How to Process Vendor Payments Using Payment Selection in iDempiere for Retail

Payment Selection is the iDempiere process used to identify vendor invoices eligible for payment, group them into a batch, and generate vendor payments. In retail operations, it bridges Accounts Payable invoices and actual vendor settlement, supporting payment methods such as Check, Direct Deposit, and Direct Debit.

Once processed, the selected AP Invoice is automatically allocated against the generated payment and marked as Paid, directly impacting vendor balances and cash management.

Process Flow Diagram

Business Rules

• AP Invoice must be Completed and Posted before it qualifies for payment.
• AP Invoice must have an outstanding balance to be selected.
• Invoice Payment Rule must match the Payment Selection Payment Rule.
• Payment Selection Lines are generated only for eligible invoices.
• Prepared Payments must be generated before Payment Print/Export.
• Check payments require a Bank Account Document configuration.
• Payment Print/Export creates the actual Payment records.
• Successful payment processing automatically updates the invoice Paid status.
• Processed Payment Selection Lines become read-only.
• One Payment Per Invoice creates a separate payment for each invoice.

Prerequisites

Ensure the following configurations are completed:

• Vendor (Business Partner) configured.
• Purchase Order completed.
• Material Receipt completed.
• AP Invoice completed and posted.
• Vendor Payment Rule configured.
• Bank Account configured.
• Payment Rule available for the selected Bank Account.
• Bank Account Document configured for Check payments.

Steps to Steps Configuration

Step 1: Create Payment Selection

Create a New Payment Selection document that will be used to collect and process vendor invoices for payment.

• Open the Payment Selection window and click New Record.
• Select Organization, Bank Account, and Payment Date, then save to generate the document

Header Configuration

Field	Sample Value	Mandatory	Description
Organization	CDC	Yes	Organization processing the payment
Bank Account	Vendor Payment_123456	Yes	Source account used for payment
Payment Date	16-Jun-2026	Yes	Date the payment batch is processed
One Payment Per Invoice	Unchecked	No	Creates a separate payment per invoice when enabled
Total Amount	Auto Calculated	Auto	Sum of selected invoice amounts

Save the record.

A new Payment Selection document is successfully created.

Step 2: Generate Payment Selection Lines (Create From)

Create From retrieves vendor invoices that are eligible for payment based on the configured filters.

• Click Create From on the Payment Selection header.
• Set filters such as Only Due, Only Positive Balance, and Payment Rule, then click OK to pull eligible invoices.

Create From Parameters

Field	Sample Value	Description
Business Partner Group	Blank	Restrict vendor group
Business Partner	Blank	Restrict specific vendor
Only Discount	Unchecked	Select discount-eligible invoices only
Only Due	Checked	Select invoices currently due
Due Date	Current Date	Due date filter
Include Disputed	Unchecked	Include disputed invoices
Match Requirement	None	Invoice matching requirement
Payment Rule	Check	Invoice payment method
Only Positive Balance	Checked	Select invoices with balance due
Document Type	Blank	Restrict invoice document type
Run as Job	Unchecked	Background execution

Eligible AP Invoice records are added as Payment Selection Lines.

Step 3: Review Payment Selection Line

Reviewing the line confirms invoice and payment details before payment preparation.

• Open the generated Payment Selection Line and verify Invoice, Payment Rule, Open Amount, and Payment Amount before proceeding.

Field	Sample Value	Mandatory	Description
Invoice	1000006_06/16/2026_14602.50	Auto	Selected invoice reference
Payment Rule	Check	Yes	Payment method applied to the line
Open Amount	14,602.50	Auto	Outstanding invoice amount
Payment Amount	14,602.50	Yes	Amount to be paid
Discount Amount	0.00	No	Discount applied to the payment
Write-off Amount	0.00	No	Amount written off, if any

Step 4: Prepare Payments

Prepare Payment converts the selection line into a payment instruction prior to actual payment generation.

• Click Prepare Payment on the Payment Selection header.
• Leave Override Payment Rule blank unless changing the method, then click OK.

