AP Automation (invoice scanning and coding) for a manufacturing facility

Finance and Operations/AX
1

Hi All,

I wonder if there are people here who implemented AP automation (scanning and coding invoices) with D365 F&O, and are in manufacturing?

Which ISV did you pick?

are you happy with your solution?

any other feedback/recommendations?

2

Hi @zvika.rimalt

Yes, we’ve worked on AP automation (invoice scanning and coding) with Dynamics 365 Finance & Operations for manufacturing clients.

In most implementations, clients use ISV-based invoice capture/OCR solutions integrated with D365 F&O, combined with native matching and approval workflows. When configured properly, these solutions helped reduce manual effort, improve coding accuracy, and speed up invoice processing.

Key observations from our experience:

  • OCR and invoice capture need tuning for manufacturing-specific invoices (freight, subcontracting, services, utilities)

  • Coding logic should align with financial dimensions and purchasing policies

  • Clear exception handling and approval workflows are critical for success

We’re a Microsoft consulting partner and have supported several AP automation implementations around invoice scanning, capture, and coding in D365 F&O. If required, we can also provide experienced offshore F&O resources aligned to your time zone at cost-effective rates based on skill needs.

Happy to share more details if helpful.
E: Hardik.gupta@allgrowtech.com

3

Have you had any success implementing the native D365 AP automation? Invoice automation for scanned documents - Finance | Dynamics 365 | Microsoft Learn

4

Hi @Margie_Paetzold

Yes, we’ve had a good experience using the native D365 F&O AP automation, especially Invoice automation for scanned documents, when it’s set up properly.

In our implementations, we’ve used:

  • Native invoice automation for scanned and emailed invoices

  • Invoice capture and invoice approval working together in F&O

  • Standard AP workflows for approvals, exceptions, and posting

In one of our recent projects for a client in Denmark (insurance industry), all vendor invoices coming by email are automatically routed into F&O. We also built a small Power Apps solution to support invoice capture and approval, so scanned invoices and documents flow through AP/AR workflows, get approved, and are posted with very little manual effort.

From our experience, native AP automation works well, but success mainly depends on:

  • Invoice quality and format (PDF, scans, email invoices)

  • Proper setup and tuning of capture rules

  • Clear approval and exception handling workflows

Happy to share more if useful.

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5

I heard from a colleague on another project that they tried to implement it to a client but there were too many things not working/product not mature, and recently the client abandoned the attempt to use the native AP automation.

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