Payroll 365 Review


Payroll 365, an Intwo solution built into Microsoft Dynamics 365 F&O, is a payroll solution. The powerful Microsoft Dynamics payroll app streamlines payroll processes by taking local requirements into account and providing unified HR and financial management based on the ERP system. Payroll 365 fills the functional gaps of standard Dynamics 365, enabling companies to optimize HR processes and boost business efficiency without third-party solutions. As part of the broader app dynamics within the Microsoft ecosystem, Payroll 365 integrates seamlessly to support scalable, efficient business operations.
Key Features of Payroll 365
Payroll 365 provides a wide range of features that cover global and regional payroll needs, particularly in the Middle East. As a robust Microsoft Dynamics 365 payroll app, it seamlessly integrates with enterprise systems to provide a consistent and efficient payroll experience. The application’s key features are listed below:
HR Data Management and Staff Administration – The application extends standard HR capabilities by enabling you to track migration documents, visa quotas, employee residence records, and document renewals.
Calculation of wages – Payroll 365 allows for the flexible setup of calculation rules for different countries and regions. The solution features an easy-to-use formula designer that allows users to create formulas for payroll accruals and tax deductions that follow country-specific labor laws without writing any code.
- Holiday and Benefits Management – The solution includes a wide employee holiday management module. It supports the calculation of holiday and sick leave balances, the transfer of unused days according to company policies, and the scheduling of holiday. The solution also supports holiday travel management, such as accounting for paid tickets provided to employees for traveling on annual leave.
- Termination and End-of-Service Settlement – When an employee quits or is fired, the program automatically provides assistance with all necessary calculations and processes. Payroll 365 provides an exit checklist for employees, including the return of company assets, benefit termination, severance payment processing, and end-of-service payment calculation according to company policy.
HR Functionality – In addition to payroll functions, the solution contains tools for managing the employee lifecycle. For example, it supports onboarding of new employees, processing promotions and transfers in bulk with automatic salary recalculation, and maintaining alternative calendars. These features allow the system to adapt to a company’s internal rules and different staff categories.
Employee Self-Service – An important part of Payroll 365 is the Employee Self-Service (ESS) module. ESS provides employees with access to their data and functions through a portal or interface. Through the ESS portal, employees can submit requests for vacation time, travel, expense reports, and more. Through ESS, employees can also view their electronic payroll, track their holiday balance and the status of their requests, and access other personal information. A modern feature is the embedded ESS chatbot, which can answer typical questions and help employees complete daily tasks by chatting with it. Additionally, mobile access allows employees and managers to use self-service using a mobile app or adaptive web interface, enhancing the system’s user-friendliness.
- Workflow and Process Automation – Payroll 365 uses the Dynamics 365 business process automation engine to automate approvals and notifications. For instance, holiday requests go through the manager approval process, while requests for an advance or compensation go through Financial Services. All key changes can be managed through the system’s approval process, ensuring control and transparency. As a scalable d365 payroll app, it also supports batch operations—such as group bonus payments or mass salary adjustments— to optimize the HR department’s work.
These features make Payroll 365 a powerful solution that meets most payroll and HR management needs within Dynamics 365. It is especially worth noting the focus on the Middle East, including the availability of WPS, severance pay calculation, and visa quotas, while retaining the flexibility to adapt to the legislation of other countries.
Payroll 365 Installation and Technical Specifications
Installing and implementing Payroll 365 requires qualified Dynamics 365 F&O specialists because it involves connecting a third-party module to the ERP system. As an integrated payroll app for Microsoft Dynamics 365, Payroll 365 fits seamlessly into the existing infrastructure, ensuring minimal disruption to business operations during deployment. The general stages of implementation are as follows:
How to obtain the solution: The application is distributed through Microsoft AppSource and the partner network. To purchase it, contact the developer or a Microsoft partner. On AppSource, there is a “Contact me” option for Payroll 365, which allows you to request contact information from the partner, who will then provide licensing terms and installation packages. Once an agreement has been made, Intwo will deliver the necessary software package for installation on your system.
