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Create faster XAF audit files for Netherlands

2026 Release Wave 1 · Electronic Reporting

Microsoft source
Score 68/100 · MediumImpact MediumSwiss relevance NoneGenerally Available

dX365³ Analysis

Our interpretation — not a Microsoft statement

What is changing?

The Dutch XAF solution is moving to an ER implementation for version 4.0 and will use stored general-ledger dimension-set balances rather than rebuilding all relevant balances during file creation. This changes both the regulatory configuration and the technical prerequisites behind the export.

Current state today

Dutch legal entities generally produce XAF through the existing Electronic Reporting configurations, commonly based on XAF 3.2. On databases with substantial ledger history, balance calculation during generation can make the process resource-intensive and slow. Projects may mitigate this by running the export in batch or outside business hours. Main-account-to-RGS classification also needs to be maintained for the required output.

Future state after release

After an administrator deploys the applicable XAF 4.0 ER configurations and enables balance tracking for the dimension sets used by the report, a recurring background process will maintain summarized ledger balances. XAF generation can then read those prepared balances and create the version 4.0 XML through the new model mapping. Users should retain a similar operational process, but the underlying calculation and output structure will change.

Why it matters

This addresses two separate risks for Dutch entities: acceptance of the generated file under the newer XAF specification and long runtimes on high-volume environments. The performance benefit will depend on correct dimension-set configuration, successful execution of the background process, and the size and structure of the ledger data.

Who is affected?

Dynamics 365 Finance functional consultantsElectronic Reporting specialistsGeneral ledger administratorsDutch finance and tax teamsSystem administratorsBatch-job and environment administratorsInternal and external auditorsIntegration or archival teams consuming XAF files

Consultant impact — Medium

This is not only an ER configuration update. Dutch implementations must review regulatory configurations, financial dimension sets, balance tracking, process automation, RGS mappings, security, and batch operation. Functional reconciliation and XML validation are required. Impact is high for Dutch entities that regularly produce large XAF files, but limited for customers without Dutch legal entities.

Likely required work

  • Identify Dutch legal entities that generate XAF files and confirm which XAF version they currently use.
  • Review the official activation and prerequisite documentation when available; the feature is administrator-controlled rather than automatically enabled for every user.
  • Import and validate the applicable XAF 4.0 ER model, mapping, and format configurations in a sandbox before production deployment.
  • Define or verify the financial dimension sets required by XAF and activate the related balance-maintenance capability.
  • Configure and monitor the recurring process that maintains the summarized balances.
  • Review main-account RGS assignments and any consolidation account group used to supply those classifications.
  • Generate representative XAF 4.0 files and reconcile opening balances, movements, closing balances, accounts, dimensions, and RGS values against Finance.
  • Confirm that external auditors, tax advisers, archives, and downstream tools can accept the XAF 4.0 XML structure.
  • Perform performance and batch-load testing with production-like ledger volumes.
  • Update operating procedures and support documentation for XAF generation and troubleshooting.

Swiss relevance — None

The change concerns a Netherlands-specific audit-file format. It does not affect Swiss VAT, Swiss statutory reporting, payment formats, banking connectivity, or Swiss ISO 20022 processes. A Swiss-headquartered group is affected only if it operates a Dutch legal entity, which is Dutch scope rather than Swiss localization scope.

What should customers do now?

  • Add the change to the regulatory update plan for every Dutch entity, with ownership shared between Finance, ER, and system administration.
  • Capture current XAF runtime and resource consumption before activation so that the improvement can be measured objectively.
  • Test an initial balance build separately from ongoing incremental processing, because the first calculation may have a different operational profile.
  • Introduce monitoring and alerts for failed or delayed balance-maintenance jobs; otherwise, faster reporting could come at the cost of stale summarized data.
  • Retain a validated fallback procedure until XAF 4.0 output has been accepted by the relevant audit or tax stakeholders.
  • Schedule regression tests after platform updates that affect general-ledger balance calculation or ER configurations.

