1. Lockbox process
The predominantway payments are made in US is by checks.Lockboxs help in speedydepositoffunds and
clearance of customer accounts.Lockboxs are special depositoryaccounts setup at a bank to which customer remit
their invoice payments.
Banks daily than submitcompany’s an electronic file listing all deposits and invoices thatare paid against.
Company’s than upload these files in SAP and update their balance and clear customers i.e.A/R accounts.
Some company’s setup single lockboxwhereas others setup lockboxs at differentlocations thoughtthe
country in order to decrease the time it takes to receive the customer payments.
Figure 1: Lockbox Process Flow
Lockbox File Formats
SAP supports both US lockbox file formats – BAI & BAI2.Each bank has its own standard BAI and BAI2,
hence configuration and testing needs to be done depending on bank file configuration.
Hence if you are not comfortable with bank file formateither you can approach them to modify it depending on your
requirementelse ABAP can help in writing a preprocessing program and make file fit with SAP standard format.
Difference between BAI and BAI2
2. BAI2 is advised as because ithas greater probabilityof producing automatic matches in the processing and because
it allows one to record deduction information and create proper residual postings.
Relationship between EBS and Lockbox
Assume on Day 1 companyreceives Lockbox file from bank and on Day 2 receives EBS file.
Day 1 When the bank receives a check from customer with remittance information its sends itin Lockbox file. Lockbox
file when processed will generate below accounting posting
Dr Bank Clearing account - incoming
Cr Lockbox Clearing Account
Dr Lock box clearing account
Cr Customer account(customer sub ledger)
Day 2 when the check is cleared in bank, it appears in EBS. EBS when processed produces below accounting entry
Dr Bank Main GL
Cr Bank Clearing Account - incoming
Lockbox Configuration
3. House Bank Configuration
Create House banks
A. Menu Path: Financial Accounting à General Ledger Accounting à Bank – RelatedAccounting à Bank Accounts à Define
House Banks
Transaction Code:FI12
Under the house bank create Bank accountfrom FBZP transaction code.
4. After creation of House bank and Bank accountunder companycode, it should look like this in FBZP transaction
code.
Lock Box Configuration
A. Path: IMG àFinancial Accountingà Bank Accounting à Business Transactions à Payment Transactions à Lock box àDefine
postingparameters
T Code:OBAX
5. Select highlighted row and click on change item button.
Document NumberLength: Field is only applicable for BAI record
A. Num. of doc numbers in type 6: Field is only applicable for BAI record
B. Num. of doc numbers in type 4: Field is only applicable for BAI record
G/L account Postings: Activate this indicator to make postings to your cash accountin the G/L for deposits.Activating
this field is recommended
Incoming Customerpayments: Activate this indicator to make postings to A/R sub ledger in order to clear customer
accounts and create residual postings.Activating this field is recommended
Insert Bank Details: Applicable for batch input session name thatupdates bank details ofmaster records for
customers who have either changed bank information or did not have bank information maintained for them
G/L account posting type
1 - Creates posting to G/L accountfor every check in the file
2 - Creates one posting to the G/L account for entire lockbox file
3 - Creates one posting to the G/L account for entire batch
Automatic Posting from lockbox
6. I. IMG à Financial Accountingà Bank Accounting àBusiness Transactions àPayment TransactionsàLock boxà Define postingdata
OBAY
Destination: This field should contain the destination code the bank submits to you in your lockbox file
Origin: This field should contain the your lockbox number (bank account) number atthe bank
IMG à Financial Accountingà Bank Accounting àBank Accounts à Define Lockboxes for House bank
Click on first option
10. T code:FBL5N (Customer Report)
Below report shows customer item and it’s notcleared.
Lockbox file processing
SAP gives option of using one of the two standard algorithms for lockbox processing. A common
misrepresentation is that one can create own algorithm which is not correct. We can only use the pen delivered by
SAP. Program RFEBLB00 is the processing program. Documentation can be viewed for this program from SE38
transaction code. This program contains lot many user exits whether one can add any additional business logic.
Two algorithms thatare used are 001 and 003.If file contains checks thatcannotbe applied againstspecific
invoice but for which customer accountis known, SAP posts them on the customer account without reference to any
11. specific invoice.Using algorithm 003,SAP distributes the check across open invoices,beginning atthe oldest invoice
and working its way forward until the check amount is fully distributed.
File Import:
A. Menu Path: SAP Easy Access à Accounting àFinancial Accounting àBanks à Lockbox à FLB2 Import.
Transaction Code: FLB2
Save the lockbox file attached with this document and modify the document number in file with open customer
invoice.
Click on green execute button.
12. Click on back button.
Transaction Code:FLB1
Enter Lockbox details and click on execute button
13. Select the one which contains data in file. For example if file contains 1123456 is second session name will be
1123456.Rightclick on 1123456 and selectProcess Checks options.
14. Rightclick on Session name and click on Process option.
Vendor Document Clearing Report
Again view customer invoice it will be displayed as cleared from the paymentreceived and posted via lockbox
Notes
15. 1) If you get below message,modifythe following in file.Unique key for each lockbox file is its header record i.e.
Destination,Origin name,Date and time.Modify the seconds’ partand rerun the file.
1) Sap file generation
Use TestLockbox Generation Programs RFEBLBT2 to generate BA12 format and RFEBLBT3 for IDOC
format. These programs will generate customer open items and a lockboxfile for processing. Utilize program
RFEBKA96 to delete loaded testdata
2) Sample File Understanding
100MANGDESTINMANGORIGIN130903123557
20000000000000000000000
56660011123557130903MANGDESTINMANGORIGIN
666600200000600000110003900345205865100000002
466600360191800000023 00000000600000000000
766600411235571309030010000060000
8666005112355713090300010000060000
9000000
File contentexplanation with help of differnet Color Codes
100000002 =Check Number
666 = Batch ID
1800000023 = FI customer Invoice
123557130903 = Date & time in Header (i.e. firstrecord) and Time & Date in below records.
600000 = Check/Invoice Amount depending on Row
110003900345205865 = Customer Master Record Bank details.
3) Sample file of BAI2 program can also be generated from SAP directly on execution of programs
Same can be downloaded and uploaded with justmodification ofdocumentnumber else copyfrom below location
100MANGDESTINMANGORIGIN130903123557
20000000000000000000000
