Finance and Operations upgrade from AX 2012

August 28, 2022
10 Min to read
Dharmendra Panwar

Do you know that you can benefit from Customer Relationship Management (CRM) and Enterprise Resource Planning (ERP) services on a single platform?

So, if you are still using the old version of Microsoft Dynamics, it is time to upgrade AX 2012 to D365.

Microsoft Dynamics 365 is a modular software-as-a-service (SaaS) platform built to revamp and enhance employees, customers, and business activities.

It is a perfect combination of CRM and ERP capabilities.

Microsoft Dynamics 365 eliminates the need for separate, siloed sales and marketing processes. It provides automated, integrated, and intelligent sales and marketing tools that connect, prioritise, and convert leads into paying clients.

Moreover, it’s built on Microsoft Azure, which provides a secure platform as well as a diverse set of services. It’s also directly linked with Microsoft 365’s productivity apps, allowing you to manage people and services in one place.

Why should you upgrade to Dynamics 365?


The D365 platform has the potential to save the company a lot of money. This is due to Microsoft’s own efforts to improve the platform and its apps, hence eliminating the need for on-premises servers.

Microsoft, not the organisation, is responsible for maintaining the ERP system and sending out automated upgrades.

Moreover, being a cost-effective platform, it is an ideal CRM for the manufacturing industry.

Robust security

The cloud-based infrastructure of Microsoft Dynamics 365 offers built-in security features. This includes elements such as application role-based verification and other identity management tools that significantly limit corporate privacy threats.

It is compatible with every device

Microsoft Dynamics 365 is compatible with any device, so it is highly beneficial to upgrade AX 2012 to D365. Staff will be able to access all programs effortlessly regardless of the browser or software that a company utilises. It’s considerably easier to use programs now that only one sign-on is required.

How to upgrade AX 2012 to D365?


First, sign up for a preview subscription to begin this phase. Then sign up for an LCS trial.

Microsoft Dynamics Lifecycle Services (LCS) is a collaboration site based on Microsoft Azure that increases the predictability and quality of project delivery.

After signing up for an LCS project, create a new project and select Upgrade Dynamics AX 2012 to Dynamics 365 as the project methodology.

Run the upgrade analyser tool

It operates against the AX 2012 environment and analyses the tasks you will have to do. In order to submit the data required for the upgrading process, you’ll also need a pre-upgrade checklist installed in your Dynamics AX 2012 system.

  • Data cleansing assists in identifying data that can be eliminated without affecting functioning. You can save money on subscriptions and time on the update go-live process by lowering the size.
  • SQL configuration process studies and suggests optimisation to make sure that SQL functions optimally. It also minimises the time required for the go-live upgrade procedure.
  • Deprecated features refer to the features you presently use but are not available in Dynamics 365. As a result, the procedure aids in the early detection of functional gaps.
Run code upgrade estimation tool

This process carries your code from AX 2012, translates it to the new form, and alerts you to any disputes that need to be resolved later by a developer. This stage is the foundation for calculating the cost of your code upgrade.

Utilise demo environment

They are the default environments that help estimate new features. It also allows you to conduct a fit gap analysis of the standard techniques used in AX 2012 but not available in D365.

These environments can be either deployed in Azure or downloaded as VMs that can be run on your hardware.

Create a project plan

This methodology includes a template for a project plan. The outcome from the Analyse phase’s preceding steps is utilised to fill the project plan for the upgrading project.

All testing specifics, including data upgrade testing, cutover testing, information about the different resource assignments for those activities, and functional test pass iterations, will be included in the project plan.


Sign up for the LCS implementation project

The public preview project utilised for the Analyse phase will be discarded at this point. You’ll need to register for a new LCS project called an Implementation project now.

You will receive instructions on how to sign up for a new LCS project as you buy a Dynamics 365 membership.

Identify the project as AX 2012 and perform the preparation task

You’ll be directed via the Project Onboarding wizard after signing in to your LCS implementation project.

The Legacy System field in the Project Scope portion of the Project Onboarding wizard is used to specify the project as an AX 2012 upgrade.

Microsoft Dynamics AX system and database administrators shall complete the tasks identified by the upgrade analyzer tool and detailed in your upgrade project plan.

Upgrade the code

Complete the tasks scheduled during the Analyse phase’s code upgrade estimation step. These tasks must be completed by your developers.

Changes to the code in AX 2012 should be locked from now on.

Develop new code

In this step, finish the assignments from the fit gap analysis in the ‘utilise demo environment’ of analyse phase.

Data upgrade

The initial update will be conducted in a development environment so that any difficulties can be immediately identified and debugged. After that, the upgrade will be performed in a sandbox environment where functional teams and business users can test processes.


Cutover testing and cutover plan

This is the phase when AX 2012 will be shut off and switched to D365. It ensures a smooth experience while going live.

Functional test pass

This will be an extended retest of business processes.

Pre-go live checklist

This helps address errors during the final go-live process.

Go live

After a successful upgrade testing and test cut over, you can upgrade the production environment and go live.


Microsoft Dynamics 365 offers numerous advantages and streamlines business processes. So, it is high time to upgrade Dynamics Ax 2012 to Dynamics 365.

Moreover, a power platform partner can multiply the benefits of D365 by integrating it with the power platform to enhance business activities and productivity.

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