Dynamics 365 CRM 2025 release wave 2

What’s new in the Dynamics 365 CRM 2025 release wave 2

Microsoft’s 2025 release wave 2 delivers practical AI, cleaner workflows, and tighter cross-app integration across the Dynamics 365 CRM suite. In this blog post, we’ll highlight key features and updates to the following Dynamics 365 Customer Engagement applications:

• Dynamics 365 Sales
• Dynamics 365 Customer Insights
• Dynamics 365 Customer Service
• Dynamics 365 Field Service
• Dynamics 365 Project Operations

Copilot & AI innovation in Dynamics 365 Sales 2025 release wave 2

Microsoft continues to evolve Dynamics 365 for Sales with deeper AI integration, making every stage of the sales process faster and more intuitive. In the 2025 release wave 2, Copilot expands beyond simple automation to drive real-time decision support, intelligent data handling, and seamless collaboration with third-party AI agents. From natural language search to AI-powered data entry, sellers gain more time to focus on relationships and results instead of repetitive administrative work.

Key Copilot and AI Enhancements:

• Smart Grid Natural Language Filtering: Quickly find, filter, and sort opportunities using plain language commands like “show leads over $10,000,” with instant visual filtering and one-click clearing.
• Form Fill Assist Toolbar: Upload files, images, or emails, and let AI extract names, addresses, and company data directly into forms—cutting data entry time and reducing errors.
• Model Context Protocol (MCP) Server Integration: Connect AI agents such as ChatGPT or Claude to Dynamics 365 Sales to automate lead qualification, generate outreach emails, and even trigger cross-app actions like quote creation.
• Smart Paste: Copy text or images from any source and let Copilot detect and populate CRM fields automatically, reducing manual entry and ensuring consistent data accuracy.

Sales Qualification Agent improvements

In the 2025 release wave 2 of Dynamics 365 Sales, Microsoft deepens the capabilities of the Sales Qualification Agent, turning it into a more powerful and autonomous pipeline builder. The enhanced agent improves how sellers research, engage, and qualify leads, reducing manual effort and increasing conversion efficiency. It now performs richer data analysis, validates contact information, and tailors engagement with greater accuracy. By combining CRM data, public sources, and custom knowledge bases, it ensures that every handoff to sales is high-quality and high-intent.

Key enhancements in the Sales Qualification Agent:

• Expanded AI lead research: The agent now compiles more comprehensive lead and company profiles using CRM data, public sites, and internal sources through Copilot Studio, improving lead scoring accuracy.
• Deeper lead insights: Sellers gain instant access to 360-degree summaries, company updates, and engagement indicators that help them focus on the most likely converters.
• Improved outreach automation: The agent not only drafts but also sends targeted, personalized emails with reminders and follow-ups to increase response rates and reduce manual workload.
• Advanced intent detection and Q&A: It analyzes lead responses to detect purchase intent, automatically answering questions using connected knowledge sources to accelerate qualification.
• Flexible automation controls: Admins can configure automation depth, qualification criteria, and industry-specific data sources to align with business strategy.
• Email verification and categorization: New validation ensures that each email address is accurate, active, and categorized correctly as work or personal, improving deliverability and compliance.
• Custom web sources for tailored research: Admins can define specific web sources, such as industry databases, regulatory listings, or specialized publications, to provide more relevant insights. Sellers see timely, industry-aligned intelligence directly in their workflow, ensuring every outreach is informed and contextually accurate.

Grow revenue by using Sales Close Agent

The 2025 release wave 2 strengthens the sales close agent in Dynamics 365 Sales, giving sellers an intelligent ally in the final stage of the sales cycle. Designed to handle objections, answer complex product questions, and identify buying signals in real time, the enhanced agent ensures deals move from negotiation to close faster. It engages directly with prospects, adapts communication based on sentiment and context, and keeps opportunities active through intelligent re-engagement. By automating these critical interactions, the sales close agent helps teams shorten sales cycles, improve win rates, and deliver more consistent customer experiences.

