Microsoft Dynamics 365 users processing invoices across multiple locations often need workflows for entity-level coding, approval routing, and invoice allocation. Microsoft Invoice Capture supports multiple legal entities and financial dimensions, while additional AP automation tools can extend these workflows depending on the organization's requirements.
The good news is that specialized AI invoice processing software can extend Dynamics 365 invoice workflows. Depending on the platform, these tools can capture invoice data, support approval workflows, and transfer approved invoice information back to Finance & Operations or Business Central.
Key Takeaways
- Multi-location routing: Businesses with 10+ locations often need specialized platforms for automatic invoice routing and splitting
- Processing costs can decline with automation: The industry average cost is $12.90 per invoice with manual processing, while automation can reduce costs by removing manual routing, coding, and approval work
- Implementation timelines vary widely: Setup time depends on the platform, ERP environment, workflow complexity, integrations, and rollout scope
- Pricing models matter: Per-invoice pricing can spike costs as you grow; flat per-location pricing offers predictable budgeting for high-volume operations
Why AI Invoice Processing Matters for Dynamics Users
Traditional AP workflows in Dynamics 365 require manual data entry, individual invoice routing decisions, and constant monitoring of approval queues. For a single-entity business processing 100 invoices per month, this approach works. For a franchise group or hotel chain processing thousands of invoices across dozens of locations, it becomes unsustainable.
AI-powered invoice processing addresses these pain points by:
- Extracting data automatically using OCR technology that reads both digital PDFs and scanned images
- Coding GL accounts based on learned patterns from historical invoices
- Routing approvals to the correct location manager or department head without manual sorting
- Matching purchase orders to catch discrepancies before payment
- Syncing with your Dynamics 365 environment to maintain a single source of truth
The result is touchless processing for the majority of invoices, freeing AP staff to focus on exceptions rather than data entry.
1. Factura.ai: Best for Multi-Location Businesses
Factura.ai positions itself as the only AP automation solution built exclusively for multi-location and multi-entity businesses. Unlike platforms that adapted single-entity architecture for multi-location use, Factura.ai was designed from the ground up to handle the complexity of franchise operations, hospitality groups, and property management portfolios.
Key Features
- Single centralized inbox for all locations, with automatic routing to location-specific approvers
- Native invoice splitting across multiple entities without manual allocation
- AI-powered GL coding in under 30 seconds with 90%+ touchless coding rates
- Deep native integrations with Microsoft Dynamics, Sage Intacct, NetSuite, Restaurant365, QuickBooks, Workday, Acumatica, and additional ERPs
- Factura.ai Pay for vendor payments via ACH, checks, and virtual cards
What Sets Factura.ai Apart
Factura.ai solves the specific problem that multi-location Dynamics users face: getting invoices to the right approvers at the right locations without manual sorting. The QSR Group Inc. case study reports approximately 90% less AP administrative work and 3x employee productivity.
Factura.ai uses a flat monthly fee per location, giving multi-location businesses a pricing model that does not increase directly with invoice volume.
Customer testimonials consistently highlight responsive support and fast implementation. AP staff can be trained in 60 minutes, while store managers become proficient in as little as 5 minutes due to the simple approve/reject interface.
2. Microsoft Invoice Capture
Microsoft Invoice Capture provides native invoice-capture and processing automation for Dynamics 365 Finance, including AI-assisted extraction, financial dimensions, vendor synchronization, and integration with existing Finance workflows.
Key Features
- Prebuilt AI models for common invoice formats
- Direct Dataverse integration with D365 Finance & Operations
- Power Platform workflow capabilities for approval routing
- 100 Invoice Capture transactions per tenant per month included, with additional transaction capacity available separately
- Continuous learning as the system processes more invoices
Invoice Capture integrates with Dynamics 365 Finance and Power Platform and supports multiple legal entities, vendor synchronization, and financial dimensions. Its fit depends on how closely an organization's AP requirements align with the configuration and workflow capabilities available in Dynamics 365 Finance.
Setup requirements depend on the Power Platform environment, legal entities, vendor synchronization, and invoice-capture configuration, with additional work required when custom models or fields are used.
3. Microsoft Payables Agent
The Payables Agent in Business Central represents Microsoft's latest push into autonomous AP processing. This Copilot-powered agent monitors an email inbox, extracts invoice data, and can draft purchase invoices or general journal entries based on the documents it receives.
Key Features
- Autonomous inbox monitoring for incoming invoice PDFs
- AI-driven vendor matching to existing vendor records
- Draft invoice creation with GL coding suggestions
- Embedded within Business Central interface
- Supervisor review of invoice drafts within Business Central when human input or confirmation is needed
Payables Agent brings AI-assisted invoice processing directly into Business Central, with usage billed through Copilot Credits.
