Dynamics AX 2012 to Dynamics 365 upgrade process flow
Editable Dynamics AX 2012 to Dynamics 365 Finance and SCM upgrade process flow: Lifecycle Services analysis, the upgrade or reimplement decision, code to extensions, data upgrade, UAT and go-live.
What the dynamics AX 2012 to dynamics 365 upgrade process flow process is
Dynamics AX 2012 R3 has been out of extended support since January 2023, and companies still running it carry growing security and compliance risk. The way forward is Dynamics 365 Finance and Supply Chain Management, and the first decision is how to get there: upgrade the existing code and data, or reimplement on the D365 standard and bring across only the data you need.
An upgrade keeps history and familiar processes, but every overlayered customization has to become an extension, and the data upgrade has to run cleanly. A reimplementation is a chance to drop years of customization, starting from Microsoft's business process catalog. Both paths meet again at testing and cutover.
Use the template to brief leadership on the options, plan the project, and track progress. Rename the lanes to your team and partner, delete the path you rule out, and add your own milestones.
What this flowchart covers
In this template
- Inventory of AX 2012 customizations, ISV solutions and reports, and code upgrade analysis in Lifecycle Services
- The decision to upgrade code and data or to reimplement on the D365 standard
- Moving overlayered code to extensions and running the data upgrade in a sandbox, with a fix-and-rerun loop
- Mapping processes to the Dynamics 365 business process catalog and importing opening data for a reimplementation
- End-to-end testing with key users, UAT sign-off and production cutover
When to use this template
- You still run Dynamics AX 2012 and need to plan the move to Dynamics 365
- Leadership needs to choose between a technical upgrade and a reimplementation
- You are a partner scoping an AX 2012 upgrade for a customer
- Key users need to understand how much of their process will change
How it works
Record the inventory
Note the number of customizations, ISV solutions and reports in the first step, and which are still used.
Write the decision criteria
Put the reasons for upgrading or reimplementing on the decision, such as amount of customization, data history needs and appetite for process change.
Remove the path you ruled out
Delete the branch you are not taking so the flow becomes your project plan.
Add test cycles
Split testing into the cycles you will run, with exit criteria for each.
Approve and track
Send the flow to the project sponsor for approval and update it as phases complete; the history shows what changed and when.
Frequently asked questions
Is Dynamics AX 2012 still supported?
No. Mainstream support for Dynamics AX 2012 R3 ended in October 2021 and extended support ended in January 2023. Microsoft no longer provides security updates or fixes, so companies still running it carry growing risk.
Can I upgrade AX 2012 to Dynamics 365 directly?
Yes. Microsoft supports upgrading AX 2012 R3 code and data to Dynamics 365 Finance and Supply Chain Management. Code is analysed and upgraded with Lifecycle Services tooling, overlayering has to be replaced with extensions, and the database is upgraded in a sandbox before production.
Should we upgrade or reimplement?
Upgrade when the business processes still fit and you need the transaction history. Reimplement when the system is heavily customized, processes have changed, or you want to adopt standard D365 processes. Many companies reimplement and migrate only open items and a limited amount of history.
Where this process fits
In most operations this process hands off to ERP cutover process flow (rehearsal to hypercare).
Comes after
- ERP cutover process flow (rehearsal to hypercare) — Editable ERP cutover process flow for SAP, Oracle, Dynamics 365 or NetSuite go-lives: mock cutover, legacy freeze, data load, reconciliation sign-off, go/no-go decision, rollback and hypercare exit.