Xero how to
Funder remittance advice in Xero
Two different documents are called a remittance advice. Xero's is outbound: an email to a supplier listing the bills a payment covered. A funder's is inbound: the file the NDIA, Medicare or a plan manager sends to explain one deposit. The second is not a Xero document, so it is reconciled through a funder clearing account and one batch deposit.
Key facts
- What Xero calls a remittance advice
- A document you send to a supplier showing which invoices you have paid and how the payment was made7
- Which way Xero's version travels
- Outbound. It is generated from a payment the practice made to a supplier and emailed to that supplier from the platform, carrying the payment date, the method, a payment reference and each invoice the payment covers7
- What Medicare bulk bill sends
- The bulk bill payment report and the bulk bill processing report, listing each claim with the amount charged, the amount paid, the payment run number and the date paid1
- What NDIS agency managed sends
- The payee payment remittance advice, one row per claim line, keyed by payment request number, with a system suffix appended to the practice's own reference3
- What NDIS plan managed sends
- The plan manager's own remittance, keyed by a claim reference that often carries a prefix and does not tie directly to the invoice number4
- What comes back changed
- The agency appends a system identifier to the practice's own reference, so an invoice sent as INV-29802 returns as INV-29802-zt99134862m55401773
- Where the phrase's volume sits
- The two head phrasings each draw about 90 Australian searches a month, and every other Xero wording in the set is a send, create, resend or template phrasing at 30 or below10
- The clearing leg in the canonical templates
- Every funder clearing account in the canonical templates posts at BAS Excluded, so the deposit leg carries no tax consequence of its own12
Two documents, one name
In an Australian clinic the phrase points at two documents that travel in opposite directions. One arrives from a payer and explains money that has already landed. The other leaves the practice and tells a supplier which of their bills a payment covered. They share a name and share almost nothing else, and the Xero feature called Remittance Advice is the second one.
| Document | Which way it travels | What it lists | Where it lives |
|---|---|---|---|
| The funder's remittance advice | Inbound, from the payer to the practice | The claim lines one deposit covers, commonly one row per line, with the amount claimed and the amount paid | An email or a portal download, outside the ledger |
| Xero's remittance advice | Outbound, from the practice to a supplier | The bills a payment covered, each amount, the payment date, the method and a payment reference | A payment transaction inside Xero, emailed from it |
What Xero means by a remittance advice
A remittance advice is a document you send to a supplier to show which invoices you've paid and how the payment was made.7
Every element of that definition points outward. The sender is the payer, the recipient is the supplier, and the document is built from a payment the practice already made, then emailed to that supplier from the platform. The search capture of 2 September 2026 has the AI overview giving the same route from the other side, opening the payment transaction and sending from there, for a single payment or for a batch payment. The step by step sits on Send a remittance advice in Xero.
The feature has its own long running gaps, which is why so much of the search result page is Xero's product idea forum. One of those threads asks for remittance advice on a batch payment that contains an overpayment, has run since April 2022, and had collected 65 votes and comments into 2026 when it was read for this page. That is a real problem, and it is not the problem a practice manager holding an NDIA file has.
Why every search result answers the other one
This is the part worth pinning to a date. On 2 September 2026 the Australian results for the phrase carried an AI overview at the top and eight organic results underneath it, and every one of the eight was about sending. The AI overview opened with the click path for sending one, then asked the reader whether they meant a single payment or a batch payment. Neither option is the file a funder sent.
- Xero Central, Send a remittance advice, the article the AI overview quotes.
- Xero, Remittance advice: definition, types and benefits, which defines the outbound document.
- Xero product ideas, Remittance, select and send from account transactions.
- Xero product ideas, Branding, custom template for remittance advices.
- Xero product ideas, Send multiple advices without using batch payments.
On the capture of 2 September 2026 every organic result and every People Also Ask entry for the phrase on google.com.au was about the document Xero sends out. The block asked how to view one in Xero, how to create one, what one is in bookkeeping, and how to resend one. The keyword set behind the phrase says the same thing from the other side: the two head phrasings each draw about 90 Australian searches a month, every other Xero wording in the set is a send, create, resend or template phrasing at 30 or below, and the set carries no inbound funder phrasing.
