An integrated ERP add-on exchanges data with Microsoft Dynamics 365, while an embedded solution operates directly inside the ERP itself. Embedded tools can eliminate separate logins, duplicate data entry, synchronization delays, and manual reconciliation between systems.
For finance teams using or , Xe provides embedded solutions for both global payments and currency data, allowing important accounts payable and foreign exchange tasks to happen within the ERP environment where the team already works.
Key Highlights
- Integrated and embedded ERP solutions are not the same. An integration connects systems, while an embedded application works inside the ERP itself.
- Integrated payment tools may require users to leave Dynamics 365, complete work in another platform, and synchronize the results back to the ERP.
- Xe Global Business Payments is embedded in Dynamics 365 Business Central and Dynamics 365 Finance for domestic and cross-border vendor payments.
- Xe Currency Data brings current and historical exchange rate information directly into Microsoft Dynamics currency tables.
What Is the Difference Between Embedded and Integrated ERP Add-ons?
The simplest distinction is that integrated software communicates with your ERP, while embedded software operates within it.
Those terms are often used interchangeably in ERP marketing, but they describe very different user experiences. For the person responsible for processing transactions every day, the distinction can affect how many applications they use, how much information they re-enter, and how much reconciliation is required afterward.
What Does an ERP Integration Do?
An ERP integration allows two separate systems to exchange data. That capability is valuable, and many software products use integrations effectively.
For example, an integrated payment solution might:
- Pull vendor and invoice information from Microsoft Dynamics 365.
- Let the user process the payment in a separate payment or foreign exchange platform.
- Send transaction information back to the ERP afterward.
The systems are connected, but the workflow still spans two applications. That’s not necessarily a flaw in the product, but rather, the nature of an integration between separate systems.
What Does an Embedded ERP Add-On Do?
Embedded ERP add-ons allow the user to perform the task from inside the ERP without moving into a separate application.
Instead of acting as an external system connected through an API, an embedded application uses the ERP platform’s own framework. The user can start and complete the workflow within the Dynamics environment they are already using.
That can eliminate common steps such as:
- Opening another application or browser tab
- Signing into a second platform
- Exporting and importing files
- Re-entering transaction information
- Waiting for data to synchronize
- Reconciling different versions of the same transaction
Building this type of solution requires deeper involvement with the ERP platform. In the Microsoft ecosystem, native applications can be delivered through Microsoft AppSource rather than operating solely as external bolt-on systems connected to Dynamics through an API.
How Is Xe Embedded in Microsoft Dynamics 365?
Xe offers two embedded solutions within the Microsoft Dynamics 365 ecosystem: Xe Global Business Payments and Xe Currency Data. Each addresses a different part of the finance workflow, but both are designed to keep the work inside Dynamics rather than sending users to a separate platform.
What Is Xe Global Business Payments for Dynamics 365?
Xe Global Business Payments allows accounts payable teams to originate, send, and report vendor payments directly from Microsoft Dynamics 365 Business Central and Dynamics 365 Finance.
The solution supports both domestic and cross-border payments in more than 120 currencies to over 200 countries and territories.
Xe Global Business Payments also checks transactions using bank validation and sanctions screening, while the applicable exchange rate is captured live when the payment executes.
The resulting foreign exchange gain or loss is then posted back automatically. The user does not need to maintain a separate version of the transaction in another payment application and manually reconcile it with Dynamics afterward.
What Is Xe Currency Data for Dynamics 365?
Xe Currency Data brings exchange rates directly into the native currency functionality of Microsoft Dynamics 365 Business Central and Dynamics 365 Finance.
The goal is to remove another common manual finance task: maintaining exchange rate tables.
Rather than asking an employee to visit an external currency data service, look up the latest rate, and copy it into Dynamics, Xe Currency Data updates the ERP’s own currency tables.
The rates are sourced from more than 100 financial data providers and central banks and can refresh as frequently as every 60 minutes. Historical currency data is also available back to 1998 for reporting and audit requirements.
How Do Xe Payments and Currency Data Work Together?
Used together, Xe Global Business Payments and Xe Currency Data keep both payment execution and the exchange rate information supporting that payment within the Microsoft Dynamics environment.
For accounts payable teams dealing with multiple currencies, those are closely related processes. The payment must be initiated and recorded, while the appropriate exchange rate must also be available for financial reporting. Since Xe’s tools are embedded, the payment, currency information, and resulting reporting remain within the ERP workflow the finance team already uses.
Why Do Vendors Sometimes Blur the Difference Between Embedded and Integrated?
The distinction can become unclear because many use the terms interchangeably, when in fact they are distinct. Embedded solutions generally require deeper platform access, app certification, and maintenance as the ERP platform evolves, whereas standard external integrations are easier to develop and maintain.
An integration can connect to an ERP through an API while remaining a separate application. An embedded solution has to operate within the ERP platform itself and continue evolving as that platform changes.
