In order to facilitate internal control and to streamline processing, many companies utilize a lockbox service at a bank. Lockbox Process A customer orders products from a company. The company sends the products to the customer. The company invoices the customer.

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However I have found very little post regarding post processing aspects of Lockbox. Hence I have excluded lockbox configuration part. After the file processing, the the lockbox status will fall under one of following categories: Applied: This status is maintained when customer is identified and all the document numbers for that customer are also identified. On-Account: It means that customer is identified but no document numbers have been found.

Hence, the full amount of check is posted on customer account for further processing with payment advice. Unprocessed: This status is maintained when neither customer could be identified through bank information nor document numbers were found, so the check remains in the un-applied payment clearing account for further processing. Enter the input parameters in the initial screen as shown below and click on to process the checks.

In the next screen, we can see the status of all the checks, which were in the file and processed in SAP by lockbox program. Action required for different Lockbox file status: 1. Also, we can not find the payment advice because the system automatically deletes it.

To process the check, choose the check and then press the post button. After this step, clearing is done via standard SAP process. To process, we need to change the payment advice first highlighted above.

Select the check and then we can insert or delete clearing details. After the changes made, the advice balance should be zero. Save the changes in advice and then post it.

However, we must identify the customer in the payment advice at first before making other changes. In this way, we can process and post all the checks in SAP system for a lockbox file.


Lockbox Configuration

The company then informs their customers that all open item payments for their accounts must be submitted to one of the established bank lockbox accounts. Data entry clerks at the bank manually enter the information into an electronic file for transmission to the company to which the lockbox account belongs. These files are typically transferred nightly to the various lockbox owners companies. Advantages of Lockbox Following are some of the advantages of using the lockbox: Manual Handling of checks can be avoided Checks can be processed in time. BAI does not separate out the incoming check line items by invoice subtotal reference. Instead, one check total amount simply has all invoices listed underneath it.


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For example account is for PNC Bank. The remit-to lockbox assignment must also be specified. Regarding the tolerance group assignment, XXXXX only has one configured that is a blank customer tolerance. By defining a blank tolerance group the tolerance group field may remain blank on each customer master record but the tolerance settings are applicable.

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