Microsoft Expands Dynamics 365 Capabilities on the Path to Agentic ERP

AI is changing not only what ERP can do, but how work gets done. Microsoft’s latest Dynamics 365 announcement brings new capabilities across core business operations while advancing its vision for agentic ERP, where people and AI work together across business processes.

 

The focus is increasingly on connecting people, data and processes so AI can work with the context of the business, rather than operating separately from it. The announcement also marks a shift toward a more continuously updated roadmap, with a view of new and upcoming Dynamics 365 capabilities through March 2027.

 

What is Changing Across Dynamics 365?

 

The new capabilities cover some of the most important areas of business operations.

 

Finance

 

Dynamics 365 Finance is getting a redesigned financial journals experience aimed at higher transaction volumes and more complex cross-legal-entity scenarios. Account Reconciliation Agent is being expanded to resolve exceptions in bulk, while Accounts Payable (AP) automation gains AI invoice recognition and suggestions for completing finance entries.

 

Finance Agent is also gaining skills for reconciliation, data preparation, variance analysis, collections and business intelligence across Microsoft 365 surfaces including Copilot, Excel, Outlook and Teams, with native Finance connectivity and connectors to other systems.

 

Microsoft is also making its Business Performance Planning demo data and starter kit generally available, alongside France e-invoicing and e-reporting support.

 

Supply Chain Management

 

Supply Chain Management is gaining more decision support across procurement, planning, supplier engagement and warehouse operations.

 

A procurement agent impact analysis capability, now in public preview, can trace a supplier-proposed purchase order change through affected sales orders, production orders, transfer orders and projected inventory. Demand planning now includes generally available generative insights for seasonality, trends and signal correlations, alongside external signals such as inflation, pricing and weather.

 

Supplier Engagement is in public preview, bringing onboarding, RFQs (requests for quotation), purchase orders and invoicing into a connected workspace and supplier portal. Microsoft is continuing to expand warehouse management capabilities, with dynamic item placement coming next. Rental management capabilities are also coming to public preview, connecting quoting, contracts, inspections, returns and billing.

 

Project Operations

 

For project-based businesses, new capabilities focus on keeping scope, financials, billing and resources aligned as projects change.

 

Change order management is coming to public preview, providing a structured and auditable way to incorporate contract changes into billing schedules. Subscription billing is also coming, with recurring billing schedules, invoice generation and flexible and tiered pricing.

 

A new time-phased staffing view brings task assignments, project bookings and available capacity into one timeline. Microsoft is also adding an option to recognize project revenue against the original cost estimate when that accounting approach is appropriate.

 

Commerce

 

Dynamics 365 Commerce is expanding its B2B capabilities, including a single sign-in for buyers managing purchases across multiple outlets, legal entities and fulfilment channels, with on-account and credit validation. Trade POS is also gaining bulk order capture, contacts on orders and quotations, direct order release to the warehouse and streamlined pickup workflows.

 

On the agentic side, the Dynamics 365 Commerce MCP server is now in public preview, providing a foundation for customers and partners to develop their own agentic commerce scenarios.

 

Field Service

 

Field Service is gaining a Scheduling Operations Agent, currently in public preview, which can help dispatchers optimize multiple resources against defined objectives and review proposed changes before applying them. Scheduled optimisation is planned as a next step.

 

Connected workflows across Field Service, Project Operations and Finance are now generally available. Work orders can be created directly from or linked to project tasks, connecting field execution with project scope and task-based billing. A mobile-first notes experience is also generally available, allowing technicians to capture text, images and video directly in work orders.

 

Human Resources

 

Dynamics 365 Human Resources is expanding across the employee lifecycle, from talent pools, referrals, digital offers and preboarding through learning, succession, performance, benefits, leave, HR-aware time entry and reporting.

 

Agentic capabilities are also being introduced into HR. Candidate assessment and onboarding are gaining agentic experiences, while new HR business skills will make more hire-to-retire workflows available through Microsoft Copilot, Copilot Cowork and agents.

 

Sustainability

 

Microsoft is also strengthening Dynamics 365 Sustainability around governance and auditability.

 

New capabilities are designed to provide clearer data trails for sustainability reporting, including source activity data, emission factors, calculation logic and reporting filters. Reporting period controls and governed ESG data collection are also being introduced to support more structured review, evidence and approval processes.

