Looking Ahead: New and Deprecated Features in Microsoft Dynamics 365 Finance and Supply Chain Management in 2025

As 2025 begins, Microsoft Dynamics 365 Finance and Supply Chain Management continue to evolve, bringing cutting-edge features designed to optimize financial operations, enhance supply chain efficiency, and integrate AI capabilities across workflows. Staying informed about these updates is crucial for organizations leveraging Microsoft Dynamics 365 to streamline processes and maintain competitive advantage.

This article highlights the most relevant new features and key deprecations planned for 2025, helping you prepare for changes and harness the full potential of these platforms.

New Features in Microsoft Dynamics 365 Finance

1. Business Performance Enhancements

The latest updates introduce robust analytics and planning tools to enhance financial reporting and decision-making:

• Actionable Insights: Access data-driven insights through the Record to Report and Order to Cash data models, empowering financial leaders to make informed strategic decisions.
• Dimensional Row-Level Security: Ensure granular control of financial data by setting security parameters for different dimensions, improving data integrity and compliance.
• Generative AI Assistance in Financial Planning: Use Copilot to streamline planning processes with AI-powered guidance, available by February 2025.

2. Core Financial Management Features

Microsoft Dynamics 365 Finance enhances core financial processes with improved automation and user-focused updates:

• Vendor Invoice Exception Handling with Copilot: Leverage AI to resolve discrepancies in vendor invoices, saving time and reducing manual effort (March 2025).
• Prepayment Sales Invoices: Simplify advance payment processes by issuing prepayment sales invoices before fulfilling orders, improving cash flow management.
• Enhanced Bank Reconciliation Reports: Streamline reconciliation tasks with improved reporting and matching rule enhancements, reducing manual intervention.
• Reverse Posted Purchase Order Invoice: Automates the reversal of incorrectly posted, purchase order invoices, resetting the purchase order status for streamlined corrections. This feature saves time and effort by eliminating the need for multiple manual adjustments (March 2025).

New Features in Microsoft Dynamics 365 Supply Chain Management

1. Copilot and AI Innovations

AI integration continues to reshape supply chain operations:

• Demand Planning with Copilot: Optimize inventory management and improve accuracy with AI-assisted demand planning, allowing businesses to anticipate market changes effectively.
• Copilot Follow-Up Questions: Improve productivity by interacting with AI assistants to refine queries and extract actionable insights in real time (April 2025).

2. Inventory and Logistics Enhancements

Enhancements in inventory management and logistics improve operational transparency:

• Vendor Rebate Management: Manage and track vendor rebates more effectively with tools designed to maximize value (General availability: April 2025).
• Weighted Average Cost Recalculation: Incorporate additional transactions in inventory cost recalculations, ensuring accurate valuation and financial reporting.

3. Planning and Procurement Updates

Drive efficiency in planning and procurement processes with new features:

• Capable-to-Promise Quantities in Real Time: Provide customers with precise inventory availability updates, enhancing order fulfillment reliability.
• Flexible Contract Lifecycle Management: Streamline sourcing-to-payment processes with enhanced integration and contract management tools (April 2025).

Evolving Features: What’s Changing in 2025

Certain legacy features are being phased out in favor of more efficient and modernized alternatives.

1. Job Card Terminal Transition 

• Replaced by: The new Production Floor Execution interface.
• Impact: The legacy Job Card Terminal is being phased out in favor of a more advanced production execution system.

2. Inventory transaction support for internal warehouse operations

• Replaced by: warehouse specific inventory transactions for improved performance.
• Impact: businesses should transition to the updated transaction system for better warehouse tracking.

Preparing for the Year Ahead

The new features and deprecations planned for 2025 reflect Microsoft’s commitment to delivering smarter, more efficient tools for managing finance and supply chains. To maximize these updates:

• Evaluate Current Processes: Identify areas where new features can enhance workflows and address inefficiencies.
• Transition Ahead of Deprecations: Ensure your systems and teams are prepared to adopt replacement features before legacy functionality is retired.
• Leverage AI Capabilities: Integrate AI-driven tools like Copilot into your operations to automate tasks and unlock new efficiencies.
• Partner with our Experts for a Smooth Transition: Contact Logan Consulting today to learn how we can support your organization in leveraging these new features for a successful 2025.

Conclusion

As we begin the new year, we wish you every success in navigating the opportunities and challenges ahead. Staying informed about updates to Microsoft Dynamics 365 Finance and Supply Chain Management is vital to maintaining operational excellence and driving growth.

Here’s to a productive and prosperous year ahead! Stay tuned for more insights and updates as we continue to help businesses thrive with Microsoft Dynamics 365 Finance and Supply Chain Management.

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