Why it matters for manufacturers
- Different spend needs different approvers. A maintenance bill goes to the plant manager and a raw material bill goes to purchasing.
- Auditors want to see who approved what and when, with limits that match the role.
For manufacturers in Dynamics 365 Finance
- Set Post invoice with discrepancies to Require approval so the system runs invoice matching validation. A user then approves posting with discrepancies on the Invoice matching details page.
- An approver can change invoice quantities to equal the product receipt quantity when the feature Update the invoice quantities to match product receipt quantities in workflow is on.
- A feature option blocks posting and submission when an invoice line quantity is less than the matched product receipt quantity.
Rules that matter for manufacturers in Dynamics 365 Finance
- The approver should check the sales tax code before approving. The Business activity statement feature maps sales tax reporting codes to the GST boxes, so a wrong code lands in the wrong box.
- A valid tax invoice is needed for the GST credit. Do not approve a bill that has no tax invoice.
- A conditional decision on the invoice amount or vendor sends each branch to a different approver, which fits plant limits.
What Dynamics 365 Finance does on its own
Workflows for invoices, lines, journals, vendors and vendor bank accounts.
Workflow can apply to the invoice header, the line or both.
What you need and the setup steps: Invoice approvals for Dynamics 365 Finance.
Example
Example Bearings Supply bills 100 bearings at $98 each, $9,800 ex GST. The product receipt shows 90 received. Post invoice with discrepancies is set to Require approval.
| Line | Amount | What the check finds |
|---|---|---|
| Invoice line, 100 bearings | $9,800.00 | Fails invoice matching, because the receipt shows 90 |
| Product receipt, 90 bearings | $8,820.00 | The quantity the plant booked in |
| Approval on Invoice matching details | The approver accepts the discrepancy or resets the quantity to the receipt |
The submitter chooses Submit, not Post. The approver finds the invoice under Work items assigned to me and decides. If the quantity feature is on, the approver can set the quantity to 90.
Common mistakes for manufacturers in Dynamics 365 Finance
- Building the workflow and leaving users able to choose Post, so the workflow is skipped.
- Approving posting with discrepancies without reading the Invoice matching details page.
Step-by-step guides for Dynamics 365 Finance
- How to set up vendor invoice approval in Dynamics 365 Finance
- How to route vendor invoice records by amount, vendor or project in Dynamics 365 Finance
What Pulsify adds
Pulsify adds approval steps by vendor, amount, account or project, with approve, reject or send back from a phone. Pulsify connects to Dynamics 365 Finance. We set up the connection for you. More about invoice approvals in Pulsify or Pulsify for manufacturers.
More help
- Invoice approvals in Kinetic for manufacturers
- Invoice approvals in CloudSuite Industrial for manufacturers
- Invoice approvals in NetSuite for manufacturers
- Multi-entity accounts payable in Dynamics 365 Finance for manufacturers
- Duplicate invoice checks in Dynamics 365 Finance for manufacturers
- PO matching in Dynamics 365 Finance for manufacturers
- Supplier price checks in Dynamics 365 Finance for manufacturers
- All Dynamics 365 Finance how-to guides
Sources
Last checked 2026-10-19.
Common questions
Who approves an invoice that fails matching in Finance?
With Post invoice with discrepancies set to Require approval, a user approves posting with the discrepancies on Invoice matching details. A Feature management option can instead let an approver reset the invoice quantity to the receipt.
What do auditors ask for on approvals?
They want to see who approved, the date, the limit that applied and any change to the bill after approval. Keep that record with the invoice.
Can Finance route invoices by amount?
Yes. Add a conditional decision to the workflow and set the condition on a field such as invoice amount. Send each branch to a different approver or group.
Pulsify setup guides
Want this done for you?
Book a call to see how Pulsify handles invoice approvals in Dynamics 365 Finance for manufacturers.