Microsoft OCR for Dynamics 365: How Havi Delivers AI Invoice Automation

Microsoft OCR for Dynamics 365 helps businesses extract supplier invoice data and automate accounts payable processes using AI-powered optical character recognition (OCR). Native OCR is available through Microsoft Invoice Capture in Dynamics 365 Finance, while other Dynamics 365 applications, such as Business Central, typically integrate with third-party OCR solutions. For organisations with standard accounts payable workflows, Microsoft’s built-in capabilities provide a strong starting point.

However, businesses with high invoice volumes or complex requirements, such as complex purchase order matching, partial deliveries, multi-entity processing, and flexible exception workflows, often need a more advanced AI-powered invoice automation solution.

Havi provides its own AI-powered invoice automation solution that integrates with Microsoft Dynamics 365, including Dynamics 365 Finance and Business Central, enabling businesses to automate complex invoice processing.

This guide helps you decide which solution is a good fit for your business by explaining:

• How Microsoft OCR works across Dynamics 365
• Where Microsoft’s native OCR works well and when an advanced AI OCR solution is a better fit
• How Havi delivers AI-powered invoice automation for Dynamics 365
• Key benefits of Havi’s AI-powered invoice automation
• Common questions about Microsoft OCR for Dynamics 365

What Is Microsoft OCR and How Does It Fit into Dynamics 365?

Microsoft OCR for Dynamics 365 uses optical character recognition (OCR) to extract data from scanned invoices, PDFs, and document images, helping automate accounts payable processes.

A visual overview of Microsoft OCR for Dynamics 365 and its availability across Finance and Business Central.

How OCR is implemented depends on the Dynamics 365 application you use. In Dynamics 365 Finance, native OCR is available through Microsoft Invoice Capture. Other Dynamics 365 applications, such as Business Central, typically rely on third-party or Microsoft ecosystem solutions for invoice processing.

Microsoft OCR in Dynamics 365 Finance

Dynamics 365 Finance includes Microsoft Invoice Capture as a native, first-party solution for accounts payable (AP) automation. It uses AI Builder and Power Platform to create an automated workflow that reads invoice images, extracts structured data, and pushes that information directly into the Dynamics 365 Finance and Operations suite, without additional third-party software in most cases.

The following table outlines how it works and associated costs:

Microsoft OCR in Dynamics 365 Business Central

Dynamics 365 Business Central has no built-in OCR module. Businesses running Business Central typically rely on a third-party add-on from Microsoft AppSource, or an AI-powered invoice automation solution such as Havi, to scan invoices and extract data.

The table below shows an overview of OCR for Dynamics 365 Business Central:

Business Central can also support basic automation scenarios through Power Automate-based OCR flows. In addition, it is well suited for structured electronic invoicing formats such as Peppol, which many Australian businesses use to automate invoice receipt without traditional OCR. For scanned invoice automation, however, a purpose-built ISV solution is typically required.

Microsoft OCR and the Broader Microsoft AI Connected Tools

Beyond ERP-specific capabilities, Microsoft provides additional tools for document processing across its ecosystem. Azure AI Document Intelligence (formerly Azure Form Recogniser) enables large-scale extraction of text and structured data from documents. Power Automate also supports OCR-based workflows that can connect document processing across Microsoft applications.

These tools can be used independently of Dynamics 365 or combined with it, depending on whether businesses need ERP-native invoice automation or broader document processing capabilities across systems.

Understanding how Microsoft OCR works across Dynamics 365, natively in Finance, through third-party solutions in Business Central, and via broader Microsoft AI tools, helps define what is included out of the box and what is not. The next step is to evaluate whether native Microsoft Invoice Capture is sufficient for your business requirements.

Is Native Microsoft Invoice Capture Enough for Your Business?

Whether native Microsoft Invoice Capture is enough depends on your invoice volume, how many invoices require purchase order (PO) matching, and the complexity of your approval workflows. For businesses running Dynamics 365 Finance, Microsoft Invoice Capture provides a strong foundation for accounts payable automation. It is often sufficient when invoice volumes are moderate, purchase order matching is straightforward, and approval workflows are relatively simple.

When to choose native Microsoft Invoice Capture vs. advanced invoice automation.

Native Microsoft Invoice Capture is generally a good fit for businesses running Dynamics 365 Finance when:

• High PO-match rate: most invoices follow a standard purchase order matching process.
• Simple approval workflows: approvals are sequential and role-based rather than conditional on multiple factors.
• Manageable invoice volumes: volumes stay within a range the native module can handle efficiently.
• New Dynamics 365 Finance rollouts: you want invoice automation running quickly without adding a second solution during initial implementation.

As business requirements become more complex, additional automation capabilities may be beneficial. For example:

• Complex purchase order matching requirements: partial deliveries, price differences, and multi-line matching that the native module doesn’t handle.
• Complex conditional approvals: routing rules depend on amount threshold, vendor category, and department simultaneously.
• High invoice volumes: processing large numbers of invoices where additional automation helps reduce manual effort.
• Multi-entity needs: support across separate trading companies, or end-to-end automation including payment execution.

