Scope and supported business processes
ExFlow e-Invoicing for Italy uses invoice data posted in Dynamics 365 Finance to generate XML through Electronic Reporting (ER), send it to Sistema di Interscambio (SdI) through Pagero, and present the returned document status in D365 Finance. The Italian flows also support delivery of cleared cross-border customer invoices through Peppol and submission of cross-border vendor invoice reports when invoices are posted in ExFlow AP.
ExFlow Document Integration does not post accounts receivable invoices or extend the posting functionality of the Italian D365 Finance localization. Support for a business process depends on both:
- D365 Finance representing and posting the transaction correctly.
- The selected ER configuration generating the required Italian invoice XML from that transaction.
A transaction that can be posted in D365 Finance is not automatically covered by its ER configuration. Assess the required invoice data and tax treatment with your D365 partner before enabling a flow.
Supported scope
Customer invoice types
The Italian setup covers:
- Sales invoices and sales credit notes.
- Free text invoices and free text credit notes.
- Project invoices and project credit notes, using Microsoft-provided ER configurations.
Configure the appropriate electronic document source and ER format for each document type in the D365 Finance Accounts receivable parameters.
Business processes
The following table summarizes the processes described in the Italian flow documentation. Support is conditional on the required D365 Finance, ER, ExFlow and Pagero setup.
| Business process | D365 Finance and ER requirements | ExFlow e-Invoicing scope |
|---|---|---|
| Domestic customer invoices and credit notes | Post the document and generate Italian XML using the configured ER format. Maintain the recipient's Codice Destinatario or PEC routing data. | Send through Pagero to SdI and retrieve the SdI response. SdI handles delivery to the domestic recipient after validation. |
| Public Administration (B2G) invoices and credit notes | Maintain the IPA office code and use the appropriate public-administration XML format. The documented D365 routing uses a six-character Authority office value for FPA12. | Supported through the Italian clearance flow. Mark the customer as Government in ExFlow Document Integration. |
| Cross-border customer invoices and credit notes | Mark the customer as Cross-border, configure a cross-border document setting with Pagero as export method, and set Authority office to XXXXXXX. | Send to SdI for clearance and retrieve the response. Delivery to the foreign customer is a separate step after clearance. |
| Delivery to a foreign customer after clearance using D365 Finance | Use the delivery capabilities available in D365 Finance. | The user can send the cleared invoice through those capabilities after receiving clearance. |
| Automated delivery to a foreign customer through Peppol after clearance | Configure the recipient's Peppol profile, country code and participant, plus the ER format for the cleared document. | Supported with a Peppol subscription, Send after accept flow enabled, a Cleared invoice or credit-note setting using Peppol, and the Send cross-border invoice batch. |
| Clearance response monitoring and rejection handling | Correct document data or configuration when SdI rejects a submission. | Retrieve status manually with Get status or through the ExFlow execute customer documents batch. Status and substatus are visible in Outgoing documents and the Document integration workspace. Correct and resend rejected documents. |
| Reporting purchases from foreign vendors to SdI | Install Vendor invoice (IT) and select it as the vendor invoice export format in Accounts payable parameters. | For vendors configured with Type = Pagero (new) and Cross-border = True, submission is triggered automatically when a vendor invoice is posted in ExFlow AP. |
For customer clearance and after-clearance delivery, see Sending AR invoices. For the purchase reporting flow, see Cross border vendor invoice report.
Limitations and responsibilities
- Invoice content depends on D365 Finance and ER. ExFlow transports the generated document and handles responses; the posting, Italian fiscal data and XML mappings must correctly represent the business transaction.
- Project documents require Microsoft ER configurations. Use the Microsoft-provided project format rather than assuming the Truvio sales configuration covers projects.
- Italian tax scenarios require configuration and validation. Stamp duty, split payment, reverse charge, withholding and VAT exemptions depend on the relevant D365 tax setup and FatturaPA mappings. Their inclusion in the setup guidance is not a guarantee that every variant is covered by a standard ER configuration.
- Cross-border clearance and recipient delivery are separate processes. Sending a document to SdI does not by itself deliver it to a foreign customer. Automated Peppol delivery requires its own subscription and customer setup; subscription costs may apply.
- The vendor reporting trigger is specific to ExFlow AP. The documented automatic flow is triggered by posting a vendor invoice in ExFlow AP. It does not establish support for every other D365 vendor posting path.
- Vendor reporting is distinct from receiving supplier invoices. The cross-border vendor report describes an outbound report to SdI. The Italian folder does not define a country-specific incoming supplier invoice scope or incoming document-type matrix.
- Digital preservation requires a separate arrangement. ExFlow will store the sent/receive xml invoices and this does not represent any kind of legal archiving as required by IT law. Customers will need a separate arrangement with Pagero to cover legal archiving.
Validate representative invoices, credit notes, routing and tax scenarios with your D365 partner and Pagero, including the response handling and any after-clearance delivery.
Planned capabilities
No additional Truvio e-Invoicing capabilities for Italy are planned for Q3/Q4 2026. Processes beyond the documented scope require assessment by your D365 partner of the D365 Finance posting flow, ER output and integration setup.
Components required for the Italian flows
| Component | Required capabilities and setup |
|---|---|
| Dynamics 365 Finance | Italian localization, legal-entity fiscal and tax registration data, customer routing data, and appropriate tax configuration. Electronic Reporting must be enabled and configured for the legal entity. |
| Electronic Reporting configurations | Truvio-provided Italian configurations or Microsoft Sales invoice (IT) for sales and free text documents. Project invoices and credit notes use Microsoft Project invoice (IT). Cross-border vendor reporting requires Microsoft Vendor invoice (IT). Required parent configurations and XML destinations must also be configured. |
| ExFlow Document Integration | Version 1.2.2 or newer, configured for Pagero integration, with CTC flow enabled. Customer or vendor settings must identify the relevant domestic, government or cross-border flow. |
| Pagero | An account configured with the necessary data for connectivity to SdI. Pagero transmits the XML to SdI and provides the responses used by ExFlow Document Integration. |
| ExFlow AP | Required for the documented automatic cross-border vendor report, which is triggered when a vendor invoice is posted in ExFlow AP. |
| Peppol integration (optional) | A Peppol subscription, recipient identifiers and an appropriate after-clearance ER format are required for automated delivery of cleared cross-border customer documents. |
For detailed prerequisites, fiscal data, routing and ER destinations, see Setting up the Italian legal entity.