# Pay Out schemas

> Master Pay Out workflows with visual schemas showing payout authorization, capture, batch processing, and settlement. Understand how bills, transactions, and batches interact throughout the payment cycle

Because bills, batches, and payout transactions are processed at different cadences, they have statuses and events that are independent of each other. Between when a batch is funded, processed, and paid, the individual transactions within that batch will have different statuses.

This guide helps you understand the different payout transaction, bill, and batch statuses and how they work together.

## Transactions

Payouts to vendors move through various statuses before being fully settled. First, a payout is authorized. Authorized payouts must be captured to be added to a batch. A *Captured* status means a payment has been added to a batch, but isn't processing yet. You can cancel payout transactions with an Authorized or Captured status, until the batch closes for processing at 5 PM Eastern Time.

<Tip>
  Payouts don't have to be associated with bills: when making a payout request, you can set the query parameter `doNotCreateBills` to `true`.
</Tip>

When the batch runs, the payouts move to the *Processing* status. After the funds have been received from the merchant and a payment method for the vendor is confirmed, Payabli sends the payment and the status is *Processed*. When a recipient accepts the funds by either the ACH clearing, using the vCard or cashing the check, the status changes to *Paid*.

*This flowchart shows how statuses typically flow. Hover over a status for more information.*

<div>
  <div>
    Authorized
    <span>This transaction can still be canceled. <br />Status: 11<br />Event: Authorized</span>
  </div>

  <div>
    →
  </div>

  <div>
    Captured
    <span>This transaction can still be canceled. <br />Status: 1<br />Event: Captured</span>
  </div>

  <div>
    →
  </div>

  <div>
    Processing
    <span>Status: 2<br />Events: Waiting funds, Funded, Pending, Generating check</span>
  </div>

  <div>
    →
  </div>

  <div>
    Processed
    <span>Status: 3<br />Events: Open, Processed, Reissued, Returned, Errored</span>
  </div>

  <div>
    →
  </div>

  <div>
    Paid
    <span>Status: 5<br />Events: Paid</span>
  </div>
</div>

**Canceled status**

Only those transactions in the Authorized or Captured status can be canceled.

<div class="flowchart-container-horizontal">
  <div class="flowchart-box-horizontal flowchart-tooltip">
    Canceled
    <span class="flowchart-tooltiptext">This transaction has been canceled. <br />Status: 0<br />Event: Canceled</span>
  </div>
</div>

This transaction has been canceled. Status: 0; Event: Canceled

## Batches and funding

Batches, also called *payment groups*, are collections of transactions gathered together to be processed at one time. Transactions can be captured or cancelled in a batch while the status is *Open*. When the status moves to *Closed*, the batch begins processing, and transactions can't be cancelled or added to the batch.

When the batch status is *Funded*, the money has been received from the funding entity, which is typically the paypoint (merchant). After a batch is funded, the payouts are then sent to the vendors, and the batch status changes to *Processed*.

A batch has the Paid status when all transactions in the batch have a status of *Paid*. For more details, see the *Paid* entry in the [Transaction statuses and events](#transactions) section.

*This flowchart shows how statuses typically flow. Hover over a status for more information.*

<div>
  <div>
    Open
    <span>Status: 0<br /> Event: None</span>
  </div>

  <div>
    →
  </div>

  <div>
    Closed
    <span>Status: 1<br /> Event: Approved Payment Group, Waiting Funds</span>
  </div>

  <div>
    →
  </div>

  <div>
    Funded
    <span>Status: 2<br /> Event: Funded</span>
  </div>

  <div>
    →
  </div>

  <div>
    Processed
    <span>Status: 3<br /> Event: Payment Group Processed</span>
  </div>

  <div>
    →
  </div>

  <div>
    Paid
    <span>Status: 4<br /> Event: Paid</span>
  </div>
</div>

## Bills

Bills are invoices that vendors have submitted to you, expecting payment. Active bills are queued bills. When an active bill is captured, the status changes to *In Transit*, and the bill's payout process starts. You can track the payout status separately from the bill, and when the payout status is *Paid*, the bill is also marked as *Paid*.

**Bill Status**

*This flowchart shows how statuses typically flow. Hover over a status for more information.*

<div>
  <div>
    Active
    <span>Status: 1 <br /> Event: None</span>
  </div>

  <div>
    →
  </div>

  <div>
    Sent to Approval
    <span>Status: 2 <br /> Event: None</span>
  </div>

  <div>
    →
  </div>

  <div>
    Approved
    <span>Status: 20 <br /> Events: BillApproved, BillDisApproved</span>
  </div>

  <div>
    →
  </div>

  <div>
    In Transit
    <span>Status: 50<br /> Event: BillProcessing<br />When a bill is in transit, you can track the bill's payout transaction status</span>
  </div>

  <div>
    →
  </div>

  <div>
    Paid
    <span>Status: 100<br />Event: BillPaid</span>
  </div>
</div>

**Bill's payout transaction status**

When the bill has the *In Transit* (50) status, you can track the bill's transaction payout status in the batch. See [Payout transaction statuses](/guides/pay-out-status-reference#payout-transaction-statuses) for full details.

## Related resources

See these related resources to help you get the most out of Payabli.

<AccordionGroup>
  <Accordion title="References">
    * **[Pay Out statuses](/guides/pay-out-status-reference)** - Learn about Pay Out statuses
  </Accordion>
</AccordionGroup>