How do I Prepare a Supplier's (Vendor's) Batch Payment Run?

Creating a batch of Payments due to Suppliers (Vendors).

Written By Gerry Mckeown (Liquid error: internal)

Updated at September 24th, 2021

1.     Introduction:

The Suppliers (Vendors) Batch Payments feature facilitates the preparation and creation of larger volumes of payments - either through the creation of Cheque files for subsequent printing or Online Electronic files for transmission to the Bank for clearing purposes.   It also has a facility to “Suggest” a payment schedule based on certain chosen parameters - which schedule can then be amended if required.  The system is also, optionally, linked to the Payments Approval process - if implemented.  (See the Article; “How do I Implement Supplier Batch Payments Approval").

2.     Supplier Batch Payments - Cheque Payments:

Whether or not a Supplier’s (Vendors) Invoice is due for payment at the time of the Batch Payment preparation (and its “Payment to Date”) depends on a number of factors not least of which are the Credit Terms which have been allocated to each Supplier (Vendor) and which are detailed in the Finance Settings Terms Tab on the Supplier’s (Vendors) Master Record;

They are drawn from a Table which you maintain in “Setup > Codes Maintenance”;

These two, in combination, are used to work out when each Supplier’s individual Invoices become “Due for Payment” regardless of the state of the Supplier’s (Vendors) Account – whether in Debit or Credit.

To create a new batch payments run, click on “New Batch Payment” as shown here;

This will open up the following Window after you have chosen a particular Bank Account for this particular Payment run from the “Bank GL Code" drop down field.

N.B.  You will be not be able to access that chosen Bank Account General Ledger Code, or create a new Batch for Payment, in this Drop Down if there is already a Batch “in preparation” or perhaps already awaiting approval against the Bank Account in question.  

Next choose whether you want this run to produce Cheques - or a file for onward transmission to the Bank Clearing system.  Also enter a Batch No. to uniquely identify this Payment Run. You can also “Save” it and return to it at any stage during the process.  This will also identify this Batch Payment run for subsequent enquiry through the various facilities of the system and for audit purposes

If, however, your System Administrator has implemented “Payment Approval” (see the Article entitled “How do I Implement Supplier Batch Payments Approval"). then you will be required to also nominate an Approver (from the Drop Down List provided);

This upper grid in this window shows the Supplier Accounts which qualify for inclusion in this Payment run.  There are a number of criteria which determine the contents of this grid;

(i)    The Supplier’s (Vendors) Account must “Active” and not be “On Hold”,

(ii)    The Bank Account from which the Supplier is expected to be paid (i.e. the one quoted on the Supplier’s (Vendors) Master record) must be that of the chosen Bank Account payment run.

(iii)    The “Payment Method” on the Supplier’s (Vendors) Finance Tab of his Master Record (see above) must correspond to the chosen “Payment Type”, in this example, “Cheque”.

(iv)    The list will include Accounts which have outstanding Invoices even if the Account is in Credit (i.e. where the Balance is positive).

(v)    The list will exclude Accounts with no outstanding Invoices or where the Balance is nil.

(vi)    The list will exclude “Un-Approved” Invoices.  Refer to the Articles “How do I Implement Purchasing Approval with Budget Holders?” and “How do I Implement Purchasing Approval for Non-Budget Holders?”). for further information.

The Currency of the Supplier (Vendor) need not conform to that of the chosen Bank Account from which they are expected to be paid. The system will produce a foreign currency cheque using the Rate of Exchange (default) displayed and which should, however, be manually adjusted where necessary.

On clicking the “Suggest Payments” button on the lower left hand side of the window the upper grid displays the list of the Supplier (Vendor) Accounts, which according to their Credit Terms (used to work out each Invoice’s “Due Date”) and the chosen “Payment To Date” (default is today’s date – highlighted in “Blue” below), have Invoices now due for payment together with the individual Supplier Payment Amounts according to those parameters.  This same updated screen will also show the “Payment Total” of the suggested payments and their effect on the Opening Bank Balance and Closing Bank Balance (highlighted in “Green” below).   You can now, change the Payment To Date” to another date and re-click the “Suggest Payments” button in order to re-project these numbers.

