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Hi
I'm the guy who opted to use the Bulkops solution.
I'd have to say it was extremely easy to use and saved hours of what would have been mind-numbing one by one allocation of overpayments/prepayments/credit notes to invoices.
I thoroughly recommend Bulkops.
If one man can write a fix, why Xero can't is beyond me.
OK, there is a cost, but for a large practice it's well worth a look as it links to all your clients as required.
Use Bulkops, you won't regret it

https://bulkops.microspear.app

It really is an amazing app, saved me days of work, and its being improved to make it applicable even for a one-off job.

I hate when I need to allocate credit notes or overpayments to invoices; I have to either type or copy & paste the value...

Why not just have a button to copy & paste the full amount into the form?

Please, add this feature.

I hate when I need to allocate credit notes or overpayments to invoices; I have to either type or copy & paste the value...

Why not just have a button to copy & paste the full amount into the form?

Please, add this feature.

We have a large number of Pre-Payments. When an Invoice has been approved and on the way to "send/email", the available, if any, Pre-Payments pop up for allocation. Each line has to be treated seperatley. We have so many that in some cases the list of available funds for allocation is right off the screen. It would be most efficient if you could simply Double Click the Mouse in the "To apply" box and that would move the available amount to that box and deduct from the balance owing. When you come to the final amount, a double click would only move the amount still owing and split the figue and leave the balance for the next Invoice.

The ability to apply multiple credit notes to invoices at an account level. We deal with accounts that are invoiced and credited quite a bit throughout the month, it's not convenient to allocate each time this is processed but would be more efficient at month end (or periodically) to be able to go account by account and offset oldest credit note to to oldest invoice to leave any balance on the lastest invoice or even at a system level to do this for all accounts at once?

@Jennifer

Based on Xero’s latest update, this doesn’t sound like something that’s coming in the short term. For teams dealing with this every month, it may be worth looking at workflow options outside the native Xero screen, especially where credits are holding up supplier payment runs.

I support this 100%. Yesterday I had a complex debtor receipt to allocate which included settlement discounts (that Xero can't automate at all), 42 credit notes, 2 new credit claims and 86 invoices. I had to create a table in Excel to allocate all the credit notes, then apply them in Excel, some larger credit were split across up to 10 invoices. Overall there were 104 allocations to clear the credit notes. The whole process took around 6 hours. 40 years ago I used a Wang system that had software that would have enabled me to do that in about 20-30 minutes tops! (See attached file) Come on Xero! You are less efficient than a system 40 years old!

Is @Andrei Gromek a Batchly employee? Andrew Nichols where did you get this information, as I cant find anything to support it?

Nothing like logging on to see XERO blowing it's own trumpet about 300 + improvements implemented in a year but still missing the mark on basic accounting software functions!

EDIT: I ran into a bug in Batchly and made some assumptions that turned out to be incorrect. They've been very helpful in working to fix the issue (which we've not been able to replicate yet).

Andrei Gromek is from Batchly. My welcome email came from him. This needs to be clearly stated so as not to mislead.

Agreed Zoe, it doesn't work for all - working best for those who pay by statement of course
I like the Batchly solution where needed :)

@Alison

That’s a solid workaround, especially using the supplier statement to check everything lines up.

We ran into the same issue though - it helps with reconciliation, but doesn’t really answer what you’re actually paying.

Once you’ve got a lot of bills and credits for the same supplier, having to apply credits first and then figure out what’s left to pay gets messy pretty quickly.

We ended up giving Batchly a go after seeing it mentioned, and it’s been a lot easier having credits applied during the payment run instead.

You can see exactly what you’re paying per supplier, and the remittance shows which credits were used against which bills.

This should solve most ppls issues that have posted in this thread.

In case it's of use to anyone in UK with large volume of credit notes, HMRC does allow for the posting of suppliers statements where the tax rate is all the same. You could also use Dext to upload both invs and CNs and then upload the supplier statement, which Dext can check off and highlight any missing, only adding the supplier statement then into Xero.

I appreciate this is not a solution for all, but it could be a game-saving workaround for same to consider.

I have to allocate a day to sort out credits at the end of the month. Batch allocations would save alot of time and money.

Here’s how we’re handling it - everything shown in one place, including fully credited bills.

1000000% this would be useful! Please, please introduce this

I was also having issues here when paying a monthly supplier, and trying to bulk apply credit notes. But have selected all to pay in bills, including credit notes, and made a batch payment from the bank (Even though you cannot 'pay' credit notes), when you go to reconcile the transaction line in xero once it has cleared the bank account, select 'show received items' and this should then show the credit notes that you can select to apply against the amount, as it defaults to showing AUD items only.

Agree with what’s already been said here — the manual allocation side of this is painful once you’re dealing with multiple bills and credits.

Where it really breaks down though is the payment step.

You end up having to sort all allocations first just to get to a point where you can run a clean payment, and then double check what’s actually being paid vs offset.

We started looking at this differently — instead of treating allocation as a separate task, handling credits as part of the payment run itself.

That shift removed most of the manual prep and made it much clearer what cash is actually leaving the bank.

We’ve been building this into Batchly (https://batchly.io) off the back of our CFO dealing with this exact issue month after month.

Keen to see if others are approaching it this way or still working through allocations upfront.

UK User here - We have seen the roll out last week of being able to allocate credit notes along with invoices on the Bank reconciliation function - this is a very welcome change !! Why have Xero not communicated this change as users have been asking for years & years and only be being vigilant and seeing the feature ourselves did we discover this. PLEASE LET EVERYONE KNOW THIS IS A GAME CHANGER FOR SO MANY OF US !!!

This keeps coming up. The pain isn’t just the clicks - it’s that once credits sit outside the batch payment flow, everything gets harder to follow. More prep before the run, more checking after, and more explaining when someone asks what was actually paid.

Feels like the obvious fix is to let bills and credits sit in the same run, show the net payment clearly, and keep the audit detail in the background.

We’ve been working through this in Batchly with a few customers for exactly that reason. Keen to hear how others are handling it.