AP automation for Dynamics 365 F&O,
from inbox to posted invoice
AP automation for D365 with an AI agent: Lleverage reads supplier invoices from the finance inbox, finds the vendor account in the right legal entity, and matches every line to the purchase order and product receipt in Dynamics 365 F&O. Clean invoices are posted. Variances wait for finance with the difference named.
How AP automation works in D365 F&O, step by step
In Dynamics 365 F&O an AP clerk keys each invoice on the Vendor invoices page, picks the product receipts to match and opens Invoice matching details when an icon turns up. The agent does that work in 4 steps and leaves your matching policies in place. Why the match matters is in our post on three-way matching.
Read the invoice and pick the legal entity
A PDF, a scan or a forwarded email lands in the finance inbox. The agent reads the invoice number, the order reference, the VAT and every line, each with a confidence, then finds the legal entity it is addressed to and the vendor account in that entity, because F&O keeps one per legal entity.
Line up the purchase order and the product receipts
Each invoice line is tied to its purchase order line and to the posted product receipts behind it, also when the goods came in over several deliveries. A line the warehouse has not received yet is held back instead of invoiced on trust.
Check price, quantity, charges and bank account
Net unit price against the order, quantity against the product receipt, freight and other charges against the order, financial dimensions against the order line, and the bank account on the invoice against the vendor bank accounts F&O holds. You set the tolerance per vendor or category.
Create the vendor invoice, post what agrees
The vendor invoice is created in Dynamics 365 F&O with its product receipts matched, so the system runs its own matching validation as it does for your clerks. Inside your tolerances it is posted, ready for the payment proposal. Outside them it stays pending and goes to the person you choose, with the difference named.
Vendor invoices matched in D365 F&O the day they arrive.
Supplier invoices are matched to the purchase order and the product receipt and posted in Dynamics 365 F&O the day they land, in every legal entity, so the payment proposal is ready on time. Your AP team only opens the invoices with a real variance.
Learn moreExample data
One vendor invoice in D365 F&O, matched three ways.
A supplier invoice for EUR 18,240 from Noordkamp Lagers lands in the finance inbox. Dynamics 365 F&O holds the purchase order and the product receipt it should agree with, line by line.
Example data
The checks before a vendor invoice is posted in F&O
Net unit price, received quantity, charges, financial dimensions and the vendor bank account are each checked against Dynamics 365 F&O with a tolerance you set. Invoices inside it are posted on their own, and anything outside it stays pending for finance with the order and product receipt open.
Example data
Invoice capture in Dynamics 365 Finance or Lleverage: which fits when?
Microsoft covers vendor invoices in Dynamics 365 Finance with 3 parts: Invoice capture, which reads invoice files with AI Builder, invoice matching validation, and vendor invoice automation, which matches product receipts and submits invoices to workflow in the background. We read Microsoft Learn’s pages on all 3 on 10 October 2026, and every statement in the middle column comes from those pages.
| Microsoft’s own tools | Lleverage | |
|---|---|---|
| How invoices get in | Invoice capture monitors channels on Microsoft 365 Outlook, Outlook.com, OneDrive or SharePoint, and takes direct uploads. It accepts PDF, PNG, JPG, JPEG, TIF and TIFF files up to 20 MB, and a file filter can drop files by name or size. | The agent works the finance inbox your vendors already write to, and reads PDFs, scans and forwarded emails as they arrive, overnight and at weekends too. |
| Reading the invoice | A prebuilt AI Builder invoice model that handles the most common invoices in various languages but not complex layouts. A custom model can be trained for those, and then returns no confidence scores and no line positions. | Reads on meaning rather than a template, with a confidence on every field. Below your threshold a field waits for a person instead of being guessed. |
| Finding the vendor and the order | Derives the legal entity, vendor account, invoice type, procurement category, currency and purchase order. Continuous learning applies a clerk’s corrections to later invoices with the same context, and an option limits matching to confirmed purchase orders. | Ties the invoice to the vendor account in the right legal entity and checks the bank account on it against the vendor bank accounts on file. An unknown vendor goes to a person. |
| The three-way match | Microsoft’s strength. Two-way or three-way line matching per legal entity, overridden per vendor, item, vendor and item or purchase order line, with price tolerances by item and vendor, plus invoice totals, charges and price totals matching. Vendor invoice automation matches posted product receipts hourly or daily. | The same documents compared line by line before the invoice reaches F&O, with tolerances per vendor or category. Your matching policies and validation in F&O still run when the invoice is created. |
| A line outside tolerance | Match variance icons appear on the Vendor invoices page and in Invoice matching details. Depending on a parameter, the invoice needs approval before it can be posted with discrepancies, or it can be posted with a warning. | The invoice is not posted. It waits for the person you choose with the order, the product receipt and the difference named, and a correction becomes a rule once a person confirms it. |
