Automating Accounts Payable and Receivable in Microsoft Dynamics 365 Business Central: A Strategic Advantage

In today’s fast-paced financial landscape, automation is no longer a luxury—it’s a necessity. For organizations seeking to streamline operations, reduce manual errors, and improve financial visibility, Microsoft Dynamics 365 Business Central (BC) offers a robust suite of automation tools for Accounts Payable (AP) and Accounts Receivable (AR). As a cloud-based ERP solution, Business Central empowers finance teams to shift from reactive bookkeeping to proactive financial management.

This blog explores how Business Central automates AP and AR processes, the strategic benefits of these capabilities, and real-world implementation insights from recent demos and client engagements.

Accounts Payable Automation: From Manual Entry to Intelligent Workflows

Invoice Capture and Processing

Business Central’s AP automation begins with intelligent invoice capture. Using embedded solutions like Continia, invoices received via email are automatically scanned using AI-powered OCR. Key data—such as invoice number, vendor name, amounts, and due dates—is extracted and populated into Business Central without manual entry

This seamless integration eliminates the need for external systems. As Brett Feldman emphasized during the SWA - Microsoft Dynamics 365 Business Central - Continia Demo , “Continia is not a separate system—it’s embedded directly into Business Central. If you looked at the ones and zeros, we’re the same code”

Approval Workflows and Error Handling

Once captured, invoices enter customizable approval workflows. These workflows support multi-level routing based on approval limits, departments, or project codes. Approvers can delegate tasks, set out-of-office rules, and receive dynamic notifications tailored to their preferences

Invoices with missing data or new vendors are flagged for review. Vendor-specific templates ensure consistent coding and reduce errors. For recurring invoices, Business Central links them to purchase contracts, tracks review dates, and manages variance thresholds—ideal for managing predictable spend

Payment Processing and Reconciliation

Business Central supports electronic payments via ACH, wire transfers, and printed checks. Integration with banking systems enables automated reconciliation using standardized formats like BAI2

Payments are matched to ledger entries, and bank accounts are reconciled automatically, ensuring accuracy and audit readiness

Accounts Receivable Automation: Accelerating Cash Flow and Customer Engagement

Invoicing and Collections

Business Central simplifies customer invoicing with automated reminders, credit limit enforcement, and overdue balance tracking. Invoices can be generated from sales orders, service contracts, or recurring billing schedules. Payments are applied automatically, and aging reports provide real-time visibility into receivables

During the SWA - Microsoft Dynamics 365 Business Central - Demo #2, Riley Tengwall demonstrated how invoice amounts can be split across multiple project codes and tasks, with attached documentation for transparency

This flexibility supports complex billing scenarios and improves client trust.

Corporate Card and Expense Integration

For organizations managing employee expenses, Business Central integrates with corporate card feeds from Visa, MasterCard, and Amex. Employees submit expenses via mobile or web apps, attach receipts, and assign project codes. These transactions sync in real-time with Business Central, streamlining reimbursement and project allocation

The system distinguishes between company and personal vehicle mileage, applies IRS rate updates, and supports accurate reimbursement workflows

Strategic Benefits of AP/AR Automation in Business Central

1. Operational Efficiency

By automating data entry, approvals, and reconciliations, finance teams save hours of manual work. This efficiency translates into faster month-end closes and reduced overhead.

2. Financial Accuracy and Compliance

Built-in audit trails, approval workflows, and real-time GL integration ensure compliance with internal controls and external audits. Corrections to posted invoices—such as reclassifications or credit memos—are handled natively within Business Central

3. Scalability and Flexibility

Whether managing hundreds or millions of transactions, Business Central’s subledgers and automation tools scale effortlessly. Role-based security and customizable workflows adapt to evolving business needs

4. Enhanced Decision-Making

Real-time reporting and dashboards provide instant visibility into financial performance. Executives can access up-to-date data for strategic decisions without relying on IT

Implementation Insights: Lessons from the Field

In recent engagements, including the advisory work for Arrowstreet Capital LP_Advisory - D365 BC Implementation, we’ve seen firsthand how Business Central transforms financial operations

Clients moving from legacy systems like Dynamics GP often rely heavily on Excel for AP/AR processes. Business Central replaces these manual workflows with embedded automation, improving accuracy and reducing risk

The Continia demo for SWA showcased how AP automation can be phased in gradually—starting with manual reviews and evolving into full automation as confidence grows

This approach ensures user adoption and minimizes disruption.

Microsoft Dynamics 365 Business Central offers a comprehensive, modern solution for automating Accounts Payable and Receivable. Its embedded tools, customizable workflows, and real-time integration empower finance teams to operate with precision, agility, and insight.

For organizations evaluating ERP systems, Business Central’s AP/AR automation isn’t just a feature—it’s a strategic advantage.