Let’s take a look at the breakdown of updates and releases you can expect throughout the year. Major releases or feature rollouts happen from April through September (Release Wave 1) and October through March (Release Wave 2). During each wave, you can also expect Proactive Quality Updates (PQUs) and smaller, targeted fixes and improvements.
Microsoft requires customers on Dynamics 365 Finance and Operations apps to take a minimum of two service updates per year, but up to seven updates are available annually. Customers can choose which updates to adopt, depending on their internal readiness.
Major wave releases
These biannual releases introduce significant functional enhancements across the Dynamics 365 suite. Common updates include:
- Expanded automation and warehouse management features in Supply Chain Management.
- New AI and analytics capabilities in Sales and Customer Service.
- Financial regulatory updates and reporting enhancements in Finance.
- Cross-app usability improvements and platform-wide refinements.
Proactive Quality Updates (PQU)
Delivered mid-wave, these contain:
- Minor feature enhancements.
- Targeted performance improvements.
- Fixes for non-critical issues identified post-release.
- Updates triggered by telemetry insights or customer feedback.
Other critical updates
Beyond the scheduled releases, you also need to anticipate ad hoc security patches, platform-level updates, and feature toggles within the Dynamics 365 environment. These changes can impact the performance and stability of your system. Platform-level changes include updates to Dataverse, Power Platform connectors, or Azure infrastructure, which can affect integrations and backend processes. In addition, feature toggles allow Microsoft to roll out new functionality selectively, enabling organizations to test and validate features in sandbox environments before full deployment. While these changes often happen behind the scenes, they can still influence custom workflows, user permissions, or API behavior, making regression testing essential.