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Dynamics 365 Finance & Operations Licensing
Understanding ERP licensing for Finance, Supply Chain Management, Commerce, and Human Resources
Overview of Finance & Operations Apps
Dynamics 365 Finance and Operations (F&O) apps are enterprise-grade ERP solutions designed for complex business operations. The licensing model uses a combination of base licenses, attach licenses, and capacity add-ons.
F&O Application Suite
- Dynamics 365 Finance: Financial management, accounting, budgeting, and compliance
- Dynamics 365 Supply Chain Management: Manufacturing, warehousing, and logistics
- Dynamics 365 Commerce: Omnichannel retail and e-commerce
- Dynamics 365 Human Resources: HR management and employee self-service
- Dynamics 365 Project Operations: Project-based business management
Base vs Attach Licensing
F&O uses a unique licensing model that requires understanding of base and attach licenses:
Base License
$180+ /user/month
- First F&O app for a user
- Full application access
- Required before attach licenses
- Includes Dataverse capacity
- Power Platform use rights
- Higher per-user cost
Attach License
$30+ /user/month
- Additional F&O apps for same user
- Requires existing base license
- Significantly discounted
- Same full functionality
- Encourages multi-app adoption
- Can mix different F&O apps
Pro Tip: When a user needs multiple F&O apps, purchase the most expensive as the base license. This maximizes savings on attach licenses.
Application Pricing
| Application | Base License | Attach License |
|---|---|---|
| Dynamics 365 Finance | $180/user/month | $30/user/month |
| Dynamics 365 Supply Chain Management | $180/user/month | $30/user/month |
| Dynamics 365 Commerce | $180/user/month | $30/user/month |
| Dynamics 365 Human Resources | $120/user/month | $30/user/month |
| Dynamics 365 Project Operations | $120/user/month | $30/user/month |
Team Member Licenses
For users who need limited access to F&O data:
| License Type | Price | Capabilities |
|---|---|---|
| Team Members | $8/user/month | Read access, light updates, approvals, time/expense entry |
| Operations - Activity | $50/user/month | Shop floor execution, warehouse mobile, specific task roles |
Team Member Limitations
- Cannot create new records (with limited exceptions)
- Cannot modify core business processes
- Read-only access to most modules
- Self-service tasks only (time entry, expense reports, approvals)
Important: Carefully review Team Member license rights. Using Team Member licenses for tasks that require full licenses violates Microsoft licensing terms.
Capacity and Add-Ons
Database Capacity
F&O apps require Azure SQL database capacity:
- Base capacity included with licenses
- Additional capacity available in 1GB increments
- Monitored in Lifecycle Services (LCS)
- Overage charges apply if exceeded
File Storage
- Document attachments and blob storage
- Base allocation included
- Additional capacity purchasable
Popular Add-Ons
| Add-On | Starting Price | Purpose |
|---|---|---|
| Additional Environments | Varies | Dev, test, sandbox environments |
| Dual-Write | Included | Real-time sync with Dataverse |
| AI Builder | $500/month | AI capabilities (1M credits) |
| Copilot | Varies | AI-assisted features |
Implementation Considerations
Environment Requirements
- Production: Required, Microsoft-managed
- Sandbox: Tier-2+ for UAT and testing
- Development: Cloud-hosted or on-premises options
- Build/CI: For DevOps pipelines
Lifecycle Services (LCS)
LCS is required for F&O deployment and management:
- Project creation and management
- Environment provisioning
- Code deployment
- Database operations
- Performance monitoring
Cost Optimization Strategies
1. Right-Size User Licenses
- Audit user activities before licensing
- Use Team Members for read-only users
- Consider Operations - Activity for shop floor
2. Optimize Attach Licenses
- Plan multi-app deployments together
- Assign base license to most expensive app needed
- Review annually as user needs change
3. Manage Capacity
- Archive historical data regularly
- Use data entities for reporting (offload to Power BI)
- Monitor database growth in LCS
Power Platform Integration
F&O licenses include Power Platform use rights:
- Power Apps: Create apps that extend F&O
- Power Automate: Automate workflows with F&O data
- Power BI: Embed reports in F&O workspaces
- Dataverse: Dual-write integration for real-time sync
Additional Resources
Disclaimer: Pricing information is approximate and subject to change. Microsoft pricing varies by region and agreement type (EA, CSP, etc.). Always verify current pricing with Microsoft or your licensing partner before making purchasing decisions.