# How to Pay Vendors

Vendor payments in DualEntry record disbursements against posted bills. You can pay a single bill, select multiple bills for a batch run, or apply credits and prepayments to reduce the amount remitted. Each payment method - ACH, paper check, or wire - has its own workflow.

## Selecting Bills to Pay

Navigate to **Accounts Payable → Pay Bills**. The payment selection screen shows all posted, unpaid bills grouped by vendor. You can filter by due date range, vendor, entity, or aging bucket. Select the bills you want to include, and DualEntry calculates the total payment per vendor.

The API equivalent is a `POST` to `/public/v2/vendor-payments/` with the bills and amounts you want to apply. You can also retrieve open bills via `/public/v2/bills/` filtered by `record_status=posted` and `approval_status=approved`.

The selection screen highlights bills that are past due, approaching their discount deadline, or flagged for priority payment. You can sort by due date, amount, or vendor to build your payment run efficiently. If you pay on a regular cycle - weekly or biweekly - this view lets you quickly identify everything that needs to go out in the current run.

## Payment Methods

DualEntry supports three payment methods, each suited to different vendor relationships and transaction sizes.

### ACH

ACH is the default electronic payment method. You associate a bank account with the payment, and DualEntry generates the ACH file for your bank. ACH payments clear in one to three business days depending on your bank's processing window. ACH is the most cost-effective method for domestic payments and works well for recurring vendor relationships where you have the vendor's bank details on file.

### Paper Checks

DualEntry supports three check workflows through the `/public/v2/paper-checks/` endpoint:

- **Print now** - generate and print a single check immediately.
- **Print later** - queue the check for a future batch print run.
- **Print batch** - print all queued checks at once.


Check numbers are assigned sequentially from the check register associated with the selected bank account. The system prevents duplicate check numbers within a register. Paper checks are useful for vendors who do not accept electronic payments or when a physical record is required for compliance purposes.

### Wire Transfer

For wire payments, DualEntry records the wire details (reference number, bank, amount) as a payment record. Wire initiation happens outside DualEntry in your banking portal; the payment record in DualEntry keeps your books in sync. Wires are typically reserved for large or time-sensitive payments where same-day settlement is required.

## Applying Credits, Prepayments, and Partial Payments

If a vendor has issued a credit memo or you have an outstanding prepayment, you can apply it during payment selection. Credits from `/public/v2/vendor-credits/` and prepayments from `/public/v2/vendor-prepayments/` appear as available balances next to the vendor's open bills.

Select the credit or prepayment to apply, and DualEntry reduces the payment amount accordingly. You can apply a credit partially - the remaining balance stays available for future payments. Prepayment applications are tracked separately at `/public/v2/vendor-prepayment-applications/` for full auditability.

You are also not required to pay a bill in full. Adjust the payment amount on any line in the selection screen to make a partial payment. DualEntry tracks the remaining balance on the bill, and it continues to appear in your aging until fully paid. Partial payments are common when negotiating payment terms, resolving disputes, or managing cash flow. The bill's open balance updates immediately after the payment posts.

## Payment Approval and Posting

Vendor payments can be routed through their own [approval workflow](/accountants/platform-configuration/approval-workflows), separate from bill approval. This is useful when you want a manager to approve bills but require a treasurer or controller to authorize the actual cash disbursement.

Set up a payment approval workflow under **Settings → Approval Workflows** with the record type set to vendor payment. You can route based on payment amount, entity, or payment method. Payments above a threshold might require dual authorization, while routine payments below the threshold pass with a single approval.

When you confirm a payment run, DualEntry creates the accounting entry: a debit to accounts payable (clearing the bill liability) and a credit to the bank account. The payment record links back to each bill it covers, so you always have a clear trail from disbursement to invoice.

Posted payments appear in [bank reconciliation](/accountants/core-financials/cash-management/bank-reconciliation) as expected outflows. When the corresponding bank transaction clears, DualEntry matches it to the payment record automatically or presents it for manual matching.

## Vendor Refunds

When a vendor refunds a payment - for a returned item, overpayment, or cancelled service - record it through `/public/v2/vendor-refunds/`. The refund creates a debit to the bank account and a credit to accounts payable or the original expense account, depending on how you allocate it.

Refunds link back to the original payment for audit trail purposes. You can issue a full or partial refund - partial refunds leave the remaining payment allocation intact. The refund amount appears as an expected inflow in [bank reconciliation](/accountants/core-financials/cash-management/bank-reconciliation), ready for matching when it clears.

Direct expenses that bypass the bill workflow (such as petty cash or corporate card charges) are recorded through `/public/v2/direct-expenses/`. These post immediately without going through bill approval.