02.07.2026
With the introduction of mandatory electronic invoicing in Germany, the XRechnung format has become increasingly important for many businesses. Companies working with public sector organizations or looking to further digitalize their invoicing processes are often asking:
Can Microsoft Dynamics 365 Business Central create and process XRechnung invoices?
The short answer is: Yes. With the right capabilities and extensions, organizations can create, send, receive, and process XRechnung invoices directly within Business Central.
XRechnung is a standardized electronic invoice format based on XML. Unlike a traditional PDF invoice, it contains structured data that can be automatically processed by ERP systems.
This eliminates the need for manual data entry and enables more efficient invoice processing.
Key characteristics of XRechnung include:
Organizations frequently encounter two electronic invoice formats:
Many organizations use both formats simultaneously because customer requirements often vary.
Yes. Microsoft Dynamics 365 Business Central provides electronic document processing capabilities and continues to expand its support for digital invoicing requirements.
Organizations can:
The specific functionality available depends on the Business Central version and any extensions deployed within the environment.
For many organizations, invoice distribution is the first step toward e-invoicing compliance.
A typical process looks like this:
Depending on customer requirements, invoices may be sent via:
Organizations handling larger invoice volumes often benefit from fully automated invoice delivery directly from Business Central.
In addition to sending invoices, receiving electronic invoices is becoming increasingly important.
Business Central can serve as a centralized platform for processing incoming XRechnung documents.
Typical requirements include:
Automated processes help reduce manual effort, shorten processing times, and minimize errors.
Many organizations exploring electronic invoicing will also come across Peppol.
Peppol is an international network for the secure exchange of electronic business documents.
Benefits include:
For companies working with government entities or international partners, Peppol can become an important part of their digital transformation strategy.
In practice, many organizations need more than basic invoice generation.
Additional requirements often include:
To support these requirements, organizations frequently use solutions such as:
These solutions help create an end-to-end digital invoicing process.
With the ongoing rollout of e-invoicing requirements, more businesses are evaluating how to modernize their invoice management processes.
Organizations that adopt structured electronic invoicing early can benefit from:
For many businesses, Microsoft Dynamics 365 Business Central serves as the central platform for implementing a future-proof e-invoicing strategy.
Microsoft Dynamics 365 Business Central provides a strong foundation for electronic invoice processing. Whether organizations need to generate XRechnung invoices, receive structured electronic documents, or integrate invoicing into approval and archiving workflows, Business Central offers extensive capabilities that go far beyond traditional invoice management.
Companies preparing for e-invoicing requirements should review their current Business Central environment and determine which standard features and extensions best support their business processes and compliance goals.
Would you like to learn how to efficiently manage the receipt, processing, delivery, and archiving of electronic invoices—and discover the best way to implement these processes in your Microsoft Dynamics environment? Contact our experts today.
TSO-DATA
Jens Buermann | jbuermann[at]tso[dot]de
Andreas Blom | ablom[at]tso[dot]de
+49 (541) 13 95-0