The current Payables Agent has several documented limitations. It does not support approval flows or anomaly detection, processes invoice emails only when they contain PDF attachments, and is limited to 100 emails and 500 invoices per day.
4. ExFlow
ExFlow operates as an embedded solution within both Dynamics 365 Business Central and Finance & Operations, meaning AP staff work within the familiar D365 interface to process invoices.
Key Features
- Embedded within D365 user interface
- OCR and data extraction for incoming invoices
- Multi-level approval chains for complex authorization requirements
- Dimensional accounting support preserving cost centers and project codes
For organizations heavily invested in the Microsoft stack, ExFlow keeps AP workflows closely connected to Dynamics 365. Its workflow configuration options support approval rules based on factors such as suppliers, accounts, dimensions, amount limits, and organizational hierarchies.
Organizations should evaluate ExFlow based on its embedded Dynamics 365 workflow, capture, coding, matching, and approval capabilities alongside their own AP and multi-entity requirements.
5. Rillion
Rillion focuses on healthcare invoice processing and integrates with Dynamics 365 Business Central and other ERPs. The linked source states that Rillion reports SOC 1 and SOC 2 compliance and follows HIPAA requirements.
Key Features
- HIPAA-compliant processing for healthcare data
- SOC 1 Type 2 and SOC 2 Type 2 examinations
- Multi-facility support for hospital networks
- 2-way and 3-way PO matching for medical supply invoices
- Automated capture via email, PDF, XML, and EDI
Rillion's certifications and compliance focus make it a fit for hospitals processing invoices from medical suppliers across multiple facilities. The platform's security focus provides audit trail integrity that healthcare compliance officers require.
Why Factura.ai Is the Best Choice for Multi-Location Dynamics Users
When evaluating AI invoice processing software for Microsoft Dynamics, Factura.ai stands out for organizations operating multiple locations, entities, or brands.
The Multi-Location Architecture Advantage
Generic AP platforms treat multi-location as an add-on feature. Factura.ai built its entire architecture around the reality that a restaurant franchise or hotel group needs:
- One inbox for all locations rather than managing separate email addresses per site
- Automatic routing to location-specific approvers without manual sorting
- Invoice splitting when a single vendor invoice covers multiple properties
- Unified dashboard visibility across entities without switching accounts
This architectural difference translates to measurable efficiency gains. The QSR Group Inc. case study reports 3x employee productivity after the company scaled from 33 to 73 locations, with invoice-processing capacity increased to 100 locations using the same two AP staff.
Predictable Pricing for High-Volume Operations
Factura.ai uses a flat monthly fee per location, providing a pricing model in which subscription costs are based on location count rather than directly on invoice volume.
White-Glove Implementation and Support
Factura.ai states that implementation can be completed in days, with white-glove onboarding and no client IT resources required. Its website also features five-star customer reviews highlighting onboarding, workflow configuration, and support.
For multi-location businesses running on Microsoft Dynamics who need more than basic automation, Factura.ai delivers the combination of purpose-built architecture, responsive support, and predictable pricing.
Frequently Asked Questions
How does AI invoice processing software integrate with Microsoft Dynamics?
AI invoice processing platforms can connect with Dynamics 365 through native integrations, APIs, or other supported connectors. The exact data synchronized, including vendors, invoice fields, financial dimensions, purchase orders, and approved transactions, depends on the platform and its Dynamics integration.
Can AI invoice processing handle invoices from multiple locations and entities?
Microsoft Invoice Capture supports multiple legal entities and financial dimensions within Dynamics 365 Finance. Factura.ai is designed specifically for multi-location workflows, using a centralized invoice inbox, location-based approval routing, and invoice splitting across locations or entities when needed. This capability is essential for franchise groups, hotel chains, and property management companies processing invoices for dozens or hundreds of locations.
What are the typical cost savings when implementing AI AP automation?
Manual invoice processing costs approximately $12.90 per invoice according to the cited source. Automation can reduce processing costs by reducing manual data entry, coding, routing, and approval work, though the actual savings vary by platform and AP workflow. Additional savings come from reduced duplicate payments, early payment discounts captured through faster processing, and lower staffing requirements as invoice volume grows.
Is specialized IT knowledge required for implementation and maintenance?
Most modern AP automation platforms are designed for business users rather than IT specialists. Cloud-based solutions require no software downloads or server maintenance. Initial configuration typically involves mapping your chart of accounts and defining approval workflows, tasks that AP managers can complete with vendor support. Factura.ai provides white-glove implementation service with no IT resources required from the client side, while Microsoft's native solutions leverage the Power Platform that many organizations already use.
What types of invoices can AI-powered software accurately process?
AI invoice processing capabilities vary by platform and document type. Factura.ai states that its system works with PDFs and scanned images, captures line-item invoice data, and continuously learns from processed invoices, while more complex formats and workflows should be evaluated against each platform's documented capabilities.