Mastering AP Automation in Dynamics 365: 10 Essential Practices

How to Optimize Workflows, Reduce Costs, and Drive Scalability with ExFlow

Automating your Accounts Payable (AP) process isn’t just about saving time. It’s about building a financial system that’s accurate, scalable, and ready to support your business goals. When using Microsoft Dynamics 365, following proven best practices helps you unlock the platform’s full potential—and ensures your automation strategy delivers real results.

Why Best Practices Matter in AP Automation

Even the most advanced AP tools can fall short without structure and strategy. Think of automation as a high-performance car—it needs the right roadmap and driver to win the race. By aligning technology with business processes, you minimize friction, reduce risk, and build a future-ready finance operation.

Let’s walk through 10 essential best practices (plus a bonus tip!) to help you get the most from your AP automation in Dynamics 365.

Top 10 Best Practices for AP Automation in Dynamics 365

1. Align Automation Goals with Business Objectives

Ensure your AP strategy supports broader goals like reducing costs, improving vendor relationships, and scaling efficiently.
Why it matters: Keeps automation relevant, strategic, and impactful.

2. Standardize Invoice Data Inputs

Use templates and structured tools to ensure invoices are submitted consistently.
Why it matters: Reduces errors and streamlines downstream processes.

3. Customize Multi-Level Approval Workflows

Set up tiered approval structures within Dynamics 365 to ensure fast, secure approvals.
Why it matters: Prevents bottlenecks and improves accountability.

4. Enable Invoice Matching Automation

Utilize 2- or 3-way matching to verify invoices against purchase orders and receipts.
Why it matters: Saves time, eliminates manual steps, and catches discrepancies early.

5. Use Real-Time Analytics

Leverage real-time dashboards to track invoice statuses, exceptions, and trends.
Why it matters: Promotes data-driven decisions and operational visibility.

6. Leverage AI and Machine Learning

Dynamics 365 and solutions like ExFlow use AI to predict errors, detect duplicates, and accelerate approvals.
Why it matters: Improves accuracy and reduces human intervention.

7. Support Mobile Approvals

Ensure workflows are accessible from mobile devices for on-the-go decision-makers.
Why it matters: Keeps processes moving in hybrid or remote environments.

8. Conduct Regular Audits

Use built-in analytics to review and refine your AP workflows regularly.
Why it matters: Enables continuous improvement and alignment with evolving needs.

9. Monitor Regulatory Compliance

Automate compliance checks to ensure readiness for audits and adherence to tax rules.
Why it matters: Minimizes risk and simplifies audit prep.

10. Design for Scalability

Build workflows that can handle more invoices as your business grows.
Why it matters: Ensures smooth expansion and avoids costly rework later.

Bonus Best Practice: Embed Your AP Automation Tool

Choose a native solution like ExFlow that operates directly inside Microsoft Dynamics 365. Unlike external tools that rely on integrations, ExFlow offers a seamless experience with real-time data flow and built-in functionality.

Key Advantages of ExFlow:

• Natively Embedded: No connectors or separate interfaces—everything runs inside Dynamics 365.
• AI-Powered Invoice Matching: Automates 2- and 3-way matching with built-in validation and discrepancy alerts.
• Custom Workflows: Mirror your company’s structure with personalized approval paths.
• Advanced Analytics Dashboards: Deep insights into cycle times, exceptions, and payment performance.

Why it matters: ExFlow eliminates complexity, accelerates adoption, and scales effortlessly with your needs.

Measure What Matters: AP Performance Metrics

To truly optimize AP automation, you need to track the right KPIs:

• Invoice Cycle Time: Target processing in under 5 days.
• Manual Intervention Rate: Keep under 2%.
• Early Discount Utilization: Strive to capture over 95%.

These metrics help you identify friction points and unlock further efficiencies.

Why ExFlow + Dynamics 365 Is a Winning Combo

By embedding ExFlow into your Dynamics 365 environment, you create a robust AP process that’s:

• Faster through automation and AI
• Smarter with real-time analytics
• Scalable across geographies and volumes
• Simpler for teams to adopt and use

Ready to Elevate Your AP Automation?

Whether you're beginning your AP automation journey or optimizing an existing solution, following these best practices can future-proof your finance operations. And with ExFlow embedded into Dynamics 365, you're set up for long-term success.

Book a demo today to see how ExFlow can transform your AP process from end to end.