This spring, as businesses look to grow and adapt, Microsoft continues to enhance Dynamics 365 Finance with powerful new capabilities. Explore what’s new in the Quarterly Capabilities Update: Q1 2025–26.
Features releasing in April to June 2025
| Module | Feature | Description
|
Public Preview | General availability |
| Core Financials | Enable financial tags for purchase order invoicing | When the Enable financial tags for purchase order invoicing feature is enabled, customers can use the financial tag to track the subledger data with purchase order numbers and vendor names instead of using financial dimensions. This helps reduce the performance issue during the analysis phase. | Jun-25 | |
| Core Financials | Make payments in advance with prepayment sales invoice. | The prepayment sales invoice feature streamlines the invoicing process for customers who make prepayments (advance payments). It helps businesses manage their cash flow more effectively by accurately recording and tracking prepayments. Overall, the prepayment sales invoice optimizes financial operations, increases efficiency, reduces risk, and contributes to the overall success of the business. | Feb-25 | Jun-25 |
| Core Financials | Process automation bank foreign currency reconciliation | Ability to schedule bank foreign currency revaluation through process automation in Dynamics 365 Finance ensures accuracy and time efficiency. | Jun-25 | |
| Business Performance | Export Business performance planning cubes and dimensions | This feature streamlines the deployment of planning models by enabling seamless packaging and transfer of Business performance planning cubes, dimensions, and frameworks across environments. It eliminates the need to rebuild models from scratch, significantly reducing implementation time and effort. By providing a flexible and extensible foundation, businesses can accelerate decision-making, optimize planning processes, and adapt frameworks to industry-specific needs. Partners can create reusable baseline models, enhancing collaboration and ensuring rapid, tailored deployments. This results in increased efficiency, reduced costs, and faster time-to-value for planning and budgeting solutions. | May-25 | |
| Business Performance | Empower users with generative help and guidance | With the help of Copilot, users can get assistance without leaving Business performance analytics. Users can ask Copilot questions about the application and receive responses without needing to manually find an answer themselves, saving time for our users and potentially their company’s IT support division as well | Apr-25 | |
| Globalization studio | Access electronic invoicing phased rollout in Belgium | Global and local customers who deploy Microsoft Dynamics 365 Finance in Belgium can access electronic invoicing functionality that meets Belgium requirements. | Apr-25 | |
| Globalization studio | Extend support for multiple tax registration numbers in tax supporting | A multinational corporation that operates across geographic locations can configure one legal entity in Dynamics 365 Finance with addresses and related tax registration numbers in different countries/regions. They can provide some tax regulatory reports (VAT Declaration, EU Sales List, Intrastat) directly from this legal entity based on tax transactions posted per specific tax registration number. | Apr-25 | |
| Globalization studio | Use electronic invoicing in Guatemala | This update includes the Guatemalan electronic invoicing feature of the last-mile integration with the Guatemalan tax authorities via the Certification Authorization Provider Edicom. It covers the required end-to-end process of the outbound flow of e-invoices submission. | May-25 | |
| Globalization studio | Use electronic invoicing in Paraguay | This update includes the Paraguayan electronic invoicing feature of the last-mile integration with the Paraguayan tax authorities via the Certification Authorization Provider Edicom. It covers the required end-to-end process of the outbound flow of e-invoices submission. | May-25 | |
| Globalization studio | Use electronic invoicing in Uruguay | This update includes the Uruguayan electronic invoicing feature of the last-mile integration with the Uruguayan tax authorities via the Certification Authorization Provider Edicom. It covers the required end-to-end process of the outbound flow of e-invoices submission. | May-25 | |
| Globalization studio | Use security enhancements in UK MTD VAT integration | This feature strengthens the security of direct VAT return submissions for companies registered for UK VAT under Making Tax Digital (MTD). By upgrading key submission processes to more secure executable classes, businesses reduce the risk of data breaches or unauthorized access during VAT filings, ensuring safer compliance with UK tax regulations. | Apr-25 | |
| Globalization studio | Use updated Australian Payment Times Reporting Scheme | Stay ahead of regulatory changes with our update of the Payment Times Reporting Scheme (PTRS) in Australia to the new rules. For reporting periods starting on or after July 1, 2024, this update ensures compliance with the latest Payment Times Reporting Scheme (PTRS) requirements. | Jun-25 | |
| Copilot and AI innovation | Keep conversations going with Copilot follow-up questions | Finance and operations apps already offer innovative in-product, AI-based, contextual help with Copilot. Now, you can easily keep the conversation going with a single click by selecting among a short list of likely follow-up questions that are automatically generated by Copilot based on your previous queries. Just select a question to receive related information without needing to formulate a new query, which makes the process of learning how to use the application more efficient and intuitive. | Jun-25 | |
| Inventory and Logistics | Enhance vendor rebate management | Vendor rebate management clerks can now resubmit and edit vendor rebate deals. Source transaction vendors can now reconcile their company output (such as accounts payable invoices), which adds flexibility. | Jan-25 | Apr-25 |
| Procurement | Integrate contract lifecycle management in source to pay | With flexible integration to external contract lifecycle management systems, businesses can efficiently manage the creation and management of contract lifecycles with suppliers in their source-to-pay process. Purchase agreements stipulated in the contracts integrate seamlessly with operations such as applying the correct terms and pricing. | Oct-24 | Apr-25 |
