What Is Lockbox In AR

Explain what is lockbox in AR and what are the steps involved?

Auto Lock Box 

AutoLockbox automatically creates receipts in Receivables using electronic information that your bank provides. Receivables let you specify the payment method for each Lockbox you define. Payment methods provide the default accounting information for receipts you create through AutoLockbox.

Examples for Lock Box : 

We will be paying our Mobile Bills by dropping a cheque in a Drop Box specific to the operators like Airtel, Idea and Hutch. The banker collects all the Cheques and realizes the Cheques amounts on behalf of the operators. While dropping the cheque the customer at the back side of the Cheque will write his/her mobile number and operator. By this information (like Mobile Number, Customer Name etc.,) all the realized amounts will be send to the Operator through a Flat file or excel file. 

Using this Excel or Flat file the mobile operator, using Auto lock-box facility will be taken as Receipts from the customer. This is a regular and routine process. 

Other Examples are E-Seva (in Andhra Pradesh), third party collection agents.
 

Lockbox functionality is basically the customer goes and deposit the moeny directly into your Bank account for the due invoices and the Banker provides a data file to you. You need to have Lock box set up to create a Transmission Format which matches the datafile format in your Instance. 

When you run the Lockbox Concurrent process the system checks the datafile and matches the Transmission Format then if it matches it creates receipt in Receivables Module and then applies to Invoices also based on the set up you have made for lockbox 

If there is no matching invoice then the system places the amount as unapplied receipt or on account receipt according to your setup.
 

Generally data is imported using Sql Loader or Web ADI.
 

Auto Lockbox is a feature that banks offers customer to outsource their receivable payment processing, thus eliminating the manual data entry by processing automatic receipts which is sent directly to bank. 

Following are the Steps:

Import: During this step it reads & formats the data from bank file into interface table AR_PAYMENTS_ALL using SQL loader.

Validation: Here it checks the validation and if validated it will transfer to Quick cash tables AR_INTERIM_CASH_RECEIPTS_ALL & AR_INTERIM_CASH_RCPT_LINES_ALL. 

Post Quick: Here it will updates customer balance.

Bank File (Submit Import) --> AR_PAYMENTS_INTERFACE_ALL (Submit Validation) 

--> AR_INTERIM_CASH_RECEIPTS_ALL, 
AR_INTERIM_CASH_RCPT_LINES_ALL (Submit Post Quickcash)

--> AR_CASH_RECEIPTS_ALL, AR_CASH_RECEIPS_ALL, 

AR_CASH_RECEIPT_HISTORY_ALL, AR_DISTRIBUTIONS_ALL, AR_RECEIVABLE_APPLICATIONS_ALL, AR_PAYMENT_SCHEDULES_ALL
 

The steps on how to define auto lock box are given below:

1. Define the bank, branch and bank account
2. Define Receipt Class for Auto Lockbox
3. Define Receipt Source
4. Define Autocash Ruleset
5. Define Customer - Attach the receipt method and create the customer bank account (Branch number and account number together decides the MICR number)
6. Define Lockbox (Setup --> Receipts --> Lockboxes --> Lockboxes)
7. Define Transmission Formats (Setup --> Receipts --> Lockboxes --> Transmission Formats)
8. Modify (or create a new one) the existing control file to suit the above formats
9. Run Autolockbox
10. Submit Validation
11. Submit Post Quickcash.

Have a Oracle Question
Do you have an Oracle Question?

Oracle Books
Oracle Certification, Database Administration, SQL, Application, Programming Reference Books

Oracle Application
Oracle Application Hints and Tips

Oracle Home
Oracle Database, SQL, Application, Programming Tips

All the site contents are Copyright © www.erpgreat.com and the content authors. All rights reserved.
All product names are trademarks of their respective companies.
The site www.erpgreat.com is not affiliated with or endorsed by any company listed at this site.
Every effort is made to ensure the content integrity.  Information used on this site is at your own risk.
 The content on this site may not be reproduced or redistributed without the express written permission of
www.erpgreat.com or the content authors.