All Dynamics 365 F&O Modules, Explained
Without Fluff, So You Can Understand What They Do And If They’re Right For You
Introduction
Why this article
Axapta is dead. Dynamics AX is dead. Dynamics 365 F&O is dead. The official name at the time of writing is Finance and Operations apps (we still like to call it D365 F&O, though). What’s not dead, but very much alive instead, is confusion with the Microsoft product naming.
Microsoft is shifting toward app-based solutions, but what does that even mean? When you log into D365 F&O, do you see a big button for Finance and another for Supply Chain Management? No, you see a list of 40+ modules. And it’s not always clear what each one does. The two names above are not actually modules or products per se, but licenses (and that’s a topic for another article).
But can’t you just check Microsoft Learn to, indeed, learn? In theory, yes. In reality, Learn focuses more on features and products than modules. Module pages do exist, but they’re sometimes chaotic, group different features together, or may be too vague for your use case. So, where does that leave you?
Here. This article breaks down D365 F&O modules into clear functional groups, giving you a practical way to evaluate which ones matter for your business. No fluff, no sales pitch — just straight-to-the-point explanations of what they do, when they’re needed, and what risks you face if you don’t set them up correctly.
A disclaimer
Before we move on, a few important notes:
- ERP modules don’t exist in silos. The grouping here is for clarity, not an absolute truth. If you disagree with some of our choices, that’s fine — there’s no official way to group them. We tried to use original names to avoid confusion with the current naming convention.
- D365 F&O evolves fast. Microsoft releases updates twice a year. Some of what’s written here may change sooner than you expect, so bear this in mind.
- Industry matters. If you’re in a niche sector, some of our observations may not be applicable to you. D365 F&O is expanding, and industry-specific modules are on the rise.
Still, if you want a complete breakdown of all modules, including common misconceptions and key business decisions to make before implementing them… our upcoming D365 F&O Modules Navigator is what you need.
Wait, there’s more?
Yes! We’re building a comprehensive guide for ERP decision makers covering every D365 F&O module in depth, not just each functional group. Would you like to see it? Then show us your interest by registering below — we will prioritise it if there’s enough feedback, and or course we will give you early access as soon as it’s ready!
D365 F&O Modules Navigator
Fill in the form to register your interest
All modules by functional group
Core accounting
This functional group includes the following modules:
- General ledger
- Accounts payable (UK: Purchase ledger)
- Accounts receivable (UK: Sales ledger)
- Tax
- Consolidations
They form the backbone of your financial management in D365 F&O. You can track income and expenses, manage supplier and customer payments, stay tax compliant, and consolidate financials across multiple entities. When set up correctly, they create an audit-ready system that ensures financial accuracy and regulatory compliance.
If your business operates across multiple legal entities, deals with complex tax requirements, or needs strict financial controls, these modules must be configured carefully. Many organisations assume the standard setup will work, but gaps often emerge — especially in areas like intercompany transactions and consolidation rules.
A weak accounting setup leads to reporting inaccuracies, reconciliation issues, and inefficiencies. We’ve seen companies struggle with fragmented financial data and manual workarounds. If you want seamless financials in D365 F&O, getting expert guidance early can save you time, cost, and frustration down the line.
Financial management
This functional group includes the following modules:
- Cash and bank management
- Credit and collections
- Budgeting
- Fixed assets
- Asset leasing
- Cost accounting
These modules help you manage liquidity, control costs, and plan for financial stability in D365 F&O. You can track cash flow, monitor assets, enforce credit policies, and structure budgets to align with business goals. When configured correctly, they provide real-time financial visibility and better decision-making.
If your company operates in a cash-sensitive industry or has strict cost control needs, these tools are critical. This is regardless of the industry, although some modules are very specific (e.g. Asset Leasing). However, many businesses underestimate the complexity of understanding and configuring correctly these features in D365 F&O, leading to major inefficiencies.
Misconfigured financial controls can lead to cash shortages, untracked liabilities, or misaligned budgets that limit business agility. For example, we’ve seen companies struggle with manual reconciliations and adopting rigid budget structures that don’t reflect real business needs. If your setup isn’t tailored to your operations, you may struggle with visibility, delayed decision-making, or encounter unexpected financial risks.
Product setup
This functional group includes the following modules:
- Product information management (PIM)
- Engineering change management
They ensure you define accurately how your products are identified, tracked, and stored within your company. You can manage product data, design and release product versions, and handle engineering changes to product specifications. Setting up products correctly is the basis of efficient company operations, since most other features of an ERP system depend on it.
Whether your company deals with physical products (stock) or services, you will need your PIM to be in order. However, if your company relies on complex product design and configurations, strict regulatory compliance, or advanced version control, you may also need the engineering change management features.
Without a structured setup in this area, your company will find it difficult to maintain product details and changes in the medium and long run. These issues have knock-on effects on every other operational areas where items (products or services) are involved: from procurement to stocking and fulfilment, from invoicing to financial reporting.
Procurement and supply
This functional group includes the following modules:
- Procurement and sourcing
- Landed costs
They help you manage purchasing activities, supplier relationships, and internal requests for procurement. You can define approval workflows for purchase requisitions, process requests for quotations, create supplier contracts, and manage indirect charges to orders.
Every company needs some form of procurement, and most companies require some level of approval to go with it. However, businesses that rely on international sourcing and oversea inbound transportation may also need features from the landed cost module.
A misconfigured setup in this area can lead to unsupervised procurement spending, poor supplier visibility, and insufficient order tracking. This has an impact on both accounting an operations: companies with a weak procurement setup may overpay for goods, track margins incorrectly, and be affected by stockouts or delays in production and order fulfilment.
