E-InvoicingMalaysia

Microsoft Dynamics 365 vs Xero

Side-by-side comparison for LHDN MyInvois e-invoicing in Malaysia 2026. Find out which solution fits your business.

Last updated: March 2026Independent comparison — not affiliated with either vendor
Microsoft Dynamics 365 logo

Microsoft Dynamics 365

Native MyInvois e-invoicing in Dynamics 365 Finance and Business Central

LHDN CertifiedPeppol ReadyHybridFrom RM700/mo
Xero logo

Xero

Global cloud accounting with full Malaysia e-invoicing and Peppol support

LHDN CertifiedPeppol ReadySaaSFrom RM150/mo

Feature Comparison

FeatureMicrosoft Dynamics 365Xero
Starting Price
RM700/mo
RM150/moBetter
Software Type
Hybrid
SaaS
LHDN Certified
✓
✓
Peppol Ready
✓
✓
API Available
✓
✓
Implementation Support
✓
✓
Industries Covered
8Better
3

Industry Coverage

IndustryMicrosoft Dynamics 365Xero
Manufacturing✓✓
Retail✓✓
Professional Services✓✓
Logistics✓–
F&B✓–
Construction✓–
Healthcare✓–
Education✓–

About Microsoft Dynamics 365

Microsoft Dynamics 365 Finance has native Malaysia electronic invoicing built in, generating, digitally signing, and submitting XML e-invoices to LHDN using MyInvois portal credentials. Business Central users achieve compliance via certified add-ons from Malaysian gold partners including ADynamics, MSC Consulting, and Advintek.

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About Xero

Xero is a globally recognised cloud accounting platform with dedicated Malaysia e-invoicing functionality. It connects directly to the LHDN MyInvois system via API, supports Peppol-based document exchange, and offers a rich ecosystem of third-party app integrations. Ideal for professional services firms and growing businesses that need international-grade compliance alongside local regulatory support.

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Choose Microsoft Dynamics 365 if…

  • ✓Your business spans multiple industries
View Microsoft Dynamics 365 profile

Choose Xero if…

  • ✓More affordable starting price (RM150/mo)
  • ✓You prefer a cloud-based solution with no hardware
View Xero profile

Frequently Asked Questions

Is Microsoft Dynamics 365 or Xero better for MyInvois in Malaysia?

Both Microsoft Dynamics 365 and Xero support LHDN MyInvois e-invoicing in Malaysia. Microsoft Dynamics 365 is Peppol-ready, while Xero is Peppol-ready. The best choice depends on your invoice volume, industry, and whether you need Peppol for B2G or international transactions.

What is the price difference between Microsoft Dynamics 365 and Xero?

Microsoft Dynamics 365 starts from RM700/month. Xero starts from RM150/month. Actual costs vary based on users, modules, and transaction volume.

Does Microsoft Dynamics 365 support Peppol e-invoicing in Malaysia?

Yes, Microsoft Dynamics 365 is Peppol-ready, meaning it supports Peppol Access Point integration for cross-border and B2G e-invoicing in Malaysia.

Which industries does Microsoft Dynamics 365 support?

Microsoft Dynamics 365 supports the following industries: Manufacturing, Retail, Professional Services, Logistics, F&B, Construction, Healthcare, Education.

Can I switch from Microsoft Dynamics 365 to Xero mid-year?

Switching e-invoicing software mid-year is possible but requires careful data migration planning. Ensure your historical e-invoice records and UUIDs from MyInvois are exported before switching. Both vendors may offer data migration support — confirm with each vendor before committing.

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