These are common requirements for Australian manufacturers, wholesalers, distributors, and multi-site retailers, and they are exactly the scenarios where Havi’s AI OCR delivers practical value.

In summary, native Microsoft Invoice Capture is well suited to businesses running Dynamics 365 Finance with straightforward accounts payable processes. As invoice volumes, approval requirements, or purchase order matching become more complex, an AI-powered invoice automation solution can provide additional capabilities while allowing businesses to continue working within their Dynamics 365 environment.

The next section explores how Havi’s AI-powered invoice automation helps businesses manage more complex invoice processing requirements within Dynamics 365.

How Havi Delivers AI-Powered Invoice Automation for Dynamics 365

Havi delivers AI-powered invoice automation for Dynamics 365 through two core workflows: invoice processing and purchase order processing. It is designed to help finance and procurement teams reduce manual work while keeping full control over approvals and exceptions.

Automated Invoice Processing

Havi’s invoice processing workflow replaces manual invoice entry with three automated steps, working from the supplier PDF through to a draft invoice ready for review.

• Centralise invoice intake: PDF invoices are collected through a single channel, such as a dedicated email address or upload portal, so they don't need to be processed individually or distributed manually across the team.
• Extract key invoice data: AI-powered OCR captures vendor name, invoice number, dates, amounts, and line items, and maps product details such as description or item ID to the matching Dynamics 365 fields.
• Match and validate: Invoices are checked against purchase orders and your business rules. Invoices that meet defined conditions move forward automatically; anything else is flagged for review.

Automated Purchase Order Processing

Procurement teams typically receive supplier quotations and re-key that data manually to create a purchase order. Havi applies the same three-step pattern here, starting from the supplier's quote rather than an invoice.

• Centralise supplier quotations: Supplier quotations arrive through the same mailbox or portal path as invoices, ready for OCR extraction.
• Extract quotation details: Pricing, item descriptions, quantities, and supplier terms are pulled directly from the quote document.
• Review and generate the purchase order: After a quick review of the extracted data, the purchase order is generated directly in Dynamics 365, removing the manual re-keying step that otherwise slows down procurement.

Unlike basic OCR tools that focus only on extracting text, Havi’s AI-powered invoice automation is designed to understand different document types such as invoices, quotations, and related supplier documents in a structured way. This helps improve accuracy when dealing with varied layouts, formats, and document quality, while reducing the need for strict templates.

Together, these two workflows integrate directly with Dynamics 365 Finance or Business Central without requiring your team to work outside the ERP environment or learn a separate platform. Beyond automating invoice processing, this approach helps businesses improve efficiency, reduce manual work, and maintain greater control over accounts payable.

Key Benefits of Havi’s AI-Powered Invoice Automation

Havi’s AI-powered OCR solution helps businesses process invoices faster, improve accuracy, reduce manual work, and scale accounts payable operations. Rather than only extracting invoice data, it supports the end-to-end invoice process, from document receipt through validation and draft invoice creation within Dynamics 365 applications.

See how Havi’s AI-Powered OCR Solution improves your invoice processing.

• Faster Invoice Processing and Approvals: Invoices that meet predefined business rules can move through validation and approval automatically. This allows AP teams to spend less time on routine processing and more time reviewing exceptions that require human judgement.
• Higher Accuracy with Intelligent PO Matching: Invoice data is validated against purchase orders and flags discrepancies such as price, quantity, or description differences before posting. This helps reduce supplier disputes and the need for corrective postings.
• Reduced Manual Work and Fewer Exceptions Over Time: Configurable business rules allow routine invoices to be processed automatically, while unusual transactions are routed for review. As more recurring invoices follow the same rules, the need for manual intervention decreases over time.
• Scalable Support for High Volumes and Multi-Entity Operations: The system supports businesses operating across multiple entities, trading companies, or sites, with invoice volumes that grow without a proportional increase in AP headcount.

Getting this right depends on how well the AI OCR layer is configured against your specific purchase order and approval rules, including finance, procurement, and supply chain workflows that don’t stop at invoice capture. That broader question sits within what Havi calls AI business process automation, a structured approach to mapping machine decision-making across end-to-end finance and procurement workflows, including the exception-handling and audit-trail requirements that matter most once invoice volumes scale.

Frequently Asked Questions About Microsoft OCR and Dynamics 365

See How Havi AI OCR Can Extend Your Dynamics 365 Workflows

Microsoft OCR for Dynamics 365 provides a strong foundation for invoice automation, particularly for businesses using Dynamics 365 Finance with straightforward accounts payable processes. As invoice volumes and business requirements become more complex, additional automation may be needed. Havi’s AI-powered invoice automation solution integrates with Dynamics 365 applications to support more advanced invoice processing and approval workflows.

If your AP team is still spending significant time matching invoices, chasing exceptions, or processing high volumes manually, it’s worth reviewing your current setup against what’s actually achievable. Talk to the Havi team about your invoice processing challenges, purchase order matching requirements, and Dynamics 365 environment; we’ll help you work out the most practical path forward and show you how the automation works in practice.

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