Lock box is a service offered by banks to companies in which the company receives payments from their customers and deposits the same company’s bank account. The bank then informs the company of all the payments received. They normally send a Flat file (text file) to the company that gives all the details of the deposits made in the bank account. The details captured in the flat file depend on the arrangement between the bank and the company. This flat file is referred to as the Lockbox file. The company can then import this Lock box file in their system to create receipts and apply these receipts to the open invoices. Oracle Receivables provide a standard functionality to import the lock box file to create the receipts. It also provides you with the flexibility to define customized lock box formats to enable you to accept the lock box file in any format for any of the banks. The Oracle Lock box functionality can also be extended to convert Receipts information from any other legacy system or from the remittance advice the company gets directly from their customers. You need to setup the following before running the Lockbox process
1) Bank and Bank Accounts: You define your internal bank accounts in Accounts Receivables. This is the bank account where the customer payments are deposited.
2) Receipt Class: The Receipt Class determines the processing steps for the receipts and you assign Receipt Methods to your Receipt Class. The processing steps for any Receipt include confirmation, remittance and reconciliation.
3) Receipt Method: Receipt Method is assigned to a receipt class and it determines how to account for the receipts using the Receipt Class. For one Receipt Class, you can have more than one Receipt Methods. You associate bank accounts and the GL account combinations for Cash, Remittance, and Bank Charges etc with the Receipt Method.
4) Receipt Source: You define Receipt Batch Sources to provide default values for Receipt Class, Receipt Method and the Remittance Bank Account. Your Receipt Source also determines if the batch numbering system is manual or automatic.
5) Lockbox: Define a lockbox for your Lockbox service from each bank. The lockbox setup includes a Lockbox number (You get a Lockbox number from your bank).
6) Lockbox Transmission Formats: Oracle Receivables AutoLockbox uses the Transmission format while importing
the data from the lockbox file into Receivables. Transmission formats indicate how the data in the Lockbox file is organized.
7) AutoCash Rule Sets: AutoCash Rule Sets determines the sequence of AutoCash Rules that Post QuickCash
program uses to apply the receipt amount to the customer account open items.
Control file: A Control file is a sql loader file to load the lockbox file in Receivables payment interface table(ar_payments_interface_all). This file should have the ‘.ctl’ extension and should be placed in the $AR_TOP/bin directory.
Lock box Processing Steps:
Start the lockbox processing by copying lockbox data file in required Folder. Run Submit lockbox process. Data is imported to AR_Payments_Interface_all tables. Validation process starts, If any errors found, Recify the same using Maintain transimission Data window. If no error found, it will completed validation and quick cash batch is created. Post quick cash program will run
Finally receipts applied and customer balances updated. Here end the process.
1) Bank and Bank Accounts: You define your internal bank accounts in Accounts Receivables. This is the bank account where the customer payments are deposited.
2) Receipt Class: The Receipt Class determines the processing steps for the receipts and you assign Receipt Methods to your Receipt Class. The processing steps for any Receipt include confirmation, remittance and reconciliation.
3) Receipt Method: Receipt Method is assigned to a receipt class and it determines how to account for the receipts using the Receipt Class. For one Receipt Class, you can have more than one Receipt Methods. You associate bank accounts and the GL account combinations for Cash, Remittance, and Bank Charges etc with the Receipt Method.
4) Receipt Source: You define Receipt Batch Sources to provide default values for Receipt Class, Receipt Method and the Remittance Bank Account. Your Receipt Source also determines if the batch numbering system is manual or automatic.
5) Lockbox: Define a lockbox for your Lockbox service from each bank. The lockbox setup includes a Lockbox number (You get a Lockbox number from your bank).
6) Lockbox Transmission Formats: Oracle Receivables AutoLockbox uses the Transmission format while importing
the data from the lockbox file into Receivables. Transmission formats indicate how the data in the Lockbox file is organized.
7) AutoCash Rule Sets: AutoCash Rule Sets determines the sequence of AutoCash Rules that Post QuickCash
program uses to apply the receipt amount to the customer account open items.
Control file: A Control file is a sql loader file to load the lockbox file in Receivables payment interface table(ar_payments_interface_all). This file should have the ‘.ctl’ extension and should be placed in the $AR_TOP/bin directory.
Lock box Processing Steps:
Start the lockbox processing by copying lockbox data file in required Folder. Run Submit lockbox process. Data is imported to AR_Payments_Interface_all tables. Validation process starts, If any errors found, Recify the same using Maintain transimission Data window. If no error found, it will completed validation and quick cash batch is created. Post quick cash program will run
Finally receipts applied and customer balances updated. Here end the process.
