s official website and licensing guide or contact us for the latest information.

1. Dynamics 365 Finance

Dynamics 365 Finance has two primary pricing options based on the business requirements.

• Dynamics 365 Finance: The standard plan is available for AUD 314.30 per user per month and excludes GST. Here, the plan offers a robust core financial management solution that minimises manual work in financial processing.
• Dynamics 365 Finance Premium: This premium plan starts from AUD 449 per user/month, excluding GST. It is built upon the features of the standard version and adds a more extensive set of business performance tools and AI functions.

Which plan is suitable for you?

The standard plan is ideal for organisations that require basic financial management and do not require advanced analysis. It is particularly ideal for organisations that want to enhance their core accounting, financial reporting, and compliance activities.

The premium plan, in contrast, is suitable for businesses that want to invest more in strict financial management and gain more insights for growth. These organisations often have special requirements for financial analysis, including budgeting, forecasting and performance control.

Key notes about the licensing

Before selecting a plan, it is crucial to evaluate your supply chain requirements, potential usage, as well as how much you wish to leverage the application.

• License types & user needs: If full functionality is required, you can select full-access licenses. In case you need lesser functionality, consider Team Member and Operations - Activity licenses which are comparatively more cost-effective.
• Transaction capacity: Standard plans are limited to 100 electronic transactions per month whilst premium plans allow 200. You can buy additional capacity if it is required due to an increased number of transactions.
• Cloud vs on-premises: Dynamics 365 Finance is cloud-based, but users can go with an on-premise setup, which may require additional costs.

2. Dynamics 365 Supply Chain Management

Dynamics 365 SCM is available in two primary licensing options.

• Dynamics 365 Supply Chain Management: The standard Supply Chain Management license costs AUD 314.30 per user per month (excluding GST). This plan offers the fundamentals for optimising the supply chain without needing more advanced tools to analyse data and performance.
• Dynamics 365 Supply Chain Management Premium: The Premium plan is priced at AUD 449.00 per user per month (excluding GST). It has integrated features for planning, analytics, and demand forecasting at a higher level.
• Dynamics 365 Intelligent Order Management: For more extensive order control options, you can opt for an extended add-on for AUD 449 per month. It allows for processing 1000 order lines per month.

Which plan is suitable for you?

The standard plan is suitable for operations that require basic supply chain features such as assets, inventory and procurement management. It is best used if you are looking for basic supply chain tasks and do not require advanced analysis of large data sets.

Large organisations or companies generally select the premium plan for detailed planning, analytics, and demand forecasts. This plan is particularly applicable for those who need to get a full analysis of the supply chain to achieve the best results and gain insights for growth.

Key notes about the licensing

Before choosing a plan, assess your preferred usage, subscription requirements, and accurate supply chain management needs.

• License types & user needs: Dynamics 365 SCM also incorporates license selection by user and functionality. The full-access license is more suitable if your users need to get the most access to all functions. In some cases, if your user needs only simple functionality, you can purchase more cost-effective licenses such as Team Member or Operations – Activity license.
• Transaction & asset capacity: Each plan comes with a base offer, for instance, 100 e-invoice transactions and 1,000 order lines per tenant per month. Extra features and a larger volume of e-invoices or invoice capture transactions are available in the premium plan. If your organisation needs more capacity, you can buy add-on licenses.
• Cloud vs on-premises: This app is also cloud-based, but you can still choose on-premise deployment, but this will require additional costs.

Dynamics 365 Finance & Operations Key Features

As noted earlier, the core value of Dynamics 365 Finance and Operations primarily lies in the Dynamics 365 Finance and Supply Chain Management apps. These integrated solutions provide a set of tools that meet strategic business requirements in finance, supply chain, and operation.

1. Key features of Dynamics 365 Finance

• Cash flow management: Microsoft Dynamics Finance offers intelligent cash flow forecasts, which help businesses track the estimated cash flow more efficiently. It also supports liquidity management, predicts the amount of cash required in the future and enables teams to take actions accordingly.
• Predictive customer payment insights: This feature helps an organisation to determine when a customer is likely to pay, minimising write-offs and controlling cash flows better. Predictive analytics especially help handle receivables and minimise payment delays.
• Intelligent budget proposals: Based on records, smart budget suggestions in Microsoft Dynamics Finance help to manage the budgetary procedures. This feature helps build the operational budgets accurately, which supports finance teams in implementing an efficient resource allocation that aligns with organisational goals and objectives.
• Financial close & multi-currency support: This feature streamlines the process of financial closing, allowing businesses with multiple locations and currencies to consolidate accounts effectively and adhere to local regulatory requirements.
• Business performance analytics: With strong analytical tools, users can develop real-time dashboards and reports to monitor the performance of their business. These analytics enhance the decision-making process by providing an overall picture of the operation and financials.
• Automated invoicing: This helps to make invoice capturing and processing more efficient with AI-driven automation. Users can cut on time and costs associated with manual data entry and speed up payment cycles.
• Credit risk & collections management: With this feature, collections are well done based on set rules and some predictions, which in turn reduces credit risks and delays in payment. It enhances working capital productivity by strengthening collection activities and decreasing their unpredictability.
• Subscription & revenue management: If your organisation have multiple pricing structures, this feature can help address billing requirements, including subscription billing. It makes revenue management easier and improves the quality of revenue bills and statements as well as offers insights into revenue performance.
• Regulatory compliance & global taxation: Dynamic 365 Finance supports more than 57 countries, covering multiple regulations and taxation issues. It provides resources for tax computation and international regulations, helping companies to meet requirements effectively.

