Business Central Accounts Payable: Go Beyond the Basics

In this post, we will talk about Business Central accounts payable features and when you might want to go beyond the out of box functionality when it comes to accounts payable. We’ll do this by sharing some of the shortcomings of built in D365 AP tools when it comes to invoice processing and payments. 

Whether you are currently using Microsoft D365 Business Central or it’s on your short list of solutions you are considering for a new implementation, you may have found that Business Central comes packed with features for financial and accounting teams. Business Central accounts payables are pretty good out of the box, but you might want to go beyond the basics.

Learn about Business Central Accounts Payable Automation »

Why Go Beyond the Basics of Business Central Accounts Payable

For some businesses with very few invoices, simple financial structures and fewer than a handful of bank accounts, the out of the box functionality of Business Central accounts payable is probably going to be enough to get by.

On the other hand, for businesses with multiple locations, entities or lines of business, things get tricky when it comes to processing invoices. Even if you have a straightforward structure, you may have hundreds or even thousands of monthly invoices to process.

If you recently implemented or are in the process of implementing Business Central, odds are it is because a smaller scale solution like QuickBooks or an outdated solution like Dynamics NAV weren’t keeping up with your business. If this sounds like you, then you are probably going to need more from D365 BC accounts payable than it can provide out of the box.

Business Central Extensions

One of the things that makes Business Central awesome is that it is easily customizable through AppSource. AppSource is a built-in app store where you can easily install extensions to BC to enhance performance where you need it most. You can access it directly inside BC. Now let’s take a look at some specific areas where BC might not perform so well for Businesses with a high volume of invoices.

D365 Business Central Accounts Payable Shortcomings

BC Standard Invoice Processing

1. Limited Invoice Data Capture Capabilities: Business Central has basic Optical Character Recognition (OCR) support through the Tungsten Automation (formerly Kofax integration). This OCR tool isn’t built to handle the complexities you’re likely facing when it comes to invoices. For example it lacks functionality to capture location information, vendor recognition and more.
2. Complex Invoices Aren’t Easily Supported: For complex invoices with multiple line items or detailed charges, the Business Central accounts payable does not easily handle complex invoice structures or splitting costs across multiple departments or projects.
3. Approval Workflows Are Just So-so: While Business Central provides a basic invoice approval workflow, it’s not easy to use and customization is limited. Business Central workflows lack the ability to automatically route invoice approvals based on location. For companies with more complex approval hierarchies or multi-level authorization needs, a simple to use visual workflow is going to save a lot of headaches.
4. Clunky Recurring Invoice Setup: Getting recurring invoices setup requires manual entry and maintenance. BC lacks a fully automated process for processing recurring invoices, which means it can require a lot of manual lifting on a regular basis if you have lots of subscription based services.
5. Limited Reporting: With native reporting for Business Central accounts payable, it may be tough to get detailed insights into invoice processing times, bottlenecks, or vendor performance. You can get it done if you have a BC expert to build custom reports into your system, but an advanced AP extension for BC will just make it so much easier.
6. Searching for Invoices Isn’t Great: BC has a really awesome search feature that lets you search for just about anything. Just about. Unfortunately Searching for specific invoices based on partial data is not as intuitive as we might like. A purpose-built AP extension can make finding a specific invoice much easier.
7. Bulk Invoice Import Is Weak: Bulk importing invoices into Business Central is pretty clunky. You can get it done, but it requires templates or external tools like Excel to prepare invoices for import. Not only is this slow, but it also increases the risk of potential errors and the need for manual corrections.

How Fidesic AP Service Suite Enhances Business Central Accounts Payable

Fides AP Service Suite includes MagiCapture, a next generation invoice data capture tool. All you have to do is forward your invoices to your private OCR email address and Fidesic takes care of the rest, including location data. Then RouteWise, Fidesic’s simple to use workflow engine, routes the invoice for approval based on whatever dimension you want and automatically gets the invoice to the right approver. Once invoices are approved, the data gets sent up directly to BC.

The MagiCapture Difference

• 96% Invoices captured without edits
• No invoice templates to create or adjust
• Gets more accurate with each submission
• Location capture and encoding

BC Standard Payment Processing

1. Payment Method Assignment Not Simple: Whether your vendors prefer to get paid by ACH or check should be easy to manage. But in BC you have to manually select for each payment, and the system does not natively automate this process based on vendor-specific rules or payment thresholds.
2. Limited Batch Payment Processing: Business Central’s batch payment functionality is not great. It’s not really feasible to modify a payment batch once created. For example, changing a single payment in the batch requires deleting and recreating the batch, which can be time-consuming.
3. Payment Approval Workflow is Weak: BC’s built-in payment approval workflows are basic at best. If you require multi-level or conditional approval processes with more complex approval hierarchies, you are going to need to add a workflow extension.
4. Credit Memo Processing is Clunky: Business Central requires users to manually apply vendor credit memos against outstanding payments or invoices. This is going to create headaches you just don’t need. Expect increased errors and extra steps to ensure that credits are properly applied to vendor balances.
5. Check Printing Limitations: The check printing functionality in Business Central exists but it’s not suited to businesses with a lot of vendors. If you need approver signatures on checks, remittance details, special formatting and other customizations, these functionalities just don’t exist in Business Central.

How Fidesic AP Service Suite Enhances Business Central Payments Processing

Fides AP Service Suite includes JustPay, a payments automation tool that makes paying vendors extremely easy. All you have to do is pick what you want to pay, JustPay takes care of the rest. With RouteWise, Fidesic’s simple to use workflow engine, it’s easy to set up payment approval workflows based on whatever dimension you want and automatically gets the payment to the right approver.

The JustPay Difference

• Just pick what you want to pay we take care of the rest
• Secure check & encrypted ACH fulfillment with signatures on check files
• Pay from multiple accounts across locations from central accounting
• Optional payment approval workflow

Conclusion

Microsoft D365 Business Central comes packed with features for financial and accounting teams. The basic accounts payable features out of the box are can support a business with few vendors and locations who only process a handful of invoice each month. However, the Business Central accounts payables are just like we said, basic. They fare also fairly rigid and don't leave a ton of room for customization. For organizations with hundreds, or even thousands of invoices each month, an extension is going to be necessary to get the most out of your Business Central accounts payable.