Managing payables is one of the most time-consuming finance functions in any business. From vendor invoice entry to approval workflows and payment scheduling, accounts payable (AP) teams often spend countless hours on repetitive tasks.
With the new Payables Agent in Microsoft Dynamics 365 Business Central (Public Preview), Microsoft is introducing a smarter way to automate these processes, powered by Copilot.
What Is the Payables Agent?
The Payables Agent is an AI-powered assistant built directly into Business Central that automates and simplifies vendor invoice handling. Instead of manually processing documents, finance teams can rely on Copilot to streamline the entire payables cycle.
This feature is currently available in Public Preview as part of the 2025 Release Wave 1, giving early adopters the chance to explore and shape its evolution.
Key Capabilities
1. Automated Invoice Capture
The Payables Agent can read vendor invoices (from PDF, electronic documents, or integrated feeds), extract key data like invoice number, vendor ID, due date, and amounts, and create draft purchase invoices automatically.
2. Smart Matching
It intelligently matches invoices to purchase orders or receipts in Business Central, flagging discrepancies and reducing the risk of errors.
3. Approval Workflow Integration
Invoices can be automatically routed to the correct approver based on rules. Copilot also provides explanations for why a document was flagged or routed, increasing transparency.
4. Payment Scheduling
The Payables Agent can recommend payment schedules based on vendor terms, cash flow status, or discounts available for early payment.
5. Exception Handling
Instead of manually tracking down issues, Copilot highlights exceptions (like mismatched amounts or missing POs) and suggests next steps.
Benefits for Businesses
✅ Efficiency Gains – Reduces the manual workload for AP teams.
✅ Accuracy – AI-powered data capture and matching minimize human errors.
✅ Faster Cycle Times – Automates invoice-to-payment workflows for quicker processing.
✅ Cost Savings – By avoiding late fees and capturing early-payment discounts.
✅ Employee Satisfaction – Frees finance teams from repetitive data entry, allowing them to focus on analysis and strategic work.
Public Preview & What to Expect
- Available in Public Preview (PP) for Business Central online customers.
- Can be tested in sandbox environments.
- Feedback during the preview will help refine capabilities before General Availability in future waves.
Real-World Scenario
Imagine you receive 200 vendor invoices in a month. Traditionally, a finance assistant would:
- Enter each invoice manually.
- Check against purchase orders.
- Send for approval.
- Schedule payments.
With the Payables Agent, most of this is automated:- Invoices are captured and entered.
- Copilot matches them to purchase orders.
- Approval routing happens automatically.
- Payments are suggested in line with cash flow.
The finance team only steps in for exceptions, approvals, or analysis.
Final Thoughts
The Payables Agent is more than just automation; it’s intelligent assistance for finance. By embedding AI into the AP process, Microsoft is helping businesses streamline operations, reduce costs, and empower finance teams to work smarter.
For businesses looking to modernize their finance function, this Public Preview is an excellent opportunity to test the future of payables automation.
