An approved invoice is not necessarily ready for payment. A finance team can approve the expense while the supplier is still on hold, the invoice has already been paid in part, a credit note is outstanding or bank details are awaiting independent verification. A robust payment run treats approval and payment eligibility as different control decisions.
Seven gates for an AP payment run
1. Confirm the invoice is a valid payable
Check a valid invoice identifier, supplier master ID, invoice date, currency, amount and required supporting records. Missing mandatory data should create a CHECK DATA exception rather than vanish from the payment report.
2. Verify approval against the correct workflow
Check the required approver, approval date and authority limits for the relevant organization. A status typed as “Approved” is not a substitute for independently recorded approval evidence.
3. Recalculate the remaining balance
The proposed payment must be based on the open balance, not the original invoice total. For example, an invoice of USD 8,000 with USD 3,000 already paid has a remaining balance of USD 5,000, assuming no other adjustments. If an approved USD 500 credit note is applicable, the remaining amount becomes USD 4,500. Keep the supporting transactions linked so credits cannot silently offset unrelated invoices.
4. Screen for holds and unresolved exceptions
Include supplier holds, disputed invoices, duplicate-payment investigations, quantity or price variances and changes in payment instructions. Any material unresolved item should be visible in a separate blocked or review queue.
5. Verify the payment recipient
Confirm supplier identity and payment details using established verification controls. For bank-detail changes, use an independent callback or an approved trusted verification method, and preserve evidence of who verified the change.
6. Reconcile the proposed batch
Calculate the payment batch total from eligible open balances, then compare it to the authorized payment file total. Record currency by currency; do not sum unlike currencies as if they were the same unit. Include a visible count and value for excluded, invalid and not-screened records.
7. Require independent sign-off
Record the preparer, reviewer, dates, payment-run reference and evidence location. The reviewer should be independent of the preparer where the control framework requires segregation. A report marked “Ready” should not conceal unresolved data-quality or approval exceptions.
A useful status model
- Eligible: Mandatory data complete, approvals recorded, open balance positive, no blocking holds and payment recipient verified.
- Review: Potential anomaly or unclear supporting evidence requiring investigation.
- Blocked: Required approval, validation or payment control has failed.
- Paid: Payment recorded and linked to the relevant invoice; separately reconcile actual bank settlement.
What should the dashboard show?
At minimum, display total invoices received, eligible open amount, overdue exposure, held invoices, missing/invalid records, potential duplicates and proposed payment total. Each headline figure should reconcile to the underlying records. Distinguish all unpaid invoices from valid approved open invoices to prevent a misleading KPI.
Before you release a payment file
- Export the exact included invoice list and control totals.
- Save the exception list with owner and resolution status.
- Verify recipient and currency fields.
- Confirm preparer and reviewer evidence.
- Check that rejected or omitted records are counted.
- Preserve a timestamped record of the batch that was actually approved.
This article is general financial workflow education, not individualized financial or legal advice.
Related reading: Accounts payable month-end close workflow.
Put this into practice: AP Command Center Pro runs accounts payable from one controlled register and shows which invoices are safe for the next payment run. Macro-free Excel with a Worked Example and a Blank edition, one-time payment, instant download. Or start with the free AP Fraud Prevention Checklist (printable PDF).