What to Expect with the 2025 Wave 2 Release for Dynamics 365 Finance and Supply Chain Management
The 2025 Wave 2 release plan is now available, featuring numerous new features, functionalities, and enhancements that will enable Dynamics 365 Finance, Supply Chain Management, and Project Operations users to work smarter and more efficiently.
Let’s dive into what you can expect as part of the 2025 Wave 2 release plan.
Note: Not all of these features are currently available. Some will be fully released by October 2025 and others will go into preview mode throughout the rest of the year. Check in with the official Wave 2 documentation for a timeline of when features will be released.
Dynamics 365 Finance
In this release, Microsoft is putting weight behind global-scale finance and agentic operations, focusing on enhancing capabilities and more efficient financial processes. Here are some key features:
Manage assets using the Acquire to Dispose data model
The Acquire to Dispose (A2D) data model in business performance analytics delivers powerful enhancements to asset management by streamlining lifecycle processes—from acquisition through disposal. It ensures accurate tracking and valuation while offering comprehensive financial visibility that helps reduce errors, save time, and identify cost-saving opportunities.
This granular insight empowers businesses to detect usage patterns, refine investment strategies, and improve operational efficiency. Additionally, it enhances financial compliance through improved depreciation calculations and tax management.
Empower users with generative help and guidance with Business Performance Analytics
Copilot enhances the business value of Business Performance Analytics by providing in-app assistance through a conversational interface, allowing users to get answers without leaving the platform. This seamless support saves time and helps reduce reliance on IT teams, streamlining troubleshooting and user education. Whether it's learning how to use the application or discovering new features, Copilot empowers users to navigate Business Performance Analytics more efficiently.
By scanning Microsoft Learn documentation in response to user prompts, Copilot delivers accurate summaries and insights within the application itself. This benefits both new and seasoned users by promoting self-sufficiency and accelerating issue resolution.
Refresh data more frequently with BPA
Increasing data refresh frequency in Business Performance Analytics (BPA) significantly boosts its value by delivering more up-to-date, accurate insights. This timeliness accelerates month-end close processes and improves reporting accuracy, enabling faster, more confident decision-making.
This feature allows for two daily data refreshes, with future updates set to increase this frequency. Leveraging inremental processing, only new or modified data is updated—reducing processing time and enhancing operational efficiency. Stakeholders gain access to real-time analytics, empowering faster responses and sharper strategic planning.
Copilot Approval Workflow in BPA
Planners need smoother, more intelligent workflow management for budgeting and approvals, and this integration delivers just that. By automating tasks and offering an agentic experience, it eliminates bottlenecks and helps your team stay focused on strategic decisions.
What the Integration Agent Workflow Offers:
- Simplifies workflow creation with guided, step-by-step assistance.
- Automates repetitive manual tasks, improving efficiency.
- Offers smart recommendations and best practices for optimal setup.
- Aligns workflows with organizational goals for better outcomes.
- Provides real-time monitoring with notifications and reminders to prevent delays.
Import Remittance Advice
Automating the import of remittance advice transforms the accounts receivable process, enabling businesses to quickly reconcile customer payments with minimal effort. By removing manual steps and streamlining data consumption, organizations save time, reduce errors, and improve both cash flow visibility and financial reporting accuracy.
This new feature includes:
- Automated customer payment and remittance advice import, scanning, and mapping using AI processing in the integrated Power Platform environment.
- Matching remittance advice data with data in Dynamics 365 Finance.
- Seamless integration of remittance advice details into Dynamics 365 Finance customer payment journals and the settlement process.
- Reports that provide insights into payment and settlement statuses, outstanding invoices, and overall cash flow.
Revalue AP and AR Foreign Currency Across Legal Entities
Managing foreign currency revaluations just got easier. With enhanced capabilities for Accounts Payable (AP) and Accounts Receivable (AR), finance teams can now perform centralized revaluation operations across multiple legal entities—saving time, improving consistency, and boosting operational efficiency.