• Automated objection handling: The agent detects and responds to objections in real time, offering contextually relevant answers that keep the conversation moving toward a close.
• Expanded technical Q&A: Drawing from the product knowledge base, it provides instant, accurate responses to detailed product or service questions—reducing delays and building buyer confidence.
• Advanced purchase intent recognition: The agent interprets tone, language, and engagement patterns to gauge interest, then shifts its strategy to encourage faster decision-making.
• Dynamic re-engagement: When deals go quiet, the agent automatically follows up with customized messages that realign conversations and reestablish momentum.
• Seamless CRM integration: Every interaction is logged directly in Dynamics 365 Sales, ensuring customer records and engagement histories stay current without manual updates.
• Adaptive communication style: The agent adjusts tone, language, and detail level based on the customer’s profile and history, creating personalized and trust-driven engagement.

View hierarchical data from multiple tables

The 2025 release wave 2 introduces a major enhancement to how sellers visualize and work with complex customer relationships in Dynamics 365 Sales. The new hierarchical relationship visualizer provides an interactive, intuitive way to explore connections across accounts, contacts, opportunities, and even custom tables. Instead of navigating long lists or disconnected records, sellers can now see the full customer structure at a glance—identifying decision makers, related projects, and cross-regional opportunities.

• Customizable hierarchy views: Admins can design hierarchies that fit organizational needs, using single-table or multi-table relationships—including custom data such as households or financial instruments.
• Flexible configurations: Each tile can display up to seven key data points and can be customized by size, color, and icons for clarity. Teams can view hierarchies vertically or horizontally, zoom in or out, and expand or collapse branches for easier navigation.
• Interactive editing: Sellers can open any record directly from the hierarchy view, update details, and log interactions without leaving the visualization.
• Cross-table data integration: Support for complex, multi-table hierarchies allows teams to visualize connections between accounts, contacts, and opportunities in a single unified view.
• Actionable insights: With full visibility into parent-child relationships, sellers can identify linked opportunities, track stakeholder influence, and prevent missed signals that could impact deals.

Copilot & agents in Dynamics 365 Customer Insights 2025 release wave 2

The 2025 release wave 2 for Dynamics 365 Customer Insights introduces powerful Copilot and autonomous agent enhancements that bring personalization and intelligence to every customer interaction. These updates connect real-time customer insights with AI-powered voice, chat, and automation capabilities, helping organizations engage customers in more natural, meaningful ways while improving efficiency and satisfaction.

• Copilot-powered voice conversations: Combine D365 Customer Insights – Journeys with Contact Center to deliver personalized voice interactions that respond in real time. Engage customers with conversational voice messages, react automatically to outcomes, and track results with built-in reporting and Microsoft Fabric integration.
• Customer-grounded Copilot chat: Equip your teams with unified customer intelligence directly in their workflow. Copilot now surfaces data such as lifetime value, propensity to buy, and recent activity, helping sellers, service reps, and chatbots engage confidently and deliver more relevant, empathetic responses.
• Autonomous agents powered by D365 Customer Insights: Ground custom Copilots and autonomous agents in your unified customer data from Dataverse, including profiles, segments, and measures. These agents analyze and act on real customer behavior, perform automated actions, and deliver insights instantly across marketing, sales, and service.

Personalize customer experiences

The 2025 release wave 2 for Dynamics 365 Customer Insights enhances how marketers connect with customers through smarter targeting, cleaner data, and tighter control of timing and compliance. These updates give teams more precision in how they build, launch, and track campaigns, ensuring every message feels timely, relevant, and personal.

• Export audiences to ad and marketing platforms: Send customer segments and insights to external systems like Google Ads, Facebook Ads, LinkedIn Ads, Snapchat, or via SFTP. Use these exports to power targeted advertising, improve ROI, and unify campaign performance across channels.
• Retarget audiences using real engagement signals: Combine unified profiles with behavioral data from D365 Customer Insights – Journeys (email opens, link clicks, etc.) to refine segmentation and retarget nonresponsive audiences across other channels.
• Set message expirations to avoid outdated content: Add expiration dates to emails, texts, and push messages so customers receive only current, relevant information. Prevent outdated offers and maintain brand trust with clean, timely communication.
• Wait for segment membership before moving forward: Pause journeys until a customer meets specific criteria, such as activating a card or registering for an event, ensuring each path reflects real behavior.
• Export sent emails for compliance and record keeping: Use the Email Export API to capture and archive copies of sent messages for audits, legal documentation, or customer service inquiries.
• Create static segments with up to 200,000 members: Upload or import customer lists via CSV, API, or Dataverse to quickly build large, fixed segments for one-time or urgent campaigns.
• Automate journey creation with the Journey API: Automatically generate journeys from templates for different languages, time zones, or segments—saving time and ensuring consistency at scale.
• Host large-scale online events with Microsoft Teams Town Hall: Manage events for up to 10,000 attendees directly in Customer Insights – Journeys, track engagement, and share recordings for ongoing post-event impact.