What your funder sends instead
Each funder has its own document, its own name for it and its own key. Only one of them is called a remittance advice by the funder itself, which is part of why the phrase is so slippery in a practice that runs several funders at once.
| Funder | The breakdown it sends |
|---|---|
| Medicare bulk bill | The bulk bill payment report and the bulk bill processing report, listing each claim with the amount charged, the amount paid, the payment run number and the date paid |
| Veterans affairs allied health | The same payment and processing report types as bulk bill, with a run number against each claim that reads as not run until a payment report exists |
| NDIS agency managed | The payee payment remittance advice, one row per claim line, keyed by payment request number, with a system suffix appended to the practice's own reference |
| NDIS plan managed | The plan manager's own remittance, keyed by a claim reference that often carries a prefix and does not tie directly to the invoice number |
| WorkCover Queensland | Remittances viewed, searched and downloaded in the provider portal |
The keys are the reason none of them drops into Xero cleanly. Medicare and veterans affairs reports are keyed by payment run. The agency's file is keyed by payment request number, one per claim line, and the practice's own reference comes back with a system identifier on the end, so an invoice sent as INV-29802 returns as INV-29802-zt99134862m5540177. A plan manager's file is keyed by its own claim reference, often prefixed, and a single run can carry 500 or more rows.
The path a funder remittance takes
The remittance sits beside the money rather than inside the ledger. It is evidence, it is the thing an auditor asks for, and it is the document that says which claim lines the credit was built from. What it is not is a Xero record. The payment date it states is the date the agency released the funds, which can sit a business day ahead of the credit, and the clearing account is what carries that gap.
How the file gets carried in Xero
Nothing read for this page describes a screen in Xero that takes an inbound remittance, reads its rows and closes the invoices they name. The vendor guides written for NDIS providers start the other way round, telling the reader to build the batch payment by hand and collapse the rows to one line per invoice first. So the file is carried by ordinary Xero objects: a clearing account per funder, a set of payments, and one batch deposit.
The route that does work
- Net the file first. Rejections and clawbacks arrive as negative rows, so the total at the bottom is the money that arrived, not the sum of the positive lines.
- Receipt each invoice the remittance closes to that funder's clearing account, dated the payment date the remittance states.
- Group those receipted invoices into one batch deposit, so the set of payments carries the same total as the credit.
- Match the credit in the bank feed against the batch, which leaves one line to accept rather than one line per claim.
- Read whatever is left in the clearing account as a claim paid but not matched, or matched but not paid, and chase it while the remittance is still open.
Each of those steps has a page of its own. Record a batch deposit from a remittance covers the posting and the invoice cap that limits how many invoices one batch holds. Reconcile a Xero clearing account covers the month end ageing. How NDIA agency-managed payments land in Xero covers the claim lines, the suffix and the short payments behind the file itself.
When a clinic sends one too
The confusion is worse in a clinic than elsewhere because both documents are real for the same practice in the same week. The practice receives funder remittances, and it sends its own remittance advice to contractor practitioners after a payout run, out of Xero, off the batch payment that paid them. Same phrase, same software, two jobs.
One habit settles most of it. Say who sent the document before you say what it is. A remittance from the agency is a claim breakdown. A remittance to a practitioner is a payout statement. Once the sender is in the sentence, the practice stops looking for a funder file in the Xero payment screen.
What Ledger Map does with a funder remittance
Ledger Map reads the practice's own claim and payment data and holds one standing map, approved before anything syncs. A funder deposit is posted as one balanced document set against that funder's clearing account, with the claims underneath it, and one exact match is left in the bank feed for a person to accept. A line the map cannot resolve becomes a question with the options laid out, not a silent posting.
No treatment here is one Ledger Map chose. The accounts and the tax rates come from the canonical template the practice starts from, and the practice approves the map before a document is written. How it works shows the map, the approval step and the question queue.
Questions
How can I view a remittance advice in Xero?
If you mean one you sent, open the payment transaction it came from and the remittance sits with it. If you mean one a funder sent you, it is not a Xero document. It arrived by email or from the funder's portal, and Xero holds the reconciliation it explains rather than the file itself.
