Accounts Payable (AP) automation has become a must-have for finance teams using Microsoft Dynamics 365. Manual invoice handling and approvals drain time and increase errors. By integrating an AP automation solution like Zahara, you can streamline invoice processing, improve visibility, and speed up supplier payments — all within your Dynamics environment.
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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 ensures invoices are processed quickly and accurately, allowing your team to focus on higher-value work.
Integration Options for AP Automation in Dynamics 365
When integrating AP automation with Microsoft Dynamics 365, you have two main paths:
1. API or Connector Integration
A pre-built connector — like Zahara’s integration with Microsoft Dynamics 365 Business Central — allows data to sync 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’s fast to deploy and doesn’t require custom development.
2. File or Batch Integration
For organisations with complex setups or multiple entities, batch imports may be preferred. Zahara supports CSV and XML exports that align with Dynamics 365’s data structures, making it simple to import invoices and approvals in bulk.
Martin Peirce
Founder and CEO
Step-by-Step: Setting Up AP Automation for Microsoft Dynamics 365
Here’s a straightforward setup guide to get 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 maintain data accuracy. - Configure approval workflows
Set up multi-step approvals for purchase orders and invoices. Assign roles and approval limits for each department. - Enable invoice capture
Activate invoice processing with OCR. Invoices received by email are automatically scanned, coded, and ready for approval. - Define posting rules
Decide when invoices should 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 can cause sync errors. Regularly review and update supplier details in Dynamics 365.
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 insights to refine your process.
Start small
Begin with one department or entity, validate the workflow, and expand gradually. This approach minimises disruption.
Common Challenges — and How to Avoid Them
| Challenge | Solution |
|---|---|
| Data mismatch between systems | Use Zahara’s mapping tools to align fields with Dynamics 365. |
| Approval delays | Set automated reminders for pending approvals. |
| Duplicate invoices | Activate duplicate detection in both Zahara and Dynamics. |
| Staff resistance | Involve key users early in testing and workflow design. |
Why Choose Zahara for Dynamics 365 AP 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
Book a demo to see how Zahara can simplify your Accounts Payable process.
FAQs
Yes. Zahara connects directly with Business Central via API, enabling automatic data synchronisation for suppliers, invoices, and payments.
Yes — Zahara provides customisable approval workflows that link directly to Dynamics. Approvers can review and sign off invoices by email or mobile.
Most Zahara integrations with Dynamics 365 can be completed in under a week, depending on system complexity and data quality.
Zahara supports PDF, scanned, and electronic invoices using OCR technology, removing the need for manual entry.
Minimal. Zahara is designed for finance teams to use without IT support. Training typically takes less than an hour.
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.
