In Yokoy, you can:

During the initial setup of the connector, users and suppliers are created in Yokoy directly from Business Central.

However, the Yokoy connector includes a task in Business Central Update Data in Yokoy that allows you to bulk update master data. For example, you can bulk update users, cost objects and tags, categories, and suppliers in Yokoy.

With this task, you can use Business Central filters to choose the employees (users), dimension values (cost objects and/or tags), GL accounts (categories), and vendors (suppliers).

You can set up this Business Central task to run periodically to ensure that your master data stays up-to-date.

Expenses are processed in Yokoy according to your company’s standard process flow:

Once processed, expenses are exported to Business Central by Yokoy either manually (as triggered by the Finance team) or automatically (using an automatic export job).

Yokoy exports expenses by document type:

Expenses can be further split into standard expenses and per diem/mileage, so you can export per diem/mileage into a separate payroll system, rather than Business Central. This is determined in Yokoy, in Admin > Company settings, and configured as a separate export system.

In Business Central, Yokoy expenses are created in the General journal as general journal entries. These entries are then posted according to standard Business Central behavior (i.e. creating G/L entries and VAT entries as appropriate).

Depending on whether the expense is reimbursable (i.e. meals paid by employee) or non-reimbursable (i.e. meals paid by company card or travel expenses), the configuration determines the account type to be used for export.

For each expense line item, Yokoy provides the country, tax amount, and tax rate (which includes the VAT Business and Product Posting group).

If the expense currency is same as reporting currency (i.e. local currency), Business Central performs a validation to check that the calculated amount matches the Yokoy sent tax amount. If the tax amounts match, then no action is performed. If the tax amounts do not match, Business Central recalculates the tax amount based on the VAT Business and Product Posting groups provided.

If the expense currency is not the local currency, then Business Central does not validate the tax amount sent by Yokoy. It recalculates the tax amount based on its own FX rates. See Expenses in foreign currencies.

Once you have approved and reviewed expenses, you export expenses from Finance > Export.

When you export expenses from Yokoy, Yokoy prepares the journal items to be sent to Business Central. If any errors occur during the export process, an API warning is displayed with information on the type of error so you can troubleshoot the issue.

Expense line items are created in the General journal. The Yokoy ID of the expense is displayed in the External Document No. column.

If a receipt in a foreign currency is processed in Yokoy, Yokoy converts the amounts to the company’s currency using the FX rates used by Yokoy.

Depending on the company configuration, the amounts are transferred either in the company currency (journal currency) or the original currency of the receipt.

If the company currency is used, it is usually the same as the local currency in Business Central, therefore no FX conversion is performed (only that when processing the receipt in Yokoy). For taxable amounts, Business Central checks that the amount sent from Yokoy matches the amount it calculates based on the tax code used and the net amount. If the Yokoy amount doesn’t match its calculated amount, Business Central uses its own calculation.

If you choose to import expense receipts, they are linked with the corresponding general journal entry as an incoming document. Click on the receipt to download.

In addition, if you choose to import other supporting documents as attachments, they are also displayed in the Incoming documents tab for the corresponding journal entry.

Yokoy Spend Management Connector for MS Dynamics 365 Business Central lets you process these invoice types:

After creating an invoice in Yokoy, when you export the approved invoice from Yokoy, it generates either a purchase order or a purchase invoice in Business Central, which can be automatically or manually posted depending on the connector’s settings (see Posting logic in Business Central).

For non-PO invoices, you need to select the cost object, category, and tax rate at invoice line item level when processing the invoice in Yokoy. Usually, category and tax rate are automatically assigned by Yokoy’s AI. For PO invoices, the cost object and category are inherited from the purchase order/goods receipt.

To create a non-PO invoice that can be posted in Business Central, simply upload a new invoice in Yokoy.

For each line item, you need to manually select:

When these invoices are exported to Business Central, the invoice line items are handled as G/L Account items and are not related directly to inventory (Items), fixed assets or item charges.

Purchase orders are created in Yokoy automatically from the Business Central purchase order. You can use both open and released purchase orders to create a purchase order in Yokoy.

The purchase order must contain:

Once the PO has been created in Yokoy, the Yokoy PO ID is displayed in the Yokoy PO ID field in Business Central. If you make any changes in the purchase order, these changes are automatically updated in Yokoy.

Additionally, if you need to manually send the PO from Business Central to Yokoy for whatever reason, you can click Send/Update Purchase Order to Yokoy on the Purchase Order card. If you change any of the details of the purchase order (with Open status), you can update the information in Yokoy by clicking the same button.

The purchase order is displayed in Yokoy in Invoice processor > Purchase orders:

The PO number corresponds with the number of the Purchase Order card in Business Central.

