Accounting technology / Glossary / Payment run

What is a payment run?

Definition

A payment run is a scheduled batch in which a company pays its approved supplier invoices together, usually weekly or on set days of the month. Accounts payable selects the invoices that are due, someone reviews and authorises the batch, and the payments go to the bank as a single file or through a payment platform.

Also calledpayment batchcheck run

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Frequency: Weekly or set days a month
UK Bacs timing: Three working days
Category: AP, AR and payments

How a payment run works

The run starts from a list of approved invoices due before the next run, adjusted for early payment discounts, credit notes and invoices on hold. AP reviews the proposal, removes disputed items and checks supplier bank details against the vendor master, since changed bank details are a common route for fraud. One or two authorisers then release the batch. In the UK most runs go through Bacs, which normally takes three working days, or Faster Payments; US companies pay by ACH, wire, card or cheque; euro payments go by SEPA credit transfer. Afterwards the payments are posted against each invoice in the ledger and remittance advices go to suppliers. AP platforms such as BILL, Tipalti and Payflows prepare the run, collect approvals and pay from inside the software.

Common questions

How often should a company do a payment run?+

Often enough to pay on agreed terms without paying early by accident. Weekly is common; smaller companies often pay twice a month; urgent payments are made outside the run with separate approval.

Who should authorise a payment run?+

Someone other than the person who prepared it, and usually two people above a set value. Separating preparation from release, and confirming any changed supplier bank details, are the main controls against fraud and error.

What is a remittance advice?+

A notice sent to the supplier listing which invoices a payment covers. It lets the supplier apply the cash to the right invoices, and most payment platforms email it automatically when the run is paid.