How to connect Deel with Microsoft Dynamics 365 Finance

Overview

The Microsoft Dynamics 365 Finance integration allows you to sync data from Deel directly to your accounting software. This integration automates the transfer of vendor information, invoices, payments, and documents, ensuring your General Ledger (GL) remains accurate and up-to-date. It is designed for users who want to streamline their accounting processes and reduce manual data entry errors.

Supported worker types

This integration facilitates automated data flow for the following:

• Independent Contractors (ICs)
• Employer of Record (EOR)
• Global Payroll (GP)

Want to know more?

Refer to the Microsoft Dynamics 365 Finance integration Overview page for more information and FAQs.

In this article

Here’s what you’ll find in this article:

• Before you begin
• Setting up credentials
  • Step 1: Retrieve the Tenant ID
  • Step 2: Register an application
  • Step 3: Create a client secret
  • Step 4: Configure API permissions
  • Step 5: Retrieve the Finance base URL
• Configuring Dynamics 365 Finance Parameters
  • Step 6: Create journal names
  • Step 7: Configure Number Sequences
  • Step 8: Define Account Structures
• Connecting Deel and Microsoft Dynamics 365 Finance
  • Step 9 - Navigate to apps
  • Step 10 - Authenticate
  • Step 11 - Map entities and accounts
  • Step 12 - Optional configuration
• Next Steps

Before you begin

You must have:

• A Deel account and be logged in.
• Deel Organization Admin or IT Developer permissions.
• Administrative access to the Microsoft Entra tenant (formerly Azure Active Directory) and permission to register applications.
• An active Dynamics 365 Finance environment.

Setting up credentials

Before connecting to Deel, you must obtain specific credentials from Microsoft Entra ID. You will need the following values:

• Tenant ID (Directory ID)
• Client ID (Application ID)
• Client Secret
• Base URL (Finance environment URL)

Follow the steps below to retrieve the values and set up your credentials:

Step 1: Retrieve the Tenant ID

1.  Sign in to the Microsoft Entra admin center.

2. Click Microsoft Entra ID, then Overview on the left navigation menu. The Overview appears.

3.  Copy the value labeled Tenant ID (Directory ID).

The Tenant ID is shared across all Finance environments (DEV, UAT, PROD) and is required for OAuth token requests.

Step 2: Register an application

1. Click Microsoft Entra ID, then App registrations on the left navigation menu of the Microsoft Entra admin center. The App registrations page appears.

2.  Click New registration.

3.  Enter values for each parameter as below:

• Name: Deel – Dynamics 365 Finance Integration (Example)
• Supported account types: Single tenant
• Redirect URI (optional): If specified, the authentication response will be returned to this URI after successfully authenticating the user.

4.  Click Register to complete the registration. The details of the app appear. 

5.  Copy the Application (client) ID. This will be used as the Client ID in Deel.

Step 3: Create a client secret

1.  Click Certificates & secrets in the left navigation menu of the details page for your new app.

3.  Under Client secrets, click New client secret.

4.  Provide a description and expiration period.

5.  Click Add to create the secret.

6. Copy the secret value immediately.

The secret value is shown only once. If you navigate away from the page without copying it, you will need to create a new secret.

Step 4: Configure API permissions

1.  Click API Permissions in the left navigation menu of the details page for your app.

2.  Select Add a permission.

3. Browse and select Dynamics ERP in the APIs menu.

3.  Select Delegated permissions.

4.  Grant Odata.FullAccess permissions for your application and click Add permissions.

Admin consent is required for server-to-server integrations.

Step 5: Retrieve the Finance base URL

The Base URL is the URL of your Dynamics 365 Finance web application.

1.  Sign in to Dynamics 365 Finance in your browser.

2.  Copy the URL from the address bar.

Do not include any path after the domain. The Base URL is environment-specific (DEV, UAT, PROD).

Configuring Dynamics 365 Finance Parameters

Before Deel can communicate with your environment, you must prepare the internal containers and numbering rules. Dynamics 365 is a highly structured system; it will reject any data that does not arrive with a valid ID or a designated destination. These steps ensure that when Deel sends an invoice, the system accurately labels it and stores it in the correct location.

Step 6: Create journal names

Microsoft Dynamics 365 Finance operates on a structured Journal system. It will not allow financial data to enter the database as un-indexed entries; instead, every transaction must be housed within a specific journal name that acts as a secure container.

During the configuration process in Deel, the integration will read your Dynamics environment and ask you to select a destination for each data type. If these names are not pre-configured in Dynamics, Deel will have no valid target to sync your information.

