The first reconciliation copilot automations focus on reconciling subledgers to the general ledger balances. SQL Server Reporting Services (SSRS) reports will be a thing of the past, and will be replaced with a near-real time process that proactively notifies the finance team of any reconciliation issues. Upon recognition of an issue, Copilot identifies the mismatched transactions and provides a solution. That solution may be changing a setting on the main account (such as don't allow manual entry) or may recognize when a posting profile has changed, causing a different balance sheet account to be used for reconciliation.

An audit trail will be maintained when issues are identified, along with the solution. Copilot will learn from the solutions of the past and move toward automatic resolution to any reconciliation issues (longer-term vision). Again, it's all tracked with an audit trail for actions taken by Copilot.

The first releases will focus on a subset of subledgers: accounts payable, accounts receivable, tax, and bank. Additional subledgers, such as fixed assets and inventory, will be added in future releases.

The primary focus of this release is creating a new set of financial journals using the new journal framework. For this wave, we'll begin by focusing on the architecture of a new journal framework. During this phase, we are taking into consideration the goodness of the current journals while also addressing the challenges faced by finance users. For the first release of the new journal framework, we will introduce a new general journal that supports the following:

• Ledger account adjustments only (for phase 1).
• Exponentially better performance for the end-to-end process of importing, validation, and posting of vouchers/journals.
• Importing and manual entry of vouchers for multiple companies within a single journal. For example, you can create a journal and enter transactions for USMF and USSI without creating a new journal and signing in/out. This will be limited to legal entities based on your security access.
• Move processing down to the voucher level. Validation, approvals, and posting can be initiated at the journal level still, but the processing will be done at the voucher level.
• Introduction of a 'Voucher type' that is used to identify what type of transaction is being entered. This allows for better lifecycle control of each type of transaction.
• New entities for both Odata and DMF for the new general journal.

As the new journal framework is finalized, all financial journals will continue to evolve as follows:

• Add support for the additional account types (vendor, customer, assets, project, bank, and so on) to the general journal.
• Evaluate all other journals and determine how to create a new version of those journals using the new journal framework.
• Improve the reversal experience for all voucher types.
• Reevaluate existing functionality such as how accrual entries are posted or how periodic journal/voucher templates work.
• Address the data model issues to fix the One voucher issues.
• Evaluate the addition of new journals such as a bank transfer journal.

As new journals are introduced with the new journal framework, they will be communicated with new release plan features.

Financial tags support user-defined fields across various transactions and financial documents in procurement-to-pay processing. Organizations can create and enter up to 20 customizable fields on transactions, stored on accounting entries. When the feature is enabled, it applies to the following transactions and documents:

• Purchase order and accounting distributions on purchase orders
• Product receipt journal
• Pending vendor invoice and accounting distribution in pending vendor invoices

Financial tags are already introduced into some inquiry pages, such as the Voucher transactions page. This feature will introduce the financial tags into the Accounting source explorer inquiry within Finance.

In addition, we will also add the financial tags to the data model for Record to Report within Business performance analytics, making them available as dimensions for analysis.

This feature provides additional legal entity bank account lifecycle management capabilities in Dynamics 365 Finance:

• Approval workflow for bank account activation, modification, and deactivation.
• Configurable protected fields to determine whether bank account modification needs approval.
• Approver can review proposed changes on bank account.
• Bank account change history for auditing purposes.
• Additional signer master data on bank account.

The prepayment invoice feature provides an option to issue an invoice against prepayment sales order lines. Payment is collected against a prepayment invoice before delivery of goods or services. Ultimately, the prepayment invoice is reconciled and settled with the final invoice. This makes sure that all payments are posted against an invoice.

User security governance is a set of advanced features that provide useful tools to system administrators for role management, license auditing, enhanced audit trails, and versioning, supported with some useful reports around license usage and separation of duties violations.

The Preview automatic bank reconciliation matching results feature includes the following:

• Matching preview and option to update bank reconciliation results.
• Ability to select matching rules that should be manually reviewed before posting results during reconciliation process.
• Pending review screen for user to investigate matching results.
• Option to review bank reconciliation matching exceptions.

Dynamics 365 Finance now supports the automation of Bank Foreign Currency Revaluation (FCR), ensuring that foreign currency balances are consistently updated. This enhancement significantly reduces the risk of errors and discrepancies in financial reporting.

Users can schedule revaluation processes to occur on specific dates and according to defined parameters. These processes run in the background, allowing users to focus on other tasks and review the results as needed.

