> ## Documentation Index
> Fetch the complete documentation index at: https://docs.methodfi.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Flow of Funds Setup

> Choose between FBO funding and Per-Payment funding.

Every funding flow uses a Method-managed for-benefit-of (FBO) Account. Method supports two standard ways to fund Payments: fund the FBO Account for a group of Payments, or fund one Payment through destination-specific Payment Instrument instructions.

<Note>
  Method configures your funding flow and Account setup during implementation. You do not select a funding model in `POST /payments`. Other configurations are available upon request. Contact your Customer Success Manager for details.
</Note>

## Compare the flows

| Flow                                                                                  | How it works                                                                                                                                                                                                                                          |
| ------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| [**FBO Funding (push or pull)**](/guides/payments/funding-models/fbo-funding)         | Use one Method-managed FBO Account for a group of Payments. You can send funds to it by ACH or wire (push), or Method can debit your verified disbursement Account by ACH (pull).                                                                     |
| [**Per-Payment Funding (push)**](/guides/payments/funding-models/per-payment-funding) | Create an inbound [Payment Instrument](/guides/payments/instruments#inbound-ach-and-wire-instructions) for one liability, then send (push) the exact Payment amount by ACH or wire. Method creates and routes the Payment when it receives the funds. |

## Shared setup

<Steps>
  <Step title="Confirm the flow">
    Confirm whether your program uses FBO funding or Per-Payment funding.
  </Step>

  <Step title="Receive the funding instructions">
    Method provides the Account IDs, ACH or wire instructions, cutoff, and operating requirements for your flow.
  </Step>

  <Step title="Check destination eligibility">
    For FBO funding, confirm that `payment` is in the destination Account's `products`. For Per-Payment funding, confirm that `payment_instrument.inbound_achwire_payment` is available.
  </Step>

  <Step title="Integrate status and reporting">
    Consume `payment.create` and `payment.update` [webhooks](/reference/webhooks/overview). Use the [Reports API](/reference/reports/overview) for on-demand reconciliation, [Report Schedules](/reference/report-schedules/overview) for recurring reconciliation, and the [Managed Accounts API](/reference/managed-accounts/overview) for funding operations.
  </Step>
</Steps>

<Warning>
  An Account's `products` list shows which Method products that Account can use. Method checks eligibility and your team's setup again when you create a Payment or Payment Instrument. A listed product does not guarantee that the create request will succeed.
</Warning>

Treat `sent` as the terminal status for successful Payment delivery. When available, `posted` confirms that the destination applied the Payment. Posted coverage depends on the destination institution and Account type, so not every Payment reaches `posted`.