If you have bills coming in from multiple suppliers we suggest that you make payments in one single batch (called an ABA file). This helps with managing your cash flow, is the most efficient way to make the payments and reduces the risk of errors.
How are ABA files created?
- As invoices are emailed through by suppliers, they are entered into Xero with the due date noted.
- Within Xero we will schedule your bills, based on the due date of the supplier's tax invoices.
- Every week your bookkeeper will email you a list of bills for you to approve and/or update.
- Once approved, your bookkeeper will create a batch file (called an ABA file) that contains details of the invoices to be paid.
- They will email you a link to this file so that you can upload it to your online banking.
- Your bank will process these payments in one batch.
Approving/Checking Bill Payments
Each week your bookkeeper will email you a Xero link to bills that are due for payment in the
coming week.
We ask you to review the list of bills.
If there are any bills that you wish to either not pay, or delay payment of, you can adjust the Planned Date (see example below)
Once you have approved/updated each bill, send an email to your Bookkeeper letting them know to proceed with preparing the bill payment
Processing a Batch Payment
We normally do not make payments on behalf of our clients. Therefore, it is up to you to verify bill details prior to paying them.
Once your bookkeeper has prepared your batch payment you will receive an email with a link to
the batch payment.
To make the batch payment, do the following:
- Click on the link provided by your bookkeeper to view the batch payment
- Review the list of bills to be paid
- Once you are ready to make the payment, click on the Export Batch File button
- The ABA file will be downloaded to your computer
- Log onto your online banking site and upload the file.
- Each bank has a different process for uploading ABA files, so we can't provide specific instructions for each bank. However, below are links to the major banks ABA file instructions
Sending Remittance Advices
Once you have successfully processed your payments, you should send a remittance advice to
each individual supplier confirming payment. To do this do the following:
- Click on the Send Remittance button
- On the Send Remittance Advice pop up, untick any suppliers that you DO NOT want to send a remittance advice to (for instance,
Telstra does not require a remittance advice to be sent to them) - When you are happy with the list of remittances to be sent off tick the Send me a Copy check box
- Click the Send button
What Happens Next
On the day after the payments are processed the transaction will appear in the bank feed in Xero.
Your bookkeeper will then reconcile the payment against each of the bills that were paid.
This will mark them as paid and they will then appear on any reports and on your BAS return for the period.