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
sing
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 [Link] 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
sing
01/03/22 3
Lockbox Payment Process
Invoices due for Prepare Check for
Custom ers
Payment Invoices
Send Check to the
[Link] with
Invoice details
Collect Checks
Lockbox Bank
from all Deposit Checks in Send Checks for
[Link] / 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
sing
01/03/22 4
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
sing
01/03/22 5
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
sing
01/03/22 6
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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01/03/22 7
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
sing
01/03/22 8
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
sing
01/03/22 9
Thank you