For POs containing standard items, you input the PO against a cost object by selecting the dimension in the Purchase order (Order tab > Dimensions).

Once you have uploaded a PO in Yokoy, you can upload the corresponding invoice and proceed to match invoice and PO line items.

Only POs with item or fixed asset type line items require a goods receipt. Usually, item charge item types do not require a GR.

Goods receipts are created in Yokoy automatically from the Business Central posted purchase receipt (which you obtain by receiving a purchase order). Goods receipts are always associated to a purchase order and are used to perform three-way matching.

An automated job creates GRs in Yokoy whenever a new posted purchase receipt is generated.

To create a GR manually (if required):

The Yokoy internal ID field in Business Central is updated with the Yokoy ID for the GR.

The corresponding GR can be viewed in Yokoy Invoice processor > Purchase orders by selecting the corresponding PO and viewing the GR number in Goods receipt. The GR number corresponds to the Posted purchase receipt number.

Purchase order line items are matched against invoice line items, performing two-way matching where no posted purchase receipt is present (i.e. for fixed asset and item charge line types).

If you associate a posted purchase receipt to a purchase order in Business Central, Yokoy performs three-way matching, checking both amounts and quantities against the purchase order and the posted purchase receipt.

If you have matched an invoice line item against a Item document line type, a missing GR notification is displayed in Yokoy. Goods receipts are not required for fixed asset and item charge document line types.

Once you receive the order in Business Central, generating the posted purchase receipt, you may need to unmatch the invoice line item and re-match it with the goods receipt line item.

Business Central lets you create multiple posted purchase receipts to process partial deliveries. Since Yokoy only allows a one-to-one relationship between goods receipt and invoice line items, you need to manually adjust the line item quantities and amounts to take into account multiple posted purchase receipts.

For example, you create a purchase order for an item with quantity 1,000. This item is delivered in two shipments, 250 and 750. You create two posted purchase receipts to indicate the delivery of these shipments. However, the invoice gives the total quantity ordered in a single line item.

In Yokoy, to process this invoice, you adjust the quantity and amount in the initial invoice line item so you can match the line item to one of the posted purchase receipts. You then need to create an additional line item with the same description, cost object, category, etc. with the remaining quantity and amount.

Business Central lets you create non-inventory line items, which you can process with Yokoy.

Non-inventory line items are:

There are two scenarios for documents containing these types of lines:

Non-inventory line items in the PO are automatically recognized in Yokoy as non-GR line items (and hence, do not require two-way or three-way matching).

Since Yokoy does not inherit the financial dimensions from the PO, you need to specify the cost object and/or category at line item level before you can export the invoice to Business Central.

Regardless of whether Yokoy updates the purchase order or creates a new purchase invoice in Business Central for item charges, the key detail about this type of line in Business Central is that once the line is created, the charges must be allocated to the receipt lines. Therefore, after the line is created, the standard Business Central process for allocating item charges should be followed, and the document should then be posted.

Once you have matched and submitted (and approved) invoices, you export the invoices as usual from Finance > Export.

You can set up an automatic export job for the connector. You can use the export log in Yokoy to check whether the export job completed successfully.

When you export invoices from Yokoy, Business Central fetches all invoice data from Yokoy, including the original invoice as an attachment.

Depending on the type of invoice (non-PO or PO), the document updated in Business Central may vary:

Business Central is responsible for calculating net, tax and gross amounts for each line based on the quantity and unit price.

If the invoice currency is different to the local currency, this information is stored in Business Central in Currency Code and Business Central is responsible for converting all amounts to the local currency when posting.

When you export a PO invoice from Yokoy, the Business Central Purchase Order is updated with the details of the line items: quantity to invoice, unit price, tax rates, etc.

In addition, in the General section of the purchase order, Business Central displays the Yokoy ID of the invoice in the field Yokoy Invoice Id:

The Purchase Order is then automatically posted or manually posted as a posted purchase invoice by the Finance team depending on the posting logic configured in the connector setup.

When you export a non-PO invoice from Yokoy, Business Central creates a new Purchase Invoice with the information taken from the invoice, creating the line items with quantity to invoice, unit price, etc. The Yokoy invoice ID is included in the Yokoy Invoice Id field to enable you to track an invoice back in Yokoy.

The Purchase Invoice is then automatically posted or manually posted as a posted purchase invoice by the Finance team depending on the posting logic configured in the connector setup.

Depending on the specific setup in Business Central, these actions may take place:

Depending on the origin of the invoice (non-PO, PO, etc.), the invoice PDF is attached in the Attachments tab of the corresponding Business Central document.