Solution Configuration: After the technical installation, new parameters and entities related to Payroll 365 will appear in the system. The implementation specialist performs the initial configuration by defining salary parameters, setting up the payroll calendar, and entering payment and deduction types. They also set up the calculation formulas in the designer, such as the formula for calculating overtime, holiday pay, and severance pay, as well as other algorithms that may be specific to a country or company.
Support and Updates – After launch, the partner provides support to resolve issues and installs periodic updates to the solution, such as updates for compatibility with new versions of Dynamics 365 or changes in legislation. Due to the solution’s architecture, Dynamics 365 updates may require corresponding updates from Intwo. Therefore, it is important to have an active maintenance contract in place.
Pros and Cons of Payroll 365
Benefits of the App
Key benefits of Payroll 365 include:
Local Compliance — Payroll 365 is designed to comply with Middle Eastern regulations from the outset, including WPS and local labor laws. This means companies in the region receive a region-specific, ready-to-use solution. At the same time, its flexible customization allows the system to adapt to almost any country or complex HR policy.
Advanced HR Functionality – Instead of handling payroll separately, as is done with the “standard” approach, Payroll 365 offers a wide range of HR administration capabilities. These capabilities include tracking visas and documents, as well as managing employee leave and loans. These features integrate HR and payroll processes, ensuring that all HR events are immediately reflected in calculations and financial results are visible to HR.
Improved Self-Service and Employee Experience – With the Employee Self-Service (ESS) portal and chatbot, employees have modern tools with which to interact with HR and accounting. They can request time off, view their payroll, and access statements without paperwork, and the mobile-friendly design and chatbot ensure ease of use.
Reliable Support and Expertise – Intwo (Levtech) is a long-standing Microsoft partner and a member of the Inner Circle for Business Applications. This indicates a high level of expertise. Using a solution from Intwo (Levtech) ensures compatibility with Dynamics 365 updates and support. Furthermore, Payroll 365 has a successful market track record, having been used by various organizations, including large-scale projects in the Middle East.
A Single Platform for Global Businesses – Companies with a global infrastructure value Payroll 365 because it unifies processes. Using a single Dynamics 365-based module can eliminate the need for disparate local payroll programs across branches. At the same time, each branch’s unique requirements can be configured within one system without developing separate solutions.
Downsides of the App
The app still has several limitations, in particular:
Limited information and price transparency. – The product does not have open cost information in the public domain, so customers need to contact a partner for a quote. This makes it difficult to make a cost-benefit analysis. Pricing is probably dependent on the number of employees or users and may include annual support. Some perceive the lack of a fixed price for AppSource and the need to negotiate with the vendor as an inconvenience.
Not a standalone product – Payroll 365 is not a standalone product. It is designed specifically for Microsoft Dynamics 365 F&O users. This means companies not using D365 F&O cannot implement Payroll 365 separately. Even organizations using D365 with a separate Dynamics 365 Human Resources module will require customization for integration with Payroll 365 (as Dynamics HR can be deployed on Dataverse separately from F&O). In some cases, offloading HR data from an external system to Payroll 365 will require integration efforts (e.g., using the Power Platform). The best value is achieved when all HR and finance functionality is centered in the Dynamics 365 ecosystem. For companies with a mixed IT landscape, however, the benefits may decrease due to increased integration complexity.
Common Use Cases of Payroll 365 App
The Payroll 365 application is designed to solve payroll problems in a variety of situations. The following are common cases in which implementing this solution is particularly justified:
Global company with regional branches – The company has a presence in multiple countries, including the United Arab Emirates, Saudi Arabia, and Qatar, where payroll management must comply with local legislation concerning taxes, severance pay, and WPS. Payroll 365 is a system that enables companies to efficiently manage their payroll operations in multiple currencies and according to various local regulations.
