Determine your Dynamics 365 Project Operations deployment type

​Dynamics 365 Project Operations is an all-in-one solution for project-centric businesses to drive success through enhanced project management. It connects the entire project cycle from sales to financials and unifies operations across the organization. Microsoft offers three deployment types with varying capabilities depending on your unique business needs: 1) lite deployment, 2) resource/non-stocked based scenarios, and 3) stocked-production based scenarios.

How do you know which Project Operations deployment type is right for you? Our Dynamics 365 specialists summarize the history of Project Operations and differences between the three deployments below.

Project Operations launched in late 2020 after Microsoft decided to integrate popular features from its many project management applications into a single solution covering the entire project lifecycle. The new application combines Dynamics 365 Project Service Automation (PSA), Microsoft Project, and the Project Management and Accounting (PMA) module of Dynamics 365 Finance. Project Operations includes all functionalities of PSA, including tracking, managing, and delivering project-based services, plus the project planning and task scheduling modules of Project Planning. Also included in two of the deployment types are the advanced project invoicing, revenue recognition, and accounting capabilities of Dynamics 365 Finance.

The right deployment type can vary based on whether your organization is using any of the aforementioned Microsoft applications or if there is a need for invoicing, revenue recognition, or other financial capabilities directly in Project Operations. Additionally, a key factor is whether your organization has physical inventory or is resource based.

Lite deployment – deal to proforma invoicing: project management for use with an existing, third-party ERP

1. For organizations already using the Dynamics 365 PSA app. These customers will automatically be grandfathered into Project Operations and can migrate over before Microsoft’s support for PSA ends in 2024.
2. For organizations with an existing finance and accounting system and don’t want to replace it, but are seeking a project automation and resource management application.

Resource/non-stocked based scenarios: project management and ERP

1. For organizations already using Dynamics 365 Finance and have implemented the project management and accounting module.
2. For organizations already using Dynamics 365 PSA and considering switching their finance and accounting to Dynamics 365 Finance.
3. For organizations looking for a project automation and ERP solution that works together without any custom integrations.

Stocked/production-based scenarios: project management and ERP, plus inventory and manufacturing management

1. For organizations currently using the project management and accounting module of Dynamics 365 Finance along with Dynamics 365 Supply Chain Management or a similar supply chain solution. These existing customers will automatically be grandfathered into Project Operations. Dynamics 365 Finance (D365 Finance) and Dynamics 365 Supply Chain Management (D365 SCM) were previously known as the Finance and Operations apps.
2. For organizations with products, inventory and warehouse and project-based assembly or manufacturing needs who are looking for a project-based manufacturing solution.

The two most similar deployment types are lite deployment and resource/non-stocked based scenarios, with differences in project financials capabilities. On the other hand, stocked/production-based scenarios deployment is the most unique since it is tailored to organizations with physical inventory and project-based manufacturing.

How much does Project Operations cost? Like all Dynamics 365 applications, pricing is based per user to make it affordable for organizations of all sizes. Plus, pricing is the same across all Project Operations deployment types. For more information on pricing, download this comprehensive guide.

Ready to implement Dynamics 365 Project Operations today? From configuration and data migration to training and user adoption, Rand Group is your implementation and support partner to ensure a smooth implementation of Dynamics 365 Project Operations tailored to your users and processes. Learn more about Dynamics 365 Project Operations Implementation here.

Need advice on which deployment to choose? Our Dynamics 365 specialists will help you select the right Project Operations deployment type for your business’s unique needs. Contact us today.