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Credits only show if they're partially applied on remittances. If the credit pays off an invoice in full then they don't show at all. Also Xero are saying we can now match credits along with payments in the reconciliation section, however, this is a moot point because the remittance will then not match the payment at all because obviously we're paying the total invoice balance less the credit note balance. It's like Xero don't understand how businesses operate?!

I just can't understand why this technology is so difficult? When you're paying 100 odd invoices, why can't we select credits with negative balances as well? The remittance to the supplier would then match their statement which shows invoices and credits.

@Kelly, how are the developments going for credit notes being applied on batch payments?

It is 2026 and we need return some things we've been holding on to, waiting for Xero ;)

@debbie, applied credits show on the remittance advice for me, you may want to double check this.

Lately, the only way I have found to get a large corporation to do anything has been to take to socials or trustpilot. This makes new customers think twice about signing up so actually gets them where its hurts. I've also started emailing CEO's office which seems to get results

This is a basic accounting requirement and we have been asking for it for years!! Since I first posted around 2018! Very often the credit relates to a previously paid invoice, especially if returns are sometimes later, allocating it to a completely unrelated bill invoice is misleading - and it doesn't show on a remittance advice. This needs to be able to be selected in a batch payment run - not just on bank rec! Typically we use a monthly bacs payment run for dozens of suppliers- there is then only a single entry for this entire payment of usually >100 individual bills, on the bank statement

We're a firm of accountants and have numerous client moving to Xero, all with the same problem. They are finding allocating the credit first very inefficient, whereas in Sage 50, both invoices and credit notes appeared.

Also, when sending remittances, the credit notes do not appear, which is vital for clients.

This situation of not being able to include a credit note in the batch payment and just pay the supplier less the credit is absolutely ridiculous. Bad Deving Xero. This is a pretty basic Business requirement. Pull your finger out and get it done !!!!

Wow, this looks messy. Is Kelly even real? Xero just keep going down in my estimation :(

Sukhinder is aware as I have been in contact with her and she put me in touch with Head of Product for payments. He was kind enough to do a Teams with me and talk through plans and credit notes is looking like first half of this year.

What doesn’t help is Kelly on here not knowing or deliberately giving our false info that it wouldn’t happen when she closed the idea and said it wasn’t planned.

@ Annette Bremner - The CEO, Sukhinder, already knows and she doesn't care...
None of the executives do, about any of the issues front line staff and business owners face, not unless it fits their agenda.

The CEO needs to know about this problem. A concept critical to most yet being put off by XERO developers. What is available does not suffice.

The CEO wrote a Christmas email - his address is on there. (!)

This is a fundamental accounting requirement and we have been asking for it since I switched to Xero in 2017.

Anita, it's only in Beta testing at the moment, but I suspect the need for the deveopers to actually interact with the process has revealed some of the flaws we've been trying to tell them about.

Here's an article on it https://central.xero.com/s/article/About-auto-bank-reconciliation-powered-by-JAX

@ John Lewis - Auto Bank Rec by JAX? I haven't heard of this - will look into it!
Yes without credit notes being able to be selected too to Contra during reconciliation, it becomes a manual process - find invoice, apply credit, back to bank rec, refresh, ah, now it reconciles..... :-|

Important so that a credit note doesnt have to be match to a particular bill first

This would be amazing, saving time for the Xero user while also making the remittance advice clearer for the receiving supplier.

I suspect JAX has put in a request for this feature 🤣

Or perhaps more likely the people checking the AI auto bank rec have noticed this is actually an essential function

Kelly,

I can confirm the ability to pay credit notes will be done in 2026 despite you previously closing this idea down. You heard it here first!

Our suppliers generally raise Supplier Credit Notes in the next month so by the time we need to allocate them we have already paid the relevant Supplier Invoice. It would be beneficial for us if we didnt have to allocate Supplier Credit Notes however we can select them when we pay our Bills (just as we would select a Supplier Invoice) and it reduces the total amount we need to pay.

Edit after this was marked "ain't happening": it was confusing that this wasn't already a feature, and it is absolutely insane that it's not even on your to do list.

Coming from a system where I could select all invoices and credit notes for all suppliers in one go and do a single batch payment, having to go in and apply every credit note ONE AT A TIME to a random unrelated invoice first (apart from the very few that do relate to a specific invoice), and do multiple batch payments because I can't select more than 200 items at once, feels like I've made a mistake.