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Discussion On Lockbox Processing

This document discusses SAP lockbox processing. It covers the lockbox process, formats, posting types, configurations, the lockbox upload program, and reprocessing program. The lockbox process allows customers to send payments to a post office box rather than the company. The bank deposits the funds and sends a lockbox file to the company with payment details to upload in SAP. This triggers postings to bank and customer accounts to clear invoices. The lockbox upload and reprocessing programs in SAP are used to process and reprocess the lockbox files and postings.

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Kenisha Khatri
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40 views

Discussion On Lockbox Processing

This document discusses SAP lockbox processing. It covers the lockbox process, formats, posting types, configurations, the lockbox upload program, and reprocessing program. The lockbox process allows customers to send payments to a post office box rather than the company. The bank deposits the funds and sends a lockbox file to the company with payment details to upload in SAP. This triggers postings to bank and customer accounts to clear invoices. The lockbox upload and reprocessing programs in SAP are used to process and reprocess the lockbox files and postings.

Uploaded by

Kenisha Khatri
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Discussion on SAP Lockbox Processing

Topics discussed

 Background information

 Lockbox Process

 Lockbox formats

 Postings – Applied, On Account, Partially applied

 Configurations & Masters

 Lockbox Upload program

 Reprocessing program

Discussion on SAP Lockbox Proces


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01/03/22 2
Lockbox Background

 Lockbox process is commonly used in USA

 Instead of sending checks to the company, the customer


sends the Checks to the P.O.Box or the Lockbox bank.

 Customer fills up a form listing the Check details and


Invoices being paid by the Check

 Bank deposits all the Checks in Company account

 Bank sends a Lockbox file to the Company listing the


Check details and Invoice details for each check.

 Incoming payments can be recorded using the Lockbox file

Discussion on SAP Lockbox Proces


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Lockbox Payment Process

Invoices due for Prepare Check for


Custom ers

Payment Invoices

Send Check to the


P.O.Box with
Invoice details

Collect Checks
Lockbox Bank

from all Deposit Checks in Send Checks for


P.O.Boxes / Customer account collection
Lockboxes

Lockbox
Data file in
BAI / BAI2
format

Upload Lockbox Payment Advice Check Fully Incoming Payment updated


file in SAP Created per Applied against Yes Customer Invoices cleared
(FLB2) Check (FBE3) Invoices Payment Advice deleted
Company

No

Payment posted
On Account or
Partially Applied

Reprocess
Customer Invoices and On
Lockbox Checks
Account posting cleared
(FLB1)

Discussion on SAP Lockbox Proces


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Lockbox Format

 BAI and BAI2 are the Lockbox formats


SAP Structure
Identifier Nature of Record
BAI BAI2 File example
1 Header Record FLB01 FLB01
2 Service Record FLB02 FLB02
4 Overflow Record FLB04 FLB24
5 Detail Header Record FLB05 FLB05
6 Detail Record FLB06 FLB26
7 Batch Total Record FLB07 FLB07
8 Service Total Record FLB08 FLB08
9 Trailer Record FLB09 FLB09

 Records 1,2,5,7,8,9 contain Lockbox, Bundle, etc. informations


 Record 4 contains the Check details. So there can multiple ‘4’ records
in a file.
 Record 6 contains the Invoice details. So there can be multiple ‘6’
records for each ‘4’ record

Discussion on SAP Lockbox Proces


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Lockbox Postings
 The accounting entries posted by Lockbox upload (FLB2) are:
a) Dr Bank Incoming a/c
Cr LockBox Clearing a/c
This entry is posted for each Check in the file

b) Dr LockBox Clearing a/c


Cr Customer a/c
This entry is posted for each Check in the file.
• If all the Invoices can be cleared by the Lockbox check, this entry clears
all the relevant customer Open Items. This is known as ‘Applied Payment
’
• If some Invoices can be cleared by the Lockbox check, this entry posts
an On Account line item for the amount. This is known as ‘On Account
Payment’
• If non of Invoices can be cleared by the Lockbox check and customer
cannot be identified, this entry is not created. This is known as an
‘Unprocessed Payment’
• If Check amount is different from Invoice amount, a residual item is created.

Discussion on SAP Lockbox Proces


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Lockbox Configuration & Masters

 Configuration
• Define Control Parameters (use SAP Standard)
• Define Posting data
 Define the Lockbox Source and Destination
 For each, define the Company code, Bank accounts, Document type, Posting Keys

• Define Lockboxes at House Bank

 Masters
• Maintain Lockbox Number in Customer Master (Payment transactions view)
• Maintain Customer Bank Information

 Data
• Lockbox data is stored in tables FEBKO & FEBEP.
• Payment Advice data is stored in tables AVIK & AVIP.

Discussion on SAP Lockbox Proces


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Lockbox Upload Program

 Transaction FLB2 is used for Lockbox Upload


 On Uploading the lockbox file, the system:
• Verifies if the Lockbox file is already uploaded
• Verifies if the Check is already uploaded
• Posts Bank accounting entry for the Check
• Creates a Payment advice for the Check
• Tries to do ‘Post with Clearing’ for the Customer posting and does a:
 Applied Posting, or
 On account Posting, or
 No posting (Unprocessed).

• Generates a log of the processing

Discussion on SAP Lockbox Proces


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Lockbox Reprocessing Program

 Transaction FLB1 is used for Lockbox Reprocessing

 Reprocessing is required to be done to clear only the ‘On Account’ or


‘Unprocessed’ Postings

 On Reprocessing, the system:


• Allows to modify the Payment Advice. The Invoice reference and amounts
can be changed here.

• Allows to do a ‘Post with Clearing’ for the Customer posting. The Customer
Invoices can be cleared with the Partial or On Account postings here.

Discussion on SAP Lockbox Proces


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01/03/22 9
Thank you

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