Unlocking Lockbox Unlocking Lockbox SAP Lockbox – ECC.6 SAP Lockbox – ECC.6 Configuring, building test files, importing Configuring, building test files, importing and postprocessing lockbox files, and and postprocessing lockbox files, and troubles!ooting troubles!ooting "ambabu #amamula
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Configuring, building test files, importingConfiguring, building test files, importingand post processing lockbox files, andand post processing lockbox files, and
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istor1 of LockboxWhat is a lockbox?
• Accounts called 'lockbox' accounts at a bank that act as payment collectionaccounts for customer payments.
• Bank collects these payments along with the customers' remittanceinformation about what open items the payments intend to clear.
• Bank enters the information into an electronic file for transmission to the
company to which the lockbox account belongs.• Typically transferred nightly to the various lockbox owners (companies .• !ormat rules were set forth originally "# years ago by the Bank
Administration $nstitute banking industry transmission formats.• %riginally known as BA$ &ockbox ommunications tandards format.• )odifications have been made by users to this BA$ &ockbox standard format
and this modified version is known as *BA$+*. (separate from the original ,BA$- format
• ow/ no format is ,supported- by the Bank Administration $nstitute/ but ...• )ost banks will support either format/ at the company-s re0uest .
8/19/2019 ASUG 11-2000 Lockbox Presentation
http://slidepdf.com/reader/full/asug-11-2000-lockbox-presentation 6/90SAP America 11/07/00 Confidential
istor1 of Lockbox, continuedWhat does BAI stand for?
• Bank Administration $nstitute (BA$ organi1ation (est. 23+4 is a partnershipcomposed of its own BA$ membership/ a Board of 5irectors/ various bankingindustry advisory groups and a professional staff.
• %rgani1ational )ission 6 *to help bank administrators achieve high levels of professional effectiveness and to help solve significant banking problems.*
• Activities include the definition of industry file formats/ such as for lockboxtransmissions.
• BA$ and BA$+ are the two defined lockbox transmission formats/ however/ both are based off of the &ockbox ommunications tandards format 7 whichis considered ' outdated ' by the BA$ organi1ation 7 and thus they are no longer'actively' supported (ie. standards are no longer updated or improved .
• onetheless/ many banks still offer transmissions in the twodifferent ,BA$ &ockbox ommunications tandards- formats.
What is the difference? As defined by SAP / as well as by the lockbox staff at most banks/ BA$ and BA$+ formats differ in their level of information detail.
• ,BA$- format does not separate out the incoming check line items by invoicesubtotal reference . $nstead/ one check total amount simply has all invoiceslisted underneath it.
• Thus/ in BA$ format files/ the entire check amount must match perfectly (orwithin configured payment difference tolerances the total amount for allinvoices listed. Otherwise, the entire check will enter into SAP as 6
1. an " On account " posting(if the payment and invoice totals don't match but a customer is identified by !I"#$ or
%. an " &nprocessed " posting(if no customer account and documents could be identified from the transmission$
when the check does not exactly match for all open items (within tolerance limits / theAccounts 8eceivable cash application clerks will have to perform more semi7manual
post processing application within A9 to clear unmatched payments against openitems on the proper accounts.
istor1 of Lockbox, continued
,BAI2 - format transmissions6split the check total into separate invoice references and associated payment amounts .Thus/ within a large batch/ BA$+ format files will allow a : * status inwhich some identifiable payments within the check total will be matched and cleared/others will land on account. This achieves more ,hits- with less manual applicationre0uired.
;;;As a result/ your ' hit rate ' percentage of payment7to7invoice matching from eachtransmission is likely to be higher when using ‘BAI2’ rather than ‘BAI’ formats .;;;
AN IMPORTANT NOTE -- the term 'BAI2' means something ver!ifferent to the Ban" A!ministration Institute than it !oes in #AP or$ommon %o$"&o &an" termino%og (
The 'real' BAI2 format (as defined by the Bank Administration $nstitute actuallydenotes the , ash !anagement Balance eporting #pecifications, $ersion 2. -
istor1 of Lockbox, continued
$t is not a lockbox format.$t is not a lockbox format.$t is not a lockbox format.
