What is Dynamics 365 Human Resource migration
Microsoft announced in the year 2021 that Dynamics 365 HR module will be merging into Dynamics 365 Finance & Operations (F&O), and customers using the D365 Human Resources application are required to transfer their independent Human Resources application to the Finance & Operations infrastructure before the end of 2023.
As part of the infrastructure merge, all capabilities of the Human Resources application have been made available in finance and operations environments. Customers can migrate their Human Resources environments using the migration tooling that is available in Microsoft Dynamics Lifecycle Services. They can also optionally merge their data with their existing finance and operations environment.
Benefits of infrastructure merge
Currently, within Dynamics 365, there exist two distinct sets of HR capabilities operating on separate infrastructures.
- Dynamics 365 Human Resources, which is a complete stand-alone application running on an independent infrastructure.
- The HR module, which is a legacy set of capabilities that was previously part of our Unified Operations licensing bundle. The HR module runs on the same infrastructure as the other applications within our operations portfolio, which was previously named Finance and Operations.
With this infrastructure merge, customers will get one set of human resources capabilities within Dynamics 365 Finance and operations including:
- All the previous capabilities and enhancements on the standalone Human Resources application are now in the merged Dynamics 365 Finance and operations.
- All the new functionalities which include enhancements in Personnel management, Leave and Absence management, Benefits managements, Learning management, Dual-write enhancements, Resource management integration, etc.
What does this merge mean to customers?
- Dynamics 365 HR merges with F&O ERP system; standalone HR application discontinued.
- HR module integrated into F&O via feature management.
- F&O introduces separate Human Resources and Organizational Management functionalities.
- Users experience cosmetic updates, no significant changes in functionality.
- Future HR updates and features will be integrated into F&O.
Customer migration vs customer merge
Customer migration: The automated migration tooling is used to perform a “lift-and-shift migration” (movement) of the customer database from the Human Resources infrastructure to the finance and operations infrastructure which include all data, licenses, and integrations. The result is a new finance and operations environment that uses the customer’s Human Resources database.
Customer merge: Microsoft does not mandate this additional step. It is entirely optional and can be carried out by customers based on their own preferences and schedule. During this process, customer data is transferred to an existing environment, such as Finance or Project Operations. The migration is predominantly performed manually, utilizing Data Management Framework (DMF) data entities.
There are no changes to licensing for Dynamics 365 Human Resources in the following areas:
- Minimum license purchase requirement
- Licenses to a production and a sandbox environment– If you have existing standalone Human Resources licenses that grants one production environment and one sandbox environment, the same number of licenses is available on the finance and operations infrastructure, at no additional cost.
- Additional sandbox licenses– If you’ve purchased additional sandbox licenses for the standalone Human Resources application, the same number of sandbox licenses is available for a standard acceptance test (sandbox) environment on the finance and operations infrastructure, at no additional cost.
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We understand that this transition may bring questions, concerns, or uncertainties. That’s why we’re here to support you every step of the way. We want to ensure a smooth and efficient migration process.