How to Make Batch Payments in Xero (Step-by-Step for Growing Teams)
If you're dealing with higher volumes (or hitting the 200-bill cap), read our Xero batch payments guide for what changes when pay runs scale.
This guide covers the standard Xero process step-by-step, plus a few common issues that slow teams down as their pay runs get busier.
Before you start: what you'll need
- Bills are approved (and allocated to the right supplier/contact)
- Supplier bank details are present and correct
- Your bank portal supports banking file upload (or your payment method is configured)
- A clean naming rule for banking files (so uploads don't get mixed up)
What is a batch payment in Xero?
A batch payment groups multiple approved bills into a single payment run so you can export one payment file, upload it to your bank, and then send remittances to suppliers.
- It's built for repeatable supplier pay runs
- It relies on accurate supplier bank details and references
- It works best when your approvals and supplier data are tidy
Step-by-step: how to make a batch payment in Xero
1) Make sure bills are approved and ready to pay
Before you start the batch payment flow, confirm invoices are approved and have the right due dates, reference details, and supplier assignments. If any suppliers have outstanding credit notes, you'll need to allocate credit notes in Xero before running the batch.
2) Select bills for payment
In Xero, choose the bills you want in the run. This is where teams usually discover data gaps (missing bank details, incomplete supplier records, or inconsistent references).
3) Review the batch before export
Do a quick sanity check: totals, supplier names, bill references, and any items that look duplicated or out of place.
4) Generate your banking file
Export the banking file and upload it to your bank portal using your normal banking process.
5) Send remittances to suppliers
After the run is processed, send remittance emails so suppliers can match payments to invoices.
Common issues teams run into
- Missing supplier bank details
This blocks clean exports and causes last-minute chasing.
- Remittance email gaps
Bad email addresses or missing contacts create follow-up work.
- Extra checking and reconciliation
As volumes grow, the human QA load grows too.
Quick answers (FAQ)
What is a banking file?
A banking file is a standard payment file you export from your accounting software and upload to your bank to process payments. The exact format varies by region (e.g. ABA in Australia).
Why won't Xero include a supplier in the payment file?
Most of the time it's missing or invalid bank details on the supplier/contact, or the bill isn't in the right status to be included.
When should I send remittance emails?
Usually after you've uploaded the banking file and you're confident the bank run has been submitted correctly, so suppliers get consistent advice.
When the standard workflow starts to feel heavy
For growing teams, the friction usually comes from process, not accounting: more approvals, more supplier admin, more exceptions, and more time spent checking everything before you press "go".
If you're seeing that pattern, the best next step is to understand what "high-volume" batch payments look like end-to-end.
Next reading
Xero batch payments: how to handle higher volumes (and the 200-bill limit)
How larger supplier payment runs stay structured while Xero remains the accounting system of record.
Read guideThe Xero 200-Bill Limit: what it is and why it shows up in busy pay runs
What Xero's 200-bill cap means for high-volume payment runs and how finance teams work around it.
Read guideHow Credit Note Allocation Works in Xero (and Why It's Still Manual)
Why supplier credit allocation becomes difficult at scale and how the payment-run workflow can be simplified.
Read guideCredit notes and batch payments in Xero
How supplier credit notes affect the final cash amount in a Xero batch payment run.
Read guideHow many suppliers can you pay in a Xero batch payment?
The practical supplier and bill-selection limits teams encounter as Xero payment runs grow.
Read guideTry Batchly
If your batch payment workflow is becoming a weekly time sink, Batchly helps teams run cleaner pay runs with less manual checking and follow-up.