Key improvements include the ability to identify the source (from) asset and destination (to) asset, select either spot or historical exchange rates for reporting currency, and preview fields that display asset values before and after the split in accounting and reporting currencies. Users can split assets by amount or percentage. A new Fixed asset split list page offers a detailed audit trail, and the feature supports split updates across legal entities.

The Fixed asset inter-company transfer allows users to transfer assets between legal entities by selecting the source asset and its book, previewing key financial details such as acquisition cost, accumulated depreciation, and net book value (NBV). The transfer can be processed as disposal. Users can choose to either create the destination asset automatically or select precreated assets. The feature copies asset data to the destination entity, allows previewing of destination values, and automates the posting of acquisition in the destination asset and disposal transactions in the source asset.

The first reconciliation automations focus on reconciling subledgers to the general ledger balances. SSRS reports will be a thing of the past, and are replaced with a near-real time process that proactively notifies the finance team of any reconciliation issues. Upon recognition of an issue, each transaction provides numerous options for possible solutions. That solution may be changing a setting on the main account (such as don't allow manual entry) or may recognize when a posting profile has changed, causing a different balance sheet account to be used for reconciliation. An audit trail will be maintained when issues are identified, along with the solution.

The first public preview included the subledger-to-ledger reconciliation automation but it did not include recommendations by the Account reconciliation agent for how to address exceptions. The second public preview will introduce the agent functionality for recommending the action to take to address the exception for individual transactions. Copilot will learn from the solutions of the past, and move toward automatic resolution to any reconciliation issues (longer-term vision). Again, it's all tracked with an audit trail for actions taken by Copilot.

The current accounting source explorer page in Dynamics 365 Finance is a key tool for accounting personnel to view financial transactions. The current limitation to view data from one company or legal entity at a time causes a great deal of wasted time switching to each company and reloading the data into the accounting source explorer page.

This update to the accounting source explorer will allow exporting of transactional data quickly and easily for the selected companies. The ability to export data from multiple companies to Excel will also let the accounting team do deeper analysis across companies.

The key change for this feature will be an improved export option that will allow the user to select which companies they want to export data from along with the other existing filter options in the accounting source explorer.

This feature aims to comply with the Belgium-specific requirements for enforcing electronic invoicing for business-to-business communications starting January 1, 2026.

You can communicate invoices and credit notes created from sales orders, free text invoices, project invoices, or import vendor pending invoices to/from PEPPOL Delivery Network in the PEPPOL-based XML format that complies with the Belgian electronic invoicing standards.

Poland is introducing legislation to establish the continuous transaction control (CTC) system. The Polish CTC system, called Krajowy System of e-Faktur (KSeF), was made available for all taxpayers in 2022 for voluntary adoption.

To comply with these legal requirements, the following functionality is implemented and available as public preview: Electronic invoicing for Poland

• Generation of XML files of Sales, Project, and Advance electronic invoices in the legally required format provided by KSeF.
• Automatic submission of generated electronic invoices to KSeF.
• Import of incoming Vendor electronic invoices issued and available for recipients on the KSeF platform.

The legal requirements are not fully finalized yet. As of now, the KSeF system will be rolled out as mandatory, in phases, depending on a company's size, following this implementation timeline:

• February 1, 2026, for large taxpayers (over PLN 200 million per annum).
• April 1, 2026, for all taxpayers.

This feature uses Application Object Server (AOS) resources to eliminate the need for external conversion services. Using these in-app capabilities ensures efficient and secure document processing to reduce dependency on tools outside of Finance while maintaining high performance and reliability. This enhancement supports a wide range of business scenarios that provide users with the flexibility to generate and distribute professional-grade PDF documents directly within the application.

The advantages of in-app PDF conversion, when the (Preview) In-App PDF conversion for Configurable Business Documents (CBD) feature is enabled, are:

• The PDF document that is produced is not limited to 300 pages.
• The Word document that is converted can contain a large number of content controls.
• Internet connectivity isn't required in on-premises deployments.

We continue to extend the scope of the supported countries to address the needs of multiple global and local customers. Out-of-the box localization for Republic of Türkiye is available. The country localization indicated below is provisional and may change prior to general availability. Additionally, not all of the following capabilities may be available for preview.

• Exchange rate import from CBRT.
• Continuous serial numbers for invoices and packing slips.
• Currency conversion in purchase and sales orders.
• Exchange rate difference invoices.
• Electronic invoice generation and submission.
• Cheque and promissory note enhancements.
• Pro-rata depreciation of fixed assets and depreciation rounding per year.
• Inflation adjustments.
• E-Ledger generation and submission.