2. Key features of Dynamics 365 Supply Chain Management (SCM)

• Demand planning & forecasting: Dynamics 365 SCM optimises demand planning by embracing AI and ML in developing, displaying, and controlling forecast data. Thus, external signals and automated reports allow businesses to respond to the needs of the market more actively.
• Flexible supply planning: Supply planning with Dynamics 365 Supply Chain Management SCM ensures fast replenishment and shortens delivery times with complete Material Requirements Planning (MRP) runs in minutes. This flexibility allows planners to adjust to demand changes quickly, minimising stockouts and reducing lead times.
• Real-time collaboration: With this feature, users can engage their teams where they are currently working through Microsoft Teams. They can also gain visibility into demand plans across departments and establish agreements on important decisions.
• Inventory & stockout optimisation: Dynamics 365 SCM avoids stockouts through dynamic stock buffers and Demand Driven Material Requirements Planning (DDMRP). Supported by Microsoft Copilot, this feature helps effectively manage stock levels and optimise fulfilment.
• Connected factory: This application pulls shop floor data in real-time and enhances quality, throughput, and reduces time to a great extent. This connected approach allows for predictive production management and factory floor utilisation.
• Order fulfilment optimisation: With Dynamics 365 SCM, businesses can improve on-time delivery by evaluating the fulfilment location using real-time inventory data and analysis. This feature makes it easy for users to stay ahead of customers’ expectations, and deliver higher levels of service.
• Vendor management & sourcing: This feature enables companies to include suppliers, coordinate sourcing, and efficiently onboard new vendors. It also helps make better procurement decisions by providing an assessment of the current and potential vendor performance, improving contract sourcing.
• Predictive maintenance: By applying predictive, condition-based maintenance, Dynamics 365 Supply Chain Management will help reduce costly machine downtime. With sensor data and AI, this function provides timely preventive action that increases equipment uptime and product longevity.
• Automated warehouse operations: Businesses can also attain efficiency in picking, packing, and shipping through warehousing automation. You can also use the custom-built mobile app version to simplify these tasks, increase efficiency and improve the overall performance of the warehouse.
• Sustainability management: Leveraging corporate sustainability initiatives, Dynamics SCM is designed to work with the Sustainability Manager to lower emissions within production, procurement, and transportation. This feature supports sustainability in operations while meeting regulatory demand.

Connect With A Dedicated Microsoft Partner In Australia

Beginning your journey with Dynamics CRM Finance & Operations can put your business in an advantageous position, but only if you have the right partners who understand your business problems. Working with a local Microsoft Partner in Australia can help you to successfully navigate and maximise the platform’s potential.

Dynamics CRM Finance And Operations - FAQs

1. Is Dynamics 365 Finance similar to Business Central?

No, they are built for different purposes, though under the Dynamics 365 ecosystem. Dynamics 365 Finance is designed to provide robust financial management and comprehensive tools for budgeting, forecasting and reporting among large businesses. Business Central, however, is an ERP designed for SMBs, aiming to streamline finance, sales, inventory functions, and other key processes.

2. Can I integrate Dynamics Finance & Operations with other Microsoft and external products?

Yes, you can seamlessly integrate Dynamics 365 Finance & Operations with other Microsoft products such as Power BI, Microsoft 365, or Azure. The solution can also integrate with external apps via APIs, connectors or Microsoft Dataverse. In some cases, this process requires high technical skills, so it is advisable to consult with an Official Microsoft Partner.

3. Which business types get the most value from Dynamics Finance & Operations?

Dynamics 365 Finance & Operations is best suited for growing or mid to large organisations with complex business processes that need a comprehensive platform. It’s most advantageous for industries such as manufacturing, retail and distribution where companies require real-time data, advanced analysis and scalable tools.

References:

• Microsoft. Dynamics 365 Licensing Guide.