That difference is not always obvious from marketing language. Terms such as “seamless,” “connected,” and “direct integration” can describe very different technical and user experiences.
The distinction often becomes much clearer after implementation. If the user discovers that completing a supposedly seamless process still requires another login, another browser tab, or another reconciliation step, the application may be integrated with the ERP without actually being embedded in it.
How Can You Tell Whether a Dynamics 365 Add-On Is Really Embedded?
A practical test is to ask one question:
From the moment the task begins until it is completed and reported, does the user ever have to leave Microsoft Dynamics 365?
Do not only ask whether the transaction eventually appears in Dynamics. Instead, look at what the person actually has to do.
Consider whether the workflow requires them to:
- Open another application
- Sign into another platform
- Re-enter or confirm information already stored in Dynamics
- Export or import transaction files
- Wait for two systems to synchronize
- Compare records between the ERP and another application
- Manually reconcile the result afterward
If the entire task can be completed inside Dynamics 365, the experience is embedded. If part of the workflow requires the user to switch to another system and later send the results back, it is an integration, regardless of how closely the two applications communicate.
Why Does Embedded Software Matter for Finance and Accounts Payable Teams?
The difference between embedded and integrated software is more than terminology. Every additional application introduces another handoff in the finance process.
For an accounts payable team, additional handoffs can mean more context switching as employees move between systems. Manual re-entry also introduces another opportunity for an amount to be entered incorrectly or for a transaction to be duplicated.
Reconciliation becomes another consideration. When payment activity takes place in one platform and accounting records live in another, the finance team must confirm that both systems agree.
Audits can magnify that challenge because users may need to compare information across multiple systems before they can establish a trusted record of what happened. Keeping the workflow within one ERP environment can simplify that process by reducing the number of systems involved.
That does not mean integrated software is inherently a poor choice. Many integrations are well designed, and there are business functions for which an embedded alternative may not be available.
The important point is that buyers should understand what they are purchasing. A strong integration and a truly embedded application solve the technical connection problem in different ways and create different experiences for the people using them.
Why Consider Xe for Embedded Payments and Currency Data in Microsoft Dynamics 365?
Xe brings more than 30 years of currency and international payments experience to its embedded Microsoft Dynamics 365 solutions. Founded in 1993, Xe has grown from the creator of the Universal Currency Converter into a global provider used by millions of customers.
Xe launched Xe Currency Data in 2014 to provide businesses with accurate, reliable exchange rates, building on decades of experience developing currency tools and services. Today, the company supports international money transfers across more than 190 countries and 130+ currencies and provides businesses with real-time exchange rates, FX risk management, global payments, and ERP integrations.
Xe is also part of Euronet Worldwide (NASDAQ: EEFT), a global electronic payments and transaction processing company. Xe is regulated globally and uses security measures including encryption, multi-factor authentication, biometrics, and fraud detection to help protect customer data and funds.
For Microsoft Dynamics 365 users, that experience supports two embedded capabilities: Xe Global Business Payments for domestic and cross-border vendor payments and Xe Currency Data for bringing current and historical exchange rates directly into Dynamics. Together, they apply Xe's longstanding currency and payments expertise within the ERP environment finance teams already use.
Frequently Asked Questions About Embedded vs. Integrated ERP Add-Ons in Dynamics 365
Q: What is the difference between embedded and integrated ERP software?
A: Integrated software exchanges data with the ERP but may require users to work in a separate application. Embedded software lets users perform the task directly within the ERP environment.
Q: How can I tell whether a Microsoft Dynamics 365 add-on is embedded?
A: Follow the complete user workflow. If the person can start, complete, and report the task without leaving Dynamics 365, the solution is embedded. If the process requires switching to another system, it is an integration.
Q: Is integrated ERP software bad?
A: No. Integrated tools can be well built and useful, and an embedded option may not exist for every business function. The important issue is understanding whether a solution is integrated or truly embedded before implementation.
Q: What does Xe Global Business Payments do in Dynamics 365?
A: Xe Global Business Payments lets accounts payable teams originate, send, and report domestic and cross-border vendor payments from Dynamics 365 Business Central and Dynamics 365 Finance. It supports more than 120 currencies and payments to over 200 countries and territories.
Q: What does Xe Currency Data add to Dynamics 365?
A: Xe Currency Data supplies current and historical exchange rates directly to the native currency tables in Business Central and Dynamics 365 Finance. Rates can refresh as often as every 60 minutes and include historical data back to 1998.
Learn More About Embedded Payments and Currency Data in Dynamics 365
When evaluating payment or foreign exchange tools for Microsoft Dynamics 365, look beyond whether a vendor says its product “integrates” with your ERP. Map the complete user workflow and determine exactly where payments are initiated, where exchange rates come from, how results are recorded, and whether employees must move between systems to finish the job.
For organizations using or , Xe can provide more information about how its embedded global payment and currency data solutions fit into existing finance and accounts payable processes.
