Introducing Expense Agent in Dynamics 365 Business Central
What Expense Agent in Business Central does: receipt scanning, mileage, expense reports, policy checks and approvals - plus setting the UK mileage rate and what to check before you start.
Expense Agent is Microsoft's AI-powered expense app for Business Central. It helps employees capture receipts, track spending and submit expense reports, and it gives finance an approval flow that ends in Business Central.
Microsoft's Expense Agent overview describes it as a production-ready preview for Business Central online, subject to supplemental terms of use.
Key PointExpense Agent is a production-ready preview. Try it with a small group before you roll it out.
What Expense Agent does
- Receipt scanning. Upload a photo or file and the AI picks out the merchant, amount, date and category. The employee reviews the details.
- Mileage. Enter a start and end point, and the app calculates the distance and the reimbursement at your company's mileage rate.
- Expense reports. Group expenses into a report and submit it for approval.
- Policy checks. Business Central checks fixed rules, and the agent can use AI to evaluate written policies, which administrators set up.
- Approvals. Approvers review, approve or send back reports with comments.
How employees use it
Employees can use a web app, a mobile app that works offline, or send receipts to an expense mailbox. Microsoft says employees do not need a Business Central licence to use the web app, email or Copilot chat; those channels use Copilot Credits instead.
Pro TipEmployees using the web app, email or Copilot chat do not need a Business Central licence. Plan for Copilot Credits instead.
Set the UK mileage rate correctly
Because the app uses your company's mileage rate, set it to match your policy. HMRC's approved mileage allowance payments for cars and vans are 55p a mile for the first 10,000 miles from 6 April 2026 (45p before that date), and 25p a mile above 10,000.
If you pay more than the approved amount, the GOV.UK mileage guidance explains what you have to report and pay, so agree the rate with your payroll adviser before you configure the app.
Before you start
- Remember it is a preview: try it with a small group first.
- Write your expense policy down clearly, because the AI policy check reads it.
- Decide who approves which reports, and set up billing for Copilot Credits.
Microsoft's expense management overview covers the set-up in Business Central.
Watch OutCheck the mileage rate in the app against your policy and HMRC's approved rates before the first claim goes through.
Next steps
Expense Agent sits alongside Microsoft's other finance agents. Our article on the direction of AI agents in Business Central and our Copilot for finance guide cover the wider picture.
For independent guidance, see the ICAEW technology resources. To talk through expenses in your own Business Central setup, start with our free Business Central review.