UNDERSTANDING LOCK BOX


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Payment advice Processing

Matching of customer open items	The lockbox program uses detailed information from the payment advice to automatically search and match customer open items. The document number on the payment advice is matched against the document number in the customer open item file. Therefore, accurate payment data is necessary for automatic clearing to take place.
Payment Advice Status	If the checks were applied or partially applied, the advice is deleted from the system after processing. If the check was unprocessed or placed on account of customer, the advice is kept on file for further processing.
Post Processing	The post process function entails reviewing the status of the checks applied through the lock box function. User must manually clear any checks that were on-account of customer or not applied to customer account. The Lockbox overview screen details the number of checks in each category. Depending on the status of the check, the user determines what needs to occur to apply checks. On account: If the bank keyed in the correct invoice number, the Lockbox Import Program posts the payment on account. In the post processing step, you access the payment advice and correct the document number and upon saving the changes, the post process function clears the open item, deletes the payment advice and sets the check status to applied. Partially Applied: Checks that are partially applied may require further processing. Ex: Check may have paid 5 invoices, but one was in correctly keyed. The first 4 invoices would clear. The payment amount for the 5th invoice would be put on-account and would have to be post processed to clear. Unprocessed: Any payment that could not be identified either by customer MICR number (check) or the document number would remain Unprocessed. Once the payment is researched and the customer and invoice is identified, it would be applied during post processing.

What configuration needs to be done?	Control Parameters: It determines the import format BAI, BAI2 & ANSI and the types of postings generated by the lockbox program. These control parameters are needed for importing lockbox file sent by bank. Posting Data: Company code, Bank Information, G/L accounts for posting and clearing, document types and Posting keys.
RFEBLB30 or FLBP transaction	Lock Box data, Processing parameters (Procedure & Algorithm) Account assignment (Profit center), output control and Mode of call transaction.