Does Procurement VMS integrate with Dynamics 365 Finance?
Procurement VMS lists Dynamics 365 Finance among its supported integrations. A Dynamics 365 Finance procurement integration connects through Finance's OData service, authenticates with OAuth 2.0 through Microsoft Entra ID 1, and keeps vendors, purchase orders and vendor invoices aligned between the two systems.
In a Finance environment, purchasing already has a defined route: orders, receipts and invoices with matching and approval workflows of their own. The gap is usually upstream, where the request starts in email or a ticket and only becomes an order after someone retypes it.
A connected setup moves that decision upstream. The request is approved in the procurement platform and arrives in Finance as an approved order, so the matching and posting that Finance does well start from clean input.
What syncs between Dynamics 365 Finance and Procurement VMS?
Procurement VMS and Dynamics 365 Finance each own different records. The table shows the data most Finance procurement integrations touch and the usual direction. The final mapping depends on your legal entities and financial dimensions.
| Data | Dynamics 365 Finance record | Direction | When | Notes |
|---|---|---|---|---|
| Vendorsconfirm | vendor data entities | Dynamics 365 Finance → Procurement VMS | On change and on a schedule | Finance stays the vendor of record. |
| Approved purchase ordersconfirm | purchase order header and line data entities | Procurement VMS → Dynamics 365 Finance | When the last approval clears | Created through Finance's OData service 1. |
| Product receiptsconfirm | product receipt data entities | Dynamics 365 Finance → Procurement VMS | When goods are received | Receipt data supports matching against the order and the invoice. |
| Vendor invoicesconfirm | vendor invoice data entities | Two-way | When an invoice is entered or approved | Invoice matching and approval stay in Finance. |
| Financial dimensionsconfirm | dimension data entities | Dynamics 365 Finance → Procurement VMS | On a schedule | Drive coding and approval routing by legal entity. |
How the Dynamics 365 Finance connection works, step by step
Setup is split between a Microsoft Entra administrator, a Finance administrator and the Procurement VMS team.
- Register an application in Microsoft EntraRegister an application with Microsoft Entra ID and select the Dynamics ERP permission 1.Entra administrator
- Create the client credentialsThe secret key is needed to complete the OAuth flow and receive a Microsoft Entra token 1.Entra administrator
- Register the application inside FinanceIn Finance, go to System administration, then Setup, then Microsoft Entra applications, and add the application there 1.Finance administrator
- Choose the entities and data entitiesDecide which legal entities the sync covers and which data entities it will read and write.Finance and procurement
- Map financial dimensionsMatch the dimensions that purchase lines will carry before the first order is sent.Finance
- Trace one order end to endFollow a single order through approval, receipt and invoice in a non-production environment first.Everyone above
Who this fits
Dynamics 365 Finance is an enterprise product, so legal-entity structure and change control shape the work.
SMB
Dynamics 365 Finance is rarely a small-business system. See the Business Central page if you run that instead.
Mid-market
Mid-sized companies on Dynamics usually run Business Central. See that page if you are comparing.
Enterprise · fits
Several legal entities, formal change control and a dedicated Finance administrator. Plan the mapping per legal entity, and the Entra registration once for the integration.
Who does what
What to plan for in Dynamics 365 Finance
These come straight from Microsoft's documentation. Check all of them before the first sync.
OData replaced the older query services
In Finance and operations, the OData service replaced the SOAP-based and OData query services that existed in AX 2012 1. Integrations built for AX 2012 will not carry over unchanged.
Two places to register the applicationverify source
The application is registered in Microsoft Entra ID, and then added under Microsoft Entra applications in Finance 1. Skipping the second step leaves valid tokens that Finance will not accept.
Service principal support depends on the tool
Microsoft's documentation for the Power Platform Finance and Operations connector says service principal authentication is not supported for that connector and that OAuth 2.0 through Entra ID must be used 2. Check this if a middleware product sits between the systems.
Business Events can announce changes
Finance can trigger flows when a Business Event occurs 2. That lets an integration react to changes instead of polling for them.
Decide where approval livesverify source
Finance has its own purchasing workflows. Pick one system as the authority for approval, or every order is approved twice.
Security and access
Finance authenticates integrations through Microsoft Entra ID, which keeps access under your existing identity controls.
- OData services and the REST metadata service support OAuth 2.0 authentication through Microsoft Entra ID 1.
- The application has to be registered in Entra and then added inside Finance before its tokens are accepted 1.
- Procurement VMS describes its own security posture as SOC 2 Type II aligned and CCPA compliant, with role-based access control 3. Ask for current security documentation during scoping.
Related integrations and guides
Other systems in the same category, and the workflow guides that explain the processes this connection touches.
Dynamics 365 Finance integration FAQ
Yes. Dynamics 365 Finance is in Procurement VMS's published list of supported integrations. What moves in each direction is scoped against your Dynamics 365 Finance setup.
Through Dynamics 365 Finance's OData service, authenticated with OAuth 2.0 through Microsoft Entra ID 1. An application is registered in Entra and added under Microsoft Entra applications in Finance, and the integration then reads and writes vendors, purchase orders and invoices.
Typically vendors, approved purchase orders, product receipts, vendor invoices and financial dimensions. Direction is set per record type. The table above shows the proposed split.
Scope sets the timeline: what moves, whether it moves one way or both, and how much mapping your Dynamics 365 Finance setup needs. Procurement VMS states that the platform as a whole typically goes live in 4 to 8 weeks 3. The Dynamics 365 Finance connection is scoped within that timeline.
No. They are different products with different interfaces. Finance exposes an OData service 1, and Business Central exposes its own API v2.0. Each has its own page in this directory.
Yes. Finance supports Business Events, which can trigger flows when an event occurs 2.
Sources and how this page was verified
Facts about Dynamics 365 Finance on this page were checked against Microsoft's documentation on the date shown. Where only third-party integration documentation covers a behavior, the source is labelled third-party. Statements about Procurement VMS come from the company's published integration list; anything beyond that is confirmed with the product team before publishing.
- Microsoft Learn: Service endpoints overview (Dynamics 365 Finance)vendor documentation
- Microsoft Learn: Fin & Ops Apps (Dynamics 365) connectorvendor documentation
- Procurement VMS: platform overview and integration listProcurement VMS
Dynamics 365 Finance is a trademark of Microsoft or its affiliates. Procurement VMS is not affiliated with, sponsored by or endorsed by Microsoft. Platform names are used only to describe compatibility.