As a result/ if you contact the BA$ organi1ation with 0uestions about your lockboxtransmissions/ be sure to mention that your 'BA$+' format is actually the BA$ &ockbox
ommunications tandards format (using invoice details / otherwise they will assume
you are speaking about the ash )anagement Balance 8eport.)rom here for*ard in this presentation *hen *e refer to +BAI%, format *e arereferrin- to the .A term BAI% not the Bank Administration,s "ash !ana-ement
Lockbox Process 'ec!nical Specifications/A lockbox transmission may be created in one of two formats6 or This is a sam)%e BAI fi%e format*
The original Bank Administration Institute’s BAI Lockbox Communications Standardsformat o ers records 1 through 9
Check information is contained in the !ecord " line # and $ou can include in%oicenumbers in this record& as 'ell as in the !ecord ( line )o line item *a$ment amountsare *ro%ided # onl$ the check header amount
1++CC+1+ +9,"- ++1+.+1.+1.CC+1+ +9,"-/++1++1 +9,"-++1+.+CC+1+ +9,"-"++1++.+++1+++++++11+++09+99,,//001 C +91.0+.1-++++++191-++++++.+1(++1.0(/1+1-++++++..1-++++++.01-++++++.(1-++++++./1-++++++."1-++++
Lockbox Process 'ec!nical Specifications/ continued
A lockbox transmission may be created in one of two formats6 BAI or BAI2 .
This is a sam)%e BAI2 fi%e format*
$n the BAI% format , the file uses the <= 8ecord: as an identifier of the check dollar amount(net / the )$ 8number and the check number. No invoi$es are $ontaine! in this re$or!(
1++CC+1+ +9,"- ++1+.+1.+..CC+1+ +9,"-/++.++1 +9,"-++1+.+CC+1+ +9,"-"++.++.+++++9+++++11+++09+//"",,--9 C +.+0(19
!ollowing the < + Re$or! : are a series of < , Re$or!s : which contain one invoice each/ providing the invoicenumber/ invoice open item amount (gross / deduction amount and external reason code.
Lockbox Process 'ec!nical Specifications/ continued
The BAI an! BAI2 formats use the same re$or! t )es an! formats for Re$or!s .2. /. 0. 1. an! ( It is the + Re$or! an! , Re$or! that ho%! the fun$tiona%!ifferen$es(
The Prin$i)%e* 3hat is !ifferent &etween the ‘BAI’ an! ‘BAI2’ formats4
$n the BA$ format/ the file can use the <= 8ecord: to hold the first three invoices/ andconsecutive <4 8ecords: to hold the overflow of up to = invoices each/ per check. The
payment amount is given for that entire check/ not for each individual invoice as wellas the check payment total. As a result of the minimal information transmitted/ the
A9 lockbox program is less able to deal with payment differences (since it does notknow which items are being paid incorrectly . The outcome is a lower application ,hitrate-.
Lockbox Process2 <Lockbox Logic0 no, it0s not an ox1moron+/
/o* does lockbox in .A *ork?
• A9 lockbox programs import and read data from the lockboxtransmission file from the bank and store critical information in what are called,payment advice- documents.
• %ne payment advice is created per check
• tandard payment advice naming convention > payment advice type (#2 ?check number. The lockbox program creates payment advice documents inrelation to the company code and customer for which payments are received.Note* duplicate check number from the same customer will cause an error@@@
• 9ayment advice documents are crucial/ because the lockbox programs do not perform any postings 7 this is handled separately by the standard !$ document posting program ( A9)!# A .
• The payment advice holds (most information that the posting program willneed to properly post payments against open items in customer accounts.
• !or all payments that have appropriate information for posting/ the postingsare created and the payment advice documents are deleted.
• !or all payments that have insufficient information for posting/ the postingsfail to clear the open items/ and the payment advice documents are retained
by the system.
• The payment advice documents are then the basis for performing later semi7manual cash application in a process called ,9ost 9rocessing-.
• 5efinition for a sin-le company code in configuration.
• 5ate. time. an! &at$h .
• BAI or BAI2 format.
• 6i%e must resi!e at an a$$essi&%e %o$ation (hard drive/ network drive/ mainframe path/ etc.
• ser (individual or batch must have authori7ation to access the transaction (!&B+and execute the program (8!CB&B##D8!CB&B+# .
The bank must transmit the file with the Destination, Origin and Lockbox identifiers in the exact formatas they have been created in S ! lockbox configuration" Otherwise, the file will be im#ro#erly read bythe lockbox and #osting will not #ro#erly occur"
• Ability to identify a specific customer from its !I"# number or
• Eithout a )$ 8/ positively identify the customer by document numbers .
$ithout either %&'( or document number matches, the lockbox will be unable to performpostin s in Accounts !ecei"able#
o3e-er, in order to ensure t!at incoming cas! is recorded in t!e 5eneral Ledger cas!account, t!e lockbox 3ill prompt t!e posting program to create a 5eneral Ledger documentfor t!e incoming c!eck amount.
'!e s1stem 3ill not be able to generate a <&9C" C"EA'E0 batc! and t!e c!eck 3ill be<unprocessed0 3it! respect to Accounts "ecei-able and t!e clearing of customer openitems.
• $t does not match on anything besides 5ocument number ( BC& 8 or thevalue in 8eference number ( FB& 8 7 treated as text .
