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Asked about this years ago may be i need to move on to another program.

Full disclosure again: I build a Xero add-on, and this is an update to my comment above.

In that comment I said a credit note can't go into a batch payment, and that allocating credits beforehand was the only part I could automate. The first half is still true — the batch itself can't contain a credit. But reading the recent comments here, the real ask is that the run should net the credits off, so the payment matches the supplier's statement without a follow-up email breaking down the credits.

So I built that whole flow into BulkOps (bulkops.microspear.app). It scans your open bills and unallocated supplier credit notes and shows a preview per bill: amount due, credit applied, net to pay. When you approve, it allocates the credits first, then creates one normal Xero batch payment for the remainder — the same object Xero's "pay multiple bills" makes, so money still only moves when you send the batch to your bank. The whole run is undoable in one click until the batch is reconciled, and every change is logged to a CSV audit trail.

Honest limits: base currency only (an API constraint), and runs over 200 bills are split into multiple batches (Xero's per-batch cap). Previews are unlimited and free, and your first 25 items are free, so you can check the netting against your own ledger before paying anything.

And as before: if Xero ships this natively, that's a better outcome than my product existing. Until then, this works today.

Here's an idea - how about making the credit notes visible for when we want to pay a creditor, and then we can select the invoices and credit notes, and come up with a total and a list of what is being paid.

Nobody said that we HAVE to assign a credit to a particular invoice before we pay it (except, it seems, Xero).

I know that Xero won't do a negative payment (why would you put a negative in your bank payments batch), but surely the total of the batch should be what goes through to your bank batch, and then you send the remittance advice which has the list of the invoices being paid and the credits being taken up.

It is ridiculous this isn't native. It's an absolute cop out that "it's hard to get right" since there are great addons that already do it with ease (Batchly is a god send - it saves me so much time every month). ****, I'm even using the Xero API myself to reconcile my statements (searches my mailbox & automatically downloads and reads them) vs what's in Xero & searches the mailbox again for any missing invoices & automatically print them for me. It reconciles the totals including credits, and that took me a couple of days of coding with AI.

Batchly makes processing the payments each end of month a breeze - SO much better than the Xero process. I couldn't imagine going back.

Edit: the **** is H E double hockey sticks, not an actual swear word. Can't believe **** gets censored... what is this, 1940?

Great idea Rani, but those of us who have been doing this job for many years know that the system should be able to do this. We shouldn't have to purchase an add-on to do a simple function.

I really do wish that Xero would stop doing all of the fluff stuff and would start to look a the things that its users (THE PEOPLE WHO PAY THE BILLS) would like them to look at.

Not holding my breath though. I will be retired in several years, and they still won't have looked at getting the basics right.

We've been using Batchly to make large batch payments above Xero's limits. The recent addition of the credit note allocation has been another huge time saver. Highly recommend it

Just another instance that causes me to wonder how many Xero staff have spent anytime in the real world operating at business level ? Probably Zero ?

This update is ridiculously disappointing for such a basic yet vital part of accounting!!
Like other commenters, a lot of time is lost sending remittances to suppliers to only have to send them each an individual follow up with a break down of clear credit allocations.
Xero is mostly brilliant and very user friendly in other areas compared to my previous software but this part grinds my gears every month and makes paying suppliers very tedious!!
This update should definitely be one that should be prioritised.

To be honest, I'm at the point where I'm ready to unsubscribe from the Product Idea threads altogether. Time and again, users invest effort into proposing improvements, only to see them ignored. Meanwhile, ideas that Xero doesn't appear interested in are often closed off entirely. It's hard not to feel that customer feedback is being collected without any real intention of acting on it.

8 years now, Xero used to be down to earth and easy to understand -
what is "bank-agnostic payments solutions across regions" and do we care? - meanwhile allow us to include our credits from suppliers on bulk payments.

Apart from just simply showing credit allocations on a remittance, I've just had to spend 3 hours sending supplier bill activity reports to a supplier in order to show them a break down of multiple rebate allocations just so they know where credits have been applied on our end. the fact that you cant just select a credit, and generate a pdf showing the allocations neatly is very frustrating. Not only that, when you generate a bill activity report it calculates the amount of the credit as well as all of the credits combined so the total sum shows double the amount of the actual credit. It seems like a pretty important tool for business, especially those that have a high number of bills per month from a single supplier.

Unless the credit note functionality is sorted, the automatic payments doesn't work....

I had this functionality when I used to use ye olde Sage over 10 years ago...seems like a pretty standard process. Meh

Meaningless.

Bank-agnostic? "Opportunity"?

I agree Xero seem to be more intertested in pushing the payment link, which is nice but frankly I have used and it is quicker to do it manually.

this is just basic stuff that all the other software providers do, and it really cant be that difficult for a remittance to pick up a credit note as well as an invoice

Poor show XERO

Xero is impossible. Why doesn’t Xero use its own AI to improve the platform and address the issues that customers repeatedly ask for help with? This ridiculously long, drawn-out and painful support process feels completely archaic.

Whats the update Xero - this should be a standard function?

@Shormila Islam I'd estimate 5-10 years at Xero's rate. Check out the Batchly addon in the xero store - makes end of month so much easier (and auto applies credit notes in a batch - no more manually assigning them to random invoices)

When this function is going to be up and running?

This is a joke!
This was suggested 3yrs ago!

Here I am allocating a 15k Reece payment on a clients account. There are 20+ credit notes and i need to manually clear each off. What a waste of time!! Xero you are seriously ****!