If you are using Microsoft Dynamics AX as your enterprise resource planning (ERP) system, you might be wondering how to migrate to the cloud-based Microsoft Dynamics 365 Finance. This article will provide you with an overview of the migration process, the tools, and services that can help you, and the best practices to follow.
What is Microsoft Dynamics 365 Finance?
Microsoft Dynamics 365 Finance is a cloud-based ERP solution that helps you manage your financial operations, optimize your cash flow, and make smarter decisions. It is part of the Microsoft Dynamics 365 suite of business applications that integrate with each other and with other Microsoft products, such as Office 365, Power BI, and Azure.
Some of the benefits of using Microsoft Dynamics 365 Finance are:
You can access your system from anywhere, anytime, and on any device, with a consistent user experience and high security.
You can leverage the power of artificial intelligence (AI) and machine learning (ML) to automate tasks, gain insights, and improve performance.
You can scale your system up or down as your business needs change, and pay only for what you use.
You can customize and extend your system with various apps and add-ons from the Microsoft AppSource marketplace.
You can stay compliant with the latest regulations and standards, and benefit from automatic updates and patches.
How to Migrate from AX to D365 Finance?
Migrating from AX to D365 Finance is not a simple task, as it involves moving your data, configurations, and customizations from your current system to the cloud-based platform. The complexity and duration of the migration process depend on several factors, such as your current version of AX, the size and quality of your data, the extent of your customizations, and your business requirements.
However, there are some general steps that you can follow to plan and execute your migration successfully. These are:
1. Set up a Lifecycle Services (LCS) account and create a project for your migration
Lifecycle Services (LCS) is a cloud-based collaboration platform that helps you manage your migration project and access various tools and services. You can use LCS to create and track your project tasks, communicate with your team and partners, deploy and monitor your environments, and perform various assessments and validations.
To set up an LCS account, you need to have a valid Microsoft account and an Azure subscription. You can sign up for a free trial of Azure if you don't have one. Once you have an LCS account, you can create a project for your migration and invite your team members and partners to join.
2. Use the Dynamics AX performance analyzer tool to analyze your current AX environment and identify any potential issues or areas for improvement
The Dynamics AX performance analyzer tool is a PowerShell script that you can run on your current AX environment to collect and analyze various metrics, such as database size, code complexity, configuration settings, and performance indicators.
The tool will generate a report that will help you identify any potential issues or areas for improvement in your current system, such as data quality, code optimization, or performance tuning.
You can download the tool from the LCS project and run it on your AX environment. You can also upload the report to the LCS project and share it with your team and partners. The tool will also provide you with recommendations and best practices to address the issues or improve your system.
3. Use the code upgrade service to estimate the scope and effort of upgrading your custom code and metadata from AX to D365 Finance
The code upgrade service is a cloud-based service that helps you upgrade your custom code and metadata from AX to D365 Finance. The service will analyze your code and metadata and compare them with the standard code and metadata of D365 Finance. It will then provide you with an estimate of the scope and effort of the upgrade, as well as a list of conflicts and errors that need to be resolved.
You can access the code upgrade service from the LCS project and upload your code and metadata to the service. The service will then generate a report that will show you the number of objects that need to be upgraded, the number of conflicts and errors, and the estimated time and cost of the upgrade.
You can also download the upgraded code and metadata from the service and use them for testing and validation.
4. Deploy a demo environment of D365 Finance and test your upgraded code and data
A demo environment of D365 Finance is a cloud-based environment that you can use to explore the new features and functionality of D365 Finance and compare them with your current AX system. You can also use the demo environment to test your upgraded code and data and ensure that they work as expected.
You can deploy a demo environment of D365 Finance from the LCS project and access it from your browser. You can also upload your upgraded code and data to the demo environment and run various tests and validations. You can also use the demo environment to familiarize yourself and your users with the new user interface and features of D365 Finance.
5. Create a detailed project plan that outlines the tasks, timelines, and resources required for your migration
A project plan is a document that outlines the tasks, timelines, and resources required for your migration. It helps you organize and manage your migration project and track your progress and performance.
A project plan also helps you communicate your goals and expectations to your team and partners and ensure that everyone is on the same page.
You can create a project plan using any tool or method that suits your needs, such as Microsoft Project, Excel, or Word. You can also use the LCS project to create and track your project tasks, assign roles and responsibilities, and monitor your project status and health. You should include the following elements in your project plan:
A project scope that defines the objectives, deliverables, and boundaries of your migration project.
A project schedule that defines the milestones, deadlines, and dependencies of your migration project.
A project budget that defines the costs and benefits of your migration project.
A project risk management plan that identifies and mitigates the potential risks and issues that could affect your migration project.
A project change management plan that defines how you will handle any changes or requests that arise during your migration project.
A project quality management plan that defines how you will ensure the quality and accuracy of your migrated system.
A project communication plan that defines how you will communicate with your team and partners during your migration project.
A project training plan that defines how you will train your users and stakeholders on the new system.
A project testing plan that defines how you will test and validate your migrated system.
6. Switch to the LCS implementation project and mark it as an AX upgrade
An LCS implementation project is a type of LCS project that is specifically designed for implementing D365 Finance. It provides you with additional tools and services that can help you with your migration, such as the data upgrade service, the data import/export framework, and the data management workspace.
