In the world of finance, efficiency and accuracy are paramount. One area where these qualities are particularly important is in the management and processing of invoices. This is where the Invoice Capture solution in D365 comes in.
How does it work?
Invoice Capture is a feature in D365 F&O that automatically creates supplier invoices from digital invoice images, including JPGJPG is an image filetype. Short for Joint Photographic Experts Group, it is a lossy compression method. and PDFPortable Document Format is a file format by Adobe for presenting documents independently of software, hardware, or operating system. file formats. The solution leverages OCROptical Character Recognition is a technology that extracts text from images, screenshots, and physical documents. technology and AIArtificial Intelligence is a field of computer science dedicated to creating systems that mimic human intelligence. to digitise printed text, making content electronically editable, searchable, and storable.
(N.B. sensitive data is redacted)
The Invoice Capture app is easily configured to receive invoices from different channels, including email, OneDrive and SharePoint, with optional constraints on file names, types and sizes. Tolerances for AIArtificial Intelligence is a field of computer science dedicated to creating systems that mimic human intelligence. confidence can be manually applied. The app is then connected to specific legal entities in your target environment, allowing supplier accounts (vendors) to be imported and selected for mapping.
Once processed, supplier invoices are passed directly into the Purchase ledger module of D365 F&O, where further automation can include three-way matching, posting, and scheduled payments.
What do I need to use it?
Once the “Setup system” configuration wizard is completed – and security roles are configured – the app works quite effectively out-of-the-box and only gets better with experience. It will need its virtual hand held initially, whilst it gets used to the nuances of different suppliers, but that also allows AP users to gain confidence in the output.
The following licenses must be considered for Dynamics 365 Finance customers:
- Power Apps license (per user) – To access Invoice capture, users must access Power Apps.
- Invoice processing fee based on number of invoices – Dynamics 365 Finance customers are entitled to 100 invoice capture transactions per tenant per month. If customers need more transactions, they must purchase extra Electronic Invoicing stock keeping units (SKUs) for 1,000 transactions, per tenant, per month.
- Azure Data Lake Storage subscription – Becomes a consideration in the event that the standard 20 GB user storage becomes insufficient to store original invoice documents.
Anything else to know?
Invoice capture became general availability (GAGeneral Availability is the stage when software, or specific functionality, is considered stable and fully operational, tested and approved, and is available for public use.) in April 2023, finally bringing a native invoice processing feature to D365 F&O. Previously, the only way to adopt such functionality was to license an independent software vendor (ISVAn Independent Software Vendor is a partner that builds, deploys, and sells industry-specific solutions.) such as Axtension® Invoice Processing in conjunction with Kofax Readsoft.