To save time when paying bills in Xero, you can pay several bills at once by creating a batch payment. You can then download a file that can be uploaded to your online banking portal. In this tutorial, we will create a batch payment in Xero’s demo company, download the payment file and take a look at how the batch payment looks in the bank account.
Purchases Section in Xero
To get to the right place in Xero, go to Business → Purcahses overview from the main menu:
Next, click on the Awaiting Payment section to see all the bills that have been created but not paid:
How to Create a Batch Payment in Xero
Let’s create a batch payment for the first three bills in the list. To do this, tick the checkbox next to each row for the first three bills and click on the Batch Payment button at the top of the list:
A pop-up box will appear asking you to confirm the number of items to pay. Click on OK when you are ready to proceed.
You should now be in the New Batch Payment screen. We need to complete some details before we can process the payments. To start with, enter the following information at the top of the batch payment template:
- Payment Date: enter today’s date.
- Bank Account: choose the 090 – Business Bank Account.
- Details: type in Batch Pmt.
Now, we need to complete some payment information for our suppliers. For each supplier, make sure the Bank Account and Details sections contain some information. The rest of the information such as the due date and amount of each payment should have automatically populated from the bills.
When you have finished setting up the batch payment, click on Make Payments to continue:
On the next screen, click on the Export Batch File button to download the file that you can upload into your internet banking:
That’s all you have to do to create a batch payment and download the file for your online banking. Now let’s see how the batch payment looks in our bank account.
Check the Batch Payment in the Bank Account
From the main menu, go to Accounting → Bank Accounts and click on the link for the Business Bank Account:
If you are not already there, click on the Accounts Transactions tab:
Here you should see the batch payment at the top of the list. When the payments come through the bank feed you will be able to reconcile them to the batch payment transaction.
Congratulations! That’s all you need to create a batch payment in Xero and download the internet banking file.