• $t does not perform ,fu11y matching- logic 7 such as matching on items in aspecific overdue aging bucket without any documentDreference numbers
remitted.• $t does not actually do postings 7 it simply enables the standard posting
program ( A9)!# A to find the right items to clear (or at least the rightaccount onto which to post the incoming cash .
• $t does not generate many ,retrievable- lockbox processing reports 7 the two
standard reports (9osting log and &og of imported checks can only beretrieved from spool. The only report that can be repeatedly run is the ,Gitrate statistics- report (!%CB&2 7 8!CB&B82 .
What lo-ic can be added in &ser xits or +45pro-rams,?
Lockbox Process2 <Lockbox Logic0 continued
• ome clients choose to use logic which matches an incoming check (remittedwithout document references against gross;net;!is$ounte! a$$ount &a%an$es.or aging &u$"et tota%s . This logic re0uires that the incoming check matchexactly to the penny the group of items selected for potential clearing.
• ome clients wish to ,dynamically- atta$h !ata va%ues into the )a menta!vi$e through the lockbox 7 such as using a separate table of conversion valuesthat determine that checks received into a specific lockbox and company codeshould have a particular ,division name- placed as text into the 8eference Hey "
(F8C!" field.
• ome clients develop their own $ustom transmission. %o$"&o $ash re$ei)ttota%s an! un)ro$esse! $he$"s re)orts for daily generation.
• 9ayment advice settings (type definition/ line layouts/ selection rules• 9osting keyDfield status variant status settings (field status can cause posting errors
if data re0uirements don-t match data provided in the lockbox
Lockbox ConfigurationWhat does it accomplish? ,continued
Any payment differences (outside of tolerance limits are handled automatically asresidual items (debits or credits posted back onto the customer account during theclearing process6
Lockbox Configuration,&ockbox- configuration re0uires more than simply configuration of those few tablesunder the ,lockbox- section of the $)I (5efine control parameters and posting data
Ehat else is part of making the lockbox process workJ
8onfiguration*
• >ouse &an" master re$or!9s: an! %o$"&o a$$ounts
• &ockbox remit7to address (at house bank table entries• Tolerance group settings
• 9ayment advice settings (type definition/ line layouts/ selection rules• 9osting keyDfield status variant status settings (field status can cause posting errors
if data re0uirements don-t match data provided in the lockbox
>ouse &an" master re$or!9s: an! %o$"&o a$$ounts /ouse bank master record confi-uration
The house bank must be created at two levels 7 house bank and account keyinformation/ and address7level data . Ehen lockbox payments are received into thesystem/ the system will search for the customer using the )$ 8 combination. Thisincludes the bank identification number (ABA number .
$f it is not created in the system/ then the lockbox will not be able to find the customervia )$ 8 identification/ and instead will have to rely on document numberidentification to facilitate posting.
Lockbox Configuration >ouse &an" master re$or!9s: an! %o$"&o a$$ountsThe house bank master record re0uires that you assign a bank number and allows youto enter personal contact information for that bank6
Lockbox Configuration >ouse &an" master re$or!9s: an! %o$"&o a$$ounts$f the house bank (as identified by the ,bank number- or ABA has not yet beencreated in the system/ then you will be prompted to create central address data6
>ouse &an" master re$or!9s: an! %o$"&o a$$ountsAs mentioned earlier/ a house bank can contain many different accounts for different
purposes. As such/ a separate lockbox account should be created within each lockboxhouse bank being used6
Within the House Bank (BANKB) is a designated lockbox account. Noactual postings occur to this account in SAP. Rather this account iscreated !or re"ittance purposes.
Lockbox Configuration,&ockbox- configuration re0uires more than simply configuration of those few tablesunder the ,lockbox- section of the $)I (5efine control parameters and posting data
Ehat else is part of making the lockbox process workJ
8onfiguration*
• Gouse bank master record(s and lockbox accounts
• &ockbox remit7to address (at house bank table entries• Tolerance group settings
>ouse &an" master re$or!9s: an! %o$"&o a$$ounts 9ockbox accounts at the house banks 5 remit5to linka-e
%nce the lockbox accounts have been created within the house bank configuration/ the next stepis to attach the lockbox number (the K7digit assigned number to the lockbox account and house
bank/ and create the associated remittance address information for the lockbox.
Lockbox Configuration,&ockbox- configuration re0uires more than simply configuration of those few tablesunder the ,lockbox- section of the $)I (5efine control parameters and posting data
Ehat else is part of making the lockbox process workJ
8onfiguration*
• Gouse bank master record(s and lockbox accounts
• &ockbox remit7to address (at house bank table entries• To%eran$e grou) settings
#ettings that affe$t %o$"&o )ostings"ustomer and &ser tolerance limits payment advice tolerance limits and reason codes
Ehen an incoming cash payment does not exactly pay the referenced open item(s / thenthe system will not be able to perform clearing without creating residual items back onthe account 7 except when you establish tolerance limits to allow posting with a write7off of acceptable payment difference amounts.
