The Invoice Capture solution allows us to automate supplier invoices, from receipt to payment. This automation can significantly reduce manual work, minimize errors, improve efficiency and strengthen financial control throughout the organization. Let's review the benefits, the steps for its installation and how it works.
Benefits
- End-to-end invoice automation – Validated invoices are sent through predefined workflows for approval. This typically involves multiple levels of authorization, depending on the invoice amount, vendor, or other criteria you want to define.
- Expense Control – Being a centralized process, we have greater control over all expenses. Data is validated against purchase orders, contracts or other internal documents to ensure accuracy.
- OCR – Invoices are received via multiple channels (email, EDI, paper, Sharepoint, Onedrive) and automatically captured using OCR (Optical Character Recognition) using AI builder technology (Power Platform)
- ERP Integration – Approved invoices are automatically recorded in the organization’s ERP system for processing and payment. This integration ensures seamless data transfer and updates across all financial systems. It is worth noting that the integration with D365 Finance & Operations is already predefined by Microsoft and is very easy to set up.
Facility
In Dynamics 365 F&O version 10.0.38, the Invoice Capture icon was added to the home page. A number of prerequisites are required before installing the tool:
- The invoice capture feature must be enabled.
- A Power Platform environment must be created.
- The Finance and Operations entity must be installed in the Power Platform environment.
- Invoice Capture is supported on version 10.0.33 and later.
If the prerequisites are met and the invoice capture feature is enabled, the Suppliers > Setup > Invoice Capture path will be visible.
Before installing Invoice Capture, the following configuration must be completed:
✓ In “Synchronized Legal Entities” we will decide which entities we want to incorporate.
✓ We will decide if the attachment will be sent along with the invoice from Invoice Capture.
✓ We will maintain the mapping between the invoice type in Invoice Capture and the invoice framework for creating invoices in D365 F&O. The following options are supported in the current release:
Finally, all that remains is to install the solution and we will do so from AppSource, searching for Invoice Capture.
We will log in and select Free Trial. The system will automatically navigate to the Power Platform admin within the same tenant. Users will be able to choose the environment.
The system will install the solution in the background. Once complete, the solution will appear in your environment in Power Apps.
You will need to go to System Settings > Manage Legal Entities and Manage Suppliers to sync both from Dynamics 365 F&O.
Operation
- The vendor sends his invoice by email or uploads it to a repository such as SharePoint or OneDrive.
- The invoice is automatically sent to the Invoice Capture solution.
- The invoice status will automatically change as the invoice passes the approval process.
- The invoice arrives in D365 F&O and is located in 'Pending Supplier Invoice List'.
- The following process will occur in the list of pending invoices:
- The invoice is matched with the purchase order and the delivery note (if applicable).
- If an approval flow exists, the invoice must go through that flow and be either approved or rejected. If no flow exists, the invoice can be configured to be posted automatically.
- The invoice is registered and ready to pay
We leave you the link to the official Microsoft documentation for more information.
Install Invoice Capture – Finance Solution | Dynamics 365 | Microsoft Learn