Enhanced pipeline management

The Dynamics 365 Customer Insights 2025 release wave 2 transforms event management by embedding revenue generation, predictability, and operational control directly into your marketing pipeline. New capabilities for paid event registration and structured registration periods help organizations streamline logistics, boost conversions, and improve attendee experiences, all within a single platform. These enhancements turn events into strategic, data-driven growth channels that deliver measurable ROI.

• Paid event registration and payment integration: Offer secure, seamless ticketing experiences with flexible pricing tiers, discount codes, and integrated payment providers. Capture revenue directly through your event setup, reduce manual reconciliation, and issue QR code passes for fast check-ins.
• Streamlined registration periods: Define registration start and end dates to control attendee signups and improve planning accuracy. This functionality eliminates last-minute chaos, ensures resource readiness, and keeps event communications clear and consistent.
• Frictionless attendee experience: Deliver an intuitive checkout process that minimizes drop-offs and boosts conversion rates, while real-time payment tracking simplifies post-event reporting.
• Operational efficiency: Align marketing, finance, and logistics teams with automated registration management, predictable attendee counts, and better-informed event planning decisions.

Event management tools

The 2025 release wave 2 for Dynamics 365 Customer Insights enhances the connection between marketing, sales, and customer engagement through advanced event experience capabilities. These updates empower organizations to build professional, branded event portals that attract audiences, simplify registration, and centralize event management. Whether using Power Pages or custom APIs, teams can now design and deploy seamless digital experiences that drive participation and strengthen customer relationships.

Key sales and marketing enhancements:

• Event portals built with Power Pages: Quickly create a fully functional event hub that includes event listings, detailed pages, speaker profiles, and registration forms. Use Power Pages templates for rapid setup, then customize the design and branding with Power Pages Studio to match your organization’s identity.
• Custom event portals via event API: Build and host event experiences directly on your company website using the event API. Access and display event, session, speaker, and sponsorship data programmatically while offering tailored registration and interaction experiences.
• Streamlined attendee engagement: Provide customers with a single, easy-to-navigate destination to explore events and register instantly, improving visibility and conversion rates.
• Flexible deployment options: Choose between ready-made Power Pages templates or fully customized API-based integrations to fit your organization’s digital strategy and technical needs.

Faster time to insights

The Dynamics 365 Customer Insights 2025 release wave 2 focuses on speeding up how organizations process, unify, and act on customer data. With new capabilities for source data filtering and native Microsoft OneLake integration, teams can generate insights faster, improve data accuracy, and eliminate unnecessary data movement. These enhancements streamline operations, reduce processing time, and help businesses make smarter, data-driven decisions in less time.

• Row-level source data filtering: Filter out outdated or incomplete records directly within Customer Insights – Data before unification or modeling. This reduces processing load, improves data quality, and removes the need for downstream data cleanup.
• Improved processing speed: Spark-based filtering processes only relevant data during unification, segmentation, and modeling, significantly cutting runtime while keeping the full dataset available for export.
• Native Microsoft OneLake integration: Connect directly to data stored in Microsoft Fabric OneLake without copying or staging. Access customer data instantly, whether it’s native to OneLake or mirrored from external systems like Snowflake.
• Incremental Delta processing: For data in Delta format, Customer Insights now processes only recent changes, reducing refresh times and improving responsiveness.
• Reduced ETL complexity: By combining Fabric shortcuts, mirroring, and OneLake integration, organizations replace traditional data pipelines with a unified, real-time data foundation that lowers costs and increases agility.

AI agents in the Dynamics 365 Customer Service 2025 release wave 2

The MS Dynamics 365 Customer Service 2025 release wave 2 introduces powerful new AI agents that transform how organizations manage, evaluate, and enhance service operations. These agents bring automation, intelligence, and real-time insight to every part of the service lifecycle, from creating knowledge articles to handling cases and maintaining quality standards. Together, they reduce manual effort, accelerate resolution times, and ensure consistent, high-quality customer experiences across all channels.