These updates streamline the foreign currency revaluation process:
- Run revaluations across several legal entities or entire company hierarchies from one centralized location.
- Avoid repetitive processing by eliminating the need to re-run revaluations separately for each entity.
- Empower your organization with faster turnaround, reduced manual effort, and better alignment across teams.
Create new ledger account-only journals with the new journal framework
Financial journals are foundational to day-to-day operations and period-end activities, but inefficiencies from legacy designs—like slow performance, lack of multicompany support, and limited reversals—have created bottlenecks for users. This update targets core frustrations by delivering faster journal handling, smarter defaults, and greater visibility into voucher-level errors and actions.
There are several common challenges this new tool addresses, such as poor performance for large journal operations, lack of multicompany journal support, poor error visibility at the voucher level, and more.
Key enhancements to help you address these issues include:
- Phase 1 supports ledger account adjustments
- Improved performance for end-to-end journal tasks
- Single journal for multi-entity entry and import (based on user access)
- Voucher-level validation, approval, and posting
- New 'Voucher type' field for transaction lifecycle clarity
- New entities available via OData and DMF
Additionally, Microsoft says in its 2025 wave 2 release notes that further enhancements to streamline your financial journals processes are on the way:
- Support for broader account types (vendor, customer, asset, etc.)
- New versions of other journals using the new framework
- Improved reversal process across voucher types
- Refinements to periodic and accrual functions
- Fixes for known data model issues (e.g., One voucher)
- Potential introduction of new journals (e.g., bank transfer journal)
Dynamics 365 Supply Chain Management
For Supply Chain Management, you can expect several key enhancements for demand planning, quality management, supplier relationship building, and warehousing.
Let’s take a look at some of the key features you can expect with Wave 2:
Analyze demand with enhanced generative insights for demand planning
Generative insights in demand planning empower businesses to improve forecast accuracy and make smarter decisions by automatically identifying patterns in sales and inventory data. These patterns—such as seasonality, signal correlations, trends, and ABC XYZ classification—help optimize inventory levels, reduce costs from overstocking or stockouts, and enhance service levels.
In Dynamics 365 Supply Chain Management, generative insights now include two advanced metrics: trends and ABC XYZ classification. Users can analyze both aggregated and detailed values across dimensions like product and location, enabling more precise and actionable planning.
Optimize the placement of on-hand inventory for efficient picking
Dynamics 365 Supply Chain Management now features autonomous demand analysis and intelligent re-slotting, enabling logistics teams to keep inventory aligned with real-time demand. reduces pick times, boosts outbound throughput, and enhances responsiveness to demand shifts and seasonality, resulting in smoother operations, lower costs, and faster, more accurate order fulfillment.
By autonomously analyzing demand changes and reconfiguring workflows, the system ensures inventory is always optimized for peak picking efficiency. These enhancements lead to:
- Reduced operational costs
- Improved order accuracy
- Faster fulfillment cycles
Ultimately, transforming warehouse performance and positioning businesses to meet future demand with agility and precision.
Improve license accuracy with metadata validation
This feature removes inaccuracies from outdated or misaligned metadata, making your licensing reports more transparent and trustworthy. It also helps you avoid unnecessary licensing costs and helps with compliance.
The feature introduces a validation process that lets you reconcile metadata with licensing requirements and reporting, such as:
- Mapping logic for security roles, duties, and privileges that align with the Dynamics 365 Licensing Guide
- Integration with the Power Platform admin center and user security governance (USG) reporting to ensure accuracy.
Improved reporting accuracy, reduced licensing confusion, and better alignment between product usage and entitlements plays a critical role in governance and license optimization.
Enable quality control with sample management
Under the Manufacturing and asset management banner, sample management helps you keep product quality consistent, lower compliance risks, and improve traceability. With this new feature, you can:
- Define a plan for sampling finished goods that you produce with production or batch orders. Instead of tracking samples in inventory, you can now define their lifecycle.
