This guide outlines the essential configurations required within Microsoft Dynamics 365 Business Central (BC) before initiating the integration with the Alvys TMS. Following these steps in the designated order ensures that data syncs accurately and the accounting logic remains intact across your legal entities.

Company Setup and Architecture

The first and most critical step is defining how the organizational subsidiaries are structured in Business Central. Alvys must identify whether to treat each subsidiary as an entirely separate database or as a segment within a single database.

Option A: Separate Companies (Standard BC Setup)

In this architecture, each subsidiary is an independent "house" with its own private data and distinct environment. Configuration Steps:

In the search bar, type Companies and select the link.
Select New > Create New Company.

For more information, see: Create New Companies in Business Central

When utilizing this setup, each Alvys Subsidiary is directly mapped to its own Business Central Company. The user simply selects the target company name during the Alvys setup process. Because the data is partitioned at the database level, the following rules apply: 1:1 Subsidiary-to-Company Mapping When adding the Alvys integration for a specific subsidiary, you must link it to the related company created in Business Central. This ensures architectural isolation; transactions for "Subsidiary A" are physically incapable of mixing with "Subsidiary B.” Elimination of Subsidiary Dimensions In this setup, subsidiary-level dimension mapping is redundant and unnecessary. Since the entire Business Central environment represents a single subsidiary, there is no need to "tag" or "dimension" individual transactions to identify the entity; the ledger itself is already entity specific.

Option B: Multi-Entity Management (MEM Add-on)

This architecture utilizes the Binary Stream Multi-Entity Management (MEM) extension. MEM is a specialized third-party add-on for Business Central that allows organizations to manage multiple legal entities, subsidiaries, or branches within a single Business Central company database. For example, if your organization operates three distinct business units; Alvys Logistics, Alvys Freight, and Alvys Transport, MEM allows all three to live inside one "Main Company" environment. Rather than logging in and out of different companies to process paperwork, a user stays in one screen and simply tags each transaction with an Entity Code. Configuration Steps:

Search for Multi-Entity Management Setup and ensure it is enabled.
Search for MEM Entity Setup and add each subsidiary as a new line.
Assign a Global Dimension (usually Dimension 1) to represent your entities.
Search for MEM User Security Setup and assign your User ID to every entity code Alvys will use.

For more information, see: Multi-Entity Management Overview (Binary Stream) During the Alvys integration setup, if this configuration is selected, you must enable the Subsidiary checkbox. You will then be required to manually link each Alvys Subsidiary to the specific MEM Entity Code defined in Business Central. This mapping ensures that every synced invoice is tagged with the correct entity "ID," allowing the MEM extension to route transactions to the appropriate internal books.

2. Account Licensing and Permissions

The account used to authorize the Alvys integration must have a specific license type and granular permissions to execute API commands. This requires a Business Central user with full access permissions, a valid license, and login permission to the company being integrated.

Licensing Requirements

Only full user licenses support the read/write API access required by Alvys. Supported licenses include Dynamics 365 Business Central Essentials and Premium. The Team Member license is unsupported because it is limited to read only access for most financial tables and cannot be used to create or post sales and purchase invoices via the API.

Required Permissions Checklist

The integration user requires Read and Write access to the following areas:

Login Access: Ability to authenticate and enter the environment.
Local Permission: Regional and base-application data access required for tax and standard engine calculations.
Customers: Create, view, and update customer records.
Vendors: Create, view, and update vendor records.
Items: Read and update items (if transactions use specific non-G/L line items).
Sales Invoices: Create and edit sales invoices for freight revenue.
Purchase Invoices: Create and edit purchase invoices for carrier expenses.
General Ledger Entries: Create journals
Dimensions: Read and write dimensions used for account and MEM mapping.

Recommended Permission Sets

To configure these requirements, navigate to the Alvys integration User Card in Business Central and add the following sets:

D365 BUS FULL ACCESS: The primary set for full read/write/modify access to business data (Customers, Vendors, Invoices).
D365 AUTOMATION: Critical for allowing external API calls (Alvys) to execute tasks in the background.
LOCAL: Provides regional-specific database access required for posting logic.
LOGIN: The base set required to access the environment.
Configuration Steps:
Search for Users and select the integration user.
Scroll to the User Permission Sets Tab.
Add the four sets listed above. Ensure the Company column is left blank, so the permissions apply to all companies/entities.

For more information, see: Assign Permissions to Users and Groups

3. Chart of Accounts Configuration

Alvys requires active General Ledger (G/L) accounts to post revenue and expenses.

