Electronic reporting (ER) is a tool that you can use to configure the formats for electronic documents in accordance with the legal requirements of various countries/regions. ER simplifies the creation, maintenance, and upgradation of electronic document formats by enabling business users to create these reports through configuration. Because you configure formats, not code, the processes of creating and adjusting formats for electronic documents are faster and easier. 

The ER engine has the following capabilities:

• It represents a single common tool for electronic reporting in different domains and replaces more than 20 different engines that do some type of electronic reporting for Microsoft Dynamics 365 for Finance and Operations, Enterprise edition.
• It makes a report’s format insulated from the current Dynamics 365 for Finance and Operations, Enterprise edition implementation.
• It supports the creation of a custom format that is based on an original format. It includes capabilities for automatically upgrading the customized format when changes to the original format occur because localization/customization requirements are introduced.
• It becomes the primary standard tool to support the localization requirements in electronic reporting, both for Microsoft and for Microsoft partners.
• It supports the ability to distribute formats to partners and customers through Microsoft Dynamics Lifecycle Services (LCS).

Many requirements that need customization through code, for example, bank file export/import, remittance report, and so on, can now be delivered through configuration using the ER model. Electronic reporting can support a range of functions in Dynamics 365 for Finance and Operations, Enterprise edition, including the following:

• Financial auditing
• Tax reporting
• Electronic invoicing
• Payment formats

The best part is that in most cases, you do not have to create these formats from scratch; Microsoft has already delivered the base version of an electronic report format and will continuously provide updates through LCS. The partners or customers can utilize the base model and create their own version, as per their requirements.