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Beau Schwieso

Invoice Capture in D365: The Secret Sauce to AP Bliss


Hey there, AP warriors and Dynamics enthusiasts! Do you ever look at a pile of invoices and think, “There’s gotta be a better way…”?


Good news: there is! The Invoice Capture app in Dynamics 365 Finance & Operations is here to save the day. Packed with OCR magic and AI smarts, it’s the superhero your Accounts Payable team didn’t know they needed.




What Makes Invoice Capture a Game-Changer?

Imagine this (don't close your eyes, I need you to keep reading)... Instead of your AP team manually entering data from every invoice, the Invoice Capture app uses Optical Character Recognition (OCR) and AI to extract it for you. It validates the data, routes it through workflows, and sends it straight into D365. Think of it as a digital assistant that works 24/7 and never asks for coffee breaks.


Here’s the kicker; Invoice Capture doesn’t just handle routine tasks; it learns over time. The more you use it, the smarter it gets. Ready to dive into the nuts and bolts? Let’s start with the lifeblood of the app: channels, configuration groups, and mapping rules.


Channels: The Invoice Superhighway

Channels define the pathways invoices take to enter Invoice Capture. Think of them as the highways and toll roads leading into your AP department.


Main Types of Channels:

  • Email Channel: Vendors can send invoices directly as email attachments.

  • Direct Upload: Drag and drop invoices straight into the system.

  • Third-Party Integrations: Use integrations to pull invoices from external systems.


Why Channels Matter

Instead of chasing down invoices across multiple systems or email threads, channels centralize everything into one workflow. Set them up right, and your invoices will practically route themselves.


Dad Analogy

Channels are like airport terminals—each one handles passengers (invoices) coming in from different destinations.


Configuration Groups: Your Tailor-Made Rules Engine

These are your behind-the-scenes rules that tell Invoice Capture how to handle specific types of invoices. For example, invoices from Vendor A might require different validation steps than invoices from Vendor B.


Common Use Cases For Configuration Groups

  1. By Vendor: Customize workflows for specific suppliers.

  2. By Region: Ensure compliance with local tax and legal requirements.

  3. By Invoice Type: Differentiate between PO and non-PO invoices.


Why Configuration Groups Matter

They add a layer of flexibility to your AP process. Instead of forcing all invoices through the same pipeline, you can tailor workflows to meet unique business needs.


Dad Analogy

Configuration groups are like playlists—each one sets the perfect mood (or workflow) for the occasion.


Mapping Rules: Translating Invoices into D365 Language

Mapping rules define how data is extracted from an invoice and mapped to fields in D365. They’re the translators that turn unstructured invoice data into structured, actionable information.


How They Work

  1. Field Mapping: Identify key pieces of information, like invoice numbers and totals, and assign them to D365 fields.

  2. Validation Rules: Ensure data accuracy by enforcing checks (e.g., totals must match line items).

  3. Formatting Rules: Clean up data by removing unwanted prefixes or characters.


Why Mapping Rules Matter

They ensure the system interprets invoices correctly, reducing errors and manual corrections.

Dad Analogy: Mapping rules are like GPS—they translate an address (invoice data) into turn-by-turn directions (D365 fields).


The Invoice Capture Workspace & Dashboard: Your Command Center

The Workspace is your go-to hub for tracking invoices. It provides a real-time view of every invoice’s status, from receipt to posting.


Key Features:

  • Invoice Status Overview: See which invoices are pending, under review, or ready to post.

  • Task Lists: Clerks can view and manage their assigned tasks.

  • Alerts: Notifications flag missing fields or errors for quick resolution.



The dashboard offers data-driven insights into your AP process, including:

  • Invoice Volume: Track how many invoices are processed daily, weekly, or monthly.

  • Touchless Processing Rate: Monitor how many invoices are handled automatically.

  • Error Rates: Identify patterns in exceptions and refine your rules to minimize them.


Why You’ll Love It

The workspace keeps your AP team organized, while the dashboard helps you make data-driven improvements.


Dad Wisdom: The workspace and dashboard are like the cockpit of an airplane—giving you all the tools and controls you need for a smooth flight.


Setting It Up: Your Quick-Start Guide

Here’s how to get Invoice Capture up and running:


  1. Choose Your Channels: Decide how invoices will enter the system (email, upload, etc.).

  2. Define Configuration Groups: Set up rules tailored to vendors, regions, or invoice types.

  3. Set Mapping Rules: Map data fields, validate accuracy, and clean up formatting.

  4. Train the System: Let your team correct errors early on so the AI can learn and improve.

  5. Monitor Performance: Use the dashboard to track metrics and fine-tune the process.


Common Pitfalls When Using Invoice Capture (And How to Avoid Them)

Let’s be honest, no implementation is perfect on day one. Here are some pitfalls you might encounter and how to dodge them:


  1. Not Testing All Invoice Formats: Some invoices may use non-standard layouts or languages. Ensure your mapping rules and OCR settings can handle the quirks.

    1. Tip: Test with a variety of sample invoices before going live.

  2. Ignoring Validation Errors: If validation rules are misconfigured, your AP team may get stuck fixing the same errors repeatedly.

    1. Tip: Involve your AP team in setting up and refining validation rules—they know where the pain points are.

  3. Forgetting to Train the System: The AI learns from your corrections. If no one is reviewing and approving those corrections, the system won’t improve.

    1. Tip: Assign a dedicated person to monitor corrections during the early stages of adoption.


Advanced Tips for Power Users

For those of you ready to take Invoice Capture to the next level, here are some advanced strategies:


  • Custom AI Models with AI Builder: If your invoices are extra tricky, consider training a custom AI model in the Power Platform to handle those edge cases.

  • Integrating with Power BI: Want deep insights? Create Power BI dashboards pulling data from the Invoice Capture dashboard. Track trends like processing times, error rates, and vendor performance.

  • Leveraging Power Automate: Build workflows for scenarios like notifying vendors about missing information or escalating exceptions to the right team member automatically.


Industry-Specific Use Cases

It’s always fun to bring in real-world examples. Here’s how different industries can make the most of Invoice Capture:


  • Manufacturing: Automate bulk invoice processing for thousands of purchase order-based invoices from suppliers.

    • Pro Tip: Use configuration groups to handle invoices for raw materials differently than finished goods.

  • Retail: Handle invoices from global vendors with varying tax codes and currencies.

    • Pro Tip: Set up mapping rules to standardize currency conversions automatically.

  • Healthcare: Process invoices for services and equipment rentals, ensuring compliance with regional regulations.

    • Pro Tip: Use mapping rules to enforce mandatory fields like service date ranges.



Dad Joke of the Day

Why did the bed wear a disguise? It was undercover.



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