Prepare Payment Parameters

Field	Sample Value	Mandatory	Description
Override Payment Rule	Blank	No	Replaces the invoice payment rule if set
Run as Job	Unchecked	No	Runs the process in the background

The system creates Prepared Payment records.

Step 5: Review Prepared Payment

The Prepared Payment confirms the payment instruction before the actual payment is generated.

• Open the Prepared Payment tab and verify Business Partner, Payment Rule, and Payment Amount.
• Processed and Printed remain unchecked at this stage.

Field	Sample Value	Mandatory	Description
Business Partner	HAVELLS INDIA MART	Auto	Vendor receiving the payment
Payment Rule	Check	Auto	Payment method carried from the line
Payment Amount	14,602.50	Auto	Amount to be paid to the vendor
Document No	1000000	Auto	Prepared Payment reference number
Processed	Unchecked	Auto	Updates after Payment Print/Export

At this stage, no actual payment exists yet. Prepared Payment exists and is awaiting payment generation.

Step 6: Configure Bank Account Document

A valid check sequence must exist before checks can be generated for the bank account.

• Navigate to Bank Account Document under Cash Management.
• Create a record with Payment Rule set to Check and assign a Current Next number for the Bank Account.

Field	Sample Value	Mandatory	Description
Name	Vendor Check Series	Yes	Identifies the check document series
Payment Rule	Check	Yes	Restricts the series to check payments
Current Next	1000	Yes	Next check number to be issued
Bank Account	Vendor Payment_123456	Yes	Bank account linked to the series

Step 7: Execute Payment Print/Export

This step generates the actual AP Payment from the Prepared Payment and assigns check numbers.

• Navigate to Payment Print/Export, select the Payment Selection, and confirm the prompt to create and complete payments.

Field	Sample Value	Description
Prompt	Is the payment print correct?	Confirmation shown before payment creation
Action	Click Yes	Creates and completes the AP Payment

Step 8: Verify the Generated AP Payment

Confirms the payment document was created and posted correctly against the vendor.

• Open the generated Payment document and verify Document Type, Payment Amount, Tender Type, Check No, and Document Status.

Field	Sample Value	Mandatory	Description
Document Type	AP Payment	Auto	Identifies the payment document type
Payment Amount	14,602.50	Auto	Amount paid to the vendor
Tender Type	Check	Auto	Payment method used
Check No	1000001	Auto	Generated check number
Document Status	Completed	Auto	Confirms the payment is finalized
Posted	Yes	Auto	Confirms accounting entries are posted

Step 9: Verify AP Invoice Settlement

Confirms the invoice is fully settled once the payment has been allocated.

• Open the AP Invoice and confirm the Paid checkbox is enabled, with Document Status remaining Completed and Posted.

Field	Sample Value	Mandatory	Description
Invoice	1000006	Auto	Settled invoice reference
Grand Total	14,602.50	Auto	Total invoice amount
Paid	Checked	Auto	Confirms the invoice is fully settled
Document Status	Completed	Auto	Confirms the invoice remains finalized

The AP Invoice is fully paid and removed from outstanding payables.

Common Issues and Resolutions

Issue	Cause	Resolution
No Payment Selection Lines generated	Invoice not eligible for payment	Verify invoice status, due date, balance, and payment rule.
Payment Selection Line not created	Payment Rule mismatch	Ensure Invoice Payment Rule matches Payment Selection Payment Rule.
Prepared Payment not generated	No Payment Selection Lines available	Generate Payment Selection Lines first.
“No Bank Account Documents (Checks)” error	Missing Bank Account Document configuration	Create a Bank Account Document with the Check payment rule.
Payment not created after Prepare Payment	Payment Print/Export not executed	Execute Payment Print/Export.
Invoice remains unpaid	AP Payment not completed or allocated	Verify the Payment document status and allocation.
Check number not assigned	Bank Account Document sequence exhausted	Update Current Next on the Bank Account Document.
Payment Selection Line is read-only	Line has already been processed	Create a new Payment Selection for additional invoices.

Next Steps

Continue periodic payment processing using Payment Selection.

• Verify AP Payment accounting entries.
• Reconcile the payment with the bank statement.
• Review vendor account balances.
• Monitor and maintain Bank Account Document sequences.