• Customer Knowledge Management Agent: Automatically converts case data, conversations, and emails into ready-to-publish knowledge articles. It compares new insights against your existing knowledge base to prevent duplication, ensures compliance by removing sensitive data, and can publish articles directly for Copilot or self-service use. Supervisors gain dashboards with real-time performance metrics and actionable insights to review, edit, or prioritize articles, helping your organization capture and share knowledge within minutes, not weeks.
• Case Management Agent: Streamlines the entire case lifecycle by automating case creation, updates, and follow-ups from live chats and emails. It classifies emails by relevance, skips nonessential messages, and triggers next steps automatically. The agent identifies internal experts for collaboration through Microsoft Teams, summarizes context for quick alignment, and sends follow-up messages based on SLA rules. This reduces handling time, improves productivity, and ensures consistent, high-quality case management.
• Quality Evaluation Agent: Evaluates cases automatically using predefined business criteria and assigns quality scores with detailed coaching insights. The agent applies consistent scoring logic across all interactions, flagging SLA breaches, sentiment issues, or process gaps. Supervisors receive summaries and recommendations to guide training and improve service outcomes. This framework ensures every case meets quality standards while freeing managers from manual review.

Copilot & AI innovation

The Dynamics 365 Customer Service 2025 release wave 2 expands Copilot and AI capabilities to make service operations faster, smarter, and more autonomous. From intelligent email generation to enhanced evaluation tools and improved agent oversight, these updates bring precision and adaptability to every interaction. Together, they empower customer service teams to deliver consistent, personalized, and high-quality support at scale.

• Copilot-powered email template recommendations: Streamline communication with intelligent template suggestions based on email content, tone, and context. Copilot automatically surfaces the most relevant templates directly in the email editor, reducing manual search time and improving message consistency across teams.
• Assessment plans with evaluation framework: Set clear quality standards for both human and AI service agents using structured evaluation criteria, weighted scoring, and automated assessment plans. Supervisors gain transparency, consistency, and actionable coaching insights for continuous improvement.
• AI agent activity monitoring: Supervisors can now monitor AI agent activity in real time through the Copilot Service workspace. This feed highlights key interactions, tracks case participation history, and provides visibility into how agents handle conversations—supporting confident rollout of autonomous contact centers.
• Copilot prompts in email templates: Automate personalized email generation by embedding Copilot prompts directly into templates. This feature pre-fills relevant details, reducing manual editing and ensuring faster, more accurate responses.
• Contextual partial email generation: Use inline Copilot assistance to generate partial or supplemental email content while composing replies. Representatives can refine tone, add clarity, and complete responses faster, improving both accuracy and customer satisfaction.
• Model Context Protocol (MCP) server integration: Seamlessly connect Dynamics 365 Customer Service with external AI agents such as ChatGPT or Claude using the MCP server. This integration enables cross-application automation, creating cases, drafting emails, or generating orders across systems without complex coding or manual steps.

Improvements to service representative experiences

With the Dynamics 365 Customer Service 2025 release wave 2, Microsoft delivers a more intuitive, resilient, and customizable service workspace designed for real-world operations. These enhancements give representatives greater control over how they work—streamlining navigation, automating routine tasks, and enabling deeper personalization through custom tools. By reducing friction and improving multitasking, agents can focus less on process management and more on delivering responsive, high-quality customer support.

Key service representative experience enhancements:

• Custom productivity tools in Copilot Service workspace: Create low-code or pro-code tools that embed directly in the workspace, giving agents quick access to contextual functions like credit checks or case lookups without switching screens.
• Automatic session restoration after browser refresh: Automatically restore open sessions, tabs, and conversations after a browser reload, helping agents resume work instantly and avoid lost progress.
• Multisession app creation: Support multiple workspace apps tailored to different business lines so agents can manage several cases, chats, or calls at once.
• Bulk actions on filtered conversations: Filter conversations by status, intent, or queue and perform mass updates such as reassigning, messaging, or closing in a few clicks.
• SLA timeout rule overrides: Allow agents to pause or adjust SLA-driven automatic actions when cases need more time or reassignment.

Other updates in the 2025 release wave 2 of Dynamics 365 Customer Service

The Dynamics 365 Customer Service 2025 release wave 2 introduces targeted improvements that enhance data security, streamline communication management, and give supervisors better control over case assignments.

