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10 Workflow Best Practices Every Company Should Follow in D365 Finance

Alex at FitGap

28 Nov 2025 — 3 min read

Workflows are at the core of governance in Dynamics 365 Finance.
They determine who approves what, how exceptions are handled, how financial control is applied, and how operational bottlenecks are avoided.

Yet most organizations implement them poorly — unclear notifications, too many approval levels, unnecessary exceptions, incomplete conditions, approvers missing the right security roles, or workflows regularly stuck in error.

Below are the 10 workflow best practices every company should follow to strengthen internal controls, reduce errors, and improve operational efficiency.

1. Use clear notifications that make approvers’ lives easier

Unclear workflow notifications slow down approvals more than anything else.

Best practices:
✔ Use precise notifications that clearly state the action required
✔ Include a direct link to the approval document when possible
✔ Enable email notifications, especially for managers
✔ Avoid generic “You have a task” messages

Clear notifications = faster approvals and fewer mistakes.

2. Build workflows around approval groups — not individuals

Workflows tied to individual people break every time someone leaves, changes departments, or takes time off.

Even mapping approvals directly to roles can become rigid.
The most scalable approach is using approval groups.

Best practices:
✔ Create workflow-specific approval groups (security groups)
✔ Add/remove users as staffing changes
✔ Point workflow steps to groups instead of individuals

Related reading:
👉 ERP Security Roles – Governance Approach
https://www.fitgapfinance.com/erp-security-roles-d365-finance-governance-approach/

3. Limit approval levels — too many approvals dilute responsibility

More approval layers do NOT equal more control.
They create confusion and delay.

Best practices:
✔ Keep workflows to 1–3 approval levels
✔ Use financial thresholds to escalate only when needed
✔ Clarify accountability at each step

4. Avoid exceptions — standardize workflow rules whenever possible

Most workflow complexity comes from unnecessary exceptions.

Best practices:
✔ Standardize workflow logic
✔ Use broad rules that apply to most cases
✔ Limit exceptions to regulatory or audit-mandated cases
✔ Apply the 80/20 principle for simplicity

Cultural resistance often drives exceptions:
👉 The Human Side of ERP Projects
https://www.fitgapfinance.com/human-side-erp-projects/

5. Avoid redundancy with manual or external approval systems

A workflow loses all value if approvers still require:
– physical signatures
– email approvals
– PDF confirmations
– validation through external contract tools

Best practices:
✔ Make the D365 workflow the single source of approval
✔ Remove parallel manual processes
✔ Train users that “If it’s not approved in D365, it’s not approved.”

**6. Ensure workflow conditions cover every scenario**

Workflow failures almost always come from missing conditions.

Best practices:
✔ Build a full condition hierarchy
✔ Add fallback logic
✔ Validate conditions with Finance + Operations
✔ Test edge cases intentionally

Understanding GL/subledger behavior helps avoid condition errors:
👉 Ledger vs Subledger in D365 Finance
https://www.fitgapfinance.com/ledger-vs-subledger-d365-finance/

7. Ensure approvers have the correct security roles

A workflow is useless if the approver cannot open the document or complete the action due to insufficient permissions.

Best practices:
✔ Align workflows with the security matrix
✔ Test approvals using real user accounts
✔ Check SoD conflicts

Related reading:
👉 SoD Conflicts & Audit Risks
https://www.fitgapfinance.com/d365-finance-sod-risks-audit/

👉 New Licensing & Security Governance
https://www.fitgapfinance.com/d365-finance-new-licensing-approach-10-things-to-know/

8. Document workflow steps clearly — including step numbers

Approvers need to know where they are in the approval chain.

Best practices:
✔ Number each workflow step
✔ Use consistent naming conventions
✔ Include workflow documentation in your governance playbook

9. Train employees properly — especially approvers

Most workflow issues are caused by poor understanding, not system defects.

Best practices:
✔ Provide concise, role-based training
✔ Create one-page reference guides
✔ Clarify approval responsibilities and delegation rules