#olerance li"its are set not onl$ !or custo"er accounts but also !oruser %&s 'ithin the SAP s$ste". #his is i"portant because thes$ste" 'ill utili e the "ore strict tolerance li"its bet'een the user
and custo"er tolerances.urther there are di*erent tolerance settings + the top section is !orindi,idual line ite" pa$"ent di*erences the botto" section is !ordi*erences !ro" the pa$"ent ad,ice line ite"s (this is a BA%- settingsince BA% does not use line ite" totals)
Tolerances must be set for a sing%e s)e$ifi$ $urren$
A &%an" $ustomer to%eran$e should be created 7 it becomes the default for all customers/ unlessotherwise specified in the customer master record
<ra$e !a s !ue !ate > an extension allowance to discount terms to allow discount to be taken by a customer on open items up to a set number of days past the net due date (thereby not
treated as a payment difference
8ash !is$ount terms !is)%a e! > display of the discount terms associated with open item(s onthe screen during post7processing or manual incoming cash processing
• Pa ment term from invoi$e > for any residual items posted back onto customer accounts using this
tolerance group due to excessive payment differences/ the new items should assume the same payment termsas the original open item they were intended to clear.
xample: a lockbox check is sent for L34#.##/ and it references four open items (in four 4 8ecords 7 2 for L+ #/ 2 forL+4# and + for L++ each. The actual open items are due net for L+ # each. The customer-s tolerance allows a
permitted line item payment difference of L2#.## or +M. Thus/ the lockbox will be able to clear the first item completely/ itwill clear the second item with a L2# write7off to the tolerance difference account/ and it will clear the last two items withtwo residual L+ debits for collection back on the customer account.
• 6i e! )a ment term > any residual items created through excessive payment differences get this fixed payment term.
• On% grant )artia% $ash !is$ > when a residual item assumes from its original open item a payment term
that allows discount/ it will only get the percentage of the discount that the residual represents of its originalopen item
• 5unning "e > the dunning key (level assigned to the residual item for dunning correspondence procedure.
%hey control line item level payment differences (only encountered in BAI2 transmissions)
xample 1 5 "heck difference:
a lockbox check is sent for > @ / and it references four open items (in four 4 8ecords 7
(Actual document amounts in system: >% each$
5o$ @ 2 ,/+0 referen$e! for 2/C )a ment5o$ @ 2 ,/+1 referen$e! for 2/C )a ment5o$ @ 2 ,/+ referen$e! for 2/C )a ment5o$ @ 2 ,/0C referen$e! for 2/C )a ment
The !ifferen$e &etween the $he$" an! what the $ustomer sa s is &eing )ai! tota% for the o)en items is +C(9tota% ? CCC(CC:
If the )a menta!vi$e to%eran$e a%%ows for /(CC or 2D. this is seen as a )a ment a!vi$e )ro&%em 9sin$e the $he$" !oes not e ua% thereferen$e! o)en item tota% - an! thus the entire $he$" is )oste! ‘On a$$ount’ an! no $%earing o$$urs(
%hey control line item level payment differences (only encountered in BAI2 transmissions)
xample % 5 Item difference:
a lockbox check is sent for L3N#.##/ and it references four open items (in four 4 8ecords 75oc O 2+"4 =K referenced for L++# payment5oc O 2+"4 =N referenced for L+4 payment5oc O 2+"4 =3 referenced for L+= payment5oc O 2+"4 K# referenced for L+ # payment
(Actual document amounts in system: >% each$
9tota% ? 1C(CC:If the )a ment a!vi$e to%eran$e a%%ows for /(CC or 2D. this is seen as a )a ment a!vi$e )ro&%em - an! the $he$" wi%% &e
)oste! with the status ‘ ’9in BAI2: &ase! on*
• a L"# short payment of the first referenced item - $ash wi%% &e a))%ie! with a resi!ua% item )oste! &a$" to the $ustomer• a L short payment of the second item - $ash wi%% &e a))%ie! with a resi!ua% %e!ger write-off of the !ifferen$e• a payment of an unrecogni1ed third item - $ash wi%% go on a$$ount• a perfect payment of the fourth item - $ash wi%% &e a))%ie! without resi!ua%s
ser tolerance settings are also "ade speci/c to a com*an$ code and currenc$ .
00
00
Be$ond pa$"ent di*erences these user settings also dictate the "axi"u" docu"enta"ount line ite" a"ount 'ithin a docu"ent or line ite" cash discount percentagethat a user is allo'ed to enter into the s$ste".
