# How to set up vendor invoice approval in Dynamics 365 Finance

In Dynamics 365 Finance, set up vendor invoice workflow: choose who can approve and their limits, then test it with a real vendor invoice before you rely on it.

Bill approval means a bill is checked and signed off by the right person before it is paid. A setup says who approves what.

## Before you start

- Workflow admin

## The Dynamics 365 Finance way

Where to find it: Accounts payable > Setup > Accounts payable workflows

1. Choose New and pick the vendor invoice workflow type.
2. Design the steps in the workflow editor, with approval elements and conditions.
3. Activate it.
4. Users then choose Submit instead of Post.

## Limits in Dynamics 365 Finance

- Workflow can apply to the header, the line or both.

## Good to know in Dynamics 365 Finance

- An unrecoverable workflow can be reset to Draft with Recall.
- An automated task can post approved invoices in a batch.

## The Pulsify way

1. Connect Dynamics 365 Finance to Pulsify. We set up the connection for you where needed.
2. Open Approvals. Every company starts with a default rule: any Admin or Approver can approve.
3. Add steps for amounts, suppliers or accounts. Choose a person, a role or a team as approver at each step.
4. Add a review step if someone should check coding before approval.
5. Use Try an invoice to test the rule on a real bill.
6. Add auto-approve rules for small or trusted bills if you want.

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

What Pulsify does not do here:

- Pulsify does not reassign an approval to someone else.
- Pulsify does not send approval reminders.

## Common mistakes

- Building the workflow but not activating it.
- Telling users to Post when the workflow expects Submit.

## Common questions

### Where do I set up vendor invoice approval?

Go to Accounts payable > Setup > Accounts payable workflows. Choose New, pick the vendor invoice workflow type, design the steps with approval elements and conditions, then Activate it.

### What do users do once the workflow is on?

They choose Submit instead of Post. The workflow can apply to the invoice header, the line or both.

### What if a workflow gets stuck?

An unrecoverable workflow can be reset to Draft with Recall. An automated task can post approved invoices in a batch.

### Does Pulsify support multi-step approvals?

Yes. You can set steps by amount, supplier or account. Approvers can be people, roles or teams. A review step is available.

## Sources

- https://learn.microsoft.com/en-us/dynamics365/finance/accounts-payable/vendor-invoices-overview
- https://learn.microsoft.com/en-us/dynamics365/fin-ops-core/fin-ops/organization-administration/overview-workflow-system

Source: https://www.pulsify.tech/how-to/set-up-bill-approval-in-dynamics-365-finance/ (last checked 2026-10-19)