Why Cash May Remain After Credits

Why Cash May Remain After Credits

Overview

A cash payment remains when the credits applied do not cover the amount you have chosen to settle in this run. That amount may be the bill's full outstanding balance or a smaller partial-payment amount.

Cash to pay is the amount to pay through your bank for this run. Remaining open balance is the amount left outstanding on the bill after the run is completed. These are different amounts.

Why there may still be a cash payment

  • The eligible credits are less than the amount selected for settlement.
  • Some credits have already been used, are not authorised or have no available balance in Xero.
  • The credits belong to another supplier or have a different currency from the bill.
  • Available credits have been allocated to other selected bills for the same supplier.
  • Applying credits is switched off for the supplier, or Batchly credit allocation is unavailable for your organisation.
Batchly uses eligible supplier credit notes already available in Xero. Credits must belong to the same supplier and match the bill currency. Batchly does not convert a credit note into another currency to apply it.

How Batchly calculates the amounts

Batchly starts with the bill's outstanding balance. Unless you choose a smaller amount, the target is to settle that full balance. If you choose a partial payment, your selected amount becomes the settlement target for this run.

  • Cash to pay = settlement target minus credits applied to that target.
  • Remaining open balance = outstanding balance before the run minus the settlement target, once the credits and cash payment have been successfully recorded.

When several bills share available supplier credits, Batchly uses the oldest credits first and allocates against the largest selected settlement targets first. Equal targets are ordered by earliest bill due date. The order in which you select bills does not set the allocation priority.

Examples: full and partial settlement

The examples below start with $1,000 outstanding and assume $300 of eligible credits is applied to this bill. All amounts are in the same currency.

Outstanding before runSelected settlement targetCredits appliedCash to payOpen after completion
$1,000$1,000$300$700$0
$1,000$700$300$400$300
$1,000$400$300$100$600
$1,000$300$300$0$700

How this works with partial payments

The partial-payment amount you enter is the total to settle, including credits. It is not an additional cash amount on top of the credits.

For example, to settle $700 using $300 in credits and $400 cash, select a $700 settlement target. Selecting $400 instead would result in $100 cash after the $300 credit is applied.

Review the Settlement target, Credits to apply, Cash to pay and Remaining after run columns in Review Payment Amounts before continuing.

Partial bill payments are available on Plus and Scale, with applicable trial and legacy access. An organisation's credit-allocation setting controls whether Batchly can apply credits; turning it off does not remove partial-payment access.

What appears in the banking file?

For a supported banking-file workflow, only the cash portion for this run is included in the file. Credit allocations and amounts left open for a later run are not bank payments.

If credits cover the entire selected target, that bill contributes no cash payment to the banking file. Batchly does not export a zero-dollar payment line for it.

No cash does not always mean the bill is fully settled. In the final example, credits cover the $300 target, but $700 remains open. If the whole run has no cash to pay, no banking file is required.

If the required cash-payment format is unsupported, a remaining cash amount cannot be included in a Batchly bank-file export for that format. See Supported bank-file formats and requesting support for guidance.

What happens in Xero?

Selecting bills and reviewing the proposed allocation does not itself apply credits in Xero. Complete Apply Credits when that step is shown to write the allocations back to Xero.

Each successful credit allocation reduces the bill's outstanding balance. For a cash-payment run, complete the payment through your bank, then use Mark as Paid to record the cash payment in Xero.

The bill becomes Paid only when its full outstanding balance has been settled. Otherwise, the unpaid balance remains open. Credits not used in the run retain their available balance in Xero.

What suppliers see

If you send remittances, the attached PDF helps suppliers understand the bills included, credits applied, cash paid and any remaining balance shown. A lower bank payment can therefore reflect credits, a partial settlement or both.

If the amount looks wrong

  • Before starting a run, sync Batchly and check the bill and credit balances in Xero.
  • Check the supplier, currency, available credit and whether applying credits is enabled.
  • Review the selected settlement target and any credits allocated to other selected bills.
  • If processing has already started or the bank file has been submitted, check the existing run before changing amounts or starting another run.

Need help? Contact Batchly support with the bill reference, batch reference if available, and the amounts you expected.