Microsoft Dynamics 365 Licensing Guide October 2020

This blog post will allow you to understand and highlight changes that derive from the October 2020 Microsoft Dynamics 365 Licensing Guide. 

Picture of Morten Loegstrup

Morten Loegstrup

Head of Culture and Brand

Microsoft tends to alter their pricing model, constantly creating new Dynamics 365 products, splitting existing Dynamics products into sub products, and/or removing legacy products that now have been renamed, merged or simple discontinued/deprecated. 

This blog post will cover the following topics:

New Offer- Dynamics 365 Project Operations

The Microsoft Dynamics 365 Licensing Guide from October 2020 announced the launch of Dynamics 365 Project Operations.


In February 2020, Microsoft’s product development team announced Microsoft Dynamics 365 Project Operation as an aggregated Project Application, bringing capabilities from Microsoft’s existing Dynamics 365 Project Service Automation (now being discontinued), Microsoft Project for the web, and project management accounting within Dynamics 365 Finance together, into a seamlessly integrated offering.[1]


With Dynamics 365 Project Operation, you can connect your teams from initial quote to project accounting within a single application to win more deals, accelerate delivery, empower employees, and maximize profitability. Dynamics 365 Project Operation will be a standalone product just like the rest of the Dynamics 365 applications suite.


The table below shows the Dynamics 365 Project Operations application pricing, and the removal of Project Management, Accounting and Expense Management.

Dynamics 365 Project Operations Pricing & Licensing

From the above Dynamics 365 SKU placemat you can see that Dynamics 365 Project Operation requires a 20-seat minimum, like Dynamics 365 Finance and Dynamics 365 Supply Chain Management for CSP customers. Fortunately, the base SKU to Finance and Supply Chain management is $60.00 lower in comparison to Dynamics 365 Project Operation which costs $120 per user/month with a $2400 minimum. With that investment you get to:

  • Customize resource-based costing and pricing to accommodate customers’ needs
  • Leverage deal structures tailored for project-based organizations
  • Shorten the deal cycle with flexible pricing and more accurate quotes
  • Get comprehensive pipeline management and a unified sales dashboard
  • Drive success through enhanced project management capabilities
  • Track your projects efficiently
  • Foster better teamwork with Microsoft Teams
  • Optimize resource scheduling and assignments
  • Maximize your resource utilization
  • Align the right people with the right skillsets to the right projects
  • Anticipate resourcing needs with intelligent scheduling
  • Simplify time tracking and expense management
  • Accelerate productivity by submitting time and expenses on the go
  • Ensure accurate reporting and approvals
  • Recognize revenue accurately and on time
  • Improve cash flow by invoicing customers quickly and more precisely
  • Manage your project accounting with higher accuracy
  • Expand to a service-centric enterprise resource planning (ERP) system

Dynamics 365 Project Operation SKU is $30 per user/month like the rest of the “ERP” SKU’s.


NOTE: Project Management & Accounting module and the Expense Management module will be removed from the Dynamics 365 Finance SKU and into the new Dynamics 365 Project Operations SKU.


Customers that purchased Dynamics 365 Finance prior to October 1st, 2020 can use the transition plan below.

For the latest information around Dynamics 365 Project Operations, check out Microsoft’s product page here.

What's New in the Dynamics October 2020 Licensing Guide?

The table below provides an exact overview of the changes made in the October 2020 Dynamics 365 licensing guide.

What's New in the Dynamics October 2020 Licensing Guide?


In the Dynamics 365 licensing guide from October 2020, you will not see changes to the price outside of the New Dynamics 365 project Operation and to the discontinued Project Service Automation. For a complete understanding of pricing and licensing regarding the rest of the Dynamics 365 application suite I recommend reading the following blog post “Guide to Dynamics 365 Pricing and Licensing”.

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