Clicking on the Icon next an individual Supplier (Red circle) causes the lower grid to display the Invoices which qualify for payment and which make up the “Payment” amount against that chosen Supplier (Vendor).  These transaction are colour coded: Green for those which qualify for payment in this run and Blue for Supplier (Vendor) transactions which are not yet due for payment according to the combination of Credit Terms and Payment To Date.  Note that Invoices which have been marked as “Disputed” will not be shown in this list.

You can now amend any of the “Payment” amounts (in the lower grid) back to 0.00 or any other amount for any transaction you want, and so on for each Supplier (Vendor) Account.

Having reviewed the Transactions due for Payment and also reviewed the “Payment Total” and the “Bank Calculated Balance” (after this payment run is effected), and after, once again, saving your progress, you can now go on to the next step which is “Process Run” (not shown).

However, if your System Administrator has implemented the “Payment Approval” option, then this ”Process Run” button will be replaced by an equivalent button requesting you to submit the rendered transaction list for approval;  

The selected Authorised System Approver is now sent an email (similar to the one shown below) requesting approval of the Batch Payment run as assembled by you. The selected System Approver can further amend the Payment Run details by logging into the system and choosing the appropriate Batch No.  When satisfied, he/she can then approve the Batch.  The act of approval, where the “Process Run” button is now replaced by an “Approve Batch” button (by virtue of the fact that it is an authorised Approver in control of the process) is exactly the same as clicking on the “Process Run” button described above.  When this happens, you, the original payment run assembler (i.e. “Prepared By”) are informed via a return email and you can now move on to the next stage of processing which would have occurred as if the Batch Payment Approval process hadn’t intervened;

N.B.  If you, the originator, (i.e. “Prepared By”) are also nominated as a Batch Payment Approver then the “Send for Approval” process is bypassed and you will be presented immediately with the “Approve Batch” button instead.

3.     Cheque & Remittance Advice Note Printing:

Once the Payment Run has been approved - by you or by an Authorised System Approver - it will be shown as “Processed” on the Batch Payments screen, and if Payment Approval is implemented, then also the Approval Status will show “Approved”;

When you now click on the Batch No. (101 in this example) you will see that the previously greyed out buttons “Print Checks” and “Check Register” have now been highlighted and you should now choose the Print Checks button;

after which the following screen will be presented;

The system is designed such that Cheques can be either printed on blank or pre-prepared Cheque stationery.  In the case of blank cheques, the Cheque Nos. and Bank Account details are printed on the Cheque in a machine readable font (MICR) for subsequent processing by the Bank clearing system when they are lodged by your Suppliers.  For pre-printed stationery, and other formats of combined cheque and remittance advice, you need to contact your system provider who will accommodate your specific requirements.

Enter the start number of your first cheque and click on “Assign Numbers” (it is advisable to keep a log of the Cheque Nos. you are using to avoid duplicates or gaps for Bank Reconciliation purposes). The cheque numbers are now assigned and you can proceed to the “Print Checks” phase;

The Print Checks routine produces a PDF File which you can now Save or Print;

This example is of an MICR blank cheque.  You can also find the Cheque printout by going to the Batch Payments screen and clicking on the “Attached documents icon;

Remittances can also be printed off separately by clicking on the “Print Remittances” button;

Other Reports include a printout of the Batch Payments run and a Check Register.

Finally, you should complete the process as follows.  This quite important in that the Bank Account you chose for this Payment Run is unavailable to the System until the payment process is finished.

4.     Electronic Payments and Payments Approval:

As well as producing cheques, the system also facilitates the preparation and transfer of an on-line payments file to the Bank clearing system. This second example details what’s involved, and also again, the application of the optional Batch Payment Approval process.  If you have skipped to this section of the Article from the top, it’s advisable to read Sections 2. and 3. above which contain extensive details regarding the processes also involved in this section.

The following file formats are currently supported (note: we add support for additional bank formats regularly, so please contact your Local Support team for further help and assistance with this).