Lockbox Configuration,&ockbox- configuration re0uires more than simply configuration of those few tablesunder the ,lockbox- section of the $)I (5efine control parameters and posting data
Ehat else is part of making the lockbox process workJ
8onfiguration*
• Gouse bank master record(s and lockbox accounts
• &ockbox remit7to address (at house bank table entries
Reason $o!es Accounts for ayment 0ifference Write5off )unctionality
Preconfi ured $S Compan%0010
Note* you may further distinguish between two different write7off accounts for a reason code based on whether the paymentdifference is a debit or credit difference.
Lockbox Configuration,&ockbox- configuration re0uires more than simply configuration of those few tablesunder the ,lockbox- section of the $)I (5efine control parameters and posting data
Ehat else is part of making the lockbox process workJ
8onfiguration*
• Gouse bank master record(s and lockbox accounts
• &ockbox remit7to address (at house bank table entries
Pa ment A!vi$e Notes A pa%ment ad"ice note contains the incomin pa%ment details re6uired forallocatin and clearin the rele"ant open item#
• the pa%ment amount,• pa%ment date, and• other information about the pa%ment#
4he ad"ice items contain information on the paid items (the amount, differencereason codes)# 4he% also contain information used for identification purposessuch as&
Pa%ment ad"ice note headers contain&
• document number,• reference number,• billin document number,• customer reference number and so on#
Pa ment A!vi$e NotesPa%ment ad"ice note entr% screen template &
The s stem wi%% re uire thatthere &e at %east one entrs$reen tem)%ate in e isten$ewhen im)orting %o$"&o !ata9an! thus $reating )a menta!vi$e !o$uments:(
There is a stan!ar! tem)%atevariant !e%ivere! in the #APs stem( An other variants!esire! must &e $reate! &the $ustomer in $onfiguration(
Pa ment A!vi$e NotesPa%ment ad"ice note line la%outs &
In or!er to !is)%a the %ineitems of a )a ment a!vi$e 9as$reate! for BAI2 %o$"&o$he$"s:. ou must have at%east one %ine %a out variant!efine! for )a ment a!vi$e
!o$uments(
There is a stan!ar! %ine%a out !e%ivere! in the #APs stem( An other !esire!variants must &e $reate! &
Lockbox Configuration,&ockbox- configuration re0uires more than simply configuration of those few tablesunder the ,lockbox- section of the $)I (5efine control parameters and posting data
Ehat else is part of making the lockbox process workJ
8onfiguration*
• Gouse bank master record(s and lockbox accounts
• &ockbox remit7to address (at house bank table entries
• 9ayment advice settings (type definition/ line layouts/ selection rules
• Posting "e ;fie%! status variant status settings 9fie%! status $an $ause )ostingerrors if !ata re uirements !on’t mat$h !ata )rovi!e! in the %o$"&o :
n confi uration, field data input controls can be assi ned based on the postinke% used in a transaction, or the field status roup to which the eneral led eraccount is assi ned# 4hese settin s control whether a i"en field is ,
4his feature, howe"er,
suppressedoptional re6uired
can cause postin errors if the data re6uired is notsupplied b% the lockbox ("ia the pa%ment ad"ice note)# 4herefore, %ou must becareful to ensure that the postin ke%s and accounts to which postin s will bemade do not ha"e field data input re6uirements that conflict with the incomincash postin process#
Posting He ;6ie%! #tatus <rou)4he field status roups to be concerned with are the ones assi ned (in themaster record) to the eneral led er accounts for the bank cash accounts and
lockbox clearin accounts# 4he settin s co"er the areas shown below&
These are the same fie%! statussu&grou)s as avai%a&%e in the )osting"e fie%! status $onfiguration(
It is im)ortant to note that thefie%! status settings must &e inagreement( 6or e am)%e. whenusing a )osting "e ‘,C’ to )ostto a <;= a$$ount that uses as)e$ifi$ fie%! status grou)9B#Cshown here:. one $annot set a‘re uire!’ fie%! status whi%e theother sets a ‘su))resse!’ fie%!status(
Posting He ;6ie%! #tatus <rou)&eeting organi=ational data re>uirements for incoming lockbox cas!2
9e aware that onl% certain data basic pa%ment data is transmitted "ia the lockbox bank file#4herefore, an% other information that %ou want included in the documents posted throu h lockbox willre6uire some additional work (such as the creation of substitution rules, :'table lookups and customuser exit pro rammin )#
pa%ment amount, customer number, compan% code, pa%ment ad"ice number
'!e pa1ment ad-ice can onl1 !old t!e follo3ing information2
• 9tem detail2
• eader data2
