Developing TXT File Payments in Odoo for New Zealand Supplier Payments

As an Odoo Official Partner, we are often brought in when accounting workflows need to work smoothly with local banking execution requirements. In New Zealand, this commonly involves supplier payments that must be submitted to banks using structured TXT payment files, rather than relying solely on standard EFT-style processing.

This article shares a real-world solution case delivered by Havi Technology, where Odoo was extended to support TXT bank file payments while keeping supplier payments and remittance fully connected. We walk through the business context that led to this requirement, how the solution was built into Odoo’s existing payment flow, and the practical outcomes achieved.

The Context: Handling Supplier Payments in Odoo for New Zealand Banks

Within Odoo, supplier payments are typically managed through a structured accounting workflow. Vendor bills are approved, payments are grouped into batches, validated, and supported by remittance advice generated from the same records. This provides strong control and traceability within the ERP and forms a solid foundation for supplier payment management.

In New Zealand, the complexity arises at the point where approved payments need to be executed through local banking platforms. Some banks require supplier payments to be submitted using structured TXT files, which sit outside standard EFT-style approvals.

When this requirement is not handled directly within the payment workflow, finance teams may need to perform additional preparation steps outside Odoo. This introduces unnecessary handling between payment approval, bank submission, and remittance, making it harder to preserve a single, auditable flow. Ensuring these steps remain connected is critical for maintaining consistency, accuracy, and scalability.

The Solution: How Havi Developed a TXT File Payment Capability in Odoo

The customer scenario

The solution was delivered for a business transitioning its supplier payment process into Odoo, replacing manual EFT procedures previously handled outside its legacy ERP. While supplier bills and approvals were already moving into Odoo, the business also needed a way to complete the payment cycle without reverting to spreadsheets or re-keying payment details.

A key requirement was the ability to generate bank-uploadable TXT payment files directly from validated supplier payment batches to meet New Zealand banking execution requirements, while keeping the entire accounting flow intact. This meant maintaining a single, continuous process across supplier bills, batch payments, TXT file generation, and remittance advice, without introducing external tools or breaking audit traceability.

Key features

To meet this requirement, Havi built a custom function within Odoo’s Accounting module, designed to generate TXT payment files directly from validated supplier payment batches. The approach focused on extending Odoo’s standard payment and remittance capabilities, allowing payment execution and supplier communication to remain fully connected within the same accounting workflow

The solution supports the following capabilities:

• Custom TXT file generation aligned with New Zealand banking formats, allowing supplier payments to be prepared in a structure accepted by local bank portals.
• Bank-ready TXT files generated from validated payment batches, ensuring only approved payments are included in each file.
• TXT export is embedded directly within Odoo’s payment workflow, so finance teams can move from payment validation to bank submission without additional preparation outside the system.
• Remittance advice is generated from the same payment records, keeping payment approval and supplier communication consistently aligned.
• Built-in checks for missing or incomplete supplier bank details help prevent failed submissions and reduce follow-up effort.

By keeping TXT file generation, payment control, and remittance handling within Odoo, the solution ensures that supplier payments remain auditable, consistent, and scalable, while meeting New Zealand bank execution requirements without disrupting standard accounting processes.

The Result: Cleaner, Scalable Supplier Payments in Odoo

By extending Odoo’s supplier payment workflow to support TXT bank file generation, the business was able to complete the full payment cycle within a single accounting system. Supplier bills, batch payments, TXT file preparation, and remittance advice now follow one continuous process, reducing operational friction while maintaining control and traceability. The result is a payment workflow that aligns day-to-day finance operations with New Zealand banking execution requirements, without introducing external tools or manual workarounds.

Key outcomes include:

• Fewer manual steps in supplier payment processing
• Clear linkage between payments and remittance records
• Improved control over batch payment execution
• A scalable setup that supports growing supplier volumes

This approach allows finance teams to manage supplier payments with greater consistency and confidence as transaction volumes increase.

FAQs: TXT Bank File Payments in Odoo

1. What are TXT bank payment files?

TXT bank payment files are structured text files used by banks to process bulk payments. They contain payment instructions in a format validated by the bank and are typically uploaded through an online banking portal to execute multiple supplier payments at once.

2. Does Odoo support TXT bank file generation by default?

Odoo supports bank payment file exports for several standard and region-specific formats, such as ABA files in Australia. However, TXT formats required by certain regions or banks, such as those commonly used in New Zealand, may not be available out of the box and can require extension or customisation.

3. Can TXT bank file generation be integrated into Odoo’s existing payment workflow?

Yes. TXT bank file generation can be integrated into Odoo’s existing supplier payment workflow, allowing files to be generated directly from validated batch payments. This ensures payment execution remains connected to supplier bills, approvals, and remittance records within the same accounting process.

4. Is this approach reusable for other regions or banking formats?

The approach can be adapted to support other regions or banking formats where file-based payment execution is required. Each case depends on local banking rules and format requirements, so it is best assessed with an experienced Odoo partner such as Havi Technology, who can evaluate suitability based on specific operational needs.