Kumar:
Here is some information that will get a jump start for you. As others mentioned, please do a search for more information:
Lockbox is the procedure for rapid deposit of checks used mainly in the USA. Checks that are sent by the business partner to the bank or the local box provider(Service company that process checks) are credited to the payee's account. The information entered is forward to the payee per file transfer.
Lockbox is payment media mainly used in USA and mainly by small vendors. The flow of data can be explained with the help of an example. Suppose customer X wants to make a payment to Company Y. Customer X will send the check to one of the Y's banks, which is closest to customer. Company Y may have number of lockbox bank accounts in different locations. Each lockbox bank a/c represents a bank which process payments for Company Y. Every bank consolidates all the payments they receive for Company Y and send a file to Company Y via EDI or may be any other way. The EDI group of the company consolidates all the files received from different locations and format it in the format that is required for SAP (standard is BAI2) and sends only one file to SAP.
Following is the configuration steps:
OBAY (setting up control parameters)
OBAX (Account determination and posting parameters)
OB10 (Setting up lockbox for company code and house bank)
FI12 (Define house bank, bank a./c, etc.)
There are two lock box file formats. BAI and BAI2. (BAI2 has better flexibility). There are three main steps in Lock Box processing.
Define Lock Box (OB10)– Here you specify the Account number at the bank and give a name to the lock box.
Define Lockbox Control Parameters (OBAY)– You specify the procedure name (LOCKBOX) and Record Format (BAI2 normally)
Define Posting Data (OBAX) - You specify the origin (lock box or account #), destination (destination code submitted by bank) and Bank Account # (GL code for the account at bank).
RFEBL00 is the program that does lock box processing.
Lock Box program debits the Cash Deposit Clearing Account and Credits the Bank Clearing Account. It then debits the Bank Clearing Account and credits the Customer AR account.
If the system can’t find the matching Customer AR account, then it leaves the credit in the bank clearing account.
Reward points as a way to thank.
Sri Gogineni
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.