Amazon Vendor Central and Microsoft Dynamics 365
Integration Agency & Consultants
Amazon Vendor Central operations often become difficult to manage when finance can no longer reconcile marketplace deductions with Microsoft Dynamics 365. As order volumes grow, the manual effort required to process Amazon orders and remittance reports creates reconciliation debt and delays the month-end close. We connect these systems so that sales, inventory levels, and settlements stay accurate within your ERP. This ensures your team spends less time fixing data gaps and more time managing by exception.
Mapping workflows from Amazon to ERP
We connect Amazon Vendor Central and Microsoft Dynamics 365 with your ERP and Marketplaces, ensuring your systems work together efficiently. Our consulting services are invaluable, as our system audit uncovers integration gaps and inefficiencies across Amazon Vendor Central, Microsoft Dynamics 365, ERP, and Marketplaces. This enables our consultants and your team to take decisive action, improving workflows and system performance. With our expertise, your technology ecosystem runs smoothly, helping you deliver a reliable and consistent experience to your customers.
Solution Design
Designing the Amazon Vendor Central and Microsoft Dynamics 365 integration requires a prioritised approach to financial reconciliation. We designate Dynamics 365 as the system of record for financial postings and inventory levels. Purchase orders flow on a frequent schedule to secure stock, while remittance and settlement data are typically processed in batches to align with Amazon's reporting cycles. An essential design trade-off involves the handling of deductions. Automated mapping of the most common Amazon chargebacks provides immediate visibility but requires careful initial chart of accounts alignment. We typically focus on automating high-volume deduction types first, ensuring the finance team can close the month accurately while maintaining a manageable setup process. This design allows ops to work from current stock levels while finance closes from a stabilised ERP record.
Syncing purchase orders and shipping notices
The integration establishes Microsoft Dynamics 365 as the master for inventory and financial truth. Amazon Vendor Central purchase orders flow into Dynamics 365 to create Sales Orders, which are acknowledged before fulfilment. Once the warehouse ships the goods, the Advanced Shipping Notice is transmitted back to Amazon to trigger the billing process. Data integrity is maintained by mapping Amazon specific codes for carriers and shipping methods directly to Dynamics 365 entities. The monitoring layer tracks these exchanges, catching mismatched SKU codes or invalid delivery windows before they result in rejected shipments or chargebacks.
Secure orchestration via certified middleware platforms
Leveraging IPaaS with ISO 27001 and SOC 2 and above security accreditations enables secure, efficient integration between Amazon Vendor Central, Microsoft Dynamics 365, Marketplaces, and ERP systems. This approach simplifies connecting Amazon Vendor Central and Microsoft Dynamics 365 with Marketplaces and ERP platforms, ensuring data protection and compliance. Using an IPaaS platform reduces risk, accelerates deployment, and guarantees robust security, making complex integrations straightforward and reliable.
Surfacing reconciliation gaps and deduction errors
Dashboards often hide the structural gaps between Amazon's reported sales and the actual payouts recorded in Microsoft Dynamics 365. Visibility at scale requires more than a green light on a sync status. It requires the ability to surface specific exceptions, such as when a settlement total is reduced by unexpected deductions or fees that haven't been accounted for in the ERP. The integration identifies these discrepancies, allowing finance teams to see why a settlement does not balance. By surfacing failures early, teams can resolve data mismatches in tax or unit prices before they compound into a month-end reconciliation crisis.
Operational handover for finance and logistics
Handover focuses on the finance and operations teams, ensuring they own the new operating model. Finance is trained to interpret integrated remittance reports and manage deduction mapping within Microsoft Dynamics 365, while the ops team takes ownership of monitoring purchase order acknowledgments and ASN status. We provide operational documentation that explains where each Amazon document lives in the ERP and how to respond to alerts, such as price discrepancies or SKU mismatches. This reference material is written for the people running the daily business, not for technical teams, ensuring your team can confidently manage the integration and resolve exceptions as part of their standard workflow.
Managed oversight and hypercare post launch
Post-launch, we provide ongoing operational oversight to manage exceptions in Amazon trading. This includes monitoring for transmission failures, resolving SKU mapping errors and investigating reconciliation gaps in remittance reports. Escalation paths are defined so that technical issues are prioritised by their impact on financial accuracy and warehouse operations. The support model is geared towards keeping the system of record clean and the warehouse moving without interruption.
Common failures
ASN chargebacks from mismatched dispatch data
Operational impact: Amazon rejects an Advance Shipping Notice (ASN) because data from Dynamics 365, such as carrier codes or SSCC pallet labels, does not meet their strict requirements. This results in costly chargeback penalties and delayed receipt of goods at Amazon's fulfilment centres, damaging vendor performance metrics. The finance team must then track and dispute these chargebacks, creating significant manual overhead.