Release Radar score — 68/100 (Medium priority)

The feature has strong regulatory and operational relevance for Dutch Finance customers, particularly those with large ledgers, and requires coordinated setup and testing. Its overall customer reach is geographically limited, it has no direct Swiss localization relevance, and the stated availability date is still in June 2026. These factors keep it below the highest-priority range.

Assumptions, not Microsoft-confirmed facts

  • The supplied metadata labels the feature as generally available while also giving a future general availability date of June 5, 2026. This analysis treats June 5, 2026 as the planned availability date until Microsoft clarifies the status.
  • The exact feature-management entry, supported application versions, configuration dependencies, and upgrade path are not specified in the supplied material.
  • It is assumed that the new mapping requires current Microsoft ER configurations; the exact configuration names and version dependencies must be confirmed in Lifecycle Services or the Global repository.
  • The supplied description indicates frequent background balance updates, but it does not establish the exact schedule, recovery behavior, or controls used to verify freshness before XAF generation.
  • No specific performance figures are available. Runtime improvement should therefore be established through customer-specific volume testing rather than treated as guaranteed.
  • The timing and circumstances under which Dutch authorities or auditors will reject XAF 3.2 should be confirmed with the organization’s Dutch tax adviser; this analysis does not assume a universal filing deadline.

Microsoft information

Quoted from the release plan

Business value

Dutch organizations can produce the Audit File Financial (XAF) export faster and more reliably with XAF 4.0 support. By preaggregating ledger balances in the background, the system reduces the time and load required at reporting time, helping your finance team stay compliant with Dutch Tax Administration requirements without delays.

Feature details

In the current release wave, we are introducing the following regulatory reporting enhancements: Performance improvements for Audit File Financial (XAF) – Netherlands Dutch customers can generate the mandatory XAF export significantly faster, even for large data volumes. This enhancement uses optimized data storage and the latest XAF 4.0 format to reduce processing time and system load when producing audit files. It ensures compliance with the Dutch Tax Administration’s newest digital audit requirements by supporting XAF 4.0, which replaces the legacy XAF 3.2 standard. This performance enhancement is achieved through two key improvements: - Leveraging the new General ledger dimension set balance calculation: The Audit File Financial report now takes advantage of the Performance enhancement for general ledger dimension set balance calculation feature in Dynamics 365 Finance. When this feature is enabled, the system precalculates and continuously updates ledger balances for defined financial dimension sets in the background (through a process automation job that runs every few minutes). Reports that use financial dimension sets (like the XAF report) can then pull data from these preaggregated balances instead of computing everything from scratch. This means the Audit File generation runs much more efficiently, data is stored in optimized tables using less space, and the trial balance figures are readily available for reporting. As a result, the XAF output can be produced quickly, even if the transactional data volume is very large, since calculations have been done ahead of time. - Adopting the latest Audit File implementation best practices: The feature updates the XAF generation to use the latest standard methods and format. It introduces a new Electronic Reporting (ER) model mapping configuration for XAF 4.0 optimized for that format. By using the ER framework, the solution follows Microsoft’s best practices for regulatory reporting, which improves maintainability and performance. Together, these improvements mean that a Dutch legal entity can generate its XML Audit File Financial quickly and reliably. After setting up the feature (ensuring that financial dimension sets are defined and balance tracking is enabled for them) and importing the latest XAF 4.0 ER configurations, you run the Audit File Financial process as before. The report completes faster and the resulting XML complies with XAF 4.0 requirements (with fields like the RGS codes for each account as per the latest specification). By following the standard setup (such as associating main accounts with RGS codes in a consolidation account group per the documentation) and enabling this feature, organizations ensure that Audit File generation is not only compliant but also optimized for performance. This is especially beneficial at month-end or year-end, when time is critical–the audit file can be produced with minimal delay, allowing finance departments to confidently meet Dutch statutory obligations with improved efficiency and accuracy.

Change history

Differences detected between scans

  • added12 Aug 2026

    Microsoft added this feature to the Dynamics 365 Finance release plan.

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