Microsoft currently describes three main Dynamics 365 Project Operations deployment types: Project Operations Core, Project Operations Integrated with ERP, and Project Operations for manufacturing. These deployment types determine where project sales, planning, resourcing, accounting, invoicing, inventory, and production capabilities live across Dataverse, Dynamics 365 Finance, and Supply Chain Management.
These are sometimes described using older or shorthand labels: Lite, resource/non-stocked, and stocked/production order.
To determine the most suitable deployment, you need to first determine which type fits your business the best. Be sure to choose wisely, as it is not easy to reverse course once you make a selection and start implementing the solution. You must choose one of the deployment types below.
Dynamics 365 Project Operations Core
This deployment type includes the following features:
- Sales process for projects that extends Dynamics 365 Sales application experiences
- Project planning using Microsoft Project for the Web
- Multi-dimensional pricing
- Unified resource management
- Time tracking
- Basic expense
- Proforma invoicing for Project manager’s review and edits
Dynamics 365 Project Operations Integrated with ERP
This deployment type includes the following features:
- Sales process for projects that extends the Dynamics 365 Sales application
- Project planning using Microsoft Project for the Web
- Multi-dimensional pricing
- Unified resource management
- Time tracking
- Basic expense
- Full expense
- Receipt OCR
- Proforma and customer-facing invoicing
- Revenue recognition for projects
Dynamics 365 Project Operations for Manufacturing
This deployment type includes the following features:
- Project planning using WBS
- Resource management
- Time tracking
- Full expense
- Receipt OCR
- Full invoicing
- Revenue recognition
- Production orders
- Stocked materials support with inventory
These are not separate products buyers casually switch between after implementation. They are deployment choices under Dynamics 365 Project Operations. The choice affects architecture, user experience, implementation scope, integrations, and which capabilities are available.
With these deployment options, Project Operations tries to show flexibility and customization to meet your specific needs. However, most customers are confused over these options and what they really mean. Moreover, as you can tell by the descriptions, the functionality seems rather limited for many types of project-driven companies.
The functionality you receive from Project Operations depends substantially on how it is deployed. Also, once you make that choice, you cannot go back. For example, much of the functionality contained in the ERP with Project Operations goes away once you select one of the first two options.
Additionally, the functionality of the solution lives in different places depending on your deployment choice. For example, project scheduling and resourcing may occur in your CRM while cost tracking happens in your ERP. That means if you have the same role covering both functions, they will be managing their projects in two different systems.
How to choose the right Project Operations deployment type
- If you need project sales, resourcing, time, and proforma invoicing without D365 Finance as the accounting engine, consider Project Operations Core.
- If you need Project Operations connected to D365 Finance for accounting, invoicing, WIP, accruals, and revenue recognition, consider Project Operations Integrated with ERP.
- If you need stocked products, production orders, inventory, or manufacturing-related project scenarios, evaluate Project Operations for manufacturing.
- If your company needs deeper project financial control, CBS, EAC, month-end, forecasting, schedule-to-budget linkage, and project governance inside D365 Finance, evaluate PlanAutomate.
Other Project Management Options for Dynamics
If you are strongly considering Project Operations for your company, first understand if you are a project business, meaning a company whose primary driver of business is projects, then you may want to learn more before you make a final decision.
If you are looking to solve serious problems in your project business, such as problems with cost control, project scheduling and resource planning, risk management, project estimation, or you have large and/or complex projects, Project Operations may not meet your needs and you should consider a project business system like PlanAutomate.
PlanAutomate is a complete project business solution, seamlessly integrated into Dynamics 365. Not only that is provides a base system that is better than Project Operations for the same price with options to add on to it.
Below is a high-level comparison of D365 Project Operations as deployed for Manufacturing vs Core vs PlanAutomate
| Comparison Point | Project Operations for Manufacturing (PMA in D365 Finance) | Project Operations Core | PlanAutomate |
|---|---|---|---|
| Primary purpose | Project accounting foundation inside D365 Finance. | Microsoft project application for services delivery, sales, resourcing, time, expenses, accounting, and billing depending on deployment. | D365 Finance-native project business system for project-centric companies. |
| Best fit | Finance-led project accounting. | Services-led project delivery and PSA-style workflows. | Project-centric companies that need connected project financials, schedules, forecasts, governance, and execution. |
| Project financial control | Solid accounting base. | Depends heavily on deployment and requirements. | Strong project financial control with deeper forecasting, costing, and governance. |
| Scheduling depth | Limited or handled elsewhere. | Useful for services scheduling, with limits for large project-centric work. | Deeper schedule-to-budget and project execution connection. |
| Forecasting / EAC | Basic compared with project-business requirements. | Limited for companies needing repeatable EAC and month-end control. | Built for project forecasting, EAC, and project month-end control. |
| Project-driven procurement | Finance/supply-chain path may support related activity. | Depends on deployment; CE-only path does not support project-driven supply chain. | Designed to connect project work with procurement, production, and financial control with a material constraint framework. |
| Governance | Basic financial governance. | Varies by deployment and process design. | Stronger controls for changes, risks, issues, forecasting, and portfolio visibility. |
| Typical users | Finance and accounting users. | Project managers, resource managers, services teams, and finance users. | Project managers, finance, project controls, operations, executives, and delivery teams. |
Related Project Operations Deployment FAQs
Is Project Operations Core the same as Lite deployment?
It is the current Microsoft language for the Dataverse-focused deployment that was often called Lite.
What is Project Operations Integrated with ERP?
It is the deployment path that connects Project Operations with Dynamics 365 Finance for accounting, invoicing, WIP/accruals, and revenue recognition.
Can Project Operations support stocked products and manufacturing scenarios?
Yes, through Project Operations for manufacturing and stocked product capabilities in integrated deployments, but companies should evaluate whether the standard model is enough for their project-driven supply chain needs.
Microsoft Sources for more information:
- Microsoft: Determine your deployment type
- Microsoft: Project Operations Core overview
- Microsoft: Project Operations Integrated with ERP deployment overview
- Microsoft: Managed stocked products for Project Operations integrated deployments
Evaluating the right Microsoft Dynamics path for project management?
Adeaca can help you compare D365 Finance, Project Operations, and PlanAutomate based on how your project business actually works.
