Accounts Payable Automation for Business Central: Build for Efficiency
Explore the essentials of accounts payable automation for Microsoft Dynamics 365 Business Central, covering both native capabilities and powerful third-party integrations. Learn how to transform your AP processes from manual to automated, ensuring accuracy and efficiency.
Allen Seavert · AI AutoAuthor
December 21, 20259 min read
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Understanding accounts payable automation for business central
Accounts payable automation for Business Central is no longer a luxury; it's a strategic imperative for any forward-thinking organization. The logic is simple: manual AP processes are inefficient, error-prone, and a significant drain on resources. We've seen firsthand how businesses struggle with endless paper invoices, delayed approvals, and missed payment discounts. The real question is not if you need automation, but how you implement it effectively within your Microsoft Dynamics 365 Business Central environment.
Many finance teams are still trapped in the past, manually keying in data, chasing down approvals, and reconciling discrepancies. This isn't just slow; it's a massive bottleneck that stifles growth and accurate financial reporting. Modern businesses need systems that provide real-time visibility, minimize human error, and free up finance professionals to focus on strategic analysis rather than data entry. This is precisely what accounts payable automation aims to achieve.
The Strategic Imperative of Accounts Payable Automation for Business Central
Manual accounts payable is a broken system for most organizations. Here's what actually happens: invoices arrive via email, post, or even fax. Someone manually opens them, extracts data, and keys it into Business Central. Then begins the arduous journey of routing for approval, often via email chains or physical sign-offs. Errors are common, duplicates proliferate, and the process grinds to a halt. This impacts cash flow, vendor relationships, and compliance.
The logic is clear: automating these processes doesn't just save time; it transforms your financial operations. It reduces the cost per invoice, accelerates cycle times, and enhances data accuracy. By adopting robust business workflows, you can ensure that every invoice moves through the system with precision and speed. This isn't about replacing people; it's about empowering them with better tools and systems.
For businesses running on Microsoft Dynamics 365 Business Central, the path to automation is twofold: leveraging native capabilities and integrating specialized third-party solutions. Both play a critical role in building a resilient and efficient AP function. Most teams get this wrong by only looking at one side of the coin, missing out on the compound returns that a holistic approach can deliver.
"The Payables Agent, introduced in the 2025 Wave 1 release plan, automates AP by sourcing PDF invoices from Microsoft 365 email, using Azure Document Intelligence for OCR to extract data, and creating purchase invoices."
"Rillion offers AI invoice capture (90%+ accuracy), auto-coding, 3-way PO matching, mobile approvals, and payments, handling multi-entity and syncing with Business Central."
"D365 AP Automation offers AI-OCR capture, invoice matching, configurable approvals, and GL assignment built directly into Business Central with transaction-based pricing."
Allen Seavert is the founder of SetupBots and an expert in AI automation for business. He helps companies implement intelligent systems that generate revenue while they sleep.
Business Central's Native AP Automation: The Payables Agent
Microsoft understands the need for streamlined financial operations, and their commitment is evident in new features. The Payables Agent, introduced in the 2025 Wave 1 release plan, represents a significant step forward for native accounts payable automation within Business Central [1]. This built-in tool is designed to process vendor invoices directly from email attachments, using advanced OCR (Optical Character Recognition) and AI capabilities.
Here's how it works: the Payables Agent sources PDF invoices from Microsoft 365 email. It then uses Azure Document Intelligence for OCR to extract key data points. Based on your purchase history, established accounting policies, and settings within Business Central, it automatically creates purchase invoices. Key steps include importing attachments into E-Documents for processing and validating OCR results via an updated PDF viewer [1].
While powerful for foundational tasks, it's important to understand the scope. The Payables Agent focuses on invoice capture and initial creation. While it lays a strong groundwork for auto-generating invoices for approval and posting, Business Central still lacks some of the more advanced, nuanced features out-of-the-box, such as AI auto-coding for complex scenarios or highly flexible multi-entity approvals [4, 5, 7]. This is where a more comprehensive strategy involving specialized integrations comes into play.
Beyond Native: Advanced Accounts Payable Automation for Business Central
When native features reach their limits, the real opportunity lies in integrating purpose-built solutions. These third-party applications extend Business Central's capabilities, providing robust features like advanced AI, deeper OCR, sophisticated three-way matching, and comprehensive workflow automation. This is where automated business systems truly shine, turning AP from a cost center into a lean, strategic function.
For organizations with high invoice volumes, complex approval hierarchies, or multi-entity structures, these specialized tools are non-negotiable. They fill the gaps, offering functionalities that significantly reduce manual effort, minimize errors, and ensure compliance at scale. The real question is identifying which solution best aligns with your specific operational needs and long-term growth objectives. We've seen that a one-size-fits-all approach rarely delivers optimal results.
Mekorma: Comprehensive Payables Management
Mekorma offers end-to-end AP workflows that are deeply embedded within Business Central [3]. Their "cruise control for payables" approach focuses on streamlined processing and robust cash flow management. This solution aims for seamless integration, ensuring that all AP functions operate within your familiar ERP environment, giving you centralized control and reducing the need to jump between systems.
Rillion: AI-Powered Accuracy and Matching
Rillion stands out with its high-accuracy AI invoice capture, boasting over 90% accuracy [4]. This system goes beyond simple data extraction, offering AI auto-coding that learns from your historical data. It also provides advanced three-way PO matching, mobile approval capabilities, and integrated payment processing. Rillion is particularly adept at handling multi-entity structures and syncs audit trails back to Business Central, ensuring data integrity and compliance [4].