We continue to extend the scope of the supported countries in LATAM to address the needs of multiple global and local customers. Out-of-the box localization for Dominican Republic is available. While the country localization will provide the following capabilities, they might not all be available for preview.

Country-specific features for Dominican Republic

• Invoicing

  • Electronic Invoicing
    • Electronic Invoice format
  • Other invoicing
    • Invoice layout for sales order invoice, free text invoice, and project invoice

• Reporting

  • General ledger and tax reports
    • Declaration reports general ledger
    • Declaration reports trial balance
    • File export Report with Purchases of Goods and Services to issue Report 606
    • File export Report with the Sales of Goods and Services to issue Report 607
    • File export Report with voided receipts to issue report 608

We continue to extend the scope of the supported countries in LATAM to address the needs of multiple global and local customers. Out-of-the box localization for Peru is available. While the country localization will provide the following capabilities, they might not all be available for preview.

Country-specific features for Peru

• Invoicing

  • Electronic Invoicing
    • Electronic Invoice format
  • Other invoicing
    • Invoice layout for sales order invoice, free text invoice, and project invoice

• Reporting

  • General ledger and tax reports
    • Declaration Reports Cash and Bank Ledger
    • Declaration Reports General Ledger
    • Declaration Reports Trial Balance
    • Declaration Reports Purchases Register Report
    • Declaration Reports Sales Register Report
    • File export Annual declaration of operations with third parties (DAOT): Purchases and Sales
    • File export Electronic Journal Book
    • File export Electronic Ledger
    • File export Electronic Purchase Book
    • File export Electronic Sales Book
    • File export Withholdings File - SUNAT

We continue to extend the scope of the supported countries in LATAM to address the needs of multiple global and local customers. Out-of-the box localization for Venezuela is available. While the country localization will provide the following capabilities, they might not all be available for preview.

Country-specific features for Venezuela

• Invoicing

  • Electronic Invoicing
    • Electronic Invoice format
  • Other invoicing
    • Invoice layout for sales order invoice, free text invoice, and project invoice

• Reporting

  • General ledger and tax reports
    • Declaration Reports General Ledger Book (Libro Diario)
    • Declaration Reports ISLR Withholdings Book
    • Declaration Reports Purchases VAT Book
    • Declaration Reports Relationship purchases Book
    • Declaration Reports Relationship Sales Book
    • Declaration Reports Sales VAT Book
    • File export ISLR Withholdings
    • File export VAT withholdings

Electronic invoicing is the primary billing model in Mexico, where it is used in 100% of commercial transactions. This system has become a tool to improve fiscal control and mitigate high evasion rates. Countries such as Mexico have dedicated laws to ensure the authenticity of these documents via authorized trust service providers, who act like electronic notaries, stamping documents and applying electronic time seals to guarantee their long-term integrity and legal weight.

The e-invoice in Mexico, known as the CFDI (Comprobante Fiscal Digital por Internet), is well established throughout Mexican society. Created in 2004, it has been subject to updates and changes over the years to ensure a better user experience for taxpayers and to correct issues detected over time. Issuers must digitally sign all invoices using a unique system that involves the encryption of the "original string" data made up of a series of characters extracted from defined fields. An additional electronic signature, called a "Stamp," must be generated by an SAT-accredited (Servicio de Administración Tributaria, the Tax administration Service) third-party trust service provider called a PAC (Proveedores autorizados de certificación, an authorized digital signature service provider), after the invoice content and structure has been validated. The PAC stamp makes the document valid for tax purposes. All tax receipts must be stamped by a PAC, which then reports the document to the SAT online. The SAT will subsequently make it available to the issuer and recipient in their respective tax mailbox.

Microsoft Dynamics 365 Finance supports out-of-the-box integration with Interfactura PAC web services, a key player in Mexico’s electronic invoicing system. This integration is essential for the certification of the CFDI electronic invoice document, a system that is integral to Mexico’s commercial transactions.

The information on how to enable and configure this feature will be provided later during the implementation of the new API. So far, it is expected that the enablement will require minimal effort.

In a legal entity with the Support multiple VAT registration numbers feature enabled, you can generate VAT Declaration, EU Sales List, and Intrastat reports. A list of supported countries and tax regulatory reports is available at Reporting for multiple VAT registrations.

