2024 Release Wave 2 Highlights: Microsoft Dynamics 365 Finance and Supply Chain Management

Microsoft’s recent launch of 2024 Release Wave 2 for Microsoft Dynamics 365 Finance and Supply Chain Management delivers vital new tools to support smarter decision-making and streamline operations. From improved automation with AI-driven capabilities to strengthened compliance features and enhanced supply chain visibility, this release offers businesses the resources to navigate today’s complex financial and operational landscape. In this blog, we’ll cover the key updates to both Microsoft Dynamics 365 Finance and Supply Chain Management and explore how these innovations can help improve processes across your organization.

Release Wave 2 Updates in Microsoft Dynamics 365 Finance

AI-Powered Financial Processing and Automation

1. Vendor Invoice Processing with Copilot
   The newly integrated Copilot capabilities automate and simplify vendor invoice handling by addressing invoice discrepancies and managing exceptions. Copilot not only alerts finance teams to potential issues but also routes flagged invoices for further review, minimizing error risks and expediting accounts payable workflows. This innovation is a significant step forward in reducing manual workload while maintaining accuracy across transactions.
2. Automated Financial Reconciliation
   Dynamics 365 Finance now includes a Financial Reconciliation Agent that automates transaction matching between subledgers and the general ledger. By handling repetitive reconciliation tasks, this tool enables finance teams to close books faster, with enhanced accuracy and efficiency. Real-time insights also allow for quicker adjustments, particularly useful in high-volume transaction environments or organizations with complex financial structures. For a deep dive on autonomous agents in Microsoft Dynamics 365, read our preview blog here.
3. Dynamic Analytics and Data Modeling
   The introduction of new data models for Record-to-Report, Procure-to-Pay, and Order-to-Cash supports a comprehensive view of financial data across transactions. Users can access these models for enhanced analytics, allowing finance teams to spot trends, manage expenses, and optimize cash flow. With insights directly embedded into workflows, the analytics hub enables teams to make data-driven decisions quickly, turning data insights into actionable financial strategies.

Enhanced Globalization and Compliance

1. Extended Localization and E-Invoicing
   With the expanded Globalization Studio capabilities, this release adds localization support across various countries, helping businesses stay compliant with local tax regulations. Enhanced electronic invoicing functionality allows users to manage complex tax scenarios seamlessly, improving accuracy and regulatory compliance for organizations operating across multiple geographies.
2. Advanced Security and Compliance Controls
   Finance teams can now secure sensitive financial data at a more granular level through Dimensional Row-Level Security, which controls access based on user roles. This addition provides peace of mind for companies operating under stringent financial regulations, ensuring that only authorized personnel can access specific data within the analytics hub.

Release Wave 2 Updates in Microsoft Dynamics 365 Supply Chain Management

AI-Driven Enhancements for Planning, Logistics, and Procurement

1. Copilot for Demand Planning and Forecasting
   With enhanced AI capabilities, the Copilot feature now enables demand planners to create more accurate forecasts based on external signals, such as customer demand trends or market data. This addition provides organizations with improved planning accuracy, helping them anticipate demand fluctuations and prepare their inventory levels accordingly. By incorporating AI-driven forecasts, businesses can make better inventory decisions, reduce waste, and ensure products are available when needed.
2. Automated Capable-to-Promise Calculations
   The update introduces real-time capable-to-promise calculations within Planning Optimization, allowing businesses to confirm inventory availability for sales orders instantly. This feature ensures that customers receive accurate information on order fulfillment, improving customer satisfaction and building trust. The instant availability checks also support quick response times and enable companies to commit to delivery dates with confidence.
3. Streamlined Procurement with Mobile Approvals
   Now, purchase orders and requisitions can be approved directly from mobile devices, providing greater flexibility for procurement teams. This mobile capability speeds up approval times, allowing businesses to act on purchasing decisions in real-time, an essential advantage in industries that rely on fast-paced procurement processes. To learn more about the new Approvals Management Mobile App, click here.

Inventory and Logistics Visibility Enhancements

1. Expanded Inventory Traceability with Copilot
   A new quality-tracing feature with Copilot support enables users to track and solve quality issues in real-time, ensuring that affected products are identified swiftly. By providing visibility into quality control across different stages of the supply chain, this feature helps companies mitigate risks, meet compliance standards, and enhance overall supply chain reliability.
2. Efficient Order Management with Enhanced Linking and Calculation
   For improved control over stock and orders, this release introduces new capabilities to link transfer orders with sales orders directly, ensuring alignment between order processing and fulfillment. Additionally, the weighted average recalculation feature improves inventory valuation accuracy, providing businesses with a more reliable picture of stock value at any given time.
3. Automated ASN Directives for Improved Receiving
   The updated Automated Shipment Notification (ASN) directives enable faster, more efficient receiving processes by allowing items on the same license plate to be placed into a single location. This feature optimizes warehouse workflows and simplifies stock management, helping distribution centers maintain a smooth flow of inventory from receiving to fulfillment.

Contact us today for help planning and implementing these functions in advance.

Recently Deprecated Features in Dynamics 365 Finance and Supply Chain Management

There are also select features recently deprecated from Microsoft Dynamics 365 Finance and Supply Chain Management. It’s essential to be aware of these changes and adjust accordingly.

1. User Authentication Update: Transition to Object ID and Tenant ID

• Effective Date: October 2024
• Details: Microsoft is moving Dynamics 365 Finance and Supply Chain apps towards a modernized user authentication model based on Object ID and Tenant ID in Microsoft Entra ID. This shift away from traditional account models aims to enhance security and streamline identity management across cloud and on-premises environments.
• Impact: Companies need to review and ensure that all users have proper Microsoft Entra ID configurations, specifically verifying Object IDs as telemetry IDs.

2. Deprecation of Shared Key Access for Managed Storage Accounts

• Effective Date: October 2024
• Details: To improve platform security, access via storage account keys in Dynamics 365 Finance and Supply Chain Management is being phased out. Microsoft recommends using Microsoft Entra ID-based authentication instead.
• Impact: Users who rely on Shared Key or shared access signatures may face disruptions as these methods are restricted. Organizations are advised to switch to user-delegated shared access URLs or appropriate API access models to maintain secure and compliant access.

3. End of Support for Visual Studio Extensions Below Version 2022

• Effective Date: October 2024
• Details: Visual Studio extensions for Dynamics 365 Finance and Supply Chain Management will no longer support versions earlier than Visual Studio 2022, reflecting a shift towards a standardized development environment.
• Impact: Development teams should upgrade to Visual Studio 2022 for continued support and compatibility with the latest Dynamics 365 development tools.

Conclusion

The 2024 Release Wave 2 for Microsoft Dynamics 365 Finance and Supply Chain Management brings crucial enhancements designed to streamline financial operations, improve supply chain resilience, and empower users with AI-driven insights. From advanced Copilot capabilities that automate and simplify complex tasks to enhanced analytics tools that provide real-time data visibility, this release enables organizations to operate with greater efficiency and precision. Whether your focus is on compliance, data-driven decision-making, or improved process visibility, these updates can help your business stay agile and responsive to today’s dynamic market demands.

For businesses already using Microsoft Dynamics 365, these new capabilities not only enhance the platform’s value but also provide opportunities to elevate financial and operational performance. As the tools continue to evolve, staying informed and integrating these innovations can position your business for sustainable growth and improved customer satisfaction.

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