Nikoo Samadi
Still spending hours manually processing vendor invoices? From digging through emails to retyping data into your ERP, traditional accounts payable (AP) tasks can be slow and error-prone. That’s why the new Payables Agent in Business Central, introduced in the 2025 wave 1 release, is such a breakthrough.
With the 2025 wave 1 release (BC26.3), Microsoft introduces the Payables Agent, an AI-powered feature designed to take the manual work out of invoice processing. It reads email attachments, drafts purchase invoices, and even learns your company’s patterns to speed up approvals.
If your finance team is ready to save time and reduce errors, this update is worth a closer look.
What’s New: Payables Agent in Business Central 2025 Wave 1
The Business Central 2025 wave 1 update introduces a standout feature: the Payables Agent in Business Central, designed to streamline AP automation.
This AI-powered assistant is built to help businesses automate their payables process. It connects directly to your email or SharePoint, scans incoming vendor invoice attachments, and automatically creates draft purchase invoices in Business Central.
But it doesn’t stop there. The Payables Agent can also:
- Match vendors based on invoice details
- Extract relevant data from attachments
- Suggest invoice lines using past transactions
- Populate fields like posting groups or dimensions based on your accounting rules
It’s designed to lighten the load for finance teams by handling repetitive, manual tasks and letting them focus on reviewing and approving.
How the Payables Agent Works: A Quick Walkthrough
Getting started with the Payables Agent is straightforward. Once activated, it works quietly in the background, handling the busywork of invoice processing.
Here’s how it works:
- Activate the Agent
Go to the setup page in Business Central and enable the Payables Agent. - Connect Your Email
Link an email account (like your shared AP inbox) where vendor invoices are sent. The agent will monitor this inbox automatically. - Scan and Draft Invoices
When an invoice attachment arrives, the agent scans it, extracts key details, and creates a draft purchase invoice that are ready for review. - Match Vendors and Populate Fields
Using past data, the agent suggests vendor names, invoice lines, and even accounting fields like dimensions or posting groups. - Archive the Original Email
The original email and attachment are archived for future reference, keeping your records clean and accessible. - Review and Approve
Your team can make final edits or approvals before posting the invoice into your financial system.
This process turns what used to be a multi-step manual task into a fast, guided workflow, helping your team move faster with fewer errors.
Why It Matters: Key Benefits of the Payables Agent
Automating invoice processing with the Payables Agent in Business Central is about reducing risk, improving accuracy, and freeing up your finance team.
Here’s how the Payables Agent adds real value:
- Less Manual Work
No more digging through inboxes, copying data into forms, or matching vendors by hand. The agent handles these repetitive steps for you. - Fewer Errors
By pulling information directly from the invoice and using your company’s historical data, the agent helps reduce typos and mismatches. - Faster Processing
Invoices are automatically turned into drafts, shortening the time from receipt to approval. - Smarter Decisions
With key fields like dimensions or posting groups filled based on your company’s logic, accounting accuracy improves over time. - Scalable Efficiency
As invoice volume grows, the Payables Agent grows with you, making it easier to keep up without needing to hire more AP staff.
In short, it frees your team from the low-value tasks and helps them focus on oversight, strategy, and vendor relationships.
Simplify Your Decision with GEM365
Get in touch with GEM365 to guide you through the process and get consultation for free.
Where and When Can You Use It?
The Payables Agent is part of the 2025 Wave 1 (BC26.3) release of Microsoft Dynamics 365 Business Central and is currently available on public cloud environments.
As of now, the feature is supported in:
- United States
- United Kingdom
If you’re in these regions and using Business Central online, you should already have access to the agent with platform version 26.0.36152.0 or later.
For users in other regions, such as Japan, the feature isn’t available yet but it’s expected to roll out more broadly in future updates. Microsoft is likely monitoring feedback and performance in early markets before expanding access.
Tip: Check your current version and region settings in Business Central to confirm availability.
How to Get Started with the Payables Agent In Business Central
Ready to try the Payables Agent in your own Business Central environment? Here’s how to get set up in just a few steps:
- Make Sure You’re on the Right Version
Confirm that your Business Central is updated to version 3 or later. This feature is only available in cloud deployments, not on-premises. - Enable the Payables Agent
Go to the Search bar in Business Central and type “Payables Agent Setup.” Follow the guided steps to activate the feature. - Connect an Email Inbox
Choose a shared or dedicated inbox that receives vendor invoices. The Payables Agent will monitor this account for incoming attachments. - Adjust Default Settings
Customize how the agent fills in fields like posting groups, dimensions, or invoice lines. You can let it learn from past entries or use your predefined rules. - Test with a Few Invoices
Start small. Let the agent create a few draft invoices from real emails and review the output. You’ll quickly see how much time it saves. - Train Your Team
Walk your AP team through the new workflow. Since the agent just adds to their existing tools, there’s no steep learning curve.
Key Features of the Payables Agent (BC26.3)
Microsoft rolls out updates to SharePoint monthly, often integrating new AI tools from Microsoft 365 Copilot, deeper Teams collaboration features, and expanded Viva modules.
1. Automated Invoice Monitoring & Import
Continuously monitors a configured Microsoft 365 mailbox for incoming vendor invoice emails with PDF attachments.
Automatically imports each PDF into the Inbound E-Documents queue for processing
2. OCR via Azure Document Intelligence
Processes PDFs using Azure Document Intelligence to extract invoice data (vendor, amounts, invoice number, etc.).
Stores data alongside the original PDF, allowing near full-screen validation through an enhanced PDF viewer inside Business Central
3. AI-Driven Invoice Draft Creation
Applies OCR data, historical purchase info, and accounting policies to draft purchase invoices automatically.
Suggests vendor, line items, account codes, amounts, quantities, and more, tagging fields that need review or correction
4. Supervisor Involvement & Draft Review
Agent supervisors (designated Finance or AP clerks) review and validate draft invoice details.
The system shows agent reasoning (“why it chose X”), helps identify or create new vendors, and flags fields requiring attention
5. Finalization & Posting
Once reviewed and approved, the agent converts the draft into a posted purchase invoice.
Keeps the draft linked to the invoice record for traceability
6. Copilot & Low-Code Setup
Accessible via Copilot Studio, with minimal configuration needed to set up the monitoring mailbox, AI preferences, and approvers.
Built on secure AI infrastructure, with usage tied to consumption‑based billing
Final Thoughts
Managing vendor invoices doesn’t have to be manual or messy. With the new Payables Agent in Business Central, part of the 2025 Wave 1 release, businesses can automate routine AP tasks, reduce errors, and speed up invoice processing and all with minimal setup.
If your team is ready to move beyond the old way of doing things, now’s the perfect time to give this feature a try.
If you’re not already using Business Central online, you can contact us and make sure you’re on the latest version and then start testing the Payables Agent.
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