For this release, we will extend the list of supported countries and tax regulatory reports. We plan to release:

• EU Sales List correction for Poland (VAT_UEK) with the support of multiple VAT registration numbers.
• Belgium Annual VAT listing of domestic sales report with the support of multiple VAT registration numbers.

This feature satisfies the Denmark-specific requirements for implementing OIOUBL format version 3.0. You can export invoices and credit notes created from sales orders, free text invoices, or project invoice proposals into XML format that complies with the updated Danish electronic invoicing standards.

OIOUBL 3 Invoice Package Postponed - Revised Schedule:

The Danish Business Authority expects the OIOUBL 3 invoice package to be upgraded from Release Candidate to Final Release in mid-May 2025.

After that, it's expected to be voluntarily implemented until mid-November 2025, when support for OIOUBL 3 is to be made mandatory in Nemhandel.

End-of-life for OIOUBL 2.1 is expected in mid-May 2026.

Microsoft has released the Colombian electronic invoicing feature of the last-mile integration with the Colombian Tax Authorities via the Certification Authorization Provider Edicom. The electronic invoicing globalization feature for Colombia (outbound flow) requires that you use Dynamics 365 Finance version 10.0.40 or later.

Microsoft has released the Guatemalan electronic invoicing feature of the last-mile integration with the Guatemalan tax authorities via the Certification Authorization Provider Edicom.

In addition to the globalization feature update, the functionality also contains code changes in Microsoft Dynamics 365 Finance. The electronic invoicing globalization feature for Guatemala (outbound flow) requires that you use Dynamics 365 Finance version 10.0.40, build number 10.0.1935.60 or later.

This feature can only be imported into the new Globalization Studio and isn't supported by Regulatory Configuration Service (RCS).

In addition to the globalization feature update, this functionality contains code changes in Microsoft Dynamics 365 Finance. The electronic invoicing globalization feature for Paraguay (outbound flow) requires that you use Dynamics 365 Finance version 10.0.40, build number 10.0.1935.60 or later.

Microsoft has released the Uruguayan electronic invoicing feature of the last-mile integration with the Uruguayan tax authorities via the Certification Authorization Provider Edicom.

In addition to the globalization feature update, the functionality also contains code changes in Microsoft Dynamics 365 Finance. The electronic invoicing globalization feature for Uruguay (outbound flow) requires that you use Dynamics 365 Finance version 10.0.40, build number 10.0.1935.60 or later.

This feature can only be imported into the new Globalization Studio and isn't supported by Regulatory Configuration Service (RCS).

This feature is a generic, extensible connector for submitting previously generated electronic invoices and processing the response. It can be modified by ISVs and customers to enable the following benefits:

• ISVs can develop ISV-supported integrations.
• Customers can develop their own integrations for ISVs or localizations that Microsoft does not support.

For ISVs, these third parties will have the ability to easily develop connectors that can be provided to customers. This will allow our customers to choose providers that Microsoft does not officially support, removing the existing limitation of having to choose a Microsoft-supported provider they do not want to partner with.

For customers, this will allow them to develop their own connectors for direct integration with countries Microsoft doesn't support or for ISVs that Microsoft doesn’t support and do not provide their own integrations. Additionally, it will allow customers to modify the behavior of existing connectors, giving them more flexibility on the service side.

When you enable the Security enhancements in UK MTD VAT integration feature, UK MTD VAT TEST and UK MTD VAT electronic message processing automatically updates to enhance the security of your Dynamics 365 Finance integration for direct VAT return submissions for your UK VAT registration.

The following Web service actions have been changed to Executable class:

• Retrieve VAT obligations
• Test retrieve VAT obligations
• Submit VAT return
• Test submit VAT return
• Request VAT liabilities
• Request VAT payments

The following capabilities are planned for JPK_KR_PD reporting:

• Adding an option to define main accounts markers (S_12) using Financial Dimensions and report trial balance (ZOiS) section based on dedicated dimension set including main account and the markers.
• Adding an option to report the journal entry number (D_1) using Journalizing journals.
• Adding an option to report the date of the economic transaction (D_6) for vendor invoices using the Date of Vendor VAT Register field.
• Adding the report Settlement of income tax section (RPD).
• Adding Microsoft Excel format to preview the data.

This feature update enables reporting companies in Australia to comply with the revised Payment Times Reporting Scheme rules that apply to reporting periods starting on or after July 1, 2024.

• Refined logic to prepare datasets: capture, filter, and classify payment data in accordance with the latest PTRS rules.
• Introduces standardized reporting format aligned with the revised PTRS reporting requirements.