 

A New Way of Following the Dynamics 365 Roadmap

 

There is another important change behind these product updates. Microsoft is moving beyond traditional release waves with its AI at Work roadmap, providing a more continuously updated view of innovation across Dynamics 365, Power Platform and Dataverse.

 

The latest announcement gives a snapshot of new and upcoming Dynamics 365 ERP capabilities through March 2027. For organisations planning their ERP roadmap, this provides a clearer view of what is becoming available and what is coming next.

 

The Foundation Still Matters

 

The most significant part of this announcement may not be any single new feature. As more agents interact with ERP processes, the quality of the underlying ERP environment becomes increasingly important.

 

Reliable data. Connected processes. Clear business logic. Appropriate security. Defined permissions.

 

These are what allow agents to work with business context rather than simply generate information around it. That is the direction Microsoft is describing with agentic ERP: connecting how people work with how the business operates, while keeping Dynamics 365 at the centre of the business process foundation.

Updates to License Management in Dynamics 365 Finance & Operations

Microsoft is simplifying the way organizations manage licenses for Dynamics 365 Finance & Operations — with enhanced tools that bring greater security, privacy, compliance and transparency to your licensing footprint.

 

Effective license management is essential for maintaining operational control, compliance, and cost efficiency. To ensure a smoother transition to per-user license validation, Microsoft has adjusted the rollout timeline. Validation will now be introduced gradually, aligned with each organization’s contract renewal or anniversary date, supported by new reporting capabilities designed to enhance transparency and simplify license management.

 

Starting in early 2026, new updates will help businesses stay compliant and efficient with less manual effort.

 

 What’s Changing

 

Enhanced Visibility and Reporting

 

Microsoft is enhancing the Power Platform admin center with better license insights. Admins now gain comprehensive visibility into license usage across security roles, enabling smarter, data-driven management of their licensing footprint.

 

Phased Rollout of License Validation

 

Starting January 15, 2026, license validation for Dynamics 365 Finance & Operations applications will begin for customers with contract renewals or anniversaries occurring after that date.

 

This phased approach allows organizations to review user counts and licensing needs ahead of time, make adjustments smoothly with minimal operational impact, and gain clear visibility into the validation timeline, helping administrators plan effectively.

 

Access Restrictions for Unlicensed Users

 

After validation, users without assigned licenses will lose access until licenses are assigned. During this time, they will be prompted to request the appropriate license from their administrator.

 

Preparing for a Smooth Transition

 

To help organizations navigate the upcoming license validation process, it’s important to take proactive steps to ensure a seamless transition.

 

• Understand Licensing Requirements— review how security roles, duties, and privileges map to license types.
• Review User Role & License Mapping— use admin tools to summarize active users and their license requirements.
• Role to License Optimization— identify and remove unnecessary permissions using the License Usage Summary Report.
• Align Licenses in Microsoft 365 Admin Center— ensure user licenses match report mappings and add extra licenses as required.

 

Key Takeaways

 

Preparing for the upcoming license validation doesn’t have to be complex.

 

With the right preparation, organizations can turn this transition into an opportunity to strengthen governance and improve operational efficiency. Our team can help you review your license setup, analyze usage patterns, and optimize your security roles — so you can enter 2026 fully compliant and disruption-free. These steps lay the foundation for smoother administration, clearer visibility, and more effective management of Dynamics 365 Finance & Operations environments.

 

Partner with AXM365

 

Get in touch with AXM365 to schedule a license readiness review and ensure your organization transitions smoothly.

The First Features Release Wave for 2021 Is Here – Dynamics 365

Brace yourselves, the first release wave for 2021 is here and it has some cool features. The newest release wave describes the new features releasing from April until September this year, and the first sneak peek can be accessed today.

 

The features are going to cover a broad range of functional areas, which we summarized it in a few points, and for the details, you can read more in the release plan online. Be prepared to take the chance, test, and validate all the new features and capabilities that will be a part of the 2021 release, before they are live for your users.

 

Finance and Operations

 

Dynamics 365 Finance

 

Dynamics 365 Finance continues with the lead in bringing in intelligence and automation to the users. With this release users experience out-of-the-box machine learning for their different financial operations.

 

Also, this release in core finance is focused on incorporating capabilities into the cash flow forecast and continuous enhancements across all financial areas.

 

Dynamics 365 Supply Chain Management

 

Dynamics 365 Supply Chain Management is expanding the inventory and logistic scenarios for chain management increasing transparency and efficiency for Asset Management users. Another thing is that it’ll help in reducing training time and cost, and increasing productivity of warehouse workers with a fresh, user-friendly mobile application.