To switch to the LCS implementation project, you need to create a new project in LCS and mark it as an AX upgrade. This will enable you to access the additional tools and services that can help you with your data migration, feature selection, and configuration.
7. Work on the preparation tasks, such as backing up your data, configuring your security roles, setting up your workflows, and validating your integrations
Before you perform the final data upgrade and code upgrade, you need to work on some preparation tasks that will ensure a smooth and successful migration. These tasks include:
Backing up your data: You should back up your data from your current AX system and store it in a secure location. This will help you restore your data in case of any issues or errors during the migration.
Configuring your security roles: You should configure your security roles and permissions for your D365 Finance system and assign them to your users and groups. This will help you control the access and visibility of your data and features.
Setting up your workflows: You should set up your workflows and business processes for your D365 Finance system and align them with your business requirements. This will help you automate and streamline your operations and transactions.
Validating your integrations: You should validate your integrations and connections with your other systems and applications, such as CRM, BI, or e-commerce. This will help you ensure the compatibility and functionality of your data and features.
8. Perform the final data upgrade and code upgrade using the LCS tools and services
The final data upgrade and code upgrade are the steps that will move your data and code from your current AX system to your D365 Finance system. You can use the LCS tools and services to perform these steps, such as:
The data upgrade service: This is a cloud-based service that helps you upgrade your data from AX to D365 Finance. The service will analyze your data and compare it with the standard data of D365 Finance. It will then provide you with a list of data upgrade tasks that need to be performed, such as mapping your data entities, resolving any data conflicts or errors, and validating your data quality.
You can access the data upgrade service from the LCS project and upload your data to the service. The service will then perform the data upgrade tasks and generate a report that will show you the status and results of the data upgrade. You can also download the upgraded data from the service and use it for testing and validation.
The code upgrade service: This is the same service that you used in step 3 to estimate the scope and effort of the code upgrade. You can use the service again to perform the final code upgrade from AX to D365 Finance.
The service will analyze your code and metadata and compare them with the standard code and metadata of D365 Finance. It will then provide you with a list of code upgrade tasks that need to be performed, such as resolving any conflicts or errors, applying any code changes or enhancements, and validating your code functionality.
You can access the code upgrade service from the LCS project and upload your code and metadata to the service. The service will then perform the code upgrade tasks and generate a report that will show you the status and results of the code upgrade. You can also download the upgraded code and metadata from the service and use them for testing and validation.
The upgrade analysis tool: This is a tool that helps you identify any deprecated or changed features in D365 Finance that might affect your system functionality or configuration. The tool will scan your system and compare it with the standard system of D365 Finance.
It will then provide you with a list of features that are either no longer available, replaced, or modified in D365 Finance. You can access the upgrade analysis tool from the LCS project and run it on your system. The tool will then generate a report that will show you the list of features and their status. You can also use the tool to adjust your system configuration accordingly.
9. Validate and test your migrated system and ensure that everything is working as expected
The final step of the migration process is to validate and test your migrated system and ensure that everything is working as expected. You can use various tools and methods to perform this step, such as:
LCS tools: You can use the LCS tools to monitor the performance and health of your system, such as the environment monitoring tool, the environment history tool, the telemetry tool, and the issue search tool. These tools will help you identify and troubleshoot any issues or errors that might occur in your system.
User acceptance testing (UAT): You can perform user acceptance testing (UAT) to verify that your system meets your business requirements and expectations. You can involve your users and stakeholders in this process and ask them to test the system's functionality, usability, and reliability. You can also collect their feedback and suggestions and make any necessary changes or improvements to your system.
Regression testing: You can perform regression testing to ensure that your system does not have any new or unexpected bugs or defects after the migration. You can use various testing tools and frameworks to automate and execute your test cases and scenarios. You can also use the LCS tools to track and manage your test results and reports.
10. Go live with your D365 Finance system and enjoy the benefits of a cloud-based ERP solution
The final step of the migration process is to go live with your D365 Finance system and enjoy the benefits of a cloud-based ERP solution. You can use the LCS tools to perform the go-live checklist and prepare your system for the launch.
You can also use the LCS tools to schedule and perform the cutover and switch your system from the test environment to the production environment. You can also use the LCS tools to support and maintain your system after the go-live, such as applying any updates or patches, managing any incidents or requests, and optimizing your system performance and security.
How much does it cost to migrate from AX to D365 Finance?
The cost of migrating from AX to D365 Finance depends on several factors, such as your current version of AX, the size and complexity of your data and customizations, and the plan and license you choose for D365 Finance.
According to some web sources, the license cost for D365 Finance starts from $180 per user per month for the Unified Operations plan or $210 per user per month for the full Dynamics 365 plan¹².
However, the license cost is only one part of the total cost of migration, which also includes the cost of planning, testing, data conversion, code upgrade, training, and support. Therefore, the best way to estimate the cost of migration is to consult with a certified professional who can assess your specific needs and provide you with a detailed quote. If you are interested, we can help you find a suitable partner for your migration project. Contact us: info@leadsource.tech
Migrating from AX to D365 Finance is a complex and challenging process that requires careful planning and execution. However, with the help of the LCS tools and services, you can simplify and streamline your migration process and achieve a successful and smooth transition. By migrating to D365 Finance, you can leverage the power and potential of a cloud-based ERP solution that can help you transform your business and achieve your goals.