# How to set up a supplier payment run

Pick one or two fixed pay days, list approved bills due before the next run, check totals and bank details, release the batch from your bank or accounting system, then send remittance advice to each supplier.

Free tool: [Remittance advice generator](https://www.pulsify.tech/free-tools/remittance-advice-generator/). Make a clear remittance advice for each supplier after the run. It lists the invoices paid and the amount.

## Why it matters

A fixed payment run replaces ad hoc payments. You pay everyone on time and you stop paying the same bill twice. It also gives you one moment to check for fraud before money leaves.

Suppliers know which day to expect payment, so they chase less.

## The steps

1. **Choose the pay days.** Pick one or two days a week or fortnight. Tell suppliers. Fewer runs mean fewer chances for error.
2. **Pull the list of approved bills.** Take only approved bills with a due date before the next run. Leave out bills on hold or in dispute.
3. **Apply credits and discounts.** Take off credit notes and any early payment discount that is still valid on the pay day.
4. **Check the total against cash.** Compare the batch total with the bank balance and your cash forecast. Cut or delay low-priority bills if cash is short.
5. **Check bank details.** Compare the account details in the batch with the last payment made to each supplier. Stop any change that has not been confirmed by phone.
6. **Get the batch approved.** A person who did not build the batch approves it. Record the name and time.
7. **Release the payments.** Upload the batch file to your bank or pay from your accounting system. Keep the bank confirmation.
8. **Send remittance advice.** Email each supplier the invoices paid and the amount. Mark the bills paid in your ledger.

## The Pulsify way

1. Pulsify reads and approves the bills so the list for your run is clean and coded.
2. Approved bills go to your accounting system or ERP with the source file attached, in one click for Xero and MYOB.
3. You run the payment batch in your accounting system or your bank.

Pulsify never moves money. Payment runs stay in your accounting system or your bank. Pulsify also connects to other accounting systems and ERPs, and we set up the connection for you.

## Worked example

Example Plumbing Supplies Pty Ltd has three bills due before the next Friday run.

| Supplier | Invoice | Amount due | Credit | Paid |
| --- | --- | --- | --- | --- |
| Example Pipe Co | INV-2201 | A$4,400.00 | A$0.00 | A$4,400.00 |
| Example Fixings | INV-0987 | A$1,980.00 | A$180.00 | A$1,800.00 |
| Example Freight | INV-5510 | A$660.00 | A$0.00 | A$660.00 |

The batch total is A$6,860.00. The finance manager approves it, the bank file is released on Friday morning and three remittance advices go out the same day.

## Common mistakes

- Paying from the invoice email instead of a run, which is how duplicates happen.
- Including a bill that is in dispute.
- Letting the person who built the batch also release it.
- Not sending remittance advice, so suppliers cannot match the payment.

## Common questions

### How often should I run payments?

Weekly suits most small businesses. Fortnightly works if your terms are 30 days or more.

### Should I pay on the due date or early?

Pay on the due date unless an early payment discount is worth more than holding the cash.

### What is a remittance advice?

A note to the supplier that lists the invoices you paid, the date and the amount.

## Next step

Use the [Remittance advice generator](https://www.pulsify.tech/free-tools/remittance-advice-generator/) first. Then see [how to stop paying invoices twice in Xero](https://www.pulsify.tech/how-to/stop-paying-invoices-twice-in-xero/).

Source: https://www.pulsify.tech/how-to/set-up-a-supplier-payment-run/ (last checked 2026-10-20)