 

Dynamics 365 Project Operations

 

Dynamics 365 Project Operations in the 2021 release wave 1, Microsoft will deliver functionally rich experiences in several areas such as the ability to forecast, use, and invoice nonstock materials on projects.

 

It will enable the ability to set up contractual commitments like billing methods and chargeability rules by the task or a work breakdown schedule element, and it will enable customers using the Dynamics 365 Project Service Automation application to upgrade to Project Operations.

 

Dynamics 365 Guides

 

Dynamics 365 Guides is a mixed-reality application that displays step-by-step holographic instructions right where the work happens, enabling employees to quickly learn and execute complex tasks.

 

In this release wave, the Dynamics 365 Guides team is focusing on intelligent workflows. Additionally, new entities for completion time will enable customers to build Power Automate flows that support their unique enterprise needs.

 

Commerce

 

As we mentioned in one of our previous blog posts, this year Microsoft has big plans for commerce, especially by introducing cloud for retail. Besides that, commerce expands the native integrations with Bing for Commerce search for product search, as well as Customer Service and Power Virtual Agents.

 

Human Resources

 

Through integration APIs and strategic partnership Dynamics 365 Human Resources continues to broaden the human capital, providing a better employee experience with a consolidated view of benefits for employees.

 

Sales

 

On the other hand, Dynamics 365 for Sales is focused on adding productivity enhancement for sellers, helping them in the decision-making process by providing data-driven insights. The updates will tackle automation, conversation intelligence, and enhancement to the mobile dashboard for a better experience for sellers on the go.

 

Dynamics 365 Customer Insights

 

The audience insights will enable every company better understanding of the customer data by adding customization and extensibility capabilities of the customer view, additional connectors for data ingestion, better controls for AI-based unification, and much more.

 

Besides that, the engagement insights capabilities will enable individual and holistic analytics over different device usage.

 

Customer Voice

 

Will take the customer’s feedback on a whole another level, by expanding the capabilities to collect feedback with a lot of different customized survey options. Additionally, creating follow-up action workflows will be much easier with the Power survey response trigger.

 

Service

 

With the all-in-one contact center, the Dynamics 365 Customer Service will ship with a logistic and integrated first-party voice and chat solution, which will enable customers to be up and running quickly.

 

Marketing

 

The improvements in Dynamics 365 for Marketing definitely are going to enhance marketer’s reach, analysis and with the help of AI, are going to deliver deeper personalization and different channels for customer engagement.

 

SMB

 

Dynamics 365 Business Central with the new features will simplify and improve the way Microsoft Partners administer tenants, and how the managing of licensing and permissions is done. The integration will also include Microsoft Teams and Visual Studio Code, which will help in providing modern development tools.

 

Check all the key dates for the 2021 release wave 1 here.

 

If you are interested in optimizing/improving your business processes, making the experience while using the application a whole lot easier in the long run, having the data secured in the cloud at the same time, and in need for someone to upgrade your systems from Microsoft Dynamics AX to Dynamics 365, we are open for future collaboration. Reach out to us here.

 

And if you are interested in potential career opportunities, check out our careers page.

Microsoft Dynamics 365 Applications – What’s New

More and more companies, especially now given the state of the world, opt for digital transformations in many sectors of their businesses. Microsoft has followed this movement every step of the way of providing its clients with customizable solutions to best suit any businesses and their needs.

 

Thanks to the variety of available solutions for digital transformation fit for financial services, retail, healthcare, and much more, Microsoft has been able to help its clients adjust seamlessly to the ever-growing technological demands that arise.

 

On this topic, you may come across new and recently updated Microsoft Dynamics 365 suite.

 

Microsoft Dynamics 365 Applications

 

Microsoft Dynamics 365 is a total business software package, ERP, and CRM solutions, comprised of multiple applications. Applications offered are Sales, Customer Service, Field Service, Human Resources, Finance, Project Operations, Supply Chain Management,  Commerce, Project Service Automation, Marketing, and Business Central.

 

What is important to note here from the aforementioned is the news regarding splitting Dynamics 365 for Finance and Operations in new separated applications that covers parts of the business functionalities that offer one ERP system.

 

What was formerly known as Dynamics 365 Finance and Operations has now been split into separate applications and with that, we now have Dynamics 365 Finance, Dynamics 365 Supply Chain Management, Dynamics 365 Project Operations, Dynamics 365 Commerce, and Dynamics 365 Human Resources. This change was made in order to offer greater flexibility to the users to apply the applications per their business processes’ needs.

