Dynamics 365 Finance and Operations Licensing & Pricing Canada | Guide

Microsoft Dynamics 365 Finance & Operations (F&O) is designed for medium- to large organizations with complex financial and operational needs. The application comes with a wide range of functionalities that help businesses manage financial processes, supply chains, manufacturing, and inventory.

The Dynamics 365 Finance and Operations licensing guide is essential for you to understand how its pricing works and how to get the intended functionality without overspending. In addition to this, the licensing options are designed to be flexible and scalable. You need to understand your business requirements before opting for the most suitable licensing.

In this Dynamics 365 Finance and Operations licensing guide, we will explore licensing models, types of licensing, and a few case studies.

Understanding D365 Finance and Operations Licensing

Dynamics 365 Operations and Finance license follows a Software-as-a-Service (SaaS) subscription model, meaning that organizations pay per user, per month, depending on the level of access and functionality required. This allows businesses to pay only for what they need while retaining the flexibility to add or remove users as their needs change.

Two Key Dynamics 365 Finance and Operations Licensing Options:

Base Licensing: This model offers licenses for only core applications like Dynamics 365 Finance or Supply Chain Management.

Attach Licensing: When you require additional licenses of different applications alongside the primary application, then this model offers licenses at a discounted price to use both applications.

Key Benefits of SaaS Subscription Licensing

The SaaS subscription licensing model provides the ultimate flexibility in how organizations access and use Dynamics 365 F&O. Instead of paying large upfront costs, as we used to pay in perpetual licensing, businesses can subscribe to the software for a monthly fee based on the number of users and their roles.

No upfront infrastructure costs

With cloud-based licensing, there is no need to invest in expensive servers or databases. This means Dynamics 365 Finance and Operations license cost will depend on the number of users who are taking advantage of the license. Microsoft handles all the backend infrastructure on the Azure platform.

Grow as Per Your Business

As your business grows or changes, you can easily add or reduce the number of users with the Dynamics 365 Finance and Operations license.

Automatic updates

Stay up to date with the latest features and improvements without the need for manual upgrades.

Security

Microsoft ensures enterprise-grade security with regular backups and compliance with data privacy regulations.

Types of Licenses in Dynamics 365 F&O

Dynamics 365 F&O offers several types of licenses depending on the level of access required. Since F&O is divided into two parts, Dynamics 365 Finance and D365 Supply Chain Management, we will see the detailed licensing options for both solutions:

Base Dynamics 365 Finance and Operations Licensing Guide

The base Microsoft Dynamics pricing is fixed for every solution, and you need to pay according to the functionality you use. You can learn about D365 SCM and Dynamics 365 Finance pricing with this table:

Attach Licensing and Pricing Guide

In the attach pricing, the base price is fixed, and you need to pay extra for the attach needed solution. This table will offer you an attached Dynamics 365 Finance and Operations licensing guide.

Note: Total Price = (Base licensing price + Additional Price for the combination a/c to table) 

What is Attach Licensing and How Does It Work?

Attach licenses allow organizations to license multiple Dynamics 365 applications at a reduced price when combined with a base license. This model is particularly beneficial for businesses that need the capabilities of multiple applications but don’t want to pay full price for each one.

For example, if a business already has a license for Dynamics 365 Finance, it can “attach” a license for Dynamics 365 Sales at a reduced price of CAD 40.54 per month instead of paying the full CAD $244.20.

To leverage the attached license, a user must have one base application. It is vital to understand that attached licenses provide the same functionality as the full licenses. A user can attach several applications, such as Project Operations, Field Service, or Customer Service. This makes it a cost-effective solution for businesses that require diverse functionalities.

What's Included in Dynamics 365 F&O?

Dynamics 365 F&O is divided into two core applications: Dynamics 365 Finance and Dynamics 365 Supply Chain Management. Each offers a wide range of modules that cover various business processes.

Dynamics 365 Finance: Key Modules

General Ledger: Manage financial data and gain insights into company performance.

Cash and Bank Management: Manage cash flow, bank accounts, and bank transactions.

Accounts Payable: Automate the invoice-to-payment process.

Accounts Receivable: Automate the billing-to-collection process.

Budgeting: Plan and monitor budgets.

Fixed Assets: Manage the lifecycle of fixed assets.

Cost Accounting: Analyze costs and profitability.

Project Management and Accounting: Track project costs and revenue.

Dynamics 365 Supply Chain Management: Key Modules

Inventory Management: Track stock levels and inventory movements.

Master Planning: Create plans for material requirements and resource scheduling.

Procurement and Sourcing: Manage the procurement process.

Product Information Management: Centralize and manage product data.

Production Control: Manage manufacturing processes.

Warehouse Management: Automate warehouse operations.

Transportation Management: Optimize the movement of goods.

Asset Management: Manage maintenance and upkeep of physical assets.

Case Studies: Businesses Utilizing Dynamics 365 F&O Licensing Models

Dynamics Square has a team of well-versed professionals that has helped various businesses implement the Dynamics 365 F&O successfully using the flexible licensing model. Here are a few examples:

Case Study 1

A large retail organization with multiple stores and warehouses faced significant challenges in managing its inventory, procurement, and point-of-sale (POS) operations. The company struggled with inefficient inventory management, procurement delays, and fragmented POS systems.

The company consulted our experts and decided to implement Dynamics 365 Supply Chain Management to streamline inventory and procurement processes across its retail chain. Additionally, Dynamics 365 Commerce was deployed to unify its POS systems across various stores. By doing so, the company achieved real-time inventory visibility, integrated procurement processes, and unified POS systems.

Case Study 2

A mid-sized manufacturing company was facing difficulties in managing its financial processes and tracking the costs and revenues associated with its various manufacturing projects. Their key challenges were disjointed financial and project management systems, a lack of real-time insights, and inefficient project tracking.

They consulted with our consultant, and we implemented Dynamics 365 Finance to automate and streamline its accounting and financial management processes. Additionally, Dynamics 365 Project Operations was integrated to help the company manage project costs, resource allocation, and revenue tracking.

With our efficient service, the company unifies financial and project data, automates revenue tracking, and improves its budget control.

Optimize Your Licensing Investment with Dynamics Square

Finance and Operations licensing & pricing offers a flexible, scalable, and cost-effective model that allows businesses to pay for what they need. However, understating which license you require might be challenging, as it is divided based on features and its capability.

Thus, Dynamics Square, a leading Microsoft Solutions Partner in Ontario, is here to help you choose the Microsoft Dynamics 365 Finance pricing model and implement it hassle-free. Our experts have an in-depth understanding of licensing and pricing, helping you to choose the best license according to your business needs.

For instance, if you are using two solutions at the same time, our expert checks the availability of the attached license. This saves you tons of money in the long run. In addition to this, Dynamics Square has implemented Dynamics 365 Finance licenses at various companies with a 99% success rate. You can contact our consultant and make a better choice to save money.

Give us a call at +1 289 807 0740 or write us an email at info@dynamicssquare.ca.