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Supplier Invoicing: Workflow Invoice Matching Automation

Workflow based Supplier Invoice Processing Automation

Dynamics 365 Finance and Supply Chain Management offers workflow-based automation for supplier invoice processing. This automation streamlines and accelerates the invoice approval and payment processes while reducing manual tasks and errors. Here’s an overview of how workflow-based supplier invoice processing works in Dynamics 365 Finance and Operations:

  1. Invoice Capture: Invoices can be received through various channels such as email, mail, or electronic data interchange (EDI). Dynamics 365 Finance and Operations provides tools to capture and digitize invoices, extracting relevant information using Optical Character Recognition (OCR) technology. This minimizes manual data entry and improves accuracy.
  2. Invoice Validation: Once the invoices are captured, the system validates them against predefined rules and criteria. This includes checking for duplicate invoices, verifying the accuracy of invoice data, and matching invoices with purchase orders or contracts.
  3. Workflow Setup: Administrators can define and configure workflow rules and approval processes based on the organization’s requirements. Workflows can be designed to route invoices to the appropriate approvers based on factors such as invoice amount, vendor, or expense category.
  4. Invoice Approval: When an invoice enters the workflow, it is automatically routed to the designated approvers for review and approval. Approvers can access the invoice details, review the supporting documents, and make decisions within the system. Notifications and reminders can be sent to ensure timely processing.
  5. Exception Handling: In case of discrepancies or exceptions, such as price mismatches or missing information, the workflow can be configured to route the invoice to the appropriate personnel for resolution. This ensures that exceptions are addressed promptly, reducing delays in payment processing.
  6. Integration with Financials: Approved invoices are seamlessly integrated into the financial management module of Dynamics 365 Finance and Operations. This allows for accurate tracking of expenses, allocation to appropriate general ledger accounts, and facilitates payment processing.
  7. Payment Processing: Once invoices are approved and integrated with financials, Dynamics 365 Finance and Operations provides functionality to manage payment processing. This includes generating payment proposals, selecting invoices for payment, and initiating payments through various methods such as checks, electronic funds transfer (EFT), or payment service providers.
  8. Reporting and Analytics: Dynamics 365 Finance and Operations provides robust reporting and analytics capabilities to gain insights into the invoice processing cycle. You can track the status of invoices, identify bottlenecks, monitor approval cycle times, and generate reports on vendor performance and payment history.

By leveraging workflow-based supplier invoice processing automation in Dynamics 365 Finance and Operations, organizations can streamline their accounts payable processes, improve efficiency, reduce errors, and gain better control and visibility over their financial operations.

APQC Framework

Please find below the relevant PCF ID’s.

Level 1 Category: 17058

Level 2 Process Group: 10733

Level 3 Process: 10756