Introduction
In 2021, Microsoft made an announcement stating that they would be combining the Dynamics 365 Human Resources (HR) module with Dynamics 365 Finance & Operations (F&O). As a result, customers currently using the D365 Human Resources application were instructed to transfer their standalone HR application to the Finance & Operations infrastructure by the end of 2023.
As part of this infrastructure process, all functionalities of the Human Resources application have been incorporated into the finance and operations environments. To facilitate the migration, Microsoft provides customers with migration tooling through Microsoft Dynamics Lifecycle Services. Customers also have the option to merge their data with their existing finance and operations environment if they choose to do so.
Overview of Dynamics 365 Human Resources
Let’s start with a quick introduction to Dynamics 365 Human Resources. Dynamics 365 Human Resources is designed to streamline and optimize your HR processes, from employee recruitment and onboarding to performance management and talent development. With Dynamics 365 Human Resources, you can efficiently manage your workforce, ensure compliance with regulations, and promote a positive employee experience.
Overview of Dynamics 365 Finance & Operations
Now, let’s dive into Dynamics 365 Finance & Operations. This comprehensive solution helps you manage your financial operations, supply chain, and manufacturing processes. With features like budgeting, invoicing, inventory management, and order fulfillment, Dynamics 365 Finance & Operations provides a holistic view of your organization’s financial health and enables you to make informed decisions to drive growth and profitability.
Benefits of Infrastructure merge
As you might imagine, having two different ways to access HR capabilities creates a lot of confusion.
By integrating these two sets of capabilities into the same infrastructure, customers will experience several benefits, including:
- Incorporating enhancements made to Dynamics 365 Human Resources over the past three years, such as improved leave and absence management, benefit management, and reporting features.
- Enhancing extensibility through the Microsoft Power Platform, allowing for personalized screens and forms with extended business logic.
- Streamlining deployment, updates, and maintenance processes with consistent application life cycle management, geographic availability, and more.
- Stimulating technology innovation as our engineering team utilizes shared services, tooling, and reduced platform costs.
This transition will have an impact on both current Dynamics 365 Human Resources users and those utilizing the HR module.
Customer migration vs. customer merge
Migration refers to Microsoft moving the standalone Dynamics 365 HR module to the F&O platform. For customers, the migration is a mandatory process where all data, licenses, and integrations are shifted from standalone 365 HR to 365 F&O. This migration is a prerequisite for the merge.
On the other hand, the merge is an optional step aimed at customers who have Finance or Project Operations and wish to bring those applications together with HR into the F&O environment. Customers have the choice to either keep HR and F&O separate or merge them into the same environment, allowing both departments to work with the same data. Unlike migration, the merge is not obligatory.
How to start with HR migration process
Pre-requisite
- You must have admin access on LCS and Power Platform.
- You need to refresh your environment from Production to Sandbox.
- You need to copy your dataverse environment before migrating a sandbox environment.
- You must have enough capacity to copy Power Platform environment.