Payment Run
A scheduled batch process where approved invoices are grouped and payments are issued to vendors.
Definition
A payment run is the periodic batch processing of approved invoices into actual payments. Finance teams typically execute payment runs on a set schedule (weekly, biweekly, or monthly). The run selects approved invoices, groups them by vendor or payment method, and generates checks, ACH transfers, or wire payments.
Why It Matters
Payment run timing and frequency directly impact cash flow, vendor relationships, and discount capture. Too infrequent and you miss discounts; too frequent and you reduce cash position unnecessarily.
Examples
Weekly payment run
Every Friday, all approved invoices are batched. Checks are printed for small vendors; ACH payments are issued for others.
Expedited payment
A critical vendor invoice is added to an off-cycle payment run to maintain supply chain continuity.
How Nexus AP Helps
Nexus AP optimizes payment runs by prioritizing discount-eligible invoices, grouping by payment method, and flagging invoices approaching due dates.
Start Free TrialFrequently Asked Questions
How often should you run payments?
Most companies run weekly. High-volume operations may run daily. The right frequency balances cash management with vendor satisfaction and discount capture.
What payment methods are used in a payment run?
Common methods include ACH/EFT, checks, wire transfers, virtual cards, and increasingly real-time payments. ACH is most common for domestic B2B.
Category
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