This article describes the flow of funds when using the R365 Payments Service. From the moment a user creates a payment run to when it reaches the vendor's account, R365 ensures a secure transfer of funds.
Important Note: This process applies to users who gained access to the R365 Payments Service on or after May 15th, 2024.
Tip: To check the current status of a payment, look for the R365 Payment Status column on the AP Transactions table. For an explanation of each status, see R365 Payment Statuses.
Article Topics
- Step 1 - Payment Run
- Step 2 - Withdrawal
- Step 3 - Clearing Funds
- Step 4 - Paying Vendors
- Step 5 - Reconciliation
Step 1 - Payment Run
The first step to paying vendors with R365 Payments is creating a payment run. For a detailed explanation of this process, see Paying Vendors with R365 Payments, Creating a Payment Run, and the Payment Run Record reference article.
If necessary, await approval from a member of your organization who approves payment runs.
Step 2 - Withdrawal
Funds are withdrawn from the selected bank account on the date for which the payment is scheduled.
Removing funds from the account on the scheduled payment date prevents the potential overdraft of funds that have already been designated for these payments.
Regardless of the number of payments included in a payment run or how many payment runs, R365 pulls money from the selected bank account as one lump sum that includes all payments for the day. Because one withdrawal is made, all transactions have the same batch code.
Step 3 - Clearing Funds
There is a small waiting period of 2 business days as the banks do their due diligence in ensuring the security of your funds.
Step 4 - Paying Vendors
After funds clear, R365 creates individual payments according to how they were created in the payment run and sends them out to the vendors. For detailed information about payment methods and the time to process each type of payment, see R365 Payments: Payment Methods.
Step 5 - Reconciliation
When a transaction appears in Back Activity that matches the sum of all payments in the batch, R365 matches the bank activity to the transaction. For more information, see Bank Activity and Bank Reconciliation.