'!e lockbox file onl1 3ill transmit2 customer 2 C! (to find account), document numbers (9 ;<!,=9;<! "alues), ori in and destination (used to determine the compan% code and >/; accounts to beused)# ny other data re)uired must be derived by additional configuration or #rogramming logic"
2. 2 document paid exact amount/ 2 document short paid within tolerance A99&$C5 (write7off+. 2 document short paid within tolerance A99&$C5 (write7off". 2 document short paid outside tolerance A99&$C5 (residual posted4. 2 document paid exact amount/ 2 document already cleared 9A8T$A&&Q A99&$C5
. 2 document discount not taken (within tolerance / 2 document taking 5 (within tolerance / 9A8T$A&&Q A99&$C52 document not found (write7off and residuals
=. 2 document paid exact amount (in remittance reference 7 check short (inside tolerance A99&$C5 (write7offK. 2 document paid exact amount (in remittance reference 7 check short (outside tolerance % A % TN. 2 document discount taken/ 2 document discount plus 5 taken (outside tolerance / A99&$C5 (write7offDresiduals
2 document short paid within tolerance/ 2 document discount and 5 taken (within tolerance3. 2 document short paid with a reason code reference A99&$C52#. 9ayment across a worklist A99&$C5
22. 9ayment of invoice with reference to a credit memo (check amount net of credit A99&$C52+. )$ 8 and document on different accounts % A % T2". 2 document discount not taken/ difference outside tolerance A99&$C5 (residual24. 2 document paid exact amount (in remittance reference 7 check short L (in discount tolerance A99&$C52 . + documents 7 one paid exact and one short paid in tolerance in one company code/
2 document for another company code included 9A8T$A&&Q A99&$C52=. 5uplicate )$ 8s in A9/ no document match 98% C C52K. 5uplicate )$ 8s in A9/ document match A99&$C52N. 2 document discount and 5 taken (in tolerance / 2 document discount and 5 taken A99&$C5
(outside of tolerance23. " documents paid exact amount (in remittance reference 7 check overpaid outside tolerance % A % T+#. 2 document discount taken outside payment terms/ but within grace days (2# A99&$C5+2. o )$ 8 and no document 98% C C5++. o )$ 8/ but document found (paid exact amount A99&$C5+". ancelled invoice referenced for clearing 9A8T$A&&Q A99&$C5+4. 5uplicate check number (previously loaded into system by another customer payment A99&$C5+ . ash received into one company code lockbox/ reference to items in two other company codes % A % T
Qou must understand the differences between the BA$ and BA$+ formats. This iscritical/ because this will enable you to know what fields to change in order to simulatea specific payment scenario.
#)a$ing in %o$"&o fi%es $ou%! not &e more im)ortant 7 the lockbox import programreads data by its exact location and feeds it into the payment advice documents formatching and posting. $f the values are skewed/ truncated/ or omitted/ then your ability
to perform the test you want will be impaired/ at best.
Ehen importing from an individual 9 hard disk or a network drive/ you must include the full menu path/complete file name and extension/ and click on ,P8 u)%oa! -. !or files imported from a mainframe location/you also need the complete path/ filename and extension references/ but leave ,9 upload- unchecked.
$n either case/ you will want to click on , Im)ort into &an" !ata storage -. This ensures that the samelockbox cannot be accidentally imported more than once (based on %rigin/ 5estination/ 5ate and Timevalues .
#he 5*rocedure’ must read 5 L6C B67 ’ and the 5in*ut record format’ must be
either 5 BAI ’ or 5 BAI. ’. %! either o! these t'o /elds contain incorrect ,alues thelockbox 'ill be sub2ect to i"port errors.
.election screen settin-s for matchin- and postin- lo-ic:
p
#he 3 in%oice numbers 4 /eld o*ers $ou !our standard open ite" identi/cation algorith"s+
5 31 4 0 "atch on docu"ent nu"ber (B67NR)
5 3. 4 0 "atch on re!erence nu"ber (8B7NR)
5 30 4 0 "atch on docu"ent nu"ber /rst i! not !ound then on re!erence nu"ber
5 3( 4 0 "atch on re!erence nu"ber /rst i! not !ound then on docu"ent nu"ber
8nhanced in%oice no check is re9uired !or the lockbox to consider postings to be "ade acrosscusto"er 'orklists .
Algorithm checks 'ith ad%ice and Algorithm checks 'ithout ad%ice deter"ine 'hethercash that does not /nd an appropriate open ite" should be posted as 3:n account cash4 or beapplied against oldest open ite"s on the account.
#he Account assignments area ,alues allo' the lockbox to insert single de!ault ,alues !or valuedate, business area and proft center !or all ite"s posted through the lockbox process. 6ut*utcontrol 'ill pro"pt the s$ste" to generate t'o standard status print reports a!ter the lockboxruns+ Log o Imported Checks and the Posting Log .