Other notable enhancements:

• Protect sensitive information in emails with data sensitivity labels: Add Microsoft Purview–powered sensitivity labels to outgoing emails to classify and safeguard sensitive data. This integration strengthens compliance with GDPR and CCPA, ensures consistent data protection across Microsoft apps, and raises user awareness around handling sensitive information.
• Tag email templates by line of business: Organize and filter email templates using line-of-business (LOB) tags for faster access and better content management. Administrators can add tags, customize template views, and perform bulk tagging to streamline operations and support multi-language communication.
• Enhanced Assign option for cases: Supervisors can reassign cases while maintaining unified routing integrity. The system automatically updates ownership, representative capacity, and presence, ensuring accurate workload tracking. If a representative lacks capacity, supervisors receive prompts to confirm or adjust the assignment before proceeding.

Optimize schedules with Scheduling Operations Agent

The Dynamics 365 Field Service 2025 release wave 2 introduces the new Scheduling Operations Agent, designed to help dispatchers optimize technician schedules in real time. Powered by Copilot, this intelligent assistant automates complex scheduling decisions, responding instantly to disruptions such as cancellations, delays, or changing priorities. By analyzing factors like technician skill sets, territories, and promise windows, the agent delivers optimized schedules that improve resource utilization, reduce travel time, and ensure on-time service delivery.

Key Scheduling Operations Agent enhancements:

• AI-driven schedule optimization: Copilot evaluates live conditions—such as travel delays or open time slots—and automatically generates the best possible schedule to meet business goals like maximizing technician productivity or prioritizing urgent work.
• Dynamic problem solving: Dispatchers can handle issues like cascading delays, double bookings, or early technician availability with quick, context-aware adjustments instead of manual rescheduling.
• Goal-based scheduling: Direct Copilot to optimize for specific objectives, whether it’s minimizing travel, balancing workloads, or improving response times, all while maintaining customer commitments.
• Instant recommendations: Access Copilot’s suggestions directly in the side pane of Dynamics 365 Field Service to review, approve, and apply schedule updates within seconds.

Additional resource scheduling improvements

The Dynamics 365 Field Service 2025 release wave 2 delivers several key updates that make scheduling faster, clearer, and more intuitive for dispatchers and technicians alike. These improvements refine the schedule board experience, enhance data accuracy, and simplify setup, helping field teams operate with greater efficiency and precision.

Key resource scheduling enhancements:

• Improved schedule board performance: A modernized architecture makes the schedule board more responsive when loading, creating bookings, or using the schedule assistant, boosting productivity and overall user satisfaction.
• Refreshed short booking display: Short bookings now appear cleaner and easier to read with improved text truncation, better icon alignment, and consistent visibility of booking titles.
• Intuitive zoom controls: Dispatchers can zoom in and out around the cursor for smoother navigation, clearer time labels, and more natural scaling, making it easier to switch between daily and long-term views.
• Simplified schedule board sharing: Share tabs directly from the schedule board settings window with a custom link, allowing teams to collaborate faster without extra configuration steps.
• Consistent terminology for characteristics and skills: Standardized naming aligns the interface with Dataverse schema, replacing “Skill” with “Characteristic” and “Proficiency model” with “Rating Model” for easier navigation and data consistency.
• Address-based organizational unit setup: Admins can now input addresses instead of latitude and longitude, with automatic geocoding for precise map locations, saving time and reducing setup errors.

Integrate bookings with Outlook and Teams

The Dynamics 365 Field Service 2025 release wave 2 focuses on helping technicians work smarter by integrating bookings directly with Microsoft Outlook and Teams. This update unifies scheduling, communication, and task management into the tools technicians already use every day, eliminating app switching and keeping everyone aligned in real time. 

• Seamless Outlook and Teams integration: Technicians can view and manage Field Service bookings directly in their Outlook and Teams calendars, reducing the need to move between multiple applications.
• Automatic real-time updates: Booking changes appear in technicians’ calendars within minutes, ensuring schedules stay accurate and up to date throughout the workday.
• Familiar user experience: Because the integration leverages Outlook and Teams, technicians can adopt the new workflow instantly with minimal training and no disruption to their routine.

Connect D365 Field Service & D365 Project Operations with new end-to-end integration

The Dynamics 365 Field Service 2025 release wave 2 introduces a new integration with Dynamics 365 Project Operations, unifying field, project, and financial data within a single connected ecosystem. This enhancement eliminates silos between service execution and project management, giving organizations a clear, real-time view of costs, materials, and margins. By connecting work orders, inventory, and billing through D365 Project Operations, teams gain a fully traceable, financially aligned process from field activity to project reporting.

