Accounts payable (AP) automation has become a must-have for finance teams running Microsoft Dynamics 365. Manual invoice handling and approvals drain time and add errors. By adding an AP automation layer like Zahara's accounts payable automation software, you can streamline invoice processing, improve visibility, and speed up supplier payments, all within your Dynamics environment.
Why Add AP Automation to Microsoft Dynamics 365?
Microsoft Dynamics 365 is a powerful ERP platform, but its built-in accounts payable features have limits. Manual data entry, missing invoices, and slow approval cycles are common pain points for finance teams.
Adding an automation layer solves these issues by:
- Capturing invoices automatically with OCR software.
- Routing approvals through a clear, auditable workflow.
- Posting approved invoices directly into Dynamics 365.
- Managing scheduled supplier payments with full control and visibility.
Automation gets invoices processed quickly and accurately, freeing your team to focus on higher-value work.
Integration Options for AP Automation in Dynamics 365
When connecting AP automation to Microsoft Dynamics 365, you have two main paths.
1. API or connector integration
A pre-built connector, such as Zahara's integration with Microsoft Dynamics 365 Business Central, syncs data automatically between systems. This setup ensures:
- Invoice data flows seamlessly into Dynamics.
- Supplier details are matched instantly.
- Approvals trigger automatic posting and payment scheduling.
It is fast to deploy and needs no custom development.
2. File or batch integration
For organisations with complex setups or multiple entities, batch imports may be preferable. Zahara supports CSV and XML exports that align with the Dynamics 365 data structures, making it simple to import invoices and approvals in bulk.
Step by Step: Setting Up AP Automation for Microsoft Dynamics 365
Here is a straightforward guide to getting started.
- Connect your Dynamics 365 account. Use Zahara's secure integration to link your Dynamics 365 environment.
- Import supplier and cost codes. Pull supplier records, cost centres, and account codes directly from Dynamics to keep data accurate.
- Configure approval workflows. Set up multi-step invoice approvals for purchase orders and invoices, assigning roles and approval limits for each department.
- Enable invoice capture. Activate automated invoice processing with OCR. Invoices received by email are scanned, coded, and made ready for approval automatically.
- Define posting rules. Decide when invoices post to Dynamics: instantly after approval, or in scheduled batches for review.
- Test your setup. Run a test invoice from capture to payment to confirm all data maps correctly between systems.
Best Practices for a Smooth Integration
To get the most from your AP automation setup, follow these proven tips.
Keep your supplier data clean
Duplicate or outdated supplier records cause sync errors. Review and update supplier details in Dynamics 365 regularly.
Standardise your approval process
Map out your approval hierarchy before automating it. Use clear rules for who approves what, based on spend thresholds and departments.
Train your team
Show users how invoices move through the system and where to check statuses. Clear onboarding reduces resistance to change.
Use analytics
Zahara's reporting tools help you track invoice volumes, approval times, and spend trends, giving you the insight to refine your process.
Start small
Begin with one department or entity, validate the workflow, then expand gradually. This approach minimises disruption.
Why Choose Zahara for Dynamics 365 Accounts Payable Automation
Zahara is built for Microsoft Dynamics 365 users who want complete control over purchasing and invoices without the complexity of large ERP modules.
With Zahara, you can:
- Capture, code, and approve invoices in minutes.
- Control budgets and prevent overspending.
- Sync approved data to Dynamics 365 automatically.
- Manage both domestic and international payments.
Ready to modernise your AP process?
Book a demo today and see how Zahara connects seamlessly with Microsoft Dynamics 365 to automate invoice processing and payments.