Context: Dynamics 365 Project Operations integrated with Finance via Dual Write. Organisation standard mandates no customisations (configuration only).
1) Executive Summary
Dynamics 365 positions itself as a project-centric solution, designed to support organisations where projects drive revenue, cost control, and resource utilisation. However, the current architecture lacks an out-of-the-box mechanism for managing in-life amendments to confirmed contracts and projects. This gap forces organisations into workarounds that compromise governance and operational efficiency, even though financial integrity remains a core principle of the platform.
2) Current Gap Analysis
Confirmed Project Contracts become read-only after confirmation, preventing any amendments to scope, timelines, or pricing. While this design protects financial integrity, it fails to accommodate standard business practices such as contract amendments and change control. The absence of a Dataverse-based Change Order entity and the inability to supersede contracts without creating new records introduces fragmentation and reporting complexity.
Key limitations include:
• No ability to amend confirmed contracts without leaving them in Draft (which destabilises baselines).
• Invoice schedules tied to original Expected Delivery Date, blocking billing flexibility for extended timelines.
• Budget revisions provide financial snapshots but do not extend operational timelines or invoice schedules.
• Closing contracts as Lost reverses unbilled actuals and closes projects, making it unsuitable for amendments.
3) Impact on Project-Centric Organisations
Project-centric organisations rely on accurate baselines, auditable change control, and financial integrity. The inability to manage amendments within the same contract and project disrupts these principles. Workarounds such as creating new contracts and projects introduce fragmentation, complicate reporting, and increase operational overhead. This gap undermines Dynamics 365’s positioning as a comprehensive project-centric ERP solution.
4) Comparison with Standard Methodologies
Industry standards such as PMI and PRINCE2 emphasise structured change control processes that allow amendments to existing baselines while maintaining audit trails. Contract management best practices include formal amendments linked to the original agreement, ensuring continuity and compliance. Dynamics 365’s current approach—forcing new records for changes—deviates from these methodologies and creates governance risks.
5) Recommendations for Microsoft
To align Dynamics 365 with project-centric best practices while maintaining financial integrity, we recommend:
• Introduce an out-of-the-box Change Order entity in Dataverse, linked to Project Contracts and Projects.
• Enable controlled amendments to confirmed contracts, with audit logging and approval workflows.
• Allow extension of invoice schedules and Expected Delivery Dates without breaking baselines.
• Provide configuration options for superseding contracts while preserving historical data and financial postings.
• Ensure Dual Write mappings fully support amendment scenarios across operational and financial layers.
6) Conclusion
Dynamics 365 must evolve to support in-life amendments natively, as this is a fundamental requirement for project-centric organisations. By introducing structured amendment capabilities, Microsoft can strengthen governance, maintain financial integrity, and deliver on the promise of a truly project-centric ERP solution.