;ockbox functionalit% is not e6uipped to handle pa%ment differences outside oftolerance limits# As such, it lea"es the pa%ment items open for the user to make
write'off or residual postin decisions manuall% throu h post'processin #• 9e certain customer is assi ned to a tolerance roup
Likel1 ans3er2'!e pa1ment difference tolerance group settings are
inade>uate to !andle t!e pa1ment difference encountered.
4he current ;ockbox process does not automaticall% appl% cash across companies#
C%&&%# E""%"S 9# L%C()%* P"%CESS9#5
O!T&O* +
the customer exists in a different com#any code than thelockbox and re)uires cross-com#any #osting in #ost- #rocessing
&f the customer exists in both com#anies, the check should at least be #ut .On ccount/ inthe main com#any 0the main com#any is the one that gets the cash, the one the lockbox is
#ointed to via transaction OB 12" Then, when you .#ost/ the check from 3LB+, you will getthe o#en items for the main com#any" 4ere you would use the Edit-5 Select %ore function,and s#ecify your other com#any" Then select the o#en items and #ost"
Likel1 ans3er2 '!e file name or pat! is incorrect, t!e dri-e or net3ork isinaccessible, or t!e file is in t!e 3rong format not text format/ or !as becomecorrupted. C!eck t!e file and net3ork -alidit1.
;/ &essage <'!is lockbox 3as alread1 imported into bank data storage0
Likel1 ans3er2 A file 3it! t!is name !as alread1 been imported, and t!es1stem 3ill not allo3 1ou to accidentall1 or purposefull1/ re import t!e samedata more t!an once. C!ange t!e name, if appropriate and re import.
B/ 4ata problems
Likel1 ans3er2 '!ese can come from customer remittance mistakes, bankdata entr1 mistakes, or file spacing problems. Examine t!e file and remittanceslips.
Situation2 '!is is a c!allenging and frustrating situation. $!en t!e data isbeing imported, if t!e s1stem or net3ork cras!es some3!ere in t!e middle oft!e process, t!en 1ou 3ill !a-e incomplete data transmission, but 3ill be unableto <re import t!e file0. $orse, some or all 5:L postings ma1 !a-e occurred, butnot all if an1/ A:" postings ma1 !a-e occurred.
$hat to do9
Gou 3ill use t3o programs "7E)(AH6 and "7E)(AI6/ to delete t!e incompleteor incorrectl1 imported lockbox data from t!e bank data storage buffer. '!is3ill allo3 1ou to re import t!e file properl1.
A9 8D" provides a centrali1ed check processing functionality to handle the application of cashreceived through the lockbox and the analysis of checks that were applied.
This functionality allows you to see posting and clearing statuses of each check and also
allows you to apply payments to customers and open items when the system could notmake the application with the information provided in the transmission.(due to insu cient payment data or payment di erences outside tolerance
Postprocessing uses the direct relationship created between a
check and the payment advice ('hich contains i"portedin!or"ation about the check) to help track and e,entuall$ "atch 'ithopen ite"s the pa$"ents recei,ed !ro" custo"ers.
Postprocessing is per!or"ed at a check le,el but the central checkprocessing !unction is on a lockbox b$ lockbox basis. #here!ore $ou
'ill enter into a speci/c lockbox !or a speci/c date and batch nu"berto begin processing its checks 0 one b$ one 0 until all unapplied cashhas been cleared against custo"er open ite"s (or at least posted ason account credits).
a specific lockbox 7 but you musteither enter both of these/ orneither
=o$"&o number is theeasiest way to researchchecks
Qou may choose single orrange values fortransmission !ates . an!&at$hes within these dates
Qou may search for checks bytheir current applicationstatus 6 ,all checks- / ,checksunprocessed or on account-/,applied or partially applied-/,partially applied checksonly-/ or ,unprocessed checksonly-
These settings determine the typeof postings that will be made(subledger via postprocessingactivity/ and what the system willdo if the posting would be
incorrect and cannot be madewithout assistance (displayincorrect screens .
'!e front postprocessing screenI l l f h b6 h ifi l i i i ibl i h b f
Otherwise. ou wi%% &e)resente! with a )otentia%%%ong %ist of %o$"&o es frommu%ti)%e !ates. with
mu%ti)%e $he$" statuses(
use the most specific selection criteria possible to restrict the number ofchecks viewed for potential processing. 9rocess one group (one lockbox batch per date at a timeuntil completion.
Postprocessing2 Looking at t!e lockbox batc! contents
This s$reen !is)%a s thesummar %eve% informationa&out ever $he$" in this)arti$u%ar %o$"&o &at$h(
It te%%s ou& $he$"num&er what ea$h $he$"amount was. what itsa))%i$ation status is. an!an $ustomer 9num&er an!name: to whi$h it has &een)oste! 9if it was a&%e to
ma"e a $ustomer )osting:(
Postprocessing2 Looking at t!e c!eck posting information
Ehile inside the payment advice/you can see what the checkamount was (9mnt amnt / thetotal of all referenced item
payments ($tem total / and anydifference between the check andthe referenced item payments(Balance .
