This paper proposes the implementation of a multi-functional inverter, which was simulated with three ancillary functions. The first function is a Shunt Active Power Filter (SAPF) for harmonic content mitigation, the second is a Virtual Synchronous Machine (VSM) to show the effective regulation of voltage and frequency, and finally, power management in AC microgrids. The multi-functional converter is responsible for the integration of a PV-Battery system (distributed generation) on the AC grid. Furthermore, Real Time Digital Simulator (RTDS) and dSPACE have been used to analyze the performance and control of such multi-functional inverter when added to an AC microgrid. Results demonstrate the operation of the system and can be used as validation of the proposed control strategies through a Hardware In the Loop (HIL) simulation.