Feature Area: Accounts Receivable
Feature Name: Return Order Invoice Support through Dual-write
Version: Dynamics 365 Finance, 10.0.43 (January 2025 release)
Enabled by: Default

Overview of the New Feature

In the January 2025 release (10.0.43) of Microsoft Dynamics 365 Finance, a critical new enhancement has been added to the Accounts Receivable module, called “Return Order Invoice Support through Dual-write”. This feature facilitates the seamless integration between the Finance and Operations environment and applications like Dynamics 365 Sales or Dynamics 365 Customer Service in real-time by enabling synchronization of return order invoices. This sync is powered by Dual-write.

This feature is enabled by default and allows organizations to maintain accurate and consistent financial records across various systems, especially in scenarios involving returns and refunds. The new functionality ensures that when customers return goods, the return order invoice is automatically synchronized from Dynamics 365 Finance into the customer’s environment, enabling a more seamless and automated process.

Key Components of the Feature

1. Dual-write Integration: Dual-write integration allows real-time data synchronization between Dynamics 365 Finance and apps, such as Dynamics 365 Sales, Dynamics 365 Customer Service, or even third-party applications that interact with customer data. With this release, the feature is now extended to cover return orders and invoices both

• How Dual-write works: When a return order is created in Dynamics 365 Sales or a related customer-facing application, Dual-write ensures that the corresponding return order invoice is automatically synced into Dynamics 365 Finance, where the finance team can accurately account for the returned goods and process the refund.

2. New Entities and Mappings: The 10.0.43 release introduces new entities and new mappings specifically designed to support return order invoice synchronization. These new entities allow the finance system to receive return-related information from the customer’s environment, ensuring that the return order data flows properly between systems.

• For example, a return order entity will capture data related to the goods returned (like the quantity, value, and reason for return), while a return order invoice entity will hold the invoicing details related to the return, such as the refund amount, tax, and payment terms.

3. Synchronization Between Customer and Finance Systems: The primary value of this feature is that it allows direct synchronization between Dynamics 365 Finance and the customer-facing systems (e.g., Dynamics 365 Sales, Customer Service). This synchronization eliminates manual intervention and reduces errors when processing returns and refunds.

How This Feature Enhances the Accounts Receivable Process

1. Streamlining Return Processing: Before this feature, it did not directly support return order invoices out-of-the-box in both the customer-facing and finance systems; meaning you would need to manually configure specific mappings to enable full functionality for return order invoices through Dual-write, as there are limitations with handling “Returned order” type sales orders in the standard Dual-write setup. This often involved duplicated effort, delayed processing, and potential for mistakes. But now the Dual-Write integration automates the synchronization of return order invoices, ensuring that all parties have the same real-time data without needing to re-enter information manually.

Example:

• Scenario: A customer returns a product purchased through an e-commerce platform that integrates with Dynamics 365 Sales.
• Without Dual-Write: The returns team would manually enter the return information into both systems, increasing the chances of error and delays.
• With Dual-write: Once the return order is entered into the customer’s environment (e.g., in Sales), the return order invoice is automatically synced with Finance, updating both the inventory and the financial records without any additional input from the finance team.

2. Improved Financial Visibility and Accuracy: When dealing with returns, it is critical for financial records to accurately reflect the refund and the reversal of revenue. This feature enhances the accuracy of financial reporting and provides real-time visibility into returns and their impact on cash flow.

Example:

• Scenario: A customer returns a product and is issued a refund, which needs to be accurately reflected in the company’s financial records.
• Without Dual-write: The finance team would manually create a return invoice and enter it into the system, which could take hours or even days, depending on volume or customise the system to achieve this. During this delay, the company might not have a clear understanding of its available cash flow.
• With Dual-write: As soon as the return is processed, the return invoice is automatically synced to Dynamics 365 Finance, providing an instant and accurate update to the company’s financial status. This real-time synchronization helps in cash flow management and financial planning.

Considerations and Setup for Dual-write Integration

1. Setup and Configuration: To enable this feature, administrators need to ensure that Dual-write is set up and configured properly between Dynamics 365 Finance and the customer-facing systems (e.g., Dynamics 365 Sales). The mappings for return order invoices must be defined so that the data flows seamlessly between the systems.

2. Data Mapping: Data mapping is crucial to ensure the correct data from the return orders is passed from the customer environment to Finance. Common data fields, such as invoice amount, return reason, customer ID, and refund method, need to be accurately mapped for proper synchronization.

Conclusion

The introduction of Return Order Invoice through Dual-write in Dynamics 365 Finance (version 10.0.43) offers a significant leap forward in automating the return and refund processes. By synchronizing return order invoices automatically from the customer’s environment (eg. Dynamics 365 Sales, etc) to Dynamics 365 Finance, organizations can streamline their operations, improve financial visibility, and provide a better experience for their customers. This integration reduces manual effort, increases data accuracy, and enhances the overall efficiency of the accounts receivable team, enabling a faster, more seamless return and refund cycle.