Dynamics 365 Shipping: Quickly start integration
Yes, Dynamics 365 can be connected to a fully automated shipping platform. The recommended route: native AL extension or direct REST API connector to a platform like Paket International, which aggregates carriers such as DHL, UPS, FedEx, DPD, and DB Schenker. Three immediate steps before you start:
- Install the staging connector and authentication (OAuth2) against sandbox endpoints
- 5 pilot episodes to be carried out: 2 within the EU, 3 to third countries (incl. DDP and DAP scenarios)
- Activate ENS/ICS2 check and ensure EORI validation for sender and recipient
Essential mandatory fields from the start: HS code, customs value, Incoterm, recipient's EORI, automatic label generation and tracking feedback to the ERP system.
Table of Contents
- What can a fully automated shipping platform for international shipping offer?
- What integration options are available with Dynamics 365?
- Which functions absolutely must your integration automate?
- What technical requirements are needed for integration?
- Step by step: From staging to go-live
- What do German shippers need to be aware of regarding EORI, ICS2 and customs?
- How does the business run after the go-live?
- The International package handles the integration for Dynamics 365 environments.
- Key insights
- Useful resources for developers, customs teams and project managers
What can a fully automated shipping platform for international shipping offer?
A fully automated shipping platform handles all manual steps between order creation and delivery. For e-commerce and logistics teams, this means specifically:
- Label creation and manifesting: Shipping labels for DHL, UPS, FedEx, DPD and DB Schenker are generated directly from the Dynamics sales order; end-of-day manifests are completed automatically.
- Tracking feedback: Status events, event timeline and delivery date are automatically fed back into the ERP system without manual intervention.
- Export and customs documents: Shipping and customs documents such as CN22, CN23, commercial invoices and MRN handover are generated from the shipment data, including HS codes and EORI numbers.
- Landed cost calculation: Customs duties, taxes and carrier surcharges are calculated in real time; a central dashboard shows the complete fee breakdown.
The difference compared to a manual solution lies not only in the speed. Incorrect or missing export documents lead to delays, returns, and storage costs. Automation eliminates this source of error at its source.
What integration options are available with Dynamics 365?
Four approaches are available. Each has a different risk and cost profile.
| Integration type | Real-time capability | Error rate | operating cost | Entwicklungsaufwand |
|---|---|---|---|---|
| Native AL Extension | High | Low | Low | Medium |
| REST API connector/middleware | High | Medium | medium to high | Low to medium |
| Plugin / Event-Driven (Webhooks) | Very high | Medium | Medium | Medium |
| Batch / SFTP | Low | Low | Very little | Low |
Native AL Extension communicates directly with carrier APIs such as the DHL Parcel DE Shipping API It generates labels, handles customs clearance, and provides tracking without middleware. Potential sources of error from intermediary systems are eliminated. The effort lies in the AL development and the acquisition of API access data and EKP numbers.
REST API connector/middleware It enables a faster start-up because standard APIs are used. Carrier logic is centralized. However, this results in recurring middleware costs, and each additional layer is a potential source of errors.
Plugin / Event-Driven (Webhooks) It is well suited for real-time notifications, but requires robust error retry and idempotent processing to prevent duplicate label generation.
Batch / SFTP It's the cheapest entry point for low volumes. Manifesting and tracking sync are delayed, which becomes a problem for time-critical shipments.
Pro tip: Native AL extensions minimize middleware errors and utilize official carrier APIs directly. Business Central users should favor this approach, provided AL development capacity is available.
Which functions absolutely must your integration automate?
Integrations that need to be added later cost more than those that are fully implemented from the start. These features are part of the standard package:
- Mapping fields: HS code, Customs valueThe Incoterm, product description, weight and dimensions must be clearly populated from the ERP data record.
- EORI fields: Sender and recipient EORI, MRN/ENS handover, CN22/CN23 generation for merchandise mail.
- Label workflow: Label generation, end-of-day manifesting, return labels with QR return flow and track & trace feedback.
- Landed Cost API: Real-time calculation of customs duties, taxes and carrier surcharges directly in the checkout or order form.
- Error handling: Validation rules, automatic retry logic and an audit trail for customs cases that is reliable in case of queries from the customs authority.
What technical requirements are needed for integration?
Authentication and endpoints
OAuth2 is the standard; Basic Auth is only used temporarily in the sandbox. Carrier contracts provide EKP numbers and account IDs, without which label generation is impossible.
Relevant endpoints using DHL Parcel DE Shipping V2 as an example:
POST /ordersfor label productionPOST /manifestsfor End-of-Day-Closing- Track & Trace endpoints for status queries
- Webhook URL for incoming status events
Required data fields
| Feld | Description |
|---|---|
| HS code | Customs tariff number of the goods |
| cart value | Customs value in original currency |
| Currency | ISO currency code (e.g. EUR, USD) |
| EORI Sender | EORI number of the sending company |
| EORI receiver | EORI number of the recipient (mandatory for ENS/ICS2) |
| Incoterm | Delivery terms (e.g. DDP, DAP, EXW) |
| Number of items | Quantity per shipment item |
| Weight | Gross weight in kg |
| Dimensions | Length, width, height in cm |
| Product description | Plain text description for customs declaration |
| Country of Origin | Country of origin of the goods |
Job queue and error handling
Background processing automatically handles track-and-trace write operations. Batch limits (e.g., 30 submissions per API call) must be configured in the job queue. Structured error codes, backoff strategies, and alert monitoring are not optional extras but prerequisites for stable operation.
Step by step: From staging to go-live
- Phase 0 – Preparation: Conclude carrier contracts, obtain EKP and API access data, check EORI registration, create test accounts with all carriers.
