Microsoft Dynamics 365 comes in several editions — Business Central for SMBs, Finance & Operations for enterprise — and both are used extensively as financial management platforms. TallyArc's Dynamics 365 integration brings a client-facing invoicing and payment portal to Dynamics, syncing data bidirectionally so your finance team's AR ledger stays accurate without manual data entry.
Business Central vs Finance & Operations
TallyArc supports integration with both Dynamics 365 editions, though the connection details differ:
- Business Central — connects via the Business Central API v2.0 (REST); simpler setup, suitable for most SMB configurations
- Finance & Operations — connects via the Dynamics 365 F&O OData API; more complex, supports advanced features like multi-legal-entity and multi-currency setups
Authentication via Azure Active Directory
Both editions authenticate via Azure AD OAuth 2.0:
- In Azure Active Directory, register a new application (App registrations → New registration)
- Add API permissions: Dynamics 365 Business Central → user_impersonation (or the equivalent F&O permission)
- Create a client secret and note the Application (client) ID, Directory (tenant) ID, and secret value
- In TallyArc, go to ERP → Microsoft Dynamics 365 → Connect
- Enter client ID, tenant ID, client secret, and your Dynamics environment URL
What syncs
- Customers — Dynamics customer records import to TallyArc as clients, keeping contact data in sync
- Invoices — TallyArc invoices create posted sales invoices in Dynamics with correct revenue and AR GL entries
- Payments — payments received through TallyArc post as customer ledger entries in Dynamics, clearing the open invoice
- Items (Business Central) — Dynamics items/resources import for consistent line item coding
- Dimensions (Finance & Operations) — financial dimensions from F&O map to TallyArc categories for segment reporting
Multi-currency invoicing
TallyArc's Dynamics integration supports multi-currency: invoices created in a foreign currency sync to Dynamics with the correct exchange rate applied, using the rate configured in Dynamics' Currency Exchange Rates table. Realised and unrealised FX gains/losses are handled by Dynamics on payment application.
Power Automate alternative
For organisations that prefer no-code integration, Microsoft Power Automate (with its Dynamics 365 connector) can be used alongside TallyArc's webhook output to trigger Dynamics updates without direct API configuration. Contact your Microsoft partner if you prefer this approach.