Automated vendor payments in Business Central: complete guide for 2025

Paying vendors should be a straightforward process, yet for many businesses it is anything but. Manual vendor payment processes rely on spreadsheets, scattered email approvals, and repetitive data entry that slow down finance teams. Late payments strain vendor relationships, errors slip into reporting, and fraud risks increase when there is little oversight.

Research shows that 39% of invoices contain errors, and 94% of manual invoices are paid after 30–60 days. Beyond inefficiencies, manual processes expose organizations to compliance and fraud risks that can have significant financial consequences.

To solve these challenges, businesses are embracing automated vendor payments. With automation built directly into an ERP system like Microsoft Dynamics 365 Business Central, companies can streamline every step — from invoice to payment — with accuracy, compliance, and efficiency.

What are automated vendor payments?

Automated vendor payments are the process of paying suppliers through digital workflows that minimize or eliminate manual intervention. Instead of manually entering invoices, printing checks, and reconciling payments, automation takes care of repetitive steps.

Key components of automated vendor payments include:

• Vendor onboarding: securely capturing and storing supplier banking details.
• Invoice capture: automatically recording invoice data into the ERP.
• Approval workflows: routing invoices and payments to the right stakeholders.
• Payment execution: generating electronic payment files (EFT, ACH, wires).
• Reconciliation: matching payments with invoices and updating ledgers.

With automation, businesses gain faster processing, reduced errors, and better visibility over cash flow. When this is integrated into Business Central, it ensures financial accuracy across accounting, purchasing, and reporting.

Why manual vendor payments fails?

Manual vendor payment processes may work for small businesses, but as soon as payment volume increases, they quickly become inefficient. Common issues include:

• Delays and late payments: Approvals stuck in email threads can add days or weeks.
• Errors and inefficiencies: Manual data entry leads to mistakes such as duplicate or missed invoices.
• Fraud and compliance risks: Fraudsters exploit weak payment processes with fake vendor accounts or altered checks.
• Lack of transparency: Vendors often call or email repeatedly to ask about payment status. Without centralized dashboards, finance teams lack visibility into outstanding liabilities.
• Cash flow unpredictability: Late or inconsistent payments disrupt financial planning. Forecasting becomes unreliable without real-time updates.

In short, manual vendor payments waste time, increase risks, and weaken vendor relationships — all of which slow down growth.

Top benefits of automated vendor payments

Implementing automated vendor payments in Business Central delivers measurable improvements.

• Time savings: Finance teams can process payments in minutes instead of days. Batch payments and automated invoice capture cut manual effort significantly.
• Accuracy: By eliminating manual entry, errors and duplicates are drastically reduced. Automated validation ensures every payment matches vendor and bank requirements.
• Cash flow control: Business Central provides dashboards that show upcoming payments, due invoices, and real-time vendor balances, helping CFOs plan with precision.
• Security and compliance: With role-based access and separation of duties, the risk of fraud is reduced. Data encryption ensures sensitive vendor information is protected.
• Vendor relationships: Paying suppliers on time strengthens trust, leading to better terms and potential discounts.

Automated vendor payments in Business Central

Microsoft Dynamics 365 Business Central already streamlines financial management, and with the Gestisoft Money Transfer module, businesses can fully automate vendor payments while ensuring compliance with Canadian banking standards.

Key capabilities include:

• Electronic Funds Transfer (EFT): Automates supplier payments directly from Business Central.
• Pre-Authorized Debits (PADs): Enables collecting payments from customers securely.
• Refunds via EFT: Handles refunds quickly within the same system.
• Batch processing: Create and process multiple vendor payments in one go.
• Bank compliance: Supports EFT file formats for major Canadian banks including Desjardins, RBC, TD, BMO, and National Bank.
• Customizable formats: Adapt EFT files to unique bank requirements.

Unlike standalone platforms like Brex or Stripe, Gestisoft’s solution is ERP-native, ensuring all payment data integrates directly into financial reports, ledgers, and cash flow management.

Step-by-step setup guide of Gestisoft Money Transfer module

Gestisoft’s Money Transfer module makes it easy to set up automated vendor payments in Business Central.

1. Vendor setup

• Add supplier bank details to the vendor card, including institution, transit, and account numbers.
• Validate information before saving to avoid errors downstream.

2. Create a payment journal

• In Business Central, create a batch payment journal.
• Select outstanding vendor invoices based on due dates or filters.
• Group payments by vendor or batch for efficiency.

3. Generate the EFT file

• The system automatically generates an EFT file in the correct format for your bank.
• File validation ensures compliance with Canadian banking standards before submission.

4. Approval workflow

• Apply role-based approvals before sending payments.
• Larger invoices may require multiple sign-offs, while smaller ones can be approved automatically.
• Separation of duties ensures no single user controls the full payment cycle.

5. Send to bank and reconcile

• Upload the EFT file securely to your bank portal.
• Business Central automatically updates the vendor ledger and general ledger once payments are processed.
• Track payment status in real time to confirm receipt and prevent disputes.

This process eliminates manual effort and ensures accurate, secure, and timely vendor payments.

Best practices for automated vendor payments

To get the most out of automated vendor payments in Business Central, follow these best practices:

• Centralize approvals: Use Business Central workflows to route invoices and payments in one system.
• Choose EFT as a preferred method: Faster and cheaper than checks, EFTs also reduce fraud risk.
• Implement strong internal controls: Separate duties between invoice entry, approval, and payment execution.
• Use dashboards for visibility: Monitor upcoming due dates, vendor balances, and processed payments in real time.
• Maintain audit readiness: Keep digital records of every payment, approval, and EFT file for compliance.

These practices not only improve efficiency but also build trust with vendors and ensure compliance with both internal policies and regulatory standards.

Why Gestisoft EFT module is ideal?

Choosing the right solution is key. Here’s why Gestisoft’s Money Transfer module for Business Central stands out:

• Canadian compliance: Designed specifically to support EFT formats for Canada’s major banks.
• ERP-native: Fully integrated into Business Central — no need for external systems or duplicate data entry.
• Secure: Role-based access, approval workflows, and encryption protect sensitive data.
• Scalable: Handles large volumes of vendor payments as businesses grow.
• Trusted partner: Backed by Gestisoft’s expertise as a certified Microsoft partner with deep experience in finance automation.

This makes it the most efficient, secure, and future-proof way for Canadian businesses to manage vendor payments.

Conclusion

Manual vendor payment processes are slow, error-prone, and risky. By adopting automated vendor payments in Business Central, businesses can gain speed, accuracy, compliance, and stronger vendor relationships.

With Gestisoft’s Money Transfer module, you get a solution tailored to Canadian banking requirements, fully integrated with Microsoft Dynamics 365 Business Central. It’s not just automation — it’s smarter, safer, and more strategic financial management.

Ready to simplify vendor payments? Contact Gestisoft today to see how automated vendor payments in Business Central can transform your financial operations.