What are the new D365 HR updates?

as part of Second wave plan for 2021Microsoft will bring Dynamics 365 (D365) Human Resources in D365 Finance and Operations family of applications. So, if you are using D365 Human Resources, the legacy HR module in the Finance and Operations app, or both, this update will affect you.

Here’s how and what you can do about it…

Although the details will depend on your current setup, here are the general changes you might see:

  • If you are using the old HR module, you will get additional functionality from D365 Human Resources – Such as checklists for onboarding and offshoring employees, managing leave and absences, etc.
  • If you’re already using D365 Human Resources, you’ll also benefit from additional capabilities, thanks to F&O integration – for example, access to shared services and tools that come with Finance and Operations
  • If you are using a combination of the legacy HR module and the HR D365, you will no longer need to merge your data. This data can be seamlessly shared across the two platforms

What are my next steps?

Microsoft has already defined migration paths For all of the above scenarios. The most appropriate course of action for your business will depend on your setup.

  • If you are using the legacy HR module, you do not need to migrate. D365 Human Resources and the advanced functionality that it provides will be automatically added to your Finance and Operations applications. Preview from August 2021 and generally released on January 2022
  • If you are using D365 Human Resources, you will need to migrate the system to the Finance and Operations platform. The process will be mostly automated, but Microsoft will provide the tools* to help you validate the migration
  • If you’re taking a hybrid approach, this may add an extra layer of complexity. After all, two systems will be combined! However, Microsoft tools* will help you manage this and combat any conflicts that may arise

* Microsoft tools will be available in mid-2022. As of this writing, there is no specific deadline for when the migration will be completed but we estimate it will be at least a year after the tool is released to the public.

How much will a D365 HR migration cost my organization?

If you are already using D365 Human Resources, you do not need to change licenses. However, if you are licensed for the legacy HR module, you will need to migrate to D365 HR licenses after February 2025.

There will also be an “attached” version of the D365 HR licenses.
Additional things to note:

  • If you have a D365 Human Resources sandbox environment, it will migrate to the Finance and Operations Tier 2 sandbox applications at no additional cost
  • Access to the employee self-service feature will be covered by HR, Team Member and Operations Activity self-service licenses

Is there anything else I need to know?

We have three more points to add:

  1. Be aware of who has access to your sensitive HR data If you are a hybrid customer, keep in mind that potentially sensitive HR information will be migrated to Finance and Operations. So, test all of your security roles and verify that only people who need to access certain information can do so.
  2. Test custom and third-party integrations Even if they are developed using Microsoft software, such as Power Apps, be sure to test these custom apps thoroughly
  3. D365 Human Resources is no longer a SaaS platform – After migration, the HR software will no longer be SaaS, so you will be responsible for deploying updates to the platform

If you have any other questions, concerns, or just want to learn more about Microsoft’s Wave 2 plan for the 2021 release, feel free to reach out to Columbus today. One of our expert team of advisors and advisors is happy to help.

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