Written By Cheryl Shepard
Getting vendor payments in Business Central right starts with a clear and consistent process. Many organizations struggle with checks, ACH, SEPA, and remittance advice, but Business Central gives you a straightforward way to manage every payment type. When you follow the correct steps, your vendor payments run smoothly, approvals stay clean, and communication remains consistent.
Start with Suggest Vendor Payments
Go to Payment Journals and open Suggest Vendor Payments.
Set your filters. Choose due dates, vendors, and payment methods such as Check or ACH or SEPA.
Select Suggest Payments. Business Central creates a list of invoices that meet the criteria.
For more details about this feature, you can review Microsoft’s documentation
Tip: Use the shortest click path by typing “Payment Journal” in the Tell Me box (Alt+Q) to jump straight there.
Review, Approve, and Confirm the Payments
Open the Payment Journal to review the suggested payments.
If approval workflows are enabled, the payments route directly to the correct approvers.
Approvers can approve or reject payments from the same screen.
Before approval, review any vendor blocks or payment holds to avoid delays.
To learn more about approvals, you can reference our internal Approvals Setup Guide on our site.
Create and Send Remittance Advice Emails
After approval, generate remittance advice to notify vendors of payment details.
Update your templates by going to Payment Setup and selecting Remittance Advice.
Send remittance advice automatically or manually from the journal.
This reduces vendor questions and improves communication.
Execute Payment Runs for Checks and ACH or SEPA
Checks
Print check batches directly from the Payment Journal.
Use the Print Checks action and confirm your check layout in Report Layout Selection.
ACH or SEPA
Export payment files in the required bank format such as NACHA for ACH.
Upload the file to your bank portal or use bank integration if your system supports it.
Post the Payments
After executing payments, post the payment journal.
Posting updates the vendor ledger, adjusts bank balances, and creates a complete audit trail.
This step finalizes the payment run and ensures financial accuracy.
Quick Tips for Better Vendor Payments in Business Central
Set up payment methods and bank accounts before running payments.
Use approval workflows for clean control and compliance.
Test with a small batch when using a new layout or a new format.
Verify exchange rates when paying multi-currency vendors.
Check your remittance email setup to avoid missed notifications.
Following this structured flow helps you manage vendor payments in Business Central with confidence. The steps Suggest Payments, Approve, Send Remittance, Execute, and Post create accuracy, strong internal controls, and reliable vendor communication.