You must create three different journal names that match the ones used by Deel to guarantee a smooth sync.  Each journal name corresponds to a specific type of financial data flowing from Deel:

• DEELINV (Invoice Sync): Matches Accounts Payable data. This creates individual bills in Dynamics so you can track debt and liability for specific contractors.
• DEELPAY (Payment Sync): Matches Disbursement data. This records the actual movement of money out of your accounts to settle outstanding bills.
• PROLL (General Ledger Sync): Matches Payroll Journal data. This provides a high-level summary of total payroll costs (salaries, taxes, benefits) for your Profit & Loss statements.

Follow the steps below to set up each journal name:

1. Navigate to Modules, then click General Ledger on the left navigation menu.
2. Under the Journal Setup, select Journal Names.
3. Click + New to create a new record. 

4. Set a Name, a journal type, and a voucher series. These are required fields. 

   The voucher series is the specific number sequence you select to act as the ID generator for a journal. The journal type tells Dynamics 365 exactly what kind of financial data the journal is allowed to process.

   Set the following journal types for the corresponding journal names:

   Journal name	Journal type
   DEELINV	Vendor invoice recording
   DEELPAY	Vendor disbursement
   PROLL	Daily

For all three journals, ensure the Voucher series is linked to a continuous number sequence to avoid identity errors during the sync.

5. Click Save to create the journal. 

6. Repeat the process for the other required Journal names. 

Step 7: Configure Number Sequences

In Dynamics 365, a Continuous number sequence ensures that every transaction is assigned a strictly sequential ID without any gaps in the numbering. 

When Deel pushes a sync, it targets the specific journal names you create. The journal looks at its assigned voucher series to generate a unique name tag for each entry. By using a continuous sequence, the journal can automatically name every invoice and payment without requiring a human to manually type an ID. 

Continuous number sequences allow the system to automatically assign the next available ID without manual human intervention. If these are set to manual, the sync will fail.

1. Navigate to Modules, then click Accounts Payable on the left navigation menu.
2. Under the Setup menu, select Accounts Payable parameters.
3. Select the Number sequences tab and locate the reference that corresponds to the Voucher Series you will set for the journal.
4. Right-click the sequence code and select View details.
5. In the General fast tab, ensure manual is disabled and continuous is enabled.
6. Repeat this process for the Invoice voucher reference. This ensures that every bill synced from Deel receives a unique transaction ID automatically.

Step 8: Define Account Structures

The Account Structure acts as the validation framework for your journals. It defines which pieces of information (like Department or Project) must be attached to an expense for it to be considered valid. By setting this up, you enable Deel to order your payroll data with the correct tracking categories so your reports stay organized.

1. Navigate to Modules, then click General Ledger on the left navigation menu.
2. Under the Ledger Setup, select Ledger.
3. Select Configure account segments under Account structure.
4. Click +New, set a name for the account structure, then click Create to confirm. to create one for each of the main accounts you intend to use with Deel.
5. Add segments to define the dimensions you want to track, such as department, costcenter, or project.
6. Activate the structure. 
7. Return to the Ledger dashboard and click +Add to include the account structure you just created. 
8. Repeat the process to create an account structure for each of the main accounts you intend to use with Deel.

Connecting Deel and Microsoft Dynamics 365 Finance

Step 9 - Navigate to apps

1. Navigate to your Deel account dashboard.

2. Search for the Microsoft Finance integration in the left navigation menu.

   

3. Click Connect to Microsoft Finance.

Step 10 - Authenticate

1. Enter the credentials you set up in steps 1 - 5 of this tutorial (Base URL, Tenant ID, Client ID, Client Secret) and click Continue.

Step 11 - Map entities and accounts

1. Select the Deel entity and Company ID from the dropdowns. Click Continue. 

   This allows you to map your corresponding Dynamics 365 Finance entity to each Deel legal entity. 

You may be prompted to map your legal entities if you have multiple subsidiaries.

In the Account Mapping section, you will link Deel’s expense categories to your Microsoft Finance Chart of Accounts to ensure every transaction is categorized correctly in your General Ledger.

2. Set a Fallback account. Choose a general expense account to act as a catch-all for any unmapped items. This prevents sync failures if a new category is introduced that doesn't have a specific rule yet.

3. Review the list of Deel invoice items (such as HR & Employee Services or IT Seats) and select the corresponding account from your Dynamics environment for each.

4. (Optional) Toggle the Map with Deel AI tool to allow the system to suggest matches based on your existing account names in Microsoft Finance.

5. Use the status filters to check for any unmapped items. All mandatory categories must be linked to a Dynamics account before you can finalize the integration.

6. Click Continue

Step 12 - Optional configuration

Connection Confirmation

Upon successful connection, you will be redirected to the integration settings page. You should see a Connected status indicator. 

If the connection fails, verify that the application has the required permissions in Entra ID and that no conditional access policies are blocking the application.