Key integration enhancements:

• Serialized inventory tracking: Enable full traceability of serialized and batch-controlled materials across D365 Field Service and D365 Project Operations. Technicians can record detailed attributes, such as site, warehouse, and serial numbers, so inventory movements flow seamlessly into project and financial records for audit readiness and compliance.
• Direct dual-write connection: D365 Field Service now connects directly to D365 Project Operations through Microsoft’s dual-write integration. Labor, materials, and costs automatically sync from work orders to D365 Project Operations, providing accurate cost visibility and faster billing, all without changing technicians’ workflows.
• Unified work order and project linkage: Link D365 Field Service work orders and agreements directly to projects in D365 Project Operations. Estimates, actuals, and material usage captured in the field flow instantly into D365 Project Operations for consistent reporting, margin tracking, and centralized billing.
• Centralized billing and forecasting: Manage invoices and forecasts directly within D365 Project Operations using data from D365 Field Service. This integration ensures financial accuracy, reduces manual reconciliation, and gives service, finance, and project teams a single source of truth.

Keyboard and screen reader support

The Dynamics 365 Field Service 2025 release wave 2 introduces major accessibility improvements that make navigation faster and more intuitive for all users—especially those who rely on keyboards or screen readers. These updates remove friction in everyday workflows by ensuring users can navigate grids, forms, and menus without a mouse while maintaining full control over data sorting, filtering, and formatting. The enhancements deliver a more inclusive experience that helps every user work efficiently and accurately.

D365 Field Service now uses the OneGrid component for subgrids across Opportunities, Actuals, Invoices, and Quotes forms, replacing the older Wijmo Grid. This change brings full keyboard navigation to column menus, allowing users to sort data, apply filters, and adjust column widths seamlessly. Additionally, the new work order form improves screen reader interpretation for date and time promised fields, ensuring that all key details are read correctly and clearly. Together, these updates enhance accessibility, increase productivity, and create a smoother experience for every D365 Field Service user.

Copilot and AI in the Dynamics 365 Project Operations 2025 release wave 2

The Microsoft Dynamics 365 Project Operations 2025 release wave 2 introduces major Copilot and AI-driven innovations that transform how project teams manage time, expenses, and reporting. By combining automation with natural language understanding, these capabilities eliminate manual tasks, improve accuracy, and accelerate approvals. From intelligent expense matching to customizable status reports, Copilot helps project managers and consultants focus less on administration and more on delivering successful outcomes.

Key Copilot and AI enhancements:

• Agent-led time, expense, and approvals: Copilot detects work from Outlook and Teams to automatically create time entries, generate expense reports from emails or scanned receipts, and validate policy compliance—cutting down on reminders, errors, and administrative work.
• Tailored project status reports: Project managers can now customize report sections, use AI to capture insights from predefined entities, and share data-rich, audience-specific reports in minutes.
• Activity Approvals Agent improvements: New flexibility allows policy documents to be set at the project level, letting organizations apply unique approval rules per project. A new toggle also enables or excludes projects from AI-based classification for easier implementation and testing.
• Status report templates: Managers can upload PowerPoint or Word templates, automatically fill recognized sections with Dynamics 365 data, and export final reports in multiple formats while maintaining original formatting.
• Expense Agent for credit card matching and itemization: AI automatically matches transactions with receipts and itemizes expenses—such as separating hotel bills into room, tax, and meal charges—improving accuracy and saving hours of manual effort.

Mobile app and expense management improvements

The Dynamics 365 Project Operations 2025 release wave 2 introduces major mobile and expense management enhancements that make expense reporting faster, more intuitive, and policy compliant. These updates focus on improving the usability of the Expense Management mobile app and expanding flexibility across core expense workflows. With streamlined navigation, clearer validations, and enhanced delegate capabilities, project teams can manage expenses accurately and efficiently from anywhere.

