Security capabilities of Dynamics 365 Finance and Operations apps
- Alfredo Iorio
- Aug 7
- 4 min read
In Dynamics 365 Finance and Operations apps, security is managed via role-based access permissions. Role-based security means users' roles define users' privileges and duties that control access and permission.
In this post, we will learn about the security framework for Finance and Operations apps.
What is role-based security?
Role-based security in Dynamics 365 Finance and Operations is a method of controlling access by assigning users to predefined roles that reflect their responsibilities within the organisation. Rather than assigning permissions directly to individuals, users inherit access through security roles, ensuring scalability, consistency, and easier auditing.
This approach aligns with the principle of least privilege: giving users the minimum access necessary to perform their job functions.
Components of role-based security in Dynamics 365 F&O
Dynamics 365 F&O uses a layered security model composed of four main components:
Security Roles
Duties
Privileges
Permissions
Let's look at each component.
Security roles
Security roles are the highest level in the security hierarchy. Each role typically corresponds to a business function, such as Accounts Payable Clerk, Warehouse Manager, or System Administrator.
Roles define a logical grouping of duties that align with the real-world responsibilities of users. Users are assigned one or more roles depending on their job requirements.
Roles can be customised or created from scratch to match your organisation's needs.
Users must be assigned to at least one role to access Dynamics applications; these can be arranged in a hierarchy so multiple child roles can be linked to a parent. The privileges and permissions granted to the child role will be inherited by the parent.
Security roles also allow admins to manage data access policies for specific organisations and operating units in Dynamics 365 F&O. For example, a system administrator can create a security group for accountants who require access only to the budgeting department across all the legal entities.
To learn more about legal entities, check out this other article. https://www.d365training.com/post/legal-entities-in-dynamics-365-finance-a-quick-guide
Duties
A duty represents a set of related tasks or business processes. For example, a "Maintain vendor payments" duty might include actions like approving payment journals and reviewing payment proposals.
Duties are assigned to roles and help ensure that security aligns with actual business processes. They also support Segregation of Duties (SoD) by grouping tasks that should be performed by a single role.
Segregation of duties
Segregation of Duties is a critical control to prevent fraud and errors. It ensures that no single user has conflicting responsibilities, such as both creating a vendor and approving payments to that vendor.
Dynamics 365 F&O includes built-in SoD rules and reporting tools to help you identify and resolve conflicts. As an admin, you can define SoD rules and receive alerts when a user assignment violates them.
Priviledges
A privilege grants access to specific tasks or actions, such as posting a journal or editing a customer record. Privileges are assigned to duties and form the basis of action-level control in the system.
Each privilege is mapped to permissions that define what the user can do at the object level.
Permissions
Permissions are the most granular level of security. They define access to specific elements of the application, such as tables, fields, menu items, or reports.
For example, a permission might allow a user to read data from a specific table or execute a particular form control. This is where security intersects with technical components like AOT objects and menu items.
Security best practices
Implementing security in Dynamics 365 F&O is not just about assigning roles; it's about designing a system that's secure, auditable, and aligned with real-world operations. Here are some best practices:
Apply the principle of least privilege: Start with the minimum access required and grant additional rights only as needed.
Avoid direct role customisation in production: Use development environments to test changes before deploying.
Use standard roles as templates: When possible, modify copies of existing roles instead of altering Microsoft-delivered ones.
Document your security model: Keep track of custom roles, duties, and privileges to support audits and change management.
Review access regularly: Periodically review user-role assignments and audit for dormant accounts or unnecessary access.
Enable Segregation of Duties checks: Configure and monitor SoD rules to maintain internal controls.
Use security reports
Dynamics 365 F&O provides several built-in security reports to help you manage and audit user access:
User Role Assignments Report – See which roles are assigned to which users.
Security Role Access Report – View what each role has access to, down to the menu item or privilege level.
Segregation of Duties Violations Report – Identify users who have conflicting duties.
These tools are essential for maintaining compliance with internal policies and external regulations like SOX or GDPR.
In conclusion
Role-based security in Dynamics 365 Finance and Operations is powerful, but only if you understand how its components work together. As a system admin or IT professional, your job is to ensure that security supports business operations.
By leveraging roles, duties, privileges, and permissions effectively, you can build a secure, scalable system that gives users the right access at the right time and nothing more.
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