 

Let make a quick overview of what the new applications offer to the Microsoft Dynamics 365 community.

 

Dynamics 365 Finance

 

Dynamics 365 Finance is the application used to simplify and automate global financial operations. This is the only solution you will need for all financial plans and decisions.

 

With Finance, all company expenses can be automated, saving on time and manpower. Automated financials results in greater control over regular expenses, cash flow, budgeting, and much more.

 

In addition, coming soon there will be Finance Insights with which predictions of financial success would become much easier and more accurate.

 

 

• Increased awareness of company-wide finances with real-time analytics;

 

• Taking advantage of AI with machine learning, predictive recommendations ensures an increase in profits and simplifies decision making;

 

• Simplified financial planning and budget control with financial process automation;

 

• Ensured compliance with local (and global) financial and business requirements with customizable payment, tax, and reporting formats.

 

Dynamics 365 Supply Chain Management

 

Dynamics 365 Supply Chain Management is the new application used to streamline all company operations from production to transportation and more.

 

Apart from automation of supply of stock, with which overstocking or lack of stock can be avoided, with Supply Chain Management you can modernize warehouse management as well as prolong the life of equipment with regularly scheduled maintenance aided by IoT and mixed reality.

 

 

• A greater understanding of warehousing capacity, shipping operations, and turnover of materials in real-time;

 

• Improvement of manufacturing operations and delivery processes by using machine learning and increase the productivity of people, processes, and equipment with mixed reality;

 

• Ensured timely availability of necessary materials and products on designated locations with automatization of supply chain operations;

 

• Increased product quality with integrated quality-control.

 

Dynamics 365 Commerce

 

Dynamics 365 Commerce, formerly known as Retail, offers its users a full omnichannel solution that unifies back-office, in-store, call center, and digital experiences.

 

With Commerce, retailers can forge a stronger connection and have a better understanding of their customers’ needs. With this solution, online stores work seamlessly on any device.

 

 

• Ability to engage with customers at any stage and have access to a comprehensible view of every client;

 

• Highly scalable to fit the specific needs of e-commerce;

 

• Simplify the creation of interesting and intelligent storefronts with easy-to-use development tools;

 

• Maximize profits and customer loyalty by using all AI has to offer, from targeted recommendations to insights.

 

Dynamics 365 Human Resources

 

Dynamics 365 Human Resources is an application for people. Any company that cares for its employees wants to make their day to day office life simpler so they can focus on more important things.

 

With this solution, all HR-related questions are easily accessible to the employees through self-service tools. HR management has never been so simple as this app can be easily tailored to fit companies of any size and help them simplify and organize all HR programs such as compensation, benefits, absence, and more.

 

 

• Keep track of employee KPIs, certifications, training, and skills by creating detailed employee profiles;

 

• Very adaptable allowing any company, whatever size or vocation, to successfully scale, extend, and connect to existing systems;

 

• Ability to optimize HR programs by simplifying absence reporting, optimizing benefits, managing recruiting, and much more.

 

Dynamics 365 Project Operations

 

Dynamics 365 Project Operations is the latest release and it’s set to be available in October of 2020. Project functionality that used to come native to Dynamics 365 Finance and Dynamics 365 — Project Service Automation will now be merged and available as Dynamics 365 Project Operations.

 

Businesses that work with project-based services know that this is cooperative work. Dynamics 365 Project Operations was created with this in mind, so the goal is to unify operational workflows within a single application for increased productivity and timely project delivery.

 

 

• Greater visibility for better collaboration between previously disconnected systems with the goal of precise tracking of project expenses, delivery dates, timely billing, and more;

 

• Supply teams with the right insights to better understand every step made with visibility into the back-end and front-end processes of the same application;

 

• Faster client billing and reimbursement with simplified processes of reporting time and expenses.

 

These are only a few of the capabilities of these new applications. Now as Microsoft keeps up to date with the needs of its users, so do we. As a Gold Partner specialized in delivering Microsoft Dynamics 365 services that cover the ERP part of the suit, we keep up with the latest Microsoft updates and help our clients to adapt more easily.

 

The developers and consultants here at Axapta Masters are skilled at these new applications and up to the task of assisting our clients as they begin to integrate them for themselves.

 

If you are interested in our services, or you have an idea of how can we help, feel free to drop us a line in the Contact section.