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The New Normal: AP Automation and AP Payments within Microsoft Dynamics 365 BC

Jemina Boyd May 26, 2023

Finance department worker using Dynamics 365 Business Central AP automation and AP payments setup
AP Automation
In the ever-evolving world of business technology, the integration of Accounts Payable (AP) automation and AP payments within Enterprise Resource Planning (ERP) systems, like Microsoft Dynamics 365, is becoming the new standard. This shift is replacing the traditional approach of maintaining AP automation and manual payments outside of the ERP.

The AP process, traditionally known for its manual and labor-intensive nature, has been revolutionized by automation. AP automation software streamlines the process, reducing human error, increasing efficiency, and providing real-time visibility into the company’s financial status. However, the real game-changer is the integration of this automation within the ERP system itself.

Microsoft Dynamics 365, a comprehensive ERP solution, has been at the forefront of this transformation. By incorporating AP automation and AP payments within its system, Dynamics 365 has significantly enhanced the AP process’s efficiency and accuracy. Below, we take a look at some of the high-level reasons why many financial departments are automating these functions within their D365 Business Central setups, as well as practical reasons why it can reduce daily workload.

Efficiency and Time Savings

AP automation and payments streamline the entire accounts payable process, reducing manual tasks and paperwork. With automated invoice processing, data entry errors are minimized, and invoices are processed quickly. This efficiency translates into significant time savings for the finance team, allowing them to focus on more strategic activities.

Cost Reduction

Implementing AP automation and payments in Microsoft Dynamics 365 ERP helps reduce costs associated with manual processes. By eliminating paper-based invoices and checks, companies save on printing, mailing, and storage costs. Additionally, automated invoice matching and payment scheduling optimize cash flow management, reducing late payment fees and taking advantage of early payment discounts.

Improved Accuracy and Compliance

Manual data entry is prone to errors, leading to payment discrepancies and reconciliation issues. AP automation ensures accurate capture and validation of invoice data, minimizing the risk of mistakes. Moreover, automation enforces compliance with financial policies and regulatory requirements, reducing the likelihood of fraud or non-compliance.

Enhanced Visibility and Reporting

AP automation provides real-time visibility into invoice status, payment history, and cash flow projections. By leveraging the capabilities of Microsoft Dynamics 365 ERP, finance teams gain access to robust reporting and analytics tools. This enables better decision-making, identification of cost-saving opportunities, and improved vendor management through data-driven insights.

Vendor and Customer Satisfaction

AP automation improves the overall experience for both vendors and customers. Vendors benefit from faster invoice processing and timely payments, leading to improved cash flow and stronger relationships with the company. Additionally, automated workflows and self-service portals allow vendors and customers to track invoice status and payment history, reducing the need for manual inquiries and providing transparency in the process. Ultimately, this contributes to better satisfaction and collaboration with key stakeholders.

Looking into some of the more practical benefits of this integration, a big one is the elimination of manual data entry. With AP automation within Dynamics 365, invoices can be automatically captured, processed, and matched with purchase orders. This not only saves time but also reduces the risk of errors that can occur with manual data entry.

Moreover, by integrating AP payments within Dynamics 365, businesses can streamline their payment process. They can schedule payments, track them in real-time, and even automate recurring payments. This not only ensures timely payments but also improves vendor relationships by reducing late payments and discrepancies.

Another significant advantage of integrating AP automation and AP payments within Dynamics 365 is the enhanced visibility into the company’s financial status. With all AP data centralized within the ERP system, businesses can easily access real-time financial data, enabling them to make informed decisions.

Furthermore, this integration also improves financial control. By automating the AP process within the ERP system, businesses can implement approval workflows, ensuring that all invoices and payments are reviewed and approved before processing. This not only enhances financial control but also helps prevent fraudulent activities.

Lastly, integrating AP automation and AP payments within Dynamics 365 also leads to cost savings. By reducing manual tasks and streamlining the AP process, businesses can significantly reduce their operational costs. Additionally, with timely payments, they can also avoid late payment fees and take advantage of early payment discounts.

In conclusion, the integration of AP automation and AP payments within Microsoft Dynamics 365 is not just a trend; it’s the new normal. It offers numerous benefits, including increased efficiency, reduced errors, enhanced financial visibility, improved financial control, and cost savings. Therefore, businesses looking to optimize their AP process and stay ahead in the competitive business landscape should consider integrating AP automation and AP payments within their ERP system.

Looking to integrate a full AP automation and AP payments system within your team’s Microsoft Dynamics 365 BC setup?  PairSoft’s robust solutions encompass the full invoice-to-pay cycle while allowing you to keep your existing bank for payments. Get a demo today.

Jemina Boyd

Jem Boyd has 10+ years of ERP strategic marketing and implementation experience across a variety of platforms. She specializes in developing PairSoft's platform relationships as well as campaigns with Microsoft, NetSuite, Sage, and Blackbaud. She is based in Nashville.

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