Vendor payment proposals in Accounts Payable: checks before the payment run

A payment proposal organises open liabilities using system rules, but it does not replace process control. Dates, discounts, currencies, holds, credits and payment data can all change the population and amounts. The model below describes operational control in the client process; it is not a banking instruction or approval to release funds.

1. Confirm the invoice selection criteria

Microsoft describes a payment proposal as a query that selects invoices using criteria such as due date, cash discount date, vendor and payment method. Record the run date, date range, legal entity, vendor scope, payment method and currencies first.

Also check the minimum payment date, amount limit and any centralised-payment settings. A wrong filter can omit liabilities that should be paid or include items outside the planned cycle. Compare the result with the guidance on due dates and baseline dates.

2. Reconcile the population and totals

Count the selected invoices, vendors and payments, then reconcile value by currency and legal entity. The control view should include items excluded by the filter, not only the final total.

Review high-value items one by one. For the remainder, use exception reporting and sampling where the client policy permits, but explain every difference between the due-liability list and the proposal.

3. Settle credits, negative balances and holds

Microsoft notes that unsettled credit notes or payments may need to be settled against invoices instead of producing another payment when vendor balance control is used. Reconcile the proposal with open credits and the vendor balance.

Do not remove a hold merely to move an invoice into the run. Resolve the cause with the process owner first. Separate controls for supplier credit notes, invoice holds and supplier balances support that review.

4. Verify every payment attribute

Check the vendor, amount, currency, payment date, payment method, disbursement account and beneficiary account. Oracle describes a validation stage where missing disbursement-bank or payment-profile information can stop the process for manual action.

A vendor bank-account change should not be an undocumented correction inside the proposal. It must follow a separate, independent master-data verification process with appropriate segregation of duties. Retain evidence of which values came from the invoice, vendor master and approved payment instruction.

5. Review exceptions and validation failures

SAP provides for reviewing proposal exceptions and blocking, unblocking or reallocating items. Oracle distinguishes missing rates, missing required information, document and payment validation errors, and a status that waits for proposed-payment review.

Each exception needs an owner, cause, decision and evidence. Do not move rejected items straight to a manual bank transfer. First determine whether the issue concerns document data, bank configuration, exchange rate, payment profile or access rights.

6. Separate preparation, approval and execution

Microsoft Dynamics 365 payment-proposal automation creates results in a journal but does not post payments automatically. Existing validation and approval workflows can therefore continue. Other systems likewise depend on configured automation and review points.

Before releasing a payment file, retain the criteria, proposal report, control totals, exception list, preparer, approver and decision time. After execution, reconcile payment count and value between the bank and ERP. A sound control shows the full path from open invoice to confirmed settlement.

Sources and scope

• Microsoft Learn: Create vendor payments by using a payment proposal
• Microsoft Learn: Automate vendor payment proposals
• SAP Help: Revise Payment Proposals
• Oracle: How Payment Process Requests Are Processed

Microsoft, SAP and Oracle documentation was checked on 30 October 2026. Features and field names depend on the product, country and configuration. Adapt the checklist to the payment policy, bank permissions and process owner.