Logistics operations
This functional group includes the following modules:
- Inventory management (UK: Stock management)
- Warehouse management
- Transportation management
- Fleet management
They ensure that goods are efficiently stored, moved, and tracked within your company. You can manage inventory levels, optimise warehouse operations, coordinate transport, and oversee fleet usage. When set up correctly, these modules improve inventory accuracy, reduce waste, and support efficient internal logistics.
Some form of basic inventory setup is essential for virtually any company using D365 SCM. However, if you handle large stock volumes or have complex warehouse operations, you’ll likely need warehouse management features too. And if you deal with distribution or have your own fleet of vehicles, the other two modules could be relevant for you as well.
Without a structured setup in this functional area, your company will risk inaccurate inventory records, poor warehouse operations, and inefficient order fulfilment. Again, these will have an impact on both the operations and accounting, especially if the financial setup for stock management is incorrect.
Planning and manufacturing
This functional group includes the following modules:
- Master planning
- Production control
- Time and attendance
- Cost management
They are designed to help you plan production, control costs, and optimise manufacturing processes. You can manage materials, ensure resources availability, schedule production operations, and run the MRP to generate planned production orders. When set up correctly, they reduce waste, improve lead times, and keep manufacturing aligned with demand.
Any company that transforms raw materials into finished products will need these modules to some extent. For simple manufacturing, some production control and basic cost management features will be enough, but complex manufacturing operations will require advanced features, such as finite capacity operations, time registration of production workers, or intercompany master plan.
A weak planning setup leads to material shortages, production delays, and cost overruns. This is possibly the most dangerous area in D365 F&O for an incorrect setup, because it will have catastrophic consequences on manufacturing operations, from inventory shortages, to unprofitable production runs, and missed deadlines for order fulfilment.
Sales and retail
This functional group includes the following modules:
- Sales and marketing
- Retail and commerce
- Subscription billing
- Pricing management
- Rebate management
They handle how you price and sell products and services, whether through direct sales, retail operations, or subscription-based models. You can manage sales channels, define pricing strategies, create sales contracts, and invoice spot and recurring orders. When set up correctly, these modules streamline managing revenue and servicing clients correctly, improving both cashflow and customer experience.
All companies need at least a basic setup of the sales module, while the retail module (which connects to other D365 Commerce features) is designed for businesses selling through physical stores or e-commerce platforms. Subscription billing is relevant if you offer recurring services, while rebate management is essential if you deal with deductions and royalties.
A weak setup of the sales side in your ERP system has all sort of consequences, from discrepancies with other systems like your CRM, to inconsistent pricing, a poor customer experience, eroded profit margins, cashflow issues, or even a complete halt due to inability to invoice orders.
Projects and assets servicing
This functional group includes the following module:
- Project management and accounting (PMA)
- Service management
- Asset management
This is a seemingly odd mix, grouping together project-based work with features to run maintenance contracts service assets. PMA is effectively a mini-ERP, allowing project-driven businesses in consulting, construction, engineering, and professional services to manage contracts, plan resources and stock allocation, track the work, and report on project financials.
Businesses that offer after-sales care after a project will benefit from service management, while organisations that deal with high-value equipment and their maintenance can use the asset management features. If your operations include on-site client visits to provide support, there is a strong case here to integrate with D365 Field Service.
However, these modules require other areas of D365 F&O to be set up correctly first. And without a proper setup of the PMA and its connected modules, you may struggle with incorrect cost allocation, budget overrun, inefficient resource utilisation, poor on-site servicing, and delayed invoicing. These will ultimately lower the quality of the delivery and impact business continuity and profitability.
Human resources
This functional group includes the following modules:
- Human resources
- Leave and attendance
- Expense management
- Payroll
They help you manage your workforce in the system. You can handle employee records, payroll, leave policies, time tracking, and expenses. When configured correctly, they streamline HR processes, ensure compliance with labour laws, and improve visibility into workforce costs.
Every company needs some level of HR management, but if you have a large workforce, complex compensation structures, hierarchy-based approvals, or strict labour regulations, these features will be more relevant for you. Organisations who allow their staff to spend company money or reimburse their business expenses will also need expense management features.
A poorly structured HR setup may cause compliance risks, disruption to approval processes elsewhere in the company, and potentially cause errors in payroll and manufacturing calculations.
General and miscellanea
This functional group includes the following modules:
- Common
- Organisation administration
- System management
- Audit workbench
- Questionnaires
They define your company’s structure and ensure security, governance, and system-wide configurations in D365 F&O. You can manage users, set up workflows, enforce audit controls, and configure business policies. When properly implemented, they provide stability, compliance, and a seamless user experience.
All companies requires basic legal entity setup and some system setup, especially when it comes to security roles configuration. You may need to deep dive into them if you operate across multiple legal entities, require strict audit trails, rely heavily on bulk data import/export, or utilise features like electronic reporting. The common module is mostly for end users to personalise and enhance their experience while using the system.
Bad system setup can lead to security risks with unsuitable user access, poor system performance with redundant batch jobs, and inconsistent data handling. Similarly, bad organisational setup may affect number sequences and workflow efficiency.
Conclusion
D365 F&O is constantly evolving. With over 40 modules (and more on the way), keeping track of what they do, how they fit together, and which ones your business actually needs is no trivial task.
This article gave you a high-level breakdown, but there’s more to the picture. Some modules are essential for every company, while others only apply in specific industries or scenarios. Knowing the difference and setting them up correctly will save you from costly mistakes.
If you want a complete, in-depth guide that explains every module individually — what it does, when to use it, and key business decisions to make it — register now for early access to our upcoming D365 F&O Modules Navigator. Or, just book a call with us and let our expertise guide you.
D365 F&O Modules Navigator
Fill in the form to register your interest
