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Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / How to Automate Vendor...
Finance | Project Operations, Human Resources, ...
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How to Automate Vendor Invoice Capture in D365 FO Without a Purchase Order

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Posted on by charan12 221

Hi Community,

I'm currently working with the Vendor Invoice Capture solution in Dynamics 365 Finance and Operations. The AI model works well when processing vendor invoices that are tied to valid purchase orders—i.e., when the PO number on the invoice PDF matches an existing PO in the system, the automation successfully creates a pending vendor invoice.

1.I understand that the AI model has been trained with purchase order as a mandatory field, but I’d like to know.

2.Is there any standard configuration or workaround available to handle such non-PO based vendor invoices in the automation flow?

3.Can we customize or create the new AI model or workflow to support invoice automation for expense-based scenarios(which doesn't contain any PO) like office rent, utilities, etc.?

4.Has anyone successfully implemented vendor invoice automation without a PO in D365 FO?

 

Looking forward to any guidance or experiences the community can share. Thanks in advance!

Regards,
Charan.

 

 
Categories:
Dynamics 365 Finance
I have the same question (0)
  • Saalim Ansari Profile Picture
    Saalim Ansari 627 on at
    How to Automate Vendor Invoice Capture in D365 FO Without a Purchase Order

    Hi! Thanks for pointing that out — you're absolutely right.

    Yes, invoices without purchase orders (non-PO invoices) are indeed supported in Vendor Invoice Journals or Pending Vendor Invoices. These are typically used for expense-based invoices (like utilities, rent, etc.) where a PO isn’t applicable. You can configure Invoice Capture to handle these scenarios and assign them by vendor.

    This functionality allows organizations to process expense-based invoices, such as those for utilities or rent, without the need for an associated purchase order.

    For more detailed information, you can refer to the official Microsoft documentation on Invoice Capture:

    🔗 Invoice Capture FAQ – Microsoft Learn

    Appreciate you sharing this!

     

  • Nati Salas Profile Picture
    Nati Salas 4 on at
    How to Automate Vendor Invoice Capture in D365 FO Without a Purchase Order
    Hi! Yes, invoices without POs are supported, in vendor invouce journals or pendind vendor invoices. Its assigned by vendir. Here’s the link to the Ms doc: https://learn.microsoft.com/en-us/dynamics365/finance/accounts-payable/install-invoice-capture
     
    Nati Salas
  • Suggested answer
    Zain Mehmood Profile Picture
    Zain Mehmood 4,171 Super User 2025 Season 2 on at
    How to Automate Vendor Invoice Capture in D365 FO Without a Purchase Order
    Hi Charan,
    1. The standard Vendor Invoice Capture AI model is optimized for PO-based invoices. It expects a matching PO number and vendor context for accurate automation.
    2. Out of the box, non-PO invoices aren't currently supported in the Vendor Invoice Capture flow. There's no standard toggle to enable processing of expense-type invoices (e.g. rent, utilities) without a PO.
    3. As of now, customizing the AI model is not supported — Microsoft hasn't exposed the training or extension pipeline for the AI builder used in Invoice Capture. However, you can create a parallel custom Power Automate flow to:
      • Extract invoice data from email or SharePoint
      • Use AI Builder's invoice processing model
      • Create the pending vendor invoice via OData or custom service in D365 F&O
     You can upvote the idea for non-PO support in the Microsoft Experience platform here (if available): https://experience.dynamics.com/ideas
     
    Hope this helps
    Zain
  • Suggested answer
    Saalim Ansari Profile Picture
    Saalim Ansari 627 on at
    How to Automate Vendor Invoice Capture in D365 FO Without a Purchase Order
    Hi,

    You're absolutely right to explore non-PO invoice automation. While non-PO scenarios aren't supported out-of-the-box by the AI model in Dynamics 365 Finance and Operations, you can achieve this functionality using Microsoft native tools.
     
    You can leverage Azure Form Recognizer or AI Builder to extract invoice data from PDFs, Power Automate to apply business rules and route approvals, and then push the data into D365FO using OData or custom data entities. With some light customization in X++ if needed, this provides a cost-effective and scalable way to automate non-PO invoice processing—ideal for recurring expenses like rent, utilities, and services.
     
    Hope this helps
    Saalim

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