Expense Management with OCR D365 Finance Capabilities

Welcome to the AxmedJay Journey

Expense Management is evolving fast — and Microsoft Dynamics 365 Finance is at the center of it, making expense tracking smarter, faster, and easier.

In this series, we break down the core setup and flow of Expense Management, Credit Card Integration, and the OCR (Optical Character Recognition) feature that can turn simple receipt images into real transactions.

Whether you're setting up for the first time or looking to optimize your process, this guide will walk you through step-by-step — because managing expenses shouldn't feel like managing chaos.

Step by Step Guide

Shared Categories:

·        Add the ID and Description for the shared category.

·        Mark the check box of Can be used in Expense and select the Expense type as Miscellaneous.

·        Create all required shared categories by using this process.

Payment Method:

·        Add the ID and Description for the Payment method.

·        Select Worker in offset account type field if you want to Post the Credit value to vendor ledger which is assigned with each employee.

·        Select Ledger if you want to Post the credit value to some Main account.

·        Select Bank if you want to Post the credit value to some specific bank account.

·        Select Vendor if you want to post the credit value to some specific vendor.

·        Select the required value in offset account field as per the selection in offset account type field.

·        Create all required payment method by using this process.

Expense Categories:

·        Select the category from the dropdown list which is created in shared categories step.

 

 

·        Expand the Expense fast tab and select the default payment method for this category.

 

 

·        Select the main account in main account field in which Debit value will be posted after posting the expense transaction against this category.

·        Expand the allowed payment methods fast tab and select all payment methods which you required to show with the selected expense category

 

 

Assign worker with employee:

·        Select the required employee and click on Expense tab and then click employee mapping and per diem rates button.

·        Select vendor in Account type field and select required vendor in Account field.

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·        Do the same process with all employees against which vendor need to assign

Assign Credit card with Employee:

·       ·        Select the required employee and click on Expense tab and then click employee mapping and per diem rates button.

 

·        Select vendor in Account type field and select required vendor in Account field.

·        Select the required payment method from the dropdown list against the credit card

·        Add the description in Description field and select the card in card type field.

·        Do the same process with all required employees to assign credit card.

Expense Purpose:

·        Add the description (Purpose is used as a Header information in expense report).

Travel Locations:

·        Add the Location ID and Description for travel locations.

Add the Expense report Transaction:

·        Click on New expense report.

·        Select the required Purpose and Location.

 

·        Select the transaction date and select the required expense category from the dropdown list.

·        Add the transaction amount.

·        Click on New expense button to add the other expense and select the same field as selected in earlier category.

·        After you have added all expenses in the expense report then you can add the receipts in expense report as an attachment. Click on Header receipts button to attach a receipt.

·        Click on upload and attach new receipt button and then browse the file which you want to upload and then click on upload button.

 

·        Submit the expense report.

 

Approve Expense Report Transaction:

·        Open the expense report by clicking on expense report number

·        View all the information like expense categories, transaction amount, header receipts

·        If all information seems to be accurate then approve the expense report by clicking on Approve button

 

Post Expense Report transaction:

·        Mark the required expense report and click on Post button to post the transaction to ledger

 

Add the Credit Card transaction (Import Bank of America file):

·        Separate the file according to the 0091 and 0093 company data and upload both file in respective companies.

·        Import the below field in credit card import excel file

o   CCTRANSUNIQUEID (Should be unique for all transactions)

o   AMOUNT_CREDITCARDCURRENCY (Expense category amount)

o   CARDNUMBER (Employee card number)

o   CARDTYPE

o   EXCHCODE_CREDITCARDCURRENCY (Currency)

o   TRANSACTIONDATE (Date of transaction)

·        After adding the data in credit card import file then go to Expense Management >> Periodic task >> Credit card transactions

·        Click on Import transactions button

·        Add the name for the import batch and select Excel in source data format from dropdown list

·        Click on Upload button to upload the file of credit card. Browse the file.

 

·        Click on Import button to import the transactions and wait for sometimes so system can process

 

Add the credit card transactions to expense report:

·        Create New expense report

·        Select the required Purpose and Location.

 

·        Click on Add unattached expenses button to add the credit card transactions

·        Mark the required credit card transactions.

·        Selected transactions will appear on expense report form. Remaining process is same as described in earlier steps

Add the expense report transaction through receipt image (OCR):

·        Create New expense report

·        Select purpose and location, mark the Add none check box list and click on create button.

·        Click on receipts tab and click on Add receipts button

·        Click on Browse and upload the receipt which should be available in JPEG format and then click on OK button

·        System will process the receipt and will read the information of total amount, date and merchant field and will populate the information in respective fields

·        Click on Create button.

·        Select the required category for the transaction and click on Save button

 

·        Click on Expense tab and the transaction will appear here. Remaining process is same as described earlier.

 

Payment voucher

The payment voucher will be created once it is posted. 

· 🛡️ Thanks for Walking the Path with AxmedJay

By mastering these configurations and flows, you don't just automate transactions — you build stronger, smarter financial systems that scale.

OCR in Expense Management isn't just a feature; it's a glimpse into the future of finance, where manual work fades and intelligent processes take over.

Stay tuned for more real-world guides, tech breakdowns, and community tips. Until next time — stay sharp, stay curious.