Supplier Remittance Advice for Xero Payment Runs: What Finance Teams Need to Get Right
Xero can send remittance advice for an individual paid bill or a batch payment. The advice tells a supplier which bills were paid and, where relevant, shows credits or other amounts applied.
If you are trying to send one now, start with the Xero steps below. The rest of this guide explains what the advice should contain and what changes when a payment run includes multiple bills, supplier credits, partial payments or credit-only settlements.
How to send remittance advice in Xero
From a paid bill, Xero's current workflow is:
- Go to Purchases, then select Bills.
- Find and open the fully or partly paid bill.
- Select the Payment link.
- For an individual bill, select Options → Send Remittance. For a batch payment, select Send Remittance.
- Check or edit the details in the Send Remittance Advice window.
- Optionally select Send me a copy, then select Send.
You can also send or view remittance advice from the payment in Accounting → Bank accounts. Open the bank account and payment, then use the remittance option for the individual or batch payment.
Xero notes that remittance options depend on user permissions. For the current steps and role restrictions, see Xero's remittance advice guide.
Xero remittance advice for multiple bills and batch payments
When multiple bills for the same supplier are included in a Xero batch payment, Xero can send one remittance advice PDF showing the payments made for that contact. This gives the supplier one document to match against a payment covering several bills.
Xero can also show applied credit notes, prepayments, overpayments and other payments where they are relevant. That detail becomes important when the cash amount does not equal the original bill total.
Why remittance advice matters after a complex payment run
The supplier sees the amount that reached their bank account. They do not automatically see every decision that produced that amount.
If a £750 deposit settles a £1,000 bill because a £250 supplier credit was applied, the cash amount alone does not explain the transaction. Without a clear breakdown, the supplier may leave part of the bill open, apply the payment incorrectly or contact the finance team for clarification.
The same issue arises when one payment covers multiple bills. The total may be correct, but the supplier still needs enough detail to match the payment against their ledger.
What clear supplier remittance advice should include
Payer and supplier
Use recognisable organisation and supplier names so the recipient knows who paid.
Payment details
Include the payment date, total cash amount and a useful payment reference.
Bills settled
List every bill included, with invoice numbers and the amount applied to each.
Credits and adjustments
Show supplier credit notes or other adjustments that reduced the cash required.
Remaining balances
Where a bill is only partly settled, make the outstanding amount clear.
A contact for questions
Give the supplier a practical accounts contact rather than leaving them to guess.
Four settlement examples the remittance needs to explain
The exact format can vary, but the recipient should be able to understand the settlement without asking the payer to reconstruct the run.
Cash-only settlement
The remittance is straightforward: it identifies the bill and confirms the full cash payment.
Credit plus cash
The supplier needs to see both parts. A remittance showing only £750 leaves the £250 difference unexplained.
Credit-only settlement
No funds move, but the supplier account has still been settled. The remittance should make that outcome clear.
Partial payment
Where partial payments are used, the remittance should show what was paid now and what remains outstanding.
For a deeper explanation of the credit side of the workflow, see our guide to Xero supplier credit note allocation and how credit notes affect batch payments.
Where remittances go wrong in larger payment runs
The remittance is prepared before the run is final
A late bill removal, credit allocation or amount change can leave the remittance out of step with the payment.
Credit notes are omitted
The supplier receives less cash than the invoice total, but no explanation for the difference.
The payer name is unclear
A legal entity, trading name and bank-account name may differ, making the deposit difficult to identify.
Supplier email details are missing or outdated
The payment may be correct while the advice never reaches the person reconciling it.
Failures are treated as completed
A send action is not the same as confirmed delivery. Failed or bounced emails still need attention.
A retry creates duplicate communication
Without supplier-level status, teams may resend every remittance rather than only the ones requiring action.
How Batchly keeps the remittance aligned with the payment run
Batchly sits around the Xero payment workflow. Xero remains the system of record, while Batchly uses the same confirmed run information across supplier credits, supported payment files, payment write-back, reporting and remittances.
That shared source matters because the supplier communication is generated from the final settlement outcome rather than from a separate spreadsheet or an earlier version of the run.
Cash and credit stay connected
Bills, supplier credits and the final cash amount remain part of the same payment-run record.
One remittance per supplier
The supplier receives a consolidated explanation of the bills and settlement included in the run.
Branding remains recognisable
Finance teams can use their organisation logo, trading name, footer message and accounts contact details.
Sending outcomes remain visible
Teams can distinguish sent, pending, failed, bounced and missing-email outcomes rather than assuming every message arrived.
Send now, or finish the run and send shortly afterwards
Batchly lets a user send remittances during the workflow or skip that step and send them from the Payments tab for up to 48 hours. This gives the finance team flexibility without separating the advice from the payment-run record.
A practical remittance review checklist
- The bank payment total matches the final confirmed cash total.
- Every bill shown belongs to the correct supplier and payment run.
- Supplier credit notes and other adjustments are visible where they affected the settlement.
- Partial payments clearly show the amount paid and the remaining balance, where enabled.
- The payer or trading name will be recognisable to the supplier.
- The supplier email address is present and current.
- Failed, bounced or missing-email outcomes have an owner for follow-up.
Frequently asked questions
What should supplier remittance advice include?
It should identify the payer and supplier, the payment date and reference, every bill included, credits or adjustments applied, the cash amount paid and a useful contact for questions.
Should supplier credit notes appear on the remittance?
Yes. When credits reduce the cash payment, showing them helps the supplier reconcile the amount received with the invoices settled.
Can remittances be sent after the payment run?
Yes. The key control is that they are generated from the final confirmed settlement information and remain linked to that run.
Does Batchly replace Xero?
No. Batchly works with Xero. Xero remains the accounting system of record, while Batchly helps manage the surrounding payment-run workflow when supplier volume or settlement complexity increases.
Related reading
Xero batch payments at scale
How larger supplier payment runs stay structured while Xero remains the system of record.
Read guideHow to make batch payments in Xero
A practical step-by-step guide for growing finance teams.
Read guideXero supplier credit note allocation
Why supplier credits become difficult to manage as payment volumes increase.
Read guideXero payment-run calculator
Estimate the time and labour tied up in your current payment-run workflow.
Read guideKeep the payment run and supplier communication together
Connect your Xero organisation, review the bills and supplier credits in the run, prepare the supported payment file, write the result back to Xero and send clear supplier remittances from the same workflow.
Not sure whether the workflow fits your volume? See who Batchly is for.