Overview

Batchly can use a combination of supplier credit notes and cash payments when processing selected bills from Xero.

If a supplier has available authorised credit notes in Xero, Batchly can apply those credits to selected bills before calculating the remaining cash amount required for the payment run.

This article explains when Batchly uses credits, when it creates a cash payment, and why some bills may be settled using both.

How Batchly decides what to use

Batchly looks at the selected bills and the supplier credit notes available in Xero.

For each supplier, Batchly checks:

• Which authorised bills have been selected for payment
• Whether the supplier has authorised credit notes available in Xero
• How much credit is available to apply
• Whether the credit fully or partly covers the selected bills
• What cash amount remains after credits are applied

Possible payment outcomes

Depending on the available credit notes and the selected bills, Batchly may create different payment outcomes.

Cash payment only

A cash payment only outcome happens when no available supplier credit notes are applied to the selected bills.

This may happen when:

• The supplier does not have available credit notes in Xero
• The credit notes are not authorised or available
• The selected bills are for a different supplier
• The selected bills are paid fully by cash

In this case, the selected cash amount is included in the banking file and can be marked as paid in Xero through the Batchly workflow.

Credit plus cash

A credit plus cash outcome happens when available supplier credit notes cover part of the selected bill amount, but not all of it.

In this case:

• Batchly applies the available credit notes to the selected bills
• The bill balance is reduced in Xero
• The remaining cash amount is included in the banking file
• The supplier receives the cash balance through the normal payment process

Credit plus cash example

Credit-only

A credit-only outcome happens when available supplier credit notes fully cover the selected bill amount.

In this case:

• Batchly applies the supplier credit notes in Xero
• The bill is settled by credit note
• No cash payment is required for that bill
• No payment line is included in the banking file for that bill

Credit-only example

What suppliers see

If you send remittances from Batchly, the supplier remittance helps explain the final payment outcome.

Depending on the run, the remittance may show:

• Which bills were included
• Which amounts were settled by credit note
• Which amounts were paid by cash
• The final cash payment total

This helps suppliers understand why the bank payment may be lower than the total value of the bills included in the run.

Important notes

• Batchly only applies credit notes that already exist in Xero
• Credit notes must be authorised and available in Xero
• Credit notes can only be applied to bills for the same supplier
• Only cash amounts are included in the banking file
• If credits fully cover a bill, no cash payment is required for that bill
• If credits partly cover a bill, the remaining amount may still require a cash payment