Prevention / Action: The integration's logic must ensure that carrier codes and shipping methods in Dynamics 365 are mapped precisely to Amazon's expected values before generating the ASN (EDI 856) message. SSCC label generation should be part of the core warehouse dispatch process, with this data included correctly in the outbound EDI file from D365. Design a clear exception handling process that alerts the fulfilment team to any ASN rejection, allowing them to correct and resubmit the notice before the dispatch window closes.
Unit of measure conversion errors
Operational impact: Amazon issues a Purchase Order for 100 cases, but the integration incorrectly creates a Sales Order in Dynamics 365 for 100 single units. This causes the warehouse to pick and dispatch the wrong quantity, leading to major stock discrepancies and expensive chargebacks for an incomplete order. Operations and finance teams then face a painful reconciliation process to align POs, goods-out records, and actual inventory levels.
Prevention / Action: Establish Dynamics 365 as the definitive source of truth for all Unit of Measure (UoM) and packaging hierarchies like 'each', 'inner', or 'case'. The integration logic must be designed to correctly interpret the incoming Amazon PO data and apply the right UoM conversion before creating the Sales Order in D365. Implement an automated check that flags any PO line with an unrecognised UoM, holding it in a queue for manual review rather than allowing an incorrect order into the system.
Inaccurate financial reconciliation and margin erosion
Operational impact: Amazon's payment remittances include numerous deductions for chargebacks, co-op fees, and promotional rebates that are not legible to a standard accounts receivable process. This means the finance team cannot automatically match payments against invoices in Dynamics 365, forcing them into weeks of manual spreadsheet analysis. This work delays the month-end close, hides the true profitability of the Amazon account, and allows chargeback penalties to accumulate without being challenged.
Prevention / Action: The integration should be designed to parse Amazon's detailed remittance advice (EDI 820) and create corresponding journal entries in Dynamics 365 to account for each deduction type. This involves setting up specific general ledger accounts for different chargebacks, marketing fees, and freight costs. The goal is to automate the application of credits and debits so the finance team's focus shifts to investigating exceptions, not performing manual data entry.
Delayed purchase order acknowledgement
Operational impact: New Amazon Purchase Orders are created as Sales Orders in Dynamics 365, but the confirmation is not sent back to Amazon within the required time window. This failure can lead to Amazon cancelling the PO, which harms the vendor's operational scorecard and puts future order volumes at risk. Repeated failures erode supply chain confidence and cause revenue loss as the commercial team reacts to preventable cancellations.
Prevention / Action: The integration's order processing sequence must prioritise sending the EDI 855 Purchase Order Acknowledgement immediately after stock is committed and the Sales Order is created in Dynamics 365. Configure the integration to run on a frequent schedule, ensuring new POs are collected promptly. Logic must also be built to handle rejections or propose changes to PO lines for out-of-stock items, ensuring this communication flows back to Amazon via the correct EDI transaction.
Frequently asked questions
How does an integration help with the complex financial reconciliation between Amazon Vendor Central and Dynamics 365?
Amazon provides complex remittance advice with many deductions, which makes manual matching against invoices in Microsoft Dynamics 365 slow and error-prone, often delaying the month-end close. An integration automates the creation of journal entries in Dynamics 365 to represent the Amazon payout, correctly allocating sales, fees, and chargebacks for an accurate and timely financial close.
Will Dynamics 365 remain our source of truth for inventory after integrating?
Yes, in a standard operating model, Microsoft Dynamics 365 acts as the master record for all inventory. The integration ensures that any changes to stock levels in Dynamics 365 are regularly communicated to Amazon Vendor Central. This gives you a centralised view of your stock position and prevents the acceptance of purchase orders for items you cannot fulfil.
We keep getting chargebacks for ASN errors. Can an integration prevent this?
Yes, many chargebacks originate from errors in the EDI 856 Advance Shipping Notice (ASN), such as incorrect SSCC-18 barcode data. By integrating Dynamics 365 with Amazon Vendor Central, the ASN is automatically generated using validated fulfilment data from your ERP. This ensures the data sent to Amazon is accurate and meets their strict compliance requirements, significantly reducing these penalties.
How can we automatically acknowledge Amazon Purchase Orders within the required time window?
Amazon Vendor Central requires that incoming EDI 850 Purchase Orders are acknowledged promptly with an EDI 855 message, which is difficult to manage manually. An integration automatically ingests the Purchase Order from Amazon, creates a corresponding Sales Order in Microsoft Dynamics 365, and immediately sends the required EDI 855 acknowledgement. This automated workflow ensures you meet Amazon's requirements and never miss an order due to delays.
How does an integration handle unit of measure differences, like Amazon's 'case packs' versus our 'eaches'?
This is a common failure point that a properly designed integration resolves at the source. The integration logic translates Amazon's 'case pack' quantity on an incoming Purchase Order into the correct 'each' quantity before creating the Sales Order in Microsoft Dynamics 365. This ensures that your picking, packing, and invoicing documents in D365 are accurate, preventing costly fulfilment and downstream invoicing errors.