- Phase 1 – Staging Installation: Install the connector or extension, configure field mapping, and validate OAuth2 authentication against sandbox endpoints.
- Phase 2 – Functional Tests: Conduct 5 pilot shipments (2 EU, 3 non-EU including DDP/DAP). Check HS codes, EORI, MRN handover, and manifesting windows. Carrier APIs require manifesting before physical handover; separate end-of-day windows apply to international products.
- Phase 3 – Load and volume tests: Simulate parallelized label generation, check job queue behavior under load, and adhere to the manifesting window.
- Phase 4 – Pilot Rollout: Activate a restricted live user group, turn on SLA monitoring, and document escalation paths.
- Phase 5 – Production and Monitoring: Set up alerts for ENS/ICS2 rejections, track daily evaluations of error rate, label costs and delivery times in the KPI dashboard.
Pro tip: Before scaling up to non-EU shipments, conduct a targeted ENS/ICS2 rejection simulation run with a customs broker. Errors discovered here are significantly more costly in production.
What do German shippers need to be aware of regarding EORI, ICS2 and customs?
Compliance errors in international shipping are not trivial. Missing recipient EORI numbers lead to rejection of the entry declaration under ICS2 and can trigger storage costs. Therefore, recipient EORI verification should be completed before the first non-EU shipment.
Specific obligations at a glance:
- EORI obligation: Sender and recipient EORI numbers are mandatory fields for ENS/ICS2 pre-registrations of non-EU shipments. If they are missing, the shipment will be rejected.
- ICS2 / ENS: Pre-declarations must include HS codes, consignee EORI, and a detailed description of the goods. Deadlines and release rules of the respective customs office must be observed.
- NCTS Phase 5: Since January 21, 2025, HS codes have been mandatory as commodity codes in electronic transit declarations. Paper-based procedures have been replaced; IT systems must be able to process electronic in-transit events.
- Automated validation: Platforms that check EORI, HS code, and Incoterms in real time significantly reduce customs delays. However, fallback workflows for manual intervention or a customs clearance service should still be defined.
Important: This article contains general information, not legal advice. Current customs regulations should be checked with the relevant customs office or a customs advisor.
How does the business run after the go-live?
After the go-live, the focus shifts from implementation to cost control and stability.
- Monitoring: Monitoring: Daily jobs for manifesting and tracking sync run automatically; alerts for ENS rejections and carrier errors report problems before they develop into shipment failures.
- Cost management: Label costs, carrier surcharges and Shipping surcharges Customs duties and other charges are reported separately. Guaranteed landed-cost tariffs provide planning certainty.
- Returns process: QR-based return labels simplify returns; automated refunds of customs duties on returns reduce manual coordination efforts. Practical tips on returns workflows can also be found in Logistics optimization guides.
- SLA and Support: An escalation matrix with carrier contacts, regular contract reviews for EKP rates, and monthly cost analyses are part of standard operations.
The International package handles the integration for Dynamics 365 environments.
Anyone who goes through the implementation steps above will quickly realize that the greatest time investment lies not in the coding, but in coordinating with carriers, customs authorities, and internal teams. Paket International addresses precisely this complexity.
The platform provides native connectors and direct API integrations for ERP environments, including automated customs clearance, real-time tracking, and landed cost calculation. EORI and HS code validation, MRN handover, and tracking data write-back to the ERP system are standard features. Carriers such as DHL, UPS, FedEx, DPD, and DB Schenker are managed through a single platform. According to Paket International, companies can significantly reduce their shipping costs through automation. Onboarding includes staging, pilot, and go-live support, including monitoring dashboards and support SLAs.
For e-commerce and logistics teams who are responsible for the Automate international shipping If you want this, the next step is a technical demo or an onboarding meeting. This allows us to tailor the integration path, carrier mix, and compliance requirements specifically to your own Dynamics environment.
Key insights
Native AL extensions or direct REST API connectors are the fastest and least error-prone way to connect Dynamics 365 to a fully automated shipping platform.
| Theme | Details |
|---|---|
| Recommended integration route | Native AL extensions or REST API connectors minimize sources of error and enable real-time tracking. |
| Required fields for compliance | HS code, EORI sender/recipient, Incoterm and customs value must be correctly mapped before the first non-EU shipment. |
| NCTS Phase 5 and ICS2 | Since January 2025, HS codes have been mandatory in electronic dispatch declarations; missing EORI leads to ENS rejection. |
| Rollout recommendation | Conduct 5 pilot shipments (2 EU, 3 non-EU) with ENS/ICS2 simulation before scaling. |
| International Package | Offers native connectors, automated customs clearance and landed cost calculation for Dynamics environments with significant cost reduction. |
Useful resources for developers, customs teams and project managers
- DHL Parcel DE Shipping API V2 (Developer Documentation): Endpoints, OAuth2 authentication, manifesting window and sandbox URLs.
- NCTS Phase 5: Legal changes in the customs transit procedure (GZD, February 2025): mandatory fields, electronic en route events and end of paper-based procedures.
- EORI number: Meaning and applicationWhen and how to apply for an EORI number, including recipient EORI for non-EU shipments.
- Automatically generate shipping and customs documents: CN22, CN23, commercial invoices and MRN handover from shipment data.
- DHL Connector for Business Central (merchantCENTRAL)Practical example of a native AL extension with label generation, customs handling and track & trace.
- Determine customs tariff number: Tool for determining correct HS codes for international shipping.
- Integration Overview Package International: Supported technologies, API and plugin options for ERP and shop systems.