# How to keep an audit trail for vendor invoice records in Dynamics 365 Finance

Attach the source invoice to every vendor invoice in Dynamics 365 Finance. Record who approved and when, keep reasons for rejections and changes and test the trail on five bills.

An AP audit trail is the record of who received, coded, approved and paid each bill and what was checked.

## Before you start

- Auditor or admin role

## The Dynamics 365 Finance way

Where to find it: Workflow history, audit policies and document attachments

1. Use Workflow history to see each approval step.
2. Set audit policies for source documents.
3. Attach the original invoice image to the document.

## The Pulsify way

1. Forward the invoice to Pulsify. The original file is kept with the bill.
2. Set approval rules by supplier, amount or account. Add steps and a review step if needed.
3. Rejections and approvals are recorded with the person and date. Rejections can carry a reason.
4. On approval, the vendor invoice is created in Dynamics 365 Finance with the file attached.

Pulsify connects to Dynamics 365 Finance. We set up the connection for you.

What Pulsify does not do here:

- Pulsify does not replace the record-keeping duties of your business.

## Common mistakes

- Relying on workflow history alone when no audit policy is set on the source documents.
- Leaving the original invoice image off the document.

## Common questions

### How do I show who approved an invoice?

Use Workflow history to see each approval step.

### Can I keep the invoice image with the invoice?

Yes. Attach the original invoice image to the document.

### What are audit policies for?

Set audit policies for source documents. You need an auditor or admin role.

### Does Pulsify record approvals?

Yes. Approvals and rejections are recorded with the person and date.

## Sources

- https://learn.microsoft.com/en-us/dynamics365/finance/general-ledger/tasks/audit-invoices-key-data-ap-system
- https://learn.microsoft.com/en-us/dynamics365/finance/accounts-payable/vendor-invoice-automation

Source: https://www.pulsify.tech/how-to/keep-an-audit-trail-for-ap-in-dynamics-365-finance/ (last checked 2026-10-19)