• Redesigned mobile workflow: The Expense Management mobile app now requires users to create an expense report before adding line items, providing a clearer, more structured process that aligns with finance and operations.
• Improved policy compliance: Mobile users can now enter justifications, respect blocked parent activity settings, and see full report descriptions before approval—ensuring all submissions follow organizational policies.
• Enhanced usability and visuals: Category icons and receipt renaming make expense entry faster and more organized. Approvers gain better visibility with expanded fields, improving accuracy and review speed.
• Add financial dimensions in mobile: Users can now add financial dimensions directly in the mobile app, improving cost allocation accuracy without needing desktop access.
• Delegate cash advance creation: Expense delegates can create and submit cash advance requests for other employees, reducing administrative overhead and improving team flexibility.
• Edit per diem dates and exchange rates: Users can manually adjust transaction dates and currency rates to meet regulatory requirements and maintain compliance.
• Split credit card transactions seamlessly: Users can now split expenses even if mandatory fields or policy rules aren’t yet met, allowing for smoother, uninterrupted data entry and fewer workflow disruptions.

Project execution and financial operations

The Dynamics 365 Project Operations 2025 release wave 2 introduces major financial and operational enhancements designed to improve billing accuracy, streamline revenue recognition, and increase flexibility across project accounting. These updates simplify complex financial workflows, helping organizations manage subscription billing, control costs, and maintain compliance with accounting standards like ASC 606 and IFRS 15.

• Modern invoice enhancements: Streamline invoice reviews for large-scale projects with thousands of transactions. Users can quickly edit invoice lines, correct errors, and manage approvals through a more intuitive and performant billing experience.
• Revenue recognition for stand-alone selling price contract lines: Automatically calculate revenue based on contract value rather than billing milestones. This ensures compliance with global accounting standards and provides more accurate reporting for fixed-price and discounted contracts.
• Flexible financial dimension defaults: Configure financial dimensions by contract, project, or cost/revenue profile to improve accuracy and reduce manual adjustments. New rules let you set defaults for time and material contract lines and ensure consistency across financial reporting.
• Project fee journals for subscription billing: Support recurring revenue models by creating fee-based subscription billing schedules. The system automatically generates journals and project invoice proposals, ensuring precise accruals and accurate recognition.
• Time phasing for quote and contract lines: Automate price adjustments based on effective dates to reflect accurate sales and cost rates over time. Maintain a full audit trail for pricing changes and improve visibility into real-time financial totals.

Resource and task management

The Dynamics 365 Project Operations 2025 release wave 2 introduces major improvements to task and resource management that make it easier to plan, track, and adapt projects in real time. These enhancements simplify scheduling, improve usability, and save time for project managers and team members by reducing manual effort and increasing flexibility across tools and views.

Key resource and task management improvements:

• Record task progress from the tasks grid: Mark tasks as complete directly from the grid view without needing time entries, mirroring the ease of Project for the web and saving time for teams that track work manually.
• Import tasks from other projects: Reuse existing project structures by importing selected tasks from one or more projects, minimizing duplication and accelerating new project setup.
• Customize the task details pane: Tailor the task pane to show relevant fields and custom columns for a more contextual and efficient task management experience.
• Configurable timescale settings on assignments view: Adjust and save preferred time intervals for short- and long-term projects, reducing excessive scrolling and repetitive calendar resets.
• Import MPP files into existing projects: Seamlessly merge offline Microsoft Project (.mpp) plans into active projects to maintain continuity between desktop and online planning environments.

Other top features from the Dynamics 365 Project Operations 2025 release wave 2

In addition to the features listed above, here are a few other noteworthy updates:

• Enhanced approvals UI: A redesigned approvals page displays time approvals in a calendar grid with tabs and visual indicators, allowing project managers to review pending items quickly and focus on high-priority records.
• Custom invoice statuses and transitions: Organizations can define their own invoice status values and control manual transitions between editable states while preserving data integrity for system-controlled steps.
• Selective invoice import from staging: Project managers can now import and process individual invoice proposals without waiting for full batch jobs, enabling faster error correction and more agile billing.
• Line discounts and fees for resource-based deployments: Adds the ability to configure discounts and fees at the project or contract line level, ensuring accurate financial transactions during invoicing.
• Delegate project approval: Approvers can delegate approval authority to another user for specific projects and timeframes, preventing backlogs and maintaining timely cashflow when key approvers are unavailable.

Want to learn more?

The updates, enhancements, and new features outlined above are just a glimpse of the innovations Microsoft has introduced in the Dynamics 365 CRM 2025 Release Wave 2. To maximize the benefits of these updates for your organization, we recommend partnering with a trusted Dynamics 365 CRM partner. They can help you evaluate the new features, identify those most relevant to your goals, and provide tailored training to ensure your team is equipped to use them effectively.