Payment Run
A payment run is a scheduled batch process in which an organisation pays multiple approved supplier invoices together at set intervals.
Instead of paying each invoice individually, accounts payable groups approved and due invoices into a batch — often weekly or fortnightly — and releases the payments in one run. The process selects invoices that are approved, matched and within terms, generates the payment file for the bank, and updates the ledger. Batching improves control, efficiency and cash-flow planning.
A disciplined payment run helps an organisation honour payment terms, capture any early-payment discounts and maintain good supplier relationships, while avoiding both late and premature payments. Automating invoice matching and approval before the run reduces errors and ensures only valid, authorised invoices are paid, supporting accurate days-payable-outstanding management.
Key points
- Groups approved, due invoices into a scheduled batch payment.
- Improves control, efficiency and cash-flow forecasting.
- Depends on invoices being matched and approved beforehand.
Frequently asked questions
- What is a payment run?
- A payment run is a scheduled batch process in which an organisation pays multiple approved and due supplier invoices together, rather than settling each one individually.
- How often are payment runs done?
- It varies by organisation, but weekly or fortnightly runs are common; the schedule balances honouring payment terms, capturing early-payment discounts and managing cash flow.
Related terms
Accounts Payable (AP)
Accounts payable (AP) is the money an organisation owes its suppliers for goods and services received but not yet paid for, and the team that manages those payments.
Read definitionPayment Terms
Payment terms are the conditions agreed between buyer and supplier setting when and how an invoice must be paid.
Read definitionDays Payable Outstanding (DPO)
Days payable outstanding (DPO) is the average number of days a company takes to pay its suppliers after receiving an invoice.
Read definitionElectronic Funds Transfer (EFT)
Electronic funds transfer (EFT) is the movement of money between bank accounts electronically, without paper cheques or cash.
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