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.
Users can view the current status of a payment on the AP Transactions page under the R365 Payment Status column, or the AP Payment Record. Payment history is also available on the AP Payment record in the Activity Feed.
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.
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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Funds are withdrawn from the selected bank account on the date for which the payment is scheduled.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.
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To prevent any delays with R365 ACH payments, if you have positive pay ACH enabled with your bank, ensure that R365’s company ID (1452758311) has been added to your approved list.
Step 3 - Payment Hold
After a payment run is submitted, there is usually a short 2‑business‑day hold while the banks complete their standard security checks. During this time, funds move from your organization’s bank account into R365’s FBO (For the Benefit Of) account and are then released to your vendors. This temporary stop in the FBO account helps keep payments secure, reduce errors, and support banking compliance.
For check payments, this payment hold does not always apply:
When a vendor’s last R365 payment method is check, R365 skips the hold days.
When a vendor is being paid by R365 Payments for the first time, R365 skips the hold days.
This lowers the default delivery time from 7-10 business days to 5-8 business days.
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 Payment Methods.
To prevent any delays with R365 ACH payments, if you have positive pay or ACH enabled with your bank, ensure that R365’s company ID (1452758311) has been added to your approved list.
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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.
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Because all funds are pulled from the bank account as a single transaction, there are two bank rules designed specifically for use with R365 Payments transactions. These two rules match multiple payments in R365 to a single transaction in Bank Activity to properly reconcile all transactions:
Cash Out - Match Payment Run (Rule #14) matches a single transaction from the bank activity to multiple payments in R365 based on the payment run. This rule is applied when:
The transaction type is Cash Out.
The amount of the bank transaction is equal to sum of all payments in the payment run.
The date on the bank transaction is equal to or greater than the Payment Date on the payment run.
Cash Out - Match Batch Code (Rule #15) matches a single transaction from the bank activity to multiple payments in R365 based on the batch code. This rule is applied when:
The transaction type is Cash Out.
The amount of the bank transaction is equal to sum of all payments with the same batch code.
The date on the bank transaction is equal to or greater than the Payment Date on all payments with the same batch code.
For more information, see Bank Activity, Bank Reconciliation, and Rule Vault.
FAQ
Why hasn't my vendor been paid yet after I submitted the payment run?
After you submit a payment run, there's usually a 2-business-day hold while banks complete security checks. Funds move from your bank account into R365's FBO (For the Benefit Of) account and are then released to your vendors. After that, delivery time depends on the payment method: checks generally take 7 to 10 banking days, ACH 3 to 4, and virtual card about 4. Payments submitted after 5:00 PM Eastern Time process the next business day. See Payment methods.
When does the hold not apply to check payments?
R365 skips the hold days when the vendor's last R365 payment method was check, or when R365 Payments pays the vendor for the first time. Checks without the hold typically arrive in about 5 to 8 banking days instead of 7 to 10. See Payment methods.
Why does my bank show one withdrawal for several payments?
R365 pulls money from the selected bank account as one lump sum for all payments that day, no matter how many payments or payment runs you have. Because it's one withdrawal, all those transactions share the same batch code. R365 withdraws the funds on the date you scheduled the payment.
How do I prevent ACH delays if my bank uses positive pay?
Add R365's company ID (1452758311) to your bank's approved list. See R365 Payments service overview.
How does R365 reconcile one bank withdrawal against many payments?
Two bank rules handle it. Cash Out - Match Payment Run (Rule #14) matches a Cash Out transaction equal to the sum of all payments in the payment run. Cash Out - Match Batch Code (Rule #15) matches a Cash Out transaction equal to the sum of all payments with the same batch code. For both, the bank transaction date must be on or after the Payment Date. See Bank reconciliation and Rule Vault.
Can I use R365 Payments with a non-US bank account?
No. R365 Payments is available only to organizations with US-based bank accounts. ACH and virtual card payments aren't available to vendors with non-US bank accounts, including Canadian vendors, and check payments need a US mailing address for the vendor. To pay a vendor outside the US, send the transfer through your bank, outside R365 Payments. See R365 Payments service overview.