0010
0010
0010
0010
At the top/ you can see the
$om)an $o!e an! $ustomer towhich the payment advicenumber was assigned.
Below/ you can see the specific!etai% a&out ea$h referen$e!item )a ment (documentnumbers/ business areas/amounts/ etc. . To see moredetail of the line items/ !ou&%e-$%i$" on ea$h one of the %ineitems(
3henever a )a ment was una&%e to )ost to a $ustomer. or $%ear the o)en items it referen$e!.it must &e )ost)ro$esse!( This $an &e a$$om)%ishe! in two wa s*
1 $f the problem that prevented posting and clearing was a data entry error (by the customeror bank / the data such as document numberDreference number/ or referenced item
payment amount can be corrected in the payment advice line item . %nce correctionshave been made and saved/ if sufficient to now allow posting/ when you click on the
,9ost- icon/ the program will commence with posting and clearing.
% $f the problem that prevented posting and clearing cannot be remedied (the customerdoesn-t know the open item numbers they want to clear/ or there are irreconcilable payment
differences/ then you may enter via the postprocessing function directly into the account
to perform open item clearing . $n this process/ you may post the payment as on accountcredit/ clear it against the appropriate open items/ and perform residual item postingor write7off as necessary to enable clearing of payment differences.
Based on information inthe payment advice ifthe pro-ram still cannot
find the appropriateopen items 5 or the
payment difference istoo -reat for clearin-under tolerance limits 5then you *ill be brou-htto this screen tomanually identify andclear the open items*ith the payment
Lockbox2 "eporting toolsTwo standard reports are generated by the lockbox program for use in identifying what checks have been sentb hi h l kb d d i i h i h d i h h h k 6
by which lockboxes/ and determining what postings have occurred with those checks6Preconfigured Company Lockbox Time 14.58.42 Date 0 !0"!2000Tampa Log of imported c#eck$ %&'(L(00!)12 Page 1************************************************************************************************************************************+De$tination 0010 ,rigin 12 45 Lockbox 12 45 Pay. date 0 !0"!00 -D 0000001 +************************************************************************************************************************************+-tm!(atc# C#eck number Cu$tomer mount Deduction amount +************************************************************************************************************************************+ 1 001 C/000022 14" CL %- T C,%P,% T-, Cu$tomer uni3ue y identified it# 6-C% number ++ 00"0 0 852 27500.00 Document found ++ d ice tota 27500.00 ++ C#eck amount 27500.00 ++ Payment ad ice D 0000014" 01C/000022 created. +************************************************************************************************************************************+ 2 001 C/00002 14" CL %- T C,%P,% T-, Cu$tomer uni3ue y identified it# 6-C% number ++ 00"0 0 85 27500.00 Document found +
+ 9"0 00 854 27500.00 Document not found ++ 9"0 0 800 ""5.00 Document not found ++ d ice tota 57""5.00 ++ C#eck amount 57""5.00 ++ Payment ad ice D 0000014" 01C/00002 created. +************************************************************************************************************************************+ 001 C/000024 o cu$tomer it# 6-C% number ++ 9"1 0 852 27500.00 Document not found ++ d ice tota 27500.00 ++ C#eck amount 27500.00 ++ Payment ad ice D 9 010000001 0000 created. +************************************************************************************************************************************+ 4 001 C/000"24 14" CL %- T C,%P,% T-, Cu$tomer identified ia in oice number ++ 00"0 0 8 27 5.00 Document found ++ d ice tota 27 5.00 ++ C#eck amount 27 5.00 ++ Payment ad ice D 0000014" 01C/000"24 created. +************************************************************************************************************************************+ )ob Lbox bank detai $ 20000 0" 1458 for generating batc# input $e$$ion for bank detai $ $tarted. +************************************************************************************************************************************
Lockbox2 "eporting toolsP fi d C L kb Ti 15 01 18 D 03 0! "000
• et up customers for each participant-s use• et up documents on the customers for each participant-s tests• et up a worklist customer for each participant• 9rompt participant to make configuration settings for lockbox/ house banks/ bank accounts/ tolerance groups/ payment
advice• 9rompt participant to make master data settings for lockbox (customer and ID&• &ead participant to build a simple lockbox file in a text editor document• &ead participant to import a simple lockbox file• &ead participant to use the postprocessing functionality (using reports• &ead participant to build a more detailed scenario testing file• &ead participant to import a more detailed scenario testing file
• &ead participant to use the postprocessing functionality (using reports