Tipalti: Global Scale and Fraud Prevention
For businesses with global operations, Tipalti offers a comprehensive end-to-end payables solution designed to reduce workload by as much as 80% [5]. It focuses on global compliance, robust fraud prevention, and automated tax processes. Tipalti integrates seamlessly with Business Central and other Dynamics ERPs, making it an ideal choice for organizations needing to manage a diverse supplier base and international payments [5].
Stampli: Dynamic Workflows and Customization
Stampli addresses many of Business Central's manual gaps by providing strong invoice capture, robust PO matching, and highly dynamic workflow capabilities [7]. It supports multi-entity structures and offers real-time synchronization with Business Central, handling custom fields and dimensions. Stampli is built for flexibility, allowing businesses to configure approval workflows and data capture to fit their unique requirements [7].
D365 AP Automation (Marketplace): Built-in Efficiency
Found directly on the Microsoft Marketplace, D365 AP Automation offers AI-OCR capture, invoice matching, configurable approvals, and GL assignment built directly into Business Central [6]. This solution operates on a transaction-based pricing model, eliminating the need for additional standalone applications. It provides a native-like experience while adding the advanced automation features many businesses require for efficient accounts payable automation for Business Central.
Choosing the Right Accounts Payable Automation Solution
The selection process for the right accounts payable automation solution for Business Central isn't about finding the most feature-rich product; it's about aligning technology with your operational logic. Most teams get this wrong by focusing solely on flashy features. The architecture is the strategy, and your AP system needs to be built on a solid foundation.
Here's how we approach it:
Assess Your Volume and Complexity: How many invoices do you process monthly? Do you have complex multi-entity structures or global payment requirements? Starting with the native Payables Agent makes sense for basic automation, then scale up as needs demand [1, 9].
Identify Key Bottlenecks: Where are your biggest delays and errors occurring? Is it data entry, approval routing, or reconciliation? Understanding these will guide your feature requirements.
Evaluate Integration Depth: How seamlessly will the solution integrate with Business Central? A truly effective system operates as an extension of your ERP, not as a siloed application.
Consider Future Scalability: Your AP solution should grow with your business. Look for platforms that can adapt to increasing invoice volumes, new entities, or evolving compliance needs. Comparing tools specifically designed for Business Central/NAV users can provide valuable insights [9].
Focus on ROI and Performance Analytics: The goal isn't just automation; it's about measurable improvements in efficiency, cost reduction, and accuracy.
We've seen businesses transform their AP departments by adopting this structured approach. It's about building for the logic of your business, not just chasing the latest buzzwords. The real question is what specific problems are you trying to solve, and how will a chosen solution integrate into your broader financial ecosystem?
What SetupBots Does Differently
At SetupBots, we don't just implement software; we engineer intelligent systems. Our approach to accounts payable automation for Business Central is rooted in our core philosophy: "Build for the Logic." We understand that simply plugging in a tool isn't enough. You need a cohesive, integrated strategy that optimizes your entire financial workflow.
We treat AI agents and automation tools as "Teammates, Not Tools." This means we analyze your existing processes, identify critical friction points, and design a custom solution that leverages the best native Business Central features alongside market-leading third-party integrations like Rillion, Tipalti, or Stampli. We focus on creating AI automation architectures that deliver compound returns, not just quick wins.
Our expertise lies in connecting these disparate systems into a unified, high-performing AP engine. From initial invoice capture and AI coding to complex approval workflows and secure payments, we architect solutions that are robust, scalable, and tailored to your unique business requirements. Most teams get this wrong by trying to force-fit a generic solution. We build bespoke systems that truly understand and adapt to your organizational DNA, ensuring your accounts payable automation for Business Central delivers maximum strategic value.
Frequently Asked Questions
What are the core benefits of accounts payable automation for Business Central?
The core benefits include significant reductions in processing costs and time, improved data accuracy, fewer errors and duplicates, enhanced compliance, better cash flow management through optimized payment timing, and freeing up finance staff for more strategic activities.
Does Business Central have native AP automation features?
Yes, Microsoft Dynamics 365 Business Central is enhancing its native AP capabilities. The new Payables Agent, part of the 2025 Wave 1 release plan, uses OCR and AI to process vendor invoices from email attachments, automatically creating purchase invoices. This provides a foundational level of automation.
How do third-party solutions enhance Business Central's AP capabilities?
Third-party solutions extend Business Central's native features by offering advanced AI-driven invoice coding, sophisticated three-way matching, highly configurable approval workflows, multi-entity support, global payment capabilities, and robust fraud prevention. These tools provide deeper automation and specialization for complex or high-volume AP operations.
Conclusion
Implementing accounts payable automation for Business Central is no longer optional; it's a strategic differentiator. By embracing both Business Central's evolving native capabilities and powerful third-party integrations, organizations can transform their AP function from a manual cost center into a lean, efficient, and data-driven powerhouse. The future doesn't wait. Neither should you. The architecture is the strategy.
If you're ready to build for the logic and unlock the full potential of your finance operations, an AI Opportunity Audit can help you chart the optimal path forward.
The future doesn't wait. Neither should you. – Allen
"Stampli provides invoice capture, PO matching, dynamic workflows, and multi-entity support with real-time sync to Business Central, addressing manual gaps."
Not Financial or Legal Advice: The information provided is for informational purposes only and does not constitute financial, legal, or professional advice. Consult with qualified professionals before making business decisions.
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