- Define a plan for testing samples by using quality orders to set how often to test the samples. For example, you can set it to test every seventh sample.
- Block the portion of produced goods that your team did not test. When a quality order passes, you automatically release the portion of produced goods.
- Keep track of samples throughout their lifecycle, from creation to disposal.
Enhance your demand forecasting with extra data inputs
Proactive demand planning is massively important, and new enhancements to this feature in Wave 2 give you the ability to create forecasts with both historical sales data and the effect of future events and promotions.
The app now provides you with capabilities that enhance demand forecast accuracy to better optimize your supply chain and improve financial outcomes.
New capabilities include:
- Support for multiple signals: Define input signals, such as inflation or weather-related measures, and apply the XGBoost forecast algorithm, which assesses correlation and analyzes each signal's impact against historical sales data.
- Event and promotion planning: You can define event and promotion types and their related events and promotions. Each event type is a signal, and the system assesses the correlation and impact of each signal
- Additional Forecast Algorithms: You can now evaluate new forecast algorithms for specific scenarios.
Implement lean manufacturing, catch weight, and step consumption
The Planning Optimization engine streamlines supply planning with speed and accuracy, helping businesses reduce costs and improve service levels. It now makes your supply chain more agile by supporting:
- Lean manufacturing: A production philosophy that maximizes value for customers while minimizing waste. It comes from the Toyota production system and focuses on continuous improvement and operational efficiency.
- Catch weight: A pricing and measurement system used mainly in the food industry. Products are sold based on their actual weight instead of a predetermined fixed weight. This system is important for items that naturally vary in size and weight, such as meat, seafood, and fresh produce.
- Step consumption: Manages material consumption to accommodate non-linear consumption rates that are based on production quantities.
Manage Supplier Relationships with Supplier Engagement
The Supplier Engagement app centralizes supplier relationship management across all legal entities, allowing procurement professionals to monitor performance, schedule appointments, and streamline interactions. A new supplier portal enhances onboarding and collaboration, supporting key processes like RFQs, purchase orders, and invoicing for a more seamless supplier experience.
Built on Microsoft Power Apps and integrated with Dynamics 365 Supply Chain Management and Finance, the app enables management of both strategic and tactical supplier activities. It includes tools for tracking performance, scheduling reviews, and handling unregistered suppliers.
Improve picking efficiency with wrist-mounted scanning devices
Wrist-mounted scanners improve warehouse efficiency and accuracy by offering ergonomic, wearable barcode scanning that reduces strain, errors, and scan time—boosting worker satisfaction and performance, especially in high-turnover or labor-constrained environments.
ProGlove is a company that manufactures wrist-scanners that work with Dynamics 365
The D365 Warehouse Management mobile app now runs natively on many wrist-mounted scanning devices. There are several key benefits:
- Improve accuracy: Reduce picking and packing errors. Some organizations see up to a 27% improvement in picking accuracy when they switch to wrist-mounted scanners.
- Improve productivity: Save three to five seconds per scan. In high-volume environments, this time savings adds up to several hours each day.
- Reduce physical strain and fatigue: Improve worker satisfaction and reduce injury risk.
- Rapid deployment: Quickly roll out the mobile app to many wrist-mounted scanning devices
Capture Worker IDs for warehouse packing events
Having the ability to capture worker IDs during key container handling steps helps you effectively trace packing activities. This helps you ensure accountability, improves operational transparency, and helps with audit readiness.
For example, if a worker adds an item to a container or closes a container, the system can capture their ID so you can know who performed what task and when they performed it. Managers gain visibility into packing workflows to track performance, find training opportunities, and keep up with external and internal standards.
Dynamics 365 Project Operations
For Project Operations users, you can expect updates to various areas of your business to ensure a strong connection between sales, resourcing, project management, and finance.