Organizations Implementing Employee Self-Service – If a company is looking to improve HR efficiency and employee engagement, Payroll 365 provides an Employee Self-Service (ESS) portal that becomes the central point for all requests. Payroll 365 is useful when employees are geographically dispersed (i.e., across several offices or among remote workers) and a single channel of communication on HR issues is needed.
Manufacturing and construction companies with a large workforce – Organizations overseeing sizable workforces, frequently situated in shift camps or other such facilities. Payroll 365 is a comprehensive solution that automates the calculation of labor remuneration, including base salary, overtime, and bonuses for working conditions. It integrates with timesheets for precise hour calculation, maintains records of employee accommodation in dormitories (Camp Management), and automatically calculates deductions for accommodation and meals.
Alternative Apps for Dynamics 365 F&O
The market for payroll solutions on the Microsoft Dynamics 365 F&O platform is served by other products. If you’re exploring the Dynamics 365 apps list for suitable HR and payroll tools, you’ll find several robust alternatives to Payroll 365. The following three applications, which solve similar tasks, are discussed below:
LITS Payroll by LITS SERVICES
LITS Payroll – An alternative solution created by another Microsoft partner is designed for Dynamics 365 Finance & Operations. LITS Payroll, like Payroll 365, is designed to ensure compliance with GCC and MENA country labor regulations. The product description makes a point of highlighting its compliance with the regulatory requirements of these countries (e.g., GOSI in Saudi Arabia, UAE regulations, etc.), aligning with the Payroll 365 approach.
iPay – Intertec Payroll for Middle East D365 ERP by Intertec Systems LLC
iPay – Intertec Payroll for Middle East D365 ERP – Another solution introduced at AppSource is focused on the Middle East (GCC) markets. iPay is a payroll module for Dynamics 365 that helps simplify payroll processes and improve payment accuracy by managing the full payroll cycle – from leave accounting to loan management. iPay provides a comprehensive set of features, including salary calculation, allowance and deduction management, accounting for holiday entitlements, overtime and gratuity calculation.
DS Payroll365 for FO
DS Payroll365 for FO is a comprehensive HRM solution that combines HR and Payroll based on Dynamics 365 from another vendor. DS Payroll 365 is a comprehensive HR management platform that includes features such as payroll, performance management, recruitment, and more.The primary emphasis is on cloud architecture and scalability to support both local and global business requirements.
Conclusion: Should You Use Payroll 365?
Payroll 365 successfully addresses a specific market need by offering a wide range of features, such as processing monthly accruals, managing visas, and facilitating holiday travel, all in one package. The solution’s primary benefit is its extensive and flexible nature. In our payroll dynamics app review, we examined how Payroll 365 goes beyond standard payroll services to encompass related HR processes.
It provides a centralized data repository and automates business processes from start to finish. Integration with the ERP core eliminates system bottlenecks and increases transparency. Managers gain a clear view of staff costs, and employees receive a modern service for interacting with HR and accounting.
In this payroll app review, Dynamics 365 Payroll 365 stands out as a great example of platform extensibility, making it a valuable resource for technical specialists and consultants. From an architectural standpoint, it integrates with the Finance and Operations departments and likely employs well-known technologies, such as X++, OData/Batch integration, and utilization of standard HR entities. This flexibility allows the solution to be customized or extended to meet the unique needs of the client using the same development tools as D365.
Additionally, the intuitive LCS and D365 Admin Center interface streamlines the administration of the application, enhancing support efficiency. The selection of a tool depends on the organization’s needs, but Payroll 365 is certainly worth considering as a solution that can elevate payroll and HR management efficiency.
The post Payroll 365 Review first appeared on D365 Apps.
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Written by

Oleksandr Volkovitskiy
Oleksandr Volkovitskiy
I am a tech professional with strong expertise in Microsoft Dynamics 365 CE, Canvas Apps, and Power Automate. I work with Azure Functions, Logic Apps, and PCF components, delivering tailored and integrated solutions. Passionate about Microsoft technologies, he shares his insights with the community.