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Import vendor electronic invoices

This article explains how to configure and import vendor electronic invoices in formats based on the Pan-European Public Procurement Online (PEPPOL) into Microsoft Dynamics 365 Finance.

The import supports the following electronic invoice formats:

  • Standard PEPPOL format
  • Germany-specific XRechnung format in the Universal Business Language (UBL) syntax

Prerequisites

Before you complete the tasks in this article, import the following or latest versions of Electronic reporting (ER) configurations from the repository. For more information, see Import Electronic reporting (ER) configurations from Dataverse.

  • Invoice model version 280
  • Vendor Invoice Mapping to Destination version 280.46
  • Vendor Invoice Import version 280.7

Configure parameters

Reference the imported ER format configurations

  1. Go to Accounts payable > Setup > Accounts payable parameters.
  2. On the Electronic documents tab, on the Electronic reporting FastTab, in the Vendor invoice field, select the imported Vendor Invoice Import format.

Configure the sources to import files in batch mode

Configure a SharePoint folder as a source location for incoming vendor invoice files.

  1. Go to Organization administration > Document management > Document types.

  2. Create a new document type, or select an existing one.

  3. On the General tab, in the Location field, select SharePoint.

  4. In the SharePoint Address field, select the folder where import files will be located.

  5. Go to Organization administration > Electronic reporting > Electronic reporting source.

  6. Create a new ER source.

  7. In the Format field, select the Vendor Invoice Import format configuration.

  8. On the File source tab, in the Name field, assign a source name.

  9. Select Settings.

  10. In the Source settings dialog box, enable the SharePoint option.

  11. In the Document type for input sources field, select the document type that you created earlier.

  12. (Optional) Set up three more document types, and use them to define different post-process locations:

    • Document type for imported files – Move the files that were successfully imported.
    • Document type for files with warnings – Move the files that were imported with warnings.
    • Document type for failed files – Move the files that failed with errors.

    Screenshot of the fields in the Move processed files to another location section of the Source settings dialog box.

Note

If you don't define a source for import in batch mode, the system prompts you to define an individual import file before the start of the import process.

Configure vendor data

During the import process, the system identifies vendors by their tax-exempt number. To enable correct vendor identification, follow these steps:

  1. Go to Accounts payable > Vendors > All vendors, and select a vendor.
  2. On the Invoice and delivery FastTab, in the Tax exempt number field, enter a valid tax registration number for the vendor. The system uses this number to identify the vendor during import by matching it to the value of the Invoice\cac:AccountingSupplierParty\cac:Party\cac:PartyTaxScheme\cbc:CompanyID element in the import XML file.

Configure products

During the import process, the system identifies products by their external descriptions. These descriptions are usually vendor-specific. To enable correct product identification, follow these steps:

  1. Go to Product information management > Products > Released products.
  2. Select a product, and then, on the Purchase menu, in the Related information section, select External item description.
  3. Create a new external description for the selected product.
  4. In the Account code column, select Table to define an external product description for a specific vendor.
  5. In the Vendor relation column, select a vendor.
  6. In the External item number column, enter an external product code. The system uses this code to identify the product during import by matching the code to the value of the Invoice\cac:InvoiceLine\cac:Item\cac:SellersItemIdentification\cbc:ID element in the import XML file.

Configure units of measure (optional)

You can configure external codes for units of measure if specific units are explicitly defined in the incoming import files.

  1. Go to Organization administration > Setup > Units > Units.
  2. Select a unit ID, and then select External codes.
  3. On the External codes page, in the Overview section, enter a code that corresponds to the selected unit ID.
  4. In the Value section, enter the external unit code that's expected in import files.

Import vendor electronic invoices

To import vendor electronic invoices, follow these steps:

  1. Go to Accounts payable > Periodic tasks > Import vendor invoices.
  2. On Electronic report parameters, in the File source section, select the source location for batch mode import in the Source settings field. If you don't define a source for batch import, the system prompts you to select a single file for import.

Note

Leave the Description field empty.

Screenshot of the empty Description field on the Electronic report parameters page before the import.

  1. Select OK to immediately start the import process or to schedule the import to run in the background.

Import process description

The following overview describes the steps in the import process.

  1. The system identifies vendors by using the tax-exempt number that you define in the vendor record. If no vendor matches the data that you search for, the import process fails, and the system shows a related error message.
  2. The system identifies products that are used on invoice lines by using an external item number, which might be vendor-specific. If no product matches the external description, the import process fails, and the system shows a related error message.
  3. If units of measure are used on invoices lines, the system identifies them by using external codes values. If the system doesn't find a unit with a matching external code value, the import process fails, and the system shows a related error message.
  4. If an incoming import file contains information about purchase orders and their lines in the Invoice\cac:OrderReference\cbc:ID and Invoice\cac:InvoiceLine\cac:OrderLineReference\cbc:LineID elements, the system uses the numbers to match invoices with purchase orders and lines that are entered in the system.
  5. If no order or line references are defined in an incoming file, the system tries to automatically match incoming vendor invoices with existing confirmed purchase orders. The system uses products purchase prices for matching.
  6. If the system doesn't find a purchase order, it raises a warning but continues the import. The system now considers the products on invoice lines Non-stock items. Therefore, the system expects that these products belong to an item model group where the Stocked product checkbox is cleared on the Inventory policy page.
  7. If no related Non-stock products exist, the system tries to import invoice lines by referring to a default item. You must configure the default item in the system as a released product where the code is defined exactly as DEFAULT_ITEM, and the product must belong to an item model group where the Stocked product checkbox is cleared on the Inventory policy page. The system imports the details of incoming invoice lines' descriptions into the Text field of the related line's Line details section. If you don't configure a default item in the system, the import process fails, and the system shows a related error message.
  8. The system calculates taxes based on the imported data and tax settings. The system doesn't import taxes as fixed amounts from the incoming XML file. You can manually adjust the results of the calculation as required.
  9. The import process supports file attachments. All attached files that you specify in the Invoice\cac:AdditionalDocumentReference element of import files should have extensions. If an attached file has no extension, the system raises a warning, and the import process skips the attachment.

The system shows successfully imported vendor electronic invoices as pending invoices. To review imported invoices, go to Accounts payable > Invoices > Pending vendor invoices.

Note

There are some limitations to this import process:

  • The import process doesn't support the import of miscellaneous charges.
  • The import process supports only the import of line-level discounts.
  • The import process doesn't support the import of procurement categories.

Additional resources

Use the electronic invoicing service to import vendor invoices

Supported standards for electronic invoicing in Europe

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