Configuration Steps:

Search for Chart of Accounts.
Select New to create accounts for Freight Revenue and Carrier Expense.
Set Income/Balance to Income Statement for revenue/expense accounts.
Ensure Direct Posting is toggled on to allow the API to post to these accounts.

For more information, see: Understanding the Chart of Accounts

4. Posting Groups

Posting groups are rules assigned to each customer or vendor that tell Business Central which account category to use. For more information, see: Setting Up Posting Groups Why it matters: Even if Alvys sends a specific account, BC checks the posting group to ensure the transaction is valid.

5. Tax Setup and Calculation

BC calculates the tax for the data sent by Alvys. This must be configured to prevent "Out of Balance" errors. Configuration Steps:

Search for Tax Groups and create a code (e.g., TAXABLE).
Search for Tax Areas and define the regions where you operate.
Link these to your Customer and Vendor cards under the Invoicing Tab.

For more information: Setting Up Tax in Business Central

6. General Journal Batch Setup

While Business Central does have native journals (usually a batch called DEFAULT), creating a dedicated ALVYS batch is a highly recommended prerequisite rather than a strict technical requirement. A dedicated batch prevents record locking conflicts with manual users and ensures clear traceability for automated transactions within your general ledger. Configuration Steps:

Search for General Journal Batches.
Select New and name the batch ALVYS.
Ensure a No. Series is assigned so BC can auto-generate document numbers.
Confirm that the user account authorizing the Alvys integration has explicit permission to post within this specific journal batch.

For more information: Working with General Journals

7. IRS 1099 Setup (US Only) Not Mandatory

Required for carriers who are 1099-liable.

Configuration Steps:

Search for 1099 Form Boxes and ensure codes like NEC-01 are active.
Open the Vendor Card for a carrier and navigate to the Payments Tab.
Select the correct code in the IRS 1099 Code field.

For more information: Set up and Use IRS 1099 Forms

FAQs

Q: How do I know whether to use Separate Companies or Multi-Entity Management (MEM)? A: It depends on how your organization operates: Use Separate Companies if each subsidiary operates independently with its own accounting, users, and reporting. Use MEM if you want multiple legal entities operating inside one shared environment with centralized users and reporting. If you are using the Multi-Entity Management extension by Binary Stream, you must configure Alvys Subsidiary to entity codes and map them during Alvys setup.

Q: Can I switch from Option A (Separate Companies) to Option B (MEM) later? A: While possible, it is highly discouraged once the integration is live. Switching architectures requires a full re-mapping of all entities, customers, and vendors, and can lead to significant data reconciliation issues in your General Ledger. It is best to finalize your organizational structure in BC before connecting Alvys.

Q: Does Alvys support "Asset Dimensions" if I am NOT using the MEM add-on? A: Yes. Even in a standard 1:1 company setup, you can still map Alvys assets to BC Dimensions (such as trucks or drivers) for granular reporting. However, you will not need a "Subsidiary" dimension to identify the legal entity itself.

Q: I have a "Team Member" license; why can't I use it for the integration? A: Microsoft restricts Team Member licenses to "read-only" access for most financial tables. Since Alvys needs to write data (create Sales Invoices and Purchase Invoices), a Business Central Essentials or Premium license is required to authorize the API connection.

Q: Why do I see a "Permission Set" error when syncing an invoice? A: This usually happens if the D365 AUTOMATION or D365 BUS FULL ACCESS sets are missing from the integration user. Ensure these sets are assigned with the "Company" field left blank on the User Card to ensure they apply across all integrated entities.

Q: Are all Chart of Accounts and Companies required before exporting transactions? A: Yes. You must have your G/L accounts, Posting Groups, and Dimensions fully configured in BC before the first sync. Alvys cannot post to an account or a company that does not yet exist in the BC database.

Q: Do I really need a dedicated "ALVYS" General Journal Batch? A: While you can use the DEFAULT batch, a dedicated ALVYS batch prevents "Record Locking" errors. If a human user has the DEFAULT batch open while Alvys tries to post an automated entry, the transaction may fail. A separate batch ensures a "clean lane" for API traffic.

Q: How does Alvys handle Sales Tax (VAT/GST)? A: Alvys sends the line-item data, but Business Central is the "Source of Truth" for tax calculations. You must have Tax Groups and Tax Areas configured in BC. If the tax calculated by BC differs from the total sent by Alvys, the invoice may sit in an "Out of Balance" status.

Next Steps

⏭️ Continue with Connection and Settings Configuration to establish a connection between Alvys and Business Central and configure the necessary settings. This step ensures that Alvys can login correctly and communicate with Business Central using the admin credentials and configuration you prepared.