+1 480 485 7373
Microsoft Teams
What carries forward from AX 2012, and what does not
AX 2012 and Dynamics 365 Finance and Supply Chain Management share a lineage, so the data model looks familiar. Legal entities, main accounts, financial dimensions and account structures all still exist. So do posting profiles, released products, sites, warehouses, inventory dimensions and number sequences. That shared model is what makes a data upgrade possible at all, instead of a re-implementation.
The code and the surrounding estate do not carry forward unchanged. Many AX 2012 customizations overlayer standard objects. Dynamics 365 accepts only extensions. So we rewrite each change as an extension, swap it for a newer standard feature, or drop it. Integrations built on AIF services need new designs. So do reports made for the AX 2012 SSRS setup and Enterprise Portal pages.
Microsoft's data upgrade supports AX 2012 releases, with R3 the most common starting point. Customers on AX 2009 or older should check Microsoft's current guidance for their version. Many of them do better with a fresh start that loads data through data entities.
How Microsoft's AX 2012 data upgrade runs
- 1
Code upgrade
We bring the AX 2012 model store into a Dynamics 365 development environment. There we convert overlayered objects to extensions and resolve conflicts.
- 2
Prepare the AX 2012 database
Purge old data and close what you can. Then fix the issues Microsoft's pre-upgrade checks raise, which shortens every later run.
- 3
Replicate and upgrade in a sandbox
Microsoft's data upgrade tooling copies the AX 2012 database into a Dynamics 365 sandbox and runs the upgrade scripts. Teams once ran environments in Lifecycle Services (LCS). Microsoft is moving that work into the Power Platform admin center. So the portal you use depends on Microsoft's guidance when you start.
- 4
Test each run
We check every run of the Dynamics AX to Dynamics 365 Finance upgrade. First come balances, open transactions and stock on hand, then process tests by key users.
- 5
Mock cutover, then the real one
A full rehearsal proves the downtime window. Then the production upgrade runs against the final AX 2012 database with posting locked.
- 6
First close on Dynamics 365
Close the first period in Dynamics 365 while the project team is still in place to fix anything the close exposes.
AX 2012 components and their Dynamics 365 counterparts
Finance and SCM, or re-platform to Business Central?
Dynamics 365 Finance and SCM
The right destination when AX runs complex, multi-entity, multi-country operations and the full history and open transactions matter.
- ✓Many legal entities, currencies and statutory requirements
- ✓Advanced warehousing, production or project operations
- ✓An internal team sized for an enterprise platform
Business Central
Often the better fit for a smaller AX user. Think fewer entities, simpler processes, a thin IT team, and a system a controller can run. It is a new implementation, since Microsoft's migration tools do not cover AX to Business Central.
- ✓Master data, open items and balances migrated; history summarized
- ✓We weigh customizations against standard features and AppSource apps
- ✓A simpler platform to license, change and run
Decisions to settle before the first upgrade run
- ✓Which AX 2012 customizations the business still uses, judged from usage data rather than memory
- ✓Which ISV solutions have Dynamics 365 versions, and which need a replacement
- ✓How much posted history to keep versus archive and purge before the upgrade
- ✓Which integrations move to data entities, which to business events, and which to middleware
- ✓Which reports we rebuild, which become Power BI, and which we retire
- ✓Whether to upgrade as-is and adopt new features later, or change processes during the upgrade
If Business Central wins: translating the AX data model
On the Business Central route, we translate the AX data model rather than upgrade it. Main accounts become G/L accounts. Financial dimensions map to Business Central dimensions, with the two most used set as global dimensions. Posting profiles collapse into customer, vendor and inventory posting groups plus general business and product posting groups. Released products become items. Inventory dimensions such as site, warehouse, batch and serial become locations, lot numbers and serial numbers.
Balances come across as an opening trial balance per legal entity. Open customer and vendor items load one by one. Stock loads by location and lot, and open orders carry their remaining quantities. We summarize posted history by month for comparisons, and keep or archive the AX database for detail. Each AX legal entity usually becomes a Business Central company. We set up intercompany and consolidation from the start.
AX upgrade questions
Does Microsoft still support AX 2012?
No. Extended support for Dynamics AX 2012 R3 ended in January 2023, so Microsoft no longer ships security or regulatory updates for it. The system keeps running, but tax changes, operating system and SQL Server compatibility, and security exposure become your responsibility. That is the main reason AX customers are moving now.
Can we go from AX 2012 to Dynamics 365 without re-implementing?
Yes, that is what the data upgrade path is for. A Dynamics AX to Dynamics 365 Finance upgrade moves your AX 2012 database, with posted history and open transactions. We rework your code as extensions. It still needs full test cycles and a rehearsed cutover, because business processes and integrations change around the data.
When is Business Central a better choice than Dynamics 365 Finance for an AX customer?
When the business is smaller than the platform it runs on. Picture a handful of legal entities, mostly domestic work, modest customization and a thin IT team. There, Business Central is usually simpler to run and change. If you depend on AX's depth in warehousing, production, projects or multi-country rules, Finance and SCM is the safer home. Our comparison page lays out the dividing lines.
More Dynamics AX to Dynamics 365 Finance upgrade questions
Does the upgrade keep our AX history?
On the Finance and SCM path, yes. The data upgrade carries posted transactions forward, which is its biggest advantage over a re-implementation. Many companies still purge or archive old data first to shorten each run and cut storage. They make that call with finance and their auditors. On the Business Central path, we summarize history and archive the detail.
What happens to our ISV solutions?
Each one needs a Dynamics 365 version or a replacement. Many AX 2012 ISVs released versions for Finance and SCM. Microsoft folded some into standard features, and some vendors stopped theirs. We list every ISV model in your model store early, because a missing ISV product can change the plan more than your own code does.
Talk to us about your project.
Tell us what you run today and what has to change. A senior consultant replies with a written next step.