The integration between the Payhawk and Microsoft Dynamics 365 Finance systems is enacted through the Payhawk extension.
Before you connect, check the requirements in the article about configuring roles and permissions for the Payhawk-D365 Finance integration, and fill in the Payhawk Parameters page in Microsoft Dynamics 365 Finance. Exports fail until it is filled in.
Connecting the two systems
To connect to Microsoft Dynamics 365 Finance:
In the Payhawk web portal, go to Settings > Integrations.
Under Available integrations, find Microsoft Dynamics 365 Finance and click on Connect.
On the next screen, click Continue.
Enter the URL of the Microsoft Dynamics 365 Finance environment you want to connect to. It ends in .dynamics.com, for example contoso.operations.dynamics.com.
On the Microsoft sign-in page, sign in with the account that has administrator access in Microsoft Dynamics 365 Finance. Use a private browser window, so that Microsoft doesn't sign you in automatically with another account.
Now, you need to select the legal entity in Microsoft Dynamics 365 Finance that will be connected to the Payhawk account so that the data between the two can be synced.
Each Payhawk account is connected to a specific Microsoft Dynamics 365 Finance entity, which determines what data between the two systems will be synced.
After the first sign-in, Payhawk renews its access in the background from its own servers. Conditional Access policies that require repeated MFA, a short sign-in frequency, a compliant device, or a trusted network stop these renewals and break the connection. Exclude the integration account from these policies, or allow the Payhawk application in them.
Mapping the bank accounts
While connecting Payhawk to Microsoft Dynamics 365 Finance, Payhawk will ask you to configure the main settings and provide the following information:
In the Bank account mapping field, provide a bank account that will be mapped to each Payhawk account.
In the Bank accounts reconciliation field, specify whether your preferred reconciliation is daily, weekly, or monthly.
In the Payments configuration field, choose the general ledger account in which you want to have POS and FX fees booked.
In the Payhawk specific accounts field, choose an account for suspense cash in transit.
Click on Continue to start synching the information.
For more information, see the article about configuring the Payhawk extension for Microsoft Dynamics 365 Finance and how it pushes your data.
Setting up expense report exports
To start using the expense report export feature, a Payhawk Administrator needs to configure the feature in the integration settings:
In the Payhawk Web Portal, go to Settings > Integrations and select the Microsoft Dynamics 365 Finance integration.
Click on Edit configuration.
Under the expense report export settings, choose the desired export format (individual or aggregated) and record type (Vendor Bill, Journal Entry, or Expense Report).
Select a clearing GL account.
Click on Save changes.
The clearing GL account is required for aggregated exports where an expense report contains expenses and payments in different currencies. In an aggregated export, multiple expenses and their corresponding payments can each be in a different currency. Microsoft Dynamics 365 Finance doesn’t allow transactions in different currencies to be directly linked to one another.
The clearing account solves this by acting as an intermediary — Payhawk books both the expenses and the payments against the clearing account, and generates journal entries to reconcile them. This way, every expense is matched to its payment through the clearing account, even when the original currencies don't align.
Notes on configuration
The integration setup from the last time Payhawk and your accounting system were connected will be automatically re-applied the next time you connect.
You can edit the current integration setup without disconnecting from your accounting system. In Payhawk, go to Settings > Integrations, click on the three dots menu of the desired ERP system, and select Edit configuration.
If the account that signed in during the connection is disabled, its password is reset, or its sessions are revoked, the connection stops. To restore it, reconnect from Settings > Integrations.