As we gear up for the first part of Microsoft’s biannual updates for their business solutions, there’s a wave of exciting changes on the horizon for Dynamics 365 Finance & Supply Chain Management (F&SCM). These enhancements, part of the April release, are designed to streamline your financial operations and optimise supply chain processes, making your business more efficient and agile.
Whether you’re aiming to improve financial forecasting, enhance inventory management, or boost overall productivity, these updates are packed with powerful new tools and features that will help the way you work in the system.
Let’s explore what’s new across these two powerful solutions and see what changes you can expect over the coming months.
Notable changes for Dynamics 365 F&SCM
With each release wave, Microsoft aren’t just bringing a couple of new updates — there are hundreds of enhancements being made to Dynamics 365 and Power Platform applications.
We will shortly get into details about all the upcoming changes for F&SCM but let’s take a quick look some of the updates we’re most excited for.
Finance
Outlier Detection in Business Performance
By incorporating outlier detection into their planning process, organisations can enhance their agility and reduce the time needed to take action.
This feature uses algorithms to identify outliers and improve forecasting, allowing businesses to create more reliable plans. Automating these actions and generating new scenarios and reports saves time and eliminates manual processes, making the planning cycle more efficient and dynamic.
Create Dimensions and Cubes with Copilot
By using existing Excel spreadsheets and Copilot, organisations can cut down the time it takes to implement planning software.
This guided experience helps users quickly configure dimensions and cubes by providing smart recommendations, making the whole process much smoother and more efficient.
Security Enhancements in UK MTD VAT Integration
Enabling the security enhancements for UK MTD VAT integration makes direct VAT return submissions much safer for UK-registered companies.
By upgrading key submission processes to more secure executable classes, businesses can better protect against data breaches and unauthorised access, ensuring compliance with UK tax regulations is both secure and reliable.
Supply Chain Management
Automate Procure-to-Pay Tasks with Supplier Communications Agent
The supplier communications agent helps businesses streamline their procurement process by automating manual and repetitive tasks.
This feature saves purchasers time by automatically drafting emails to follow up with vendors and updating purchase orders based on incoming emails. By reducing manual effort, the agent enhances supply chain resilience and boosts procurement productivity.
Enhance Demand Forecasting and Planning
The latest enhancements for Demand Planning in Supply Chain Management offer new insights to help optimise your supply chain and improve financial outcomes.
These updates enhance the accuracy of demand forecasts by incorporating various data sources and signals. Key features include assortment planning, time freeze, forecasting with multiple input signals, and automatic seasonality detection.
These capabilities are enabled by default and can be used with new and existing forecasts to improve their accuracy and effectiveness.
Implement Lean Manufacturing, Catch Weight, and Step Consumption
The Planning Optimisation engine helps businesses streamline their planning processes, reduce costs, and improve service levels by enabling fast and accurate supply plans.
This leads to a more agile and responsive supply chain. The engine now supports lean manufacturing, catch weight pricing and measurement systems, and step consumption with process manufacturing, making it even more versatile and beneficial for various industries.
All the upcoming changes for Microsoft Dynamics 365 Finance
As part of Microsoft’s release wave plans, the updates for each solution are broken down into investment areas. Let’s take a look at the updates coming to Dynamics 365 Finance.
Business Performance
The Business Performance suite integrates analytics, planning, and insights into a single, extensible platform. This update allows users to put planning into action with outlier detection, manage assets through the Acquire to Dispose data model, and start planning quickly with template solutions.
Additionally, users can create dimensions and cubes using Copilot in business performance planning, refresh data frequently in business performance analytics, and utilise managed extensibility of data models. The suite also supports multiple languages in business performance analytics and streamlines integration with Dynamics 365 Finance and Operations.
Core financials
The Core Financials investment area focuses on automation, AI, and enhancements to core financial functionalities.
This update includes the ability to cancel customer payment journals from the bank reconciliation worksheet and preview automatic bank reconciliation matching results.
Users can generate one journal for multiple vendor payment lines and speed up bank reconciliation with duplicate matching rules. Further enhancements to bank reconciliation reports and improved bank account lifecycle management are also part of this update.
Additionally, users can create new ledger account-only journals using the new journal framework, expand the use of financial tags, and enable financial tags for purchase order invoicing.
The update allows for splitting fixed assets, transferring fixed assets between legal entities, and using agents for recommended actions on the Account reconciliation agent workspace.
It also optimises user security configurations and licensing costs, and provides the ability to view cross-company transactional data using the accounting source explorer.
Globalisation Studio
Globalisation Studio automates complex tax scenarios and provides localisations for multiple countries and regions. Extended by partners and customers, it enables users to run Dynamics 365 Finance and Operations apps in over 210 countries and regions.
This update includes electronic invoicing in Colombia, expanded localisation for the Dominican Republic, Peru, and Venezuela, and compliance with e-invoicing requirements in Poland.
It also updates the OIOUBL format 3.0 for electronic invoicing in Denmark and expands country coverage to Türkiye. Users will experience updates to the Interfactura API for e-invoicing in Mexico and access electronic invoicing phased rollout in Belgium.
Additionally, the update includes the enhanced Poland JPK KR PD annual regulatory report, security enhancements in UK MTD VAT integration, automate tax feature creation based on tax master data, and an extensible universal connector for the E-Invoicing service.
Upcoming changes to Microsoft Dynamics 365 Supply Chain Management
Now that we’ve taken a look at what’s new with Dynamics 365 Finance, lets explore the upcoming investment areas and updates for Dynamics 365 Supply Chain Management.
Copilot and AI innovation
Copilot and AI innovation reimagines the Dynamics 365 Supply Chain Management experience by leveraging generative AI.
This update enhances user interactions by enabling Copilot follow-up questions to keep conversations going and automates procure-to-pay tasks through the supplier communications agent.
Inventory and logistics
Inventory and logistics features enhance visibility and resiliency in the supply chain. This update improves vendor rebate management and enhances supply chain traceability with tracking attributes
Manufacturing and asset management
Planning
Procurement
Those are all the updates you can expect to see coming to Dynamics 365 F&SCM in this release wave, with updates rolling out between April and September 2025.
These updates are packed with exciting enhancements that are designed to provide you with advanced tools and capabilities to drive business growth, improve operational efficiency, and adapt to evolving market demands. Exciting times ahead!
If you’re interested in taking a deeper look into any of the mentioned features, please click the links throughout, or alternatively you can view the full release notes for Finance, or Supply Chain Management, or click here to view the full 2025 Release Wave 1 Plan.
You can also get to see a selection of the new capabilities in our dedicated webinar showcasing what’s new in Dynamics 365 Finance & Supply Chain Management! Join us on Wednesday 7th May at 11:00 AM (BST) for a look and a chance to ask any questions you may have. Sign up here: https://www.mercuriusit.com/webinar-dynamics-365-fscm-2025-release-wave-1/
Want to take a look at what features were introduced in the 2024 Release Wave 2, please click here for our blog post covering the updates?
If you’re interested in learning more about Microsoft Dynamics 365 F&SCM, please view our webpage, or get in touch to arrange a demo of the solution. Let’s explore how this powerful ERP solution can transform your business.
