Stoneridge Software Automates Accounts Payable with Microsoft’s AI-Powered Invoice Capture Solution
From Manual Invoice Processing to AI-Powered Automation
As organizations look for ways to reduce repetitive tasks and create more time for higher-value work, AI and automation are increasingly becoming part of the conversation.
For Stoneridge Software, that meant looking for opportunities to improve internal processes using the same Microsoft technologies their clients are exploring and adopting. One area identified for improvement was Accounts Payable, where vendor invoices were being processed through a largely manual workflow.
While the existing process worked, it required multiple handoffs, manual data entry, and email-based approvals. Stoneridge saw an opportunity to reduce administrative effort, improve efficiency, and allow team members to spend less time on repetitive tasks and more time focused on work that requires their expertise.
Business Challenges: Manual Processes and Administrative Overhead
Before automation, vendor invoices were received through an Accounts Payable inbox and processed through a series of manual steps.
- Team members reviewed incoming invoices and identified the correct approver using an Excel spreadsheet
- Approval requests were sent via email and often required follow-up communication
- Invoice data was manually entered into Dynamics 365 Finance & Operations
- Supporting documents were manually stored and managed
- Visibility into approval status relied heavily on email communication and individual follow-up
The accounting team typically processed between 10 and 20 invoices each week, with approvals, data entry, and document management handled manually. While the volume was manageable, the number of touchpoints created an opportunity to streamline the process.
Solution: Leveraging Microsoft’s Invoice Capture Platform
As Stoneridge explored options for automating Accounts Payable, the team initially considered building a custom solution using Copilot and AI agents. During the discovery process, however, they found that Microsoft Invoice Capture, a Microsoft solution for Dynamics 365 Finance & Operations that uses AI to extract invoice data and automate invoice processing, already addressed many of their requirements.
Rather than starting from scratch, Stoneridge was able to leverage Microsoft Invoice Capture and focus efforts on tailoring the approval and review process to fit their needs.
How the Automated Process Works
- A vendor invoice is received and placed in a designated Outlook inbox
- Microsoft Invoice Capture processes the attached invoice document
- AI Builder extracts information such as vendor details, invoice amounts, and due dates
- The extracted data is staged in Dataverse (Dynamics 365 Customer Engagement), where the Accounts Payable team reviews and validates the information before moving it further through the process
- Power Automate routes the invoice to the appropriate approver based on predefined approval rules
- Approvers receive notifications through Microsoft Teams and email
- Once approved, the invoice is created in Dynamics 365 Finance & Operations as an invoice journal
- The Accounts Payable team performs a final review and posts the transaction in Finance & Operations
This approach combines AI-powered invoice data extraction (AI Builder and Invoice Capture), automated workflow routing (Power Automate and Teams), and financial review controls within Dynamics 365 Finance & Operations.
Out-of-the-Box Functionality with Targeted Enhancements
Microsoft Invoice Capture provided the foundation for automating invoice processing. Stoneridge then extended the solution with Dataverse and Power Automate workflows, notifications, and other configurations to support its Accounts Payable approval process.
“Being able to use a pre-built solution saved us a lot of time in development. Another benefit is that because Microsoft continues to update the solution, we can take advantage of new features as soon as they’re released.” – Sam Lund, Senior Developer
Microsoft Technologies Used:
- Dynamics 365 Finance & Operations
- Dynamics 365 Customer Engagement (Dataverse)
- Microsoft Invoice Capture
- AI Builder
- Power Automate
- Microsoft Teams
- Microsoft Outlook
Microsoft Invoice Capture provided AI-powered invoice extraction, integration between Dynamics 365 applications, and ongoing platform updates from Microsoft.
Customizations Implemented:
- Approval workflows
- Teams-based notifications
- Custom review fields
- Team visibility notifications
- Weekly exception reporting
The team also configured the solution to support additional invoice intake channels in the future, allowing invoices from sources beyond email to be brought into the same process.
Results: Faster Processing with Less Manual Effort
While the implementation is still relatively new, Stoneridge has already seen improvements in its Accounts Payable process. The new solution:
- Eliminates manual invoice data entry through AI-powered extraction
- Reduces the need to manually identify approvers
- Automates approval routing through Power Automate and Microsoft Teams
- Improves visibility into invoice status and approval workflows
- Creates a stronger audit trail through system-based approval tracking
- Provides a scalable foundation for future automation initiatives
Early feedback from the finance team has been positive. As invoices move through the process, approvals are occurring more quickly and with less manual follow-up.
“Now the invoices just flow through as we get them,” said Cathy Neuhalfen, Accounting Team Manager. “The turnaround time is a lot quicker.”
The experience reinforced an important lesson: meaningful process improvements don’t always require building something from the ground up. By adopting and learning from the same Microsoft technologies many organizations are evaluating today, Stoneridge continues to gain firsthand experience with where automation can deliver value and how those lessons can help clients on similar journeys.
