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Wednesday, October 9, 2013

Auto LockBox

Overview of AutoLockbox:
• Auto Lockbox is a Process where customers mail payments to a post office box near
your remittance bank and the bank deposits the payments in your account at regular intervals.
•Bank provides you with computer files detailing about the receipts and their application. 
•Receivables uses Auto Lockbox to import details about receipts directly into the system.

What is AutoLockbox:
Auto Lockbox is a service that commercial banks offer corporate customers to enable them to outsource their accounts receivable 
payment processing. Auto Lockbox eliminates manual data entry by automatically processing receipts that are sent directly to 
your bank.

Benefits of AutoLockbox:
•Eliminates manual data entry.
•Streamlines the application of receipts to outstanding transactions.
•Effectively manages cash flow by reducing turnover for converting
checks into cash.
•Apply receipts to outstanding invoices
•Import historical receipt data
•Autolockbox reports, such as the Post Quikcash Execution Report,
are a good tool to reconcile autolockbox receipts with the bank
transmission reports.


AutoLockbox is 3 Step Process:

1. Import :During this step, Lockbox reads and formats the data from your bank file into interface table AR_PAYMENTS_INTERFACE_ALL
using a SQL *Loader.

•Data is imported into interface tables 
•Imported data does not affect accounts receivables balances
•Import automatically generates the Lockbox Execution Import report
•Use report to check the imported data

2.Validation: The validation program checks data in this interface table for compatibility with Receivables. Once validated,
the data is transferred into QuickCash tables (AR_INTERIM_CASH_RECEIPTS_ALL and

At this point, you can optionally query your receipts in the QuickCash window and change how they will be applied before submitting the
final step, Post QuickCash script.
•Ensures that each receipt complies with application and customer requirements
•Customer must have a primary billing location
•Bank can provide a MICR or a customer number to identify customer
•Validated data is transferred to QuickCash tables
•Transfer does not affect accounts receivables amounts
•Receivables can use AutoAssociate or a billing address to identify customer
•Use the Lockbox Execution Import report to review the validation

3.Post QuickCash: This step applies the receipts and updates your customer’s balances.
•Data is transferred from QuickCash tables to Receivables tables
•Posting updates the account balances to reflect the imported receipts
•View and update receipts in the Receipts window

                                               <<Image 2>>

These steps can be submitted individually or at the same time from the submit Lockbox Processing window. After you run Post QuickCash, Receivables treats the receipts like any other receipts, you can reverse and reapply them and apply any unapplied, unidentified, or on-account

MICR Number:
–Magnetic Ink Character Recognition (MICR)

MICR # Consists of two segments
1st segment - Transit Routing Number (Customer’s Bank) this identifies the bank from which your customer draws their check.

2nd Segment - Bank Account of the customer (Customer’s Account) MICR Number Can Only Be Used For One Customer Only!
MICR Number is used to identify the Customer. 

The bank account number and the transit routing number makeup your customer’s MICR number. If a MICR number is shared with
more than one customer, the receipt is rejected.Customers that are associated must have unique MICR numbers. By default the lockbox validation program 
uses an invoice or debit memo number to determine the customer.

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