What’s that they say about everything coming full circle? Well, it certainly checks out with Human Resources and Dynamics 365. For those keeping track at home:

  • HR was available as a module of Dynamics AX
  • Dynamics 365 Finance and Operations retained an HR module
  • Dynamics 365 Talent developed standalone HR capabilities
  • Dynamics 365 became Dynamics 365 Human Resources
  • Dynamics 365 Human Resources is “infrastructure merging” with the Dynamics 365 Finance and Operations Apps and the existing HR module

D365 Human Resources full circle

So is this a good, bad, or ugly thing?

In most cases, this is an “indifferent” thing as functionality differences between Dynamics 365 Human Resources and the HR module that already exists in the D365 Finance and Operations apps will not result in any lost capabilities (and actually results in a few new benefits for both those currently using Dynamics 365 Human Resources as well as those currently using the HR module in the D365 F&O apps).

Outside of special cases, most integrations and customizations will either migrate with the change or no longer be necessary. The only potential downside is for Dynamics 365 Finance and Operations users who currently have the HR module included in their licensing. Those users will have to buy Human Resources licenses beginning in February 2025, or sooner if it results in cost savings.

For customers utilizing Dynamics 365 Human Resources, the HR module of Dynamics 365 F&O, or both; it is a great idea to talk to your Partner about the upcoming changes. Even if the impact of the merge is functionally positive and not overwhelmingly significant for most, it is worth the conversation!

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