AIB (.EMTS)
ANZ Online (.ABA)
BACS - Santander (.TXT)
BACS Lloyds
BACS UK (e.g Barclays)
Bank Of Ireland
Bank Of Ireland EFT
Bank Of Ireland SEPA
Bank Of New Zealand (.AFI)
Bank Of Scotland - COL Bacs (Multiple Payment)
Barclays.NET
Bendigo (.ABA)
CBA (.ABA)
Citibank Cross Border Funds Transfer (CDFF)
Citibank SEPA Credit Transfer - Individual Debit (CDFF)
Citibank UK ACH Credit/BACS (CDFF)
Citibank UK Faster Payments - Single Immediate (CDFF)
Citibank US ACH Credit (USFF)
Citibank US Funds Transfer (USFF)
HSBC Net (.TXT)
HSBC Net PP/HVP (.XML)
NAB (.ABA)
NatWest (.TXT)
On Pay
PTX - Bottomline
SEPA
Splitska Banka SEPA (.XML)
St George (.ABA)
Ulster Bank with IBAN & BIC
Ulster Bank, RBS
Westpac (.ABA)

When you first set up a Bank Account you will encounter a section on the table relating to on-line banking;

From the Drop Down List choose the appropriate format relevant to your Company and Country. 

Some Suppliers (Vendors) can be paid by Cheque while other Suppliers are paid electronically.  The indicator which determines how the Supplier (Vendor) is to be paid is held on the Suppliers (Vendors) Master Record in the Finance Settings Tab under “Payment Details & Credit Terms”;

If you have set the Supplier (Vendor) up as “ONL” you must also include details of their pay-in Bank Account.

To create a new batch payments run, click on “New Batch Payment” as shown here;

This will open up the following Window after you have chosen a particular Bank Account for this particular Payment run from the “Bank GL Code" drop down field.

N.B.  You will be not be able to access that chosen Bank Account General Ledger Code, or create a new Batch for Payment, in this Drop Down if there is already a Batch “in preparation” or perhaps already awaiting approval against the Bank Account in question. 

Next you should specify the “Payment Type” as “Online”.  Also enter a Batch No. to uniquely identify this Payment Run. You can also “Save” it and return to it at any stage during the process.  This will also identify this Batch Payment run for subsequent enquiry through the various facilities of the system and for audit purposes.

If, however, your System Administrator has implemented “Payment Approval” (see the Article entitled “How do I Implement Supplier Batch Payment Approval) then you will be required to also nominate an Approver (from the Drop Down List provided);

In this payment run only those Suppliers (Vendors)  with a Payment Method of “Online” will be considered for inclusion.  At this stage the processing or rendering of the payment run is just the same as previously described for a Payment Type of “Check” in 2. above, and when you have completed this you should now move on to “Process Run” or “Send for Approval”.

In the case of Approval, as described earlier, an email like this is sent to the nominated Batch Payment Approver;

The Payment Approver (who also has the ability to further render the Batch you sent) may, for some reason, reject the Batch, in which case you will receive a replying email;

In this example he has asked you, the originator (i.e. “Prepared By”), to change the “Payment to Date” which will now also necessitate another “Suggest Payments” and, after any further amendments by you, a resubmission of the “Send for Approval” process.

Finally, once you have received a confirmatory reply from your Payment Approver (or the status has changed to “Approved” in the Batch Payments Grid) you can go onto to the next step in the process in which the “Down Load Payments File” tab is now no longer “greyed out”;

You can now download the Bank Payments file onto your desktop for subsequent uploading into your On-Line Banking System via their Website;

After this action you can now print the Batch Payment Schedule and Mark the Payment Run as complete;

Your Bank will subsequently inform you, through their system, of any miss-matches of Bank Account details and any anomalies which may have occurred in the clearing system and which you may have to deal with subsequently in this system.

5.     Bulk Email Remittances:

If you click on this button you can email your Remittance Advice Notes in bulk to your Suppliers (Vendors);

The reply to Email address will default to the email address linked to your login account, you can change this to a different address if needed.

Check the recipient email addresses and remove any that you do not wish to send.

Click on Next

Enter a subject and body text for the email (this will automatically save for the next time you bulk email remittances)

Click on Send

The emails will send in the background and you will be sent a confirmation email when the batch has completed.

Click on Done to go to the email log.

Here you can see the status of all emails sent from the company. The grid does not update automatically, click on Refresh Grid to see any updates.

To see remittances, filter by Document Sent. The Status of all emails is shown. If any emails failed to send, hover over the status column to see details of the failure and how to resolve any issues.