The 'Mark as Paid' toggle on the AP Invoice enables Users to automatically create a Payment for an Invoice once it is Approved. While this toggle can be manually updated on an AP Invoice, it can be defaulted to on for Vendors that have the Autopay feature enabled.


While this is a valuable feature for Vendors that are paid by Cash or handwritten Check, it is important to ensure the following occurs before 'Mark as Paid' is enabled for an Invoice:

  • One-to-One Relationship. There is a one-to-one relationship between the Invoice and the Payment. Therefore, if an Invoice is $500, the Payment made to the Vendor should be 1 payment of $500 and not 5 payments of $100. If not done correctly, it can be challenging to match the transaction in Bank Activity among other various transactions.
  • Payment Terms. The Payment Term selected is 'Due Upon Receipt' and the Due Date entered is the current day. The Payment in R365 will show as the day the Invoice was Approved and, therefore, will be able to match in Bank Activity when the deposited Cash or Check is present in the bank.
  • Applied Credit Memo. A Credit Memo should not be applied to the Invoice. Applying a Credit Memo will decrease the amount due on the Invoice, but when the Invoice is Approved after being marked as paid, the Payment is created often times before the Credit Memo has been applied. This will cause the Payment to be created for the total value of the original Invoice, and not the invoice minus the Credit Memo.