Payables Agent in Business Central 26.3 – how does the new AI-powered accounting automation feature work? We’ve tested it – here’s what you need to know!
AI-powered accounting in Business Central? It’s already here.
In one of our earlier blog posts, we announced a new feature in Microsoft Dynamics 365 Business Central – the Payables Agent. This AI-based tool is set to completely change the way we approach accounting operations.
The feature is now available in the public preview of version 26.3, so we’re taking a closer look at how it works, how to configure it, and what real benefits it can offer to companies using Business Central.
What is Microsoft Payables Agent?
Payables Agent is a new feature in the Business Central ERP system, available from version 26.3. Its goal is to automate the processing of purchase invoices – from the moment they are received (e.g. via email) to the creation of a purchase invoice draft in the ERP system.
It works similarly to the well-known Sales Order Agent, but instead of sales orders, it processes purchase documents. The tool uses generative AI to analyze documents, map relevant fields, and allows the user to approve or adjust the data.
How does Payables Agent work? Step by step
1. Agent activation
In Business Central 26.3, a “PA Agent” icon appears in the top right corner.
You just need to enable the feature and provide the email inbox the agent should monitor.
2. Invoice capture
The agent checks the inbox and automatically detects new emails with attached invoices (e.g. PDFs).
The document is displayed in preview mode in the system – the user can review its contents.
3. User verification
The system proposes data for posting (vendor, account, amount, description, currency).
The user can approve, reject, or complete missing fields, such as an item number.
4. Draft invoice creation
Once approved, the system generates a draft Purchase Invoice, which can be edited or posted immediately.
5. Finalization
The user converts the draft into a posted purchase invoice.
The document is added to the records – without any manual data entry.
Payables Agent in action – a practical example
Let’s say a supplier sends an invoice by email to a dedicated accounting inbox.
The agent detects a new message and analyzes the PDF attachment.
It suggests filling in fields based on the invoice content and historical data.
If, for example, the item number is missing – the user can add it manually.
Once confirmed, the system creates a draft invoice in Business Central, ready for review or posting.
Thanks to this, accountants no longer need to manually enter invoice data – a quick review and a click on “Approve” is enough.
Configuration and requirements – what should you know?
Copilot Studio subscription
The function uses AI tokens, so an active Copilot Studio subscription is required. It’s worth planning token usage and monitoring costs.
Custom fields
You can configure the agent to include custom fields, such as those coming from external systems.
Availability
The feature is currently available in preview mainly in English-speaking regions (e.g. the US, UK), but it can also be tested in other environments.
What are the benefits of Payables Agent for your business?
- Faster invoice processing – less manual work, more time for analysis
- Fewer errors – data is extracted automatically from the document
- Improved oversight and control – users can decide which steps should be automated
- Scalability – the agent can monitor multiple inboxes and handle large invoice volumes
- Microsoft 365 integration – seamless connection with Outlook and SharePoint
Payables Agent – Frequently Asked Questions (FAQ)
Is Payables Agent fully automated?
No – the agent prepares a draft invoice, but the user decides whether to approve it. Microsoft follows the “human-in-the-loop” model. However, this process can be gradually automated over time.
What invoice formats are supported?
Primarily PDF, sent as email attachments.
Can the feature be tested before full implementation?
Yes – Microsoft provides a Public Preview in version 26.3 of Business Central. Our team has already tested it and we showcase it during consultations – feel free to book one!
Is the feature available in Poland?
Officially, the preview is available in selected regions, but it can also be tested in other environments, including Polish ones.
Is a Copilot Studio license required?
Yes – using Payables Agent requires an active Copilot Studio account and token usage charges apply.
Payables Agent in your ERP system
Payables Agent in Business Central is a major step toward fully automated accounting – while keeping the user in control. This AI-powered agent eliminates the need for manual data entry from invoices, shortens document processing time, and significantly boosts the efficiency of finance departments.
Want to use AI in your ERP system?
We invite you to a free consultation where we’ll walk you through Business Central and the AI features available within your license.
Fill out the form and get in touch with us!
IT Vision is an experienced provider of ERP systems, BI solutions, and B2B platforms, operating on the market since 2000. The company has completed over 400 projects worldwide, supporting organizations in their digital transformation. IT Vision’s team of experts combines business and technological knowledge, delivering high-quality implementations based on Microsoft technologies.