The NDIA sent me a remittance advice. What do I do with it in Xero?
Net the negative rows off first so you know what actually arrived. Then receipt each invoice the file closes to your agency clearing account on the payment date the file states, group those into one batch deposit, and match the single credit in the bank feed against the batch. That leaves one line to accept instead of one line per claim.
What is a remittance advice in bookkeeping?
A note from the payer to the payee saying what a payment covered. In practice the two ends have grown apart. A supplier remittance lists the bills a payment settled. A funder remittance in Australian health lists claim lines, which is a finer grain than an invoice, and that difference is what makes it hard to reconcile.
Can I import a funder remittance into Xero?
Not through the remittance advice feature, which builds its document from a payment you made and emails it out. Nothing read for this page describes a Xero screen that takes an inbound remittance file and closes the invoices it names, which is why the vendor guides start by building the batch payment by hand.
Why does my funder remittance have more lines than invoices?
Because the funder pays claim lines and you raised invoices. A week of supports for one participant is one invoice in your ledger and several rows on the file, one per support item claimed. Collapse the rows to one amount per invoice before you try to match anything.
Read next
- Xero how toSend a remittance advice in Xero
- Xero how toRecord a batch deposit from a remittance
- Xero how toHow to reconcile a clearing account in Xero
- FundersHow NDIA agency-managed payments land in Xero
- Practice systemsCliniko Xero integration: what syncs, what does not
- Practice systemsSplose Xero integration and the NDIS lump sum
- HubXero how to
Sources
Open questions
- Xero Central's own article on sending a remittance advice returned an empty document on every fetch attempted for this page, the last of them on 3 September 2026. What the feature does therefore rests on Xero's definition guide and on the dated search capture that quotes the article, rather than on a read of the article itself.
- Nothing readable for this page confirms whether Xero holds a record of any kind for a remittance a customer sends the practice. The page states the working consequence, that the file is carried by a clearing account and a batch deposit, rather than asserting that no such record exists in the product.
- Live web search was unavailable while this page was written and again when it was checked on 3 September 2026, so the answer landscape is the capture of 2 September 2026 rather than a fresh pull. The result set for this phrase has been stable in the corpus, but it has not been rechecked since.
- The captured results are for the phrase remittance advice xero. The longer reconcile wording has not been captured separately, so the claim that it lands on the same set of send flow pages is a reading of the shorter phrase rather than a measured result.
- The Xero batch payment invoice cap is unsettled. RemitClear's guides put it at two hundred invoices and describe it as an API level limit, while the plan manager guide behind this page records fifty. This page states no number and leaves the cap to the batch deposit page.
- The appended reference example rests on one worked case in one vendor guide. Whether the shape is stable across batches and providers has not been tested against a real remittance.
- No source read for this page publishes how long after the deposit a funder remittance arrives, so the diagram claims no timing for that hop.
- No bank feed narration is stated for any funder deposit here, because the research could not confirm one from a primary source.
- The vendor guide behind the agency hops describes the payee payment remittance advice as a portal download, so the diagram says that. Whether the agency also emails the same file to the provider is not confirmed by anything read for this page, and the table states the general case across funders rather than the agency's own.
- The search volumes are a keyword tool's estimate pulled on 2 September 2026, not a published count, and they were not re-pulled when the page was checked.
- Medicare digital claiming: payment and processing reports, MDCM07INFO2
Services Australia. Retrieved 29 Aug 2026. Source updated Jul 2024.
primary
- Remittance advice: definition, types and benefits
Xero. Retrieved 3 Sep 2026. Source updated 9 Jul 2026.
primary
- Australian monthly search volumes for the remittance advice phrase set
DataForSEO. Retrieved 2 Sep 2026.
secondary
- Batch payment, remittance advice, create for batch payments
Xero product ideas. Retrieved 3 Sep 2026.
secondary
- The canonical configuration templates, allied health by funding source and NDIS provider
Ledger Map. Retrieved 3 Sep 2026.
primary
Review
Last reviewed 3 Sep 2026 by Shane
General information for Australian allied health practices, not tax advice. Confirm a treatment with your BAS agent or accountant before you post it.
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