Features in latest service update 10.0.44:
- Preview of release: April 2025
- General availability of release (self-update): June 2025
- General availability of release (auto-update): July 2025
- Build Number: 10.0.2263
| Module or feature area | Feature name | More information | Enabled by |
| Fixed assets | Post the inventory close adjustment to the fixed assets subledger after purchase order invoice adjustment | This feature automates the adjustment process for fixed assets that are acquired through purchase order invoices that include inventory items. When an invoice is adjusted, the inventory closing recalculation process automatically generates and posts corresponding entries to the fixed assets subledger. Therefore, this feature helps ensure consistency, reduce manual effort, and maintain accurate financial records. | Feature management |
| Fixed assets | Budget depreciation proposal running in the background across multiple legal entities | This feature introduces a new menu item, Create budget depreciation proposal, that uses background batch job processing to run depreciation budgets across multiple legal entities. Users no longer have to manually run the budget for each company. Therefore, this feature helps save time, reduce manual effort, and enhance consistency throughout the organization. | Default |
| Fixed assets | Add financial tags on inventory to fixed asset journal | This feature adds financial tags to the line details in the inventory to fixed asset journal, so that users can assign financial tags before posting. This feature helps improve asset categorization and traceability, and therefore leads to more accurate financial management and streamlined reporting. | Default |
| Asset leasing | Ability to assign sales tax group and item tax group on the asset lease | This feature introduces Sales tax group and Item sales tax group fields in the lease/lease book. When a lease book is marked as Pay to vendor, these defined values are automatically copied to the vendor invoice journal that is created from the payment schedule. If a vendor or main account already specifies a sales tax group or item sales tax group, the system uses those values by default. Otherwise, it applies the default values that are defined on the lease. | Feature management |
| Asset leasing | Add cancel option to the lease termination | The Lease termination proposal cancellation feature adds a Cancel option, so that users can revoke termination proposals. When this option is selected, the Proposal status value is updated to Canceled, and the lease book is reset. Therefore, this feature helps enhance flexibility and ensure accurate, controlled lease management. | Feature management |
| General ledger | Year-end close job status verification | To ensure that a year-end close job is really running and isn’t stuck in an error state from a batch crash or restart, a batch job is added to the Ledger fiscal close service history table. Therefore, you can confirm whether the batch job is active and safely reset its status as required. | Feature management |
| General ledger | Review missing settlement accounts | The Review missing settlement accounts page shows any ledger accounts that have ledger settlements but that are missing from the Ledger settlement tab in General ledger parameters. Learn more in Ledger settlements. | Default |
| Cash and bank management | Bank transactions page performance improvement | This feature introduces performance enhancements on the Bank transactions page. Users can now optionally set default filters, so that the page shows only transactions that meet defined criteria. When this feature is enabled, users can access the bank documents page directly from the Bank account page. | Feature management |
| Cash and bank management | Enable process automation for bank foreign currency revaluation |
When this feature is enabled, users can use process automation to run bank foreign currency revaluation. |
Feature management |
| Cash and bank management | Accounts payable enable settle with priority | This feature enhances the Accounts payable module by introducing settlement priority. Users can assign a predetermined order to transactions. That order can then be applied during both manual settlement and automatic settlement. | Feature management |
| Credit and collections | Collection process automation to include project invoices and general journals | Collection process automation previously didn’t include project invoices and general journals. When this feature is enabled, users can include those documents. | Feature management |
| Credit and collections | Include general journals in the interest calculation process | When users create interest notes, they can include general journals, so that interest is calculated on them. | Feature management |
| Accounts receivable | Prepayment customer invoice feature | When this feature is enabled, users can create and manage invoices for customer prepayments. This feature streamlines the invoicing process and helps enhance customer relationships by offering flexible payment options. | Feature management |
| Subscription billing | Performance issue creating billing detail lines for daily usage billing schedule line | This feature helps improve performance by replacing the line-based logic with set-based processing for Subscription billing consumption entry. In addition, this feature updates pricing control logic to help ensure consistency and prevent pricing discrepancies. | Feature management |
| Subscription billing | Performance improvement for consumption quantity update | Termination adjustments are now calculated by using the exchange rate on the termination date. In addition, currency fluctuation differences are posted to the Profit and loss account, and a clear audit trail is maintained in the deferral schedule. | Feature management |
| Accounts receivable | Clean up Free text invoice temp tables used in Free text invoice report. | Data update automatically schedules maintenance jobs to clean up temporary data for free text and sales invoice reports. Therefore, users don’t have to manually schedule those jobs. | Default |
There are feature enhancements and bug fixes in this release. Visit the Microsoft website for more information.
Looking for consulting support related to the new features mentioned in Quarterly Capabilities Update: Q1 2025-26 or more information about implementing Microsoft Dynamics 365 Finance? Contact OnActuate experts for a 1:1 consultation today.
