Learn what to expect from an AX to D365 F&SCM migration — from project phases and responsibilities to key platform differences and what transfers over.
Aging infrastructure, increasing support challenges, security issues, and evolving business requirements are forcing many Microsoft Dynamics AX customers to evaluate the move to Microsoft Dynamics 365 Finance & Supply Chain Management (F&SCM).
Moving from Dynamics AX to D365 F&SCM is far more significant than a traditional software upgrade. It is a migration project involving technology, business processes, data, reporting, integrations, and user adoption simultaneously.
Understanding this distinction is one of the most important starting points for a successful transition.
The Difference Between Migration and Upgrade
Many organizations use “migration” and “upgrade” interchangeably, but they represent very different project approaches.
An upgrade usually means moving from one version of a system to another while preserving most existing architecture, customizations, and processes. AX customers moving between AX versions have traditionally approached projects this way.
Dynamics AX to D365 F&SCM migration is different.
Dynamics 365 F&SCM is a cloud-based platform built around Microsoft’s modern application architecture, release cadence, security model, and extensibility framework. While many ERP concepts carry forward, the underlying technology changes substantially.
Instead of asking, “How do we recreate what we have today?”, organizations should ask, “How can we optimize how we operate in the future?”
Because of what the new platform offers, many organizations use migration as an opportunity to retire outdated customizations, standardize workflows, rethink integrations, and simplify years of accumulated technical debt.
Dynamics AX to D365 Migration Project Phases
A Dynamics AX to D365 F&SCM migration typically runs 9 to 18 months, depending on organizational complexity, data volume, and integrations. Most projects follow a phased structure: discovery, design, build and configuration, data migration, testing, training, and go-live.
Each phase has clear deliverables and sign-off points, and understanding ownership at every stage is critical.
What Your Implementation Partner Owns
Your Microsoft Dynamics implementation partner handles the technical and functional work most client teams do not have the bandwidth or expertise to manage internally.
The partner is typically responsible for solution architecture and system configuration, including mapping business requirements to D365 F&SCM capabilities and configuring modules such as General Ledger, Accounts Payable, Accounts Receivable, Procurement, and Inventory Management.
Partners also lead fit-gap analysis sessions to identify where D365 can meet requirements out of the box and where customizations, process improvements, or third-party solutions are needed.
In addition, partners usually own:
- Customization and ISV integration development
- Data migration templates and ETL scripts
- Data loads during testing and go-live
- Functional design documentation
- Project management and technical delivery
- Go-live execution and deployment strategy
What You Own
This is where many projects run into trouble. Organizations often underestimate how much internal participation is required.
The client is responsible for providing subject matter experts (SMEs) for each functional area. Leaders from finance, procurement, operations, and warehousing must stay actively involved throughout the project to validate that the system reflects how the business actually works.
Data ownership is another major responsibility. Many organizations have incomplete, duplicate, or outdated data accumulated over years of AX usage. Your team is responsible for cleansing, validating, and approving data quality before migration.
The client also owns:
- User acceptance testing (UAT)
- End-user training coordination
- Internal change management
- Final go-live approval
Shared Responsibilities
Several workstreams require close collaboration between both parties.
Testing — The partner leads system integration testing (SIT), but the client’s SMEs must execute UAT and confirm that business scenarios work end to end.
Training — The partner typically trains SMEs and sometimes end users, but the client owns training rollout, scheduling, and adoption.
Change management and cutover planning — The partner provides methodology and guidance, but leadership must communicate the “why,” align the organization, and manage the business-side transition from AX to D365.
Key Differences Between Dynamics AX and D365 F&SCM
One of the most common questions organizations ask is, “What is different?”
The answer depends partly on how customized the AX environment has become, but several major shifts are common:
User Experience — D365 F&SCM uses a browser-based, role-tailored interface built around workspaces rather than menus. Even experienced AX users usually need time to adjust.
Customizations — Most AX customizations and X++ overlayering do not transfer directly to D365. The platform now uses an extension-based model, requiring many customizations to be rebuilt.
Reporting — Management Reporter is replaced by Financial Reporter, meaning organizations often need to rebuild financial report layouts.
Workflows — Batch processing, workflows, alerts, number sequences, and legal entity structures typically need to be recreated in the new environment.
Integration architecture — Connections to systems such as EDI, WMS, CRM, and payroll must be rebuilt through D365 integration frameworks like Azure Logic Apps or the Data Management Framework.
In addition, D365 F&SCM generally offers stronger security and governance capabilities than older AX environments.
What Transfers from Dynamics AX to D365 F&SCM
Despite these changes, many foundational ERP concepts remain familiar.
Core finance and operational processes — including accounts payable, accounts receivable, general ledger, fixed assets, procurement, and inventory management — follow the same underlying business logic.
Knowledge of concepts such as posting profiles, payment terms, vendor invoicing, and purchase order workflows still transfers, even when the screens and navigation differ.
Master data, including vendors, customers, items, and charts of accounts, can also be migrated with proper preparation.
The Importance of Change Management
Technology is only part of the migration challenge. Employees who have used AX for years often develop highly personalized workarounds and deeply ingrained habits. Even positive changes can create resistance.
Strong change management helps reduce that resistance.
Organizations that communicate early, involve users throughout the project, provide meaningful training, and clearly explain why changes are happening typically achieve stronger user adoption.
Talk to Western Computer
Migrating from Dynamics AX to D365 F&SCM is an opportunity to modernize operations, simplify complexity, improve visibility, and position the organization for long-term scalability.
The good news is that organizations do not have to navigate the process alone. With 39+ years of Microsoft ERP experience and 1,750+ implementations, Western Computer has guided manufacturers and distributors through every stage of the migration journey. Our D365 F&SCM Assessment is a 30-day workshop to deliver executive clarity on scope, priorities, and decision-making, as well as operational alignment across Finance, Supply Chain/Operations, and IT. Schedule a discovery call today to discuss your AX environment and what a move to D365 F&SCM would look like for your organization.
