R365 Payments: Frequently Asked Questions (FAQ)

Payments are created using the Payment Run Record. If a vendor is set up to use R365 Payments, then the payment method defaults to R365 Payments. For more information, see Paying Vendors with R365 Payments.

The Flow of Funds article describes each step of the payment lifecycle and links to other relevant articles.

For information about R365 Payments payment methods and the amount of time each method takes from the time the payment is submitted to the time it is received by the vendor, see Payment Methods.

Payments submitted before 5:00 PM Eastern Time (ET) are processed on the same business day. Any payments submitted after 5:00 PM Eastern Time (ET) are processed the next business day.

The R365 Payment Status column in AP Transactions displays the current status of the payment.

The R365 Payment Method column in AP Transactions displays the payment method.

• Vendors - New vendors are added by completing the necessary fields on the Vendor record. To learn how to add a vendor, see Add or Remove a Vendor.

• Bank Accounts - New bank accounts are added by completing the necessary fields on the Bank Account record. To learn how to add a bank account, see Add or Remove a Bank Account.

• Legal Entities - To add a legal entity, reach out to your Sales Representative who will assist with the underwriting process necessary for adding a new legal entity. An R365 Payments Specialist will complete the process by selecting the Active checkbox and entering the R365 Payments Buyer ID on the Legal Entity record. For more information about the process, see Add a Legal Entity.

With R365 Payments, users can schedule a payment run in advance to ensure that vendors are paid on time. Scheduled payments can also help streamline processes and optimize workflow because no manual work is needed on the day payment is due. To learn how to schedule a payment, see Scheduling a Payment Run.

When a transaction appears in Bank Activity that matches the sum of all payments in the batch, R365 matches the bank activity to the transaction. 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.

If a payment should be voided, please reach out to the R365 Support team as soon as possible. While voiding payments is a common practice for rectifying errors or addressing specific financial scenarios, it is important to exercise caution, especially when dealing with transactions that have already been transmitted through R365 Payments. Payments that have already transmitted payload data require the attention of our operations team to remove, or 'Unpack', the payment file that needs to be omitted. This process can only be done in a small timeframe after the payment has been created.

A payment might fail for one of the following reasons:

In previous versions of R365 Payments, the Bank Account record and Payment Run record contained a field called 'Next R365 Payment Number' which tracked the next available check number from your organization's bank account that could be used for R365 Payments.

Because check numbers are now issued out of a separate R365 clearing account and numbers are automatically assigned, this field is no longer needed and has been removed.

With R365 now issuing checks from this clearing account on behalf of your organization, the system can automatically update the status to Cleared once the check has been deposited by the vendor.

When using R365 Payments, postings to the general ledger are simplified to help users reconcile transactions going in and out of the FBO bank account. Only transactions that interact directly with the FBO bank account are posted to the general ledger. Journal entries are created when payments are funded and when payments are processed and are based on the following criteria:

• A payment funded journal entry is created when an ACH file is added to the bank FTP.

  • A debit includes one detail line coded to the FBO account that matches the ACH payment amount.

  • A credit includes one detail line showing the ACH payment amount, grouped by tenant.

• A payment processed journal entry is created when an FIS Payprocess file is recieved.

  • A debit includes one detail line showing the payment amount for that day, grouped by tenant.

  • A credit includes one detail line showing total amounts for ACH payments, one detail line showing total amounts for vCard payments, and many detail lines showing each amount in the payprocess file for check payments.

When a payment of zero dollars ($0.00) is submitted through R365 Payments, the status automatically updates to Cleared.