Invoice capture for Dynamics 365 Finance and accounts payable automation

Invoice capture is Microsoft’s solution for creating vendor invoices in Dynamics 365 Finance from invoice images and PDFs. It runs in Power Platform and uses AI Builder to read each document. Invoices arrive through channels you define, such as an Outlook or shared mailbox, a SharePoint library or OneDrive, or by direct upload, as PDF, PNG, JPG or TIFF files of up to 20 MB. Other systems can submit documents through its Document receive API.

The solution then works out the legal entity, vendor and items, and checks the result against rules you switch on: the total amount, the sales tax total and, for purchase order invoices, the unit of measure. It handles purchase order invoices, header-only invoices and cost invoices, and transfers them to Finance as vendor invoices or, for cost invoices, optionally as an invoice journal. AP clerks review exceptions side by side with the original document, and continuous learning reuses their corrections the next time a similar invoice arrives.

• Dynamics 365 Finance & Operations

Reading the invoice is one step. Most of the time in accounts payable goes on what follows: matching, exceptions and approvals. Dynamics 365 Finance compares invoices with purchase orders and product receipts through invoice totals matching, two-way and three-way matching, and charges matching, each with tolerances you set, and flags discrepancies so they can be resolved or approved before posting.

We combine these controls with workflow and Power Automate, so that each exception reaches the right person, approvals are followed up and no invoice waits unseen in a mailbox. If you already use a third-party OCR service, Finance’s invoice automation entities can take its output, and invoices that fail to import appear in a dedicated exceptions list, where they can be corrected and turned into pending invoices. That list can be secured by legal entity or opened to a shared service team, depending on how your AP function is organised.

• Power Platform and process automation

Many suppliers in Saudi Arabia, the UAE, Qatar, Kuwait, Oman and Jordan send invoices in Arabic, or in Arabic and English. Microsoft’s documentation is not consistent here. The Invoice capture FAQ refers to the language list of the Azure Document Intelligence invoice model, which includes Arabic, but the list for AI Builder’s prebuilt invoice processing model, which Invoice capture uses by default, does not include it.

So we test with your documents first. We run a sample of your real supplier invoices, Arabic ones included, through the configuration and record what is read correctly. Where a supplier’s layout recurs, Invoice capture lets you train a custom model on top of the prebuilt one by tagging sample invoices. Microsoft’s Invoice capture FAQ says this custom model is in preview, and training it uses AI Builder credits, so we measure it on your own samples before relying on it. Some fields can come from data you already hold: for purchase order invoices, Invoice capture can take the currency from the matched purchase order, and for cost invoices it can derive it from the vendor. Where a document cannot be read reliably, we send it to review rather than let a guess reach your ledger.

Microsoft is extending Invoice capture with large language models. Its release notes list AI suggestions, an LLM-based derivation capability (May 2026), and AI Recognition, which combines OCR with an LLM to extract invoice data (September 2026), both offered as private previews. We evaluate preview features in a test environment before relying on them in production.

Around capture, we build AI agents for the work that surrounds an invoice, such as triaging exceptions, following up approvals or sorting supplier queries. Depending on the task, we build them with Copilot Studio, Microsoft Foundry or Anthropic’s Claude models. The principle stays the same: AI drafts, people approve. Invoice capture itself lets you set when manual review is required: for errors only, for errors or warnings, or always.

• AI agents for business
• Claude for enterprise
• Our approach: AI with control

E-invoicing mandates change what arrives in accounts payable. In the UAE and Oman, suppliers’ e-invoices reach you through your accredited service provider as structured data, and the Electronic Invoicing service in Dynamics 365 Finance can import them once it is set up for the format your provider uses. In Saudi Arabia, suppliers share invoices cleared by ZATCA as XML or as PDF/A-3 with the XML embedded.

Structured data is more reliable than reading an image, so we design intake by source: e-invoices are imported as data, and Invoice capture handles the PDFs, scans and photos that still arrive from suppliers outside these networks or abroad. Both routes end as vendor invoices in Dynamics 365 Finance, under the same matching and approval rules.

• E-invoicing for Dynamics 365: ZATCA, UAE, Oman

Invoice capture is licensed with Dynamics 365 Finance. Microsoft’s documentation states that Finance customers are entitled to 100 invoice capture transactions per tenant per month, and that only captured invoices count. Additional capacity is bought as Electronic Invoicing SKUs, monthly and sized for peak volume. Users without a full Finance licence need a Power Apps licence to work in Invoice capture.

The original invoice files need storage too. Microsoft notes that Finance customers usually do not need extra storage when the Dataverse file capacity that comes with Finance, which other apps share, is enough for the original documents, and that more may be needed when it is not. Invoice capture can also delete transferred and voided invoices after 180 days, so we agree where the long-term copy of each document lives before that is switched on.

We start from your accounts payable process, not from the software. Depending on where you are, the work covers:

• An AP review: invoice volumes, channels, manual touches, exception types and approval routes.
• Invoice capture installation and configuration: channels, file filters, configuration groups, legal entity and vendor synchronisation, and review rules.
• Matching policies and tolerances in Dynamics 365 Finance, with workflow for approvals.
• Custom models for recurring layouts where testing shows they help, with a test sample that includes your Arabic invoices to measure them.
• Integration of e-invoices, third-party OCR output or other systems, and AI agents where they add value.
• Training for AP teams and ongoing support through our managed services.

• AP efficiency assessment
• Managed services