Dynamics 365 Finance Invoice Automation in Simple Terms
Finally, a way to import vendor invoices into Dynamics 365, perform the three-way match and post the invoice for purchase orders! Gone are the days of entering vendor invoices one at a time!
The Functionality Explained
Vendor invoices for Purchase orders can now be imported using the data management functionality. The input files can be created or generated from a service provider using optical character recognition (OCR).
Once the invoice data is imported to D365FO, the invoice processing can be automated, including workflow, matching product receipts, appling pre-payments, and posting.
There is even a workspace where the invoice automation can be reviewed and managed.
Enabling the New Feature
The Automated invoice processing feature must be enabled. That feature is called “Vendor invoice automation”.
Once the feature is enabled, the Vendor invoice automation tab becomes available on the Accounts Payable Parameters so the feature can be configured.
Configuration options include the ability to
- Automatically submit invoices to workflow.
- Enable the system to ‘Match product receipts to the imported invoice’ prior to submitting to the workflow if the Purchase order requires three-way match. The ‘enable invoice matching’ must be enabled which is found on the AP Parameters Invoice validation tab.
- Enable the system to ‘Require the calculated totals to equal the imported totals’. The imported file can include an imported invoice total and if this is enabled, the calculated total must equal the imported total amount before it can be submitted to workflow. If this option is not enabled, the invoice will be submitted to workflow regardless if the totals match. If the totals do not match, the invoice will not post without manual intervention and correction.
- Enable the system to ‘Automatically match product receipts to invoice lines’ using a background process. The ‘enable invoice matching’ must be enabled which is found on the AP Parameters Invoice validation tab.
- Set the ‘Maximum allowed attempts’ to determine how many attempts the system will make to match receipts before the process is considered a failure.
- Enable the system to ‘Automatically apply prepayment invoices’. The system will look for and create the prepayment line on the invoice to apply the prepayment to the invoice automatically.
- And finally, to determine if the system should block the invoice from further processing if a pre-payment cannot be applied. The invoice processing will not continue until there is a manual review of the invoice.
A Vendor invoice workflow is required in order for the process to operate without manual intervention and should include the automatic invoice posting task.
The Data management functionality can be used to import the invoices. Included in the import package are the following entities:
- Vendor invoice header
- Vendor invoice line
- Vendor invoice document attachment
Vendor Invoice Processing
Imported invoices can be viewed from the Pending vendor invoice page or from the Vendor invoice automation workspace. The workspace also includes BI analytics for the invoice automation process for the AP manager.
Additional information is avaible such as statuses of the processes and the imported and invoice totals.
Additional information is also available on the Pending invoice including a link to the history of the automation process.
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