| Approval and posting | Imported invoices are submitted to the workflow system in the background, and an automated posting task in that workflow makes the run touchless. Invoices keyed by hand must be submitted to workflow by hand. Once posted, a payment proposal can follow automatically. | Requests land in Teams, Slack or the inbox of the person who owns them, routed by value and category, and an ageing approval escalates. Your vendor invoice workflow in F&O can stay the approval step. |
| Invoices without a purchase order | A configuration group handles purchase order, non purchase order and cost invoices, and cost invoices can be transferred as an invoice journal. Financial dimensions on cost invoices were listed as a roadmap item in the general availability TechTalk. | Nothing to match three ways, so the agent checks the vendor, the bank account and the financial dimensions, then routes the invoice to the approver your rules name. |
| Set-up | Needs a Dataverse environment integrated with Power Platform, an install from Microsoft Marketplace, connections to AI Builder and roles such as InvoiceCaptureOperator. Dynamics 365 Finance includes 100 captured invoices per tenant per month, and more come in monthly packs of 1,000. | Forward deployed engineers build the first flow with your finance team on your real invoices. One monthly price per agent, with integration included, and no seats. |
| Fits best when | Invoices arrive as clean PDFs from vendors with purchase orders, your team already runs Power Platform, and AP clerks review the exceptions in the side by side viewer. | Invoices come as scans and mixed layouts across legal entities, variances need a buyer or the warehouse, and you want the clean ones posted without anyone opening them. |
We think Microsoft’s own tools are enough when invoices are clean PDFs against confirmed purchase orders: the matching policies in F&O are thorough, and Invoice capture with an automated posting task can already run part of the volume touchless. We think Lleverage fits when the work you want gone is reading every layout and chasing the variances. More on invoice matching software and on how we connect to Dynamics 365 F&O.
Our engineers set it up with you.
It takes on more of the invoice run as it learns.
Forward deployed engineers match the first invoices beside your finance team and connect the agent to Dynamics 365 F&O, so the run comes off the desk in the first weeks rather than at the end of a project. From there it automates gradually: every correction teaches it your vendors, your legal entities and your tolerances, and fewer invoices need a person to look.
They work inside your operation. They agree tolerances and financial dimensions with your controller, set the confidence line together, and stay on through audits and F&O updates. Not a licence and a manual. A team that knows your ledger.
The finance inbox, the tolerances, the checks and the log are yours to configure. Our documentation and support sit behind your team, and an engineer is a call away whenever you want one.
Talk to us about either ↗Frequently asked questions
Is Invoice capture for Dynamics 365 Finance enough for AP automation?
For some teams, yes. It reads PDF and image invoices from Outlook, OneDrive or SharePoint with a prebuilt AI Builder model, derives the vendor and purchase order, and can post touchless through workflow (Microsoft Learn, read 10 October 2026). We think it fits clean PDFs against confirmed purchase orders, with clerks reviewing the rest.
How does Lleverage connect to Dynamics 365 F&O?
Through a native Dynamics 365 F&O connection that our engineers built while working with SIG Benelux, with sales order, customer, item and invoice nodes. The agent gets the access a person in accounts payable has, nothing more, and F&O validates every field as it does for your clerks. More on integrations.
Do our matching policies and invoice workflow in D365 still apply?
Yes. Two-way or three-way matching, your price tolerances and the vendor invoice workflow keep running in F&O, because the agent creates the vendor invoice the way a clerk does. It adds its own checks before that, per vendor or category, so invoices with a variance never reach posting without a person.
What happens to cost invoices and invoices without a purchase order?
Freight, utilities and service contracts often arrive without an order. The agent finds the vendor account in the legal entity the invoice is addressed to, compares its bank account with the one F&O holds and checks the financial dimensions. The invoice waits in your F&O vendor invoice workflow, or with the approver your rules name, until a person approves it.
Where is our invoice data hosted and who can see what the agent did?
Lleverage is EU hosted by default and GDPR compliant, with on-prem where needed. Vendor invoices are created and posted in your F&O legal entities, and Lleverage keeps no second ledger. The log shows, per invoice, the fields the agent read, the product receipts it matched and why it posted or held it. More on control and audit trails.
The rest of the back office.
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Quote to orderQuote & SellQuotes drafted, orders entered and confirmed the moment they land.
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Purchase to paySource & ProcureInvoices, POs and confirmations, posted where they belong.
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Forecast to producePlan & ProduceThe plan reshuffled when reality changes.
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Order to deliveryDeliver & SupportCustomers answered with full context, in their own channel.
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Master dataGovern & EnableMaster data kept clean and in sync across every system.