Dynamics 365 F&O FAQs — Answered

To build finance and operations agility in the face of disruption, today’s most forward-thinking organizations are making strategic investments in Enterprise Resource Planning (ERP) systems. 

Modern ERP solutions serve as unified data hubs and flexible business management solutions. And, as an added bonus, investments in ERP technology are proving time and time again that they pay off in a major way. Many credit their ERP system for their ability to make smarter, faster, and more strategic decisions—all based on always-accessible real-time data

You may know it as Dynamics 365 F&O (and many still do), which once was shorthand for Dynamics 365 Finance and Operations. But for those organizations whose ERP system of choice is what’s now called Dynamics 365 Finance & Supply Chain Management (or Dynamics 365 F&SCM), you can guarantee success by kicking off your ERP project with a clear sense of what to expect, how to stay on budget, and how to get the most out of your investment.

Why Hyper-Efficient Companies Love Dynamics 365 F&O

As early as 2022, Microsoft Dynamics was the leading ERP solution, commanding nearly 30% of the ERP market. Since then, the popularity of the Microsoft Dynamics 365 suite has only continued to grow.

These days, the long-beloved ERP solution once packaged as Dynamics 365 F&O has been divided into two distinct apps: Dynamics 365 Finance and Dynamics 365 Project Operations. 

But what’s not changed is the impact of this technology on large enterprises’ efficiency, agility, and profitability. Fortunately, if you want to streamline your financial and operational processes, you can have access to both apps with just one implementation.

Key Considerations and Frequently Asked Questions

Long-standing fans of the cloud-based solution—still often called Dynamics 365 F&O to this day—recognize the ERP system as their most essential business and financial management system. It’s proven to help assess the health of your business, improve financial controls, and drive success across your project operations. However, understanding the potential value of your ERP system doesn’t guarantee success.

So, if you’re considering an investment in Dynamics 365 F&O, here are a few critical questions to answer first.

1. How Should I Approach a Dynamics 365 F&O Implementation?

Implementation of an ERP product like Dynamics 365 F&O typically includes steps for system setup and configuration, migration of your legacy data, and user training. But with multiple phases involved, implementation can become complex in the absence of proper planning and execution. This is why many experts recommend developing and following a strategic implementation roadmap. 

According to Solutions Review, the ideal roadmap should, at a minimum, include steps for:

  • Building a dedicated project team made up of all relevant stakeholders
  • Devoting time to thorough and proper training for end users
  • Planning ahead for a data migration (i.e. cleaning and validating your data first)
  • Testing to address technical glitches, user concerns, or process bottlenecks
  • Putting together a resolution plan for addressing and fixing bugs 

2. How Do I Calculate My Cloud ERP System’s Total Cost?

The overall cost of investing in ERP technology can vary depending on a variety of factors, including both implementation and licensing costs. 

On one end, your implementation costs will fluctuate depending on your business’ size and complexity, the number of users you expect to need access to the system, the level of customization required, or any costs related to ongoing support and maintenance. When it comes to licensing costs, Dynamics 365 Project Operations will run you $120 per user/month. Dynamics 365 Finance starts at $180 per user/month. The latter is also available as a Premium license for $300.00 per user/month.

Managing costs with these factors in mind is key, but it’s equally important not to forget any added expenses that may come up if you’re looking to extend your ERP with additional apps and tools.

3. How Can I Extend Dynamics 365 F&O with Added Modules and Products?

If—in addition to the advantages of implementing Dynamics 365 F&O—you want the power to extend or customize the apps you already use, you may want to consider spending a bit more on additional services. 

An easy add-on that doesn’t require you to worry about any integrations could be as simple as extending Dynamics 365 F&O with Dynamics 365 Sales Professional, Power BI, or Microsoft Power Apps. 

Meanwhile, for businesses in manufacturing, for example, it may make sense to consider licensing costs for Dynamics 365 Supply Chain Management (to unlock the synergy of what many call Dynamics 365 F&SCM). For the price of just $180.00 per user/month, you can not only leverage Dynamics 365 F&O. You can also modernize your supply chain to enhance inventory visibility, improve demand planning, streamline procurement, and optimize fulfillment

Streamlined Finances, Better Service, and Smarter Decisions — with Dynamics 365 F&O

Today’s most popular ERP solutions are the ones designed for real-time visibility and centralized management of business processes. They’re the growth drivers allowing larger organizations to modernize and move beyond their legacy systems to lock in a lasting competitive edge. With Dynamics 365 F&O powering that business success, there’s no telling what continued success could look like down the line.