Enhanced UI for Approvals
Project managers often lose time navigating the Approvals page in Dynamics 365 Project Operations, making it harder to review time, material, and expense entries efficiently. A simplified user interface improves the approval process, boosts productivity, and helps organizations save money by reducing time spent on administrative tasks.
The updated Approvals UI introduces a calendar-style grid for time approvals, making it easier to view and prioritize records. Approvals are organized into tabs by type, each with a pending count indicator to guide attention. This streamlined, time-phased view retains all previous functionality and becomes available once a feature flag is enabled.
Enable purchase orders and item reservations for stocked items
The Purchase Orders Using Item Requirements feature in Dynamics 365 Project Operations automates procurement for project-tied materials, improving efficiency, cost control, and data consistency through real-time tracking, stock reservation, and integrated three-way matching.
Here are some additional feature details on what you can do with this tool:
- Purchase order creation: Project managers can create purchase orders directly from item requirements. This capability enables procurement of stocked materials that align with project needs.
- Cost recording at receipt: You can record project costs when you receive the product, instead of waiting for vendor invoicing. This capability improves financial accuracy and timeliness.
- Material reservation: The system supports inventory reservation for material usage scenarios. This capability ensures that required stock is allocated and available for project execution.
- Master planning integration: You can integrate with Dynamics 365 ERP master planning to auto-generate planned purchases or transfer orders based on project forecasts.
Enable the Investment project feature
The Investment project feature in Dynamics 365 Project Operations streamlines internal capital initiatives by automating cost tracking, asset capitalization, and financial reporting, ensuring compliance, visibility, and alignment with strategic goals.
You can activate this feature by manually turning on the “Enable investment project for Project Operations integrated with ERP” setting. It helps you with:
- Project classification: Be sure to only use this classification for internal projects. Don’t link investment projects to customer-facing contracts.
- Transaction estimates: The project manager can add estimates and budgets to transaction types, enabling better planning and cost tracking.
- Contract restrictions: The system automatically blocks investment projects from project contracts, helping you keep them for internal use only.
- Financial treatment: The system records all costs as work in progress and gives you two options when you complete the project:
- You can eliminate the project to generate a fixed asset
- You can transfer WIP costs to another ledger account
Expense Mobile App phase 4 updates
Recent enhancements to the Expense Management mobile app address key usability and compliance concerns, improving efficiency, accuracy, and the overall mobile expense experience for users on the go.
Driven by customer feedback, this update streamlines mobile expense entry by allowing users to add financial dimensions directly within the app, making expense reporting more intuitive and aligned with financial requirements.
Use the modern architecture for existing legal entities
This feature enables customers to adopt the modern architecture for resource and non-stock scenarios on Dataverse within existing legal entities, enhancing project planning and resource management without requiring reimplementation. Upgrades to this feature include:
- You don’t need to close existing projects created in the Project Management and Accounting module before you enable resource/non-stocked deployment type.
- The system evaluates business processes to make sure it restricts deployment types. For example, you can only create invoices for Dataverse-based projects from Dataverse.
- The system removes access to makes legacy functions read-only when those functions exist in both deployment types.
- This wave enables more transaction types, reports, and processes for stocked projects.
Post project invoice proposals using multithreaded batch tasks
Timely invoicing is critical for maintaining cash flow and meeting billing deadlines. This feature accelerates the posting of invoice proposals, allowing organizations to quickly generate and send final invoices to customers, especially valuable for businesses managing high volumes of transactions.
To support complex projects and large customer bases, the feature introduces performance improvements by splitting the invoice posting process into multiple parallel threads. A new project parameter lets users configure the number of threads, enabling faster processing and reducing bottlenecks during tight billing cycles.
Want to Learn More About the 2025 Release Wave 2?
Talk to the Stoneridge Software team of experts today! We can help you prepare your system and your team for these new features so you can start using them to drive efficiency within your environment.
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