V1D Financial Accounting – AR Incoming Payment Lockbox

SAP ECC 6.00

November 2007

English

V1D (Media): Financial Accounting – Accounts Receivable Incoming Payment/Lockbox

SAP AGDietmar-Hopp-Allee 1669190 WalldorfGermany

Business Process Procedure

SAP Best Practices for Media V1D: Financial Accounting - AR Incoming Payment/Lockbox - BPP

Copyright

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Icons

Icon Meaning

Caution

Example

Note

Recommendation

Syntax

External process

Business Process Alternative/Decision Choice

Typographic Conventions

Type Style Description

Example text Words or characters that appear on the screen. These include field names, screen titles, pushbuttons as well as menu names, paths and options.

Cross-references to other documentation.

Example text Emphasized words or phrases in body text, titles of graphics and tables.

EXAMPLE TEXT Names of elements in the system. These include report names, program names, transaction codes, table names, and individual key words of a programming language, when surrounded by body text, for example, SELECT and INCLUDE.

Example text Screen output. This includes file and directory names and their paths, messages, source code, names of variables and parameters as well as names of installation, upgrade and database tools.

EXAMPLE TEXT Keys on the keyboard, for example, function keys (such as F2) or the ENTER key.

Example text Exact user entry. These are words or characters that you enter in the system exactly as they appear in the documentation.

<Example text> Variable user entry. Pointed brackets indicate that you replace these words and characters with appropriate entries.

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Process Flow Legend

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Contents

1 Purpose........................................................................................................................................ 6

2 Prerequisites................................................................................................................................. 6

3 Process......................................................................................................................................... 8

3.1 Process Flow Diagram..........................................................................................................8

3.2 Process Overview Table........................................................................................................9

4 Scenario..................................................................................................................................... 10

4.1 Post Incoming Payment from Customer..............................................................................10

4.2 Maintain Lockbox File..........................................................................................................11

4.3 Post Lockbox File................................................................................................................12

4.4 Postprocess Lockbox..........................................................................................................14

4.5 Run Batch Input to Update Customers................................................................................15

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V1D: Financial Accounting – Accounts Receivable Incoming Payment/Lockbox

1 PurposeCustomer payments are posted into the system to represent the collection of money and the application of this money against Customer liabilities to the company. This can be performed two ways within the system, either on an individual payment-by-payment basis, or collectively, in what is commonly called lockbox processing.

Individual payment-by-payment processing will have the User entering one transaction per payment. Lockbox processing is a two step process: step one has User using one transaction to post multiple payments based on data file from the bank, and step two is a transaction to correct any un-applied payment data from step one.

Lockbox is a function, performed by a bank, which allows the Customer to send payments directly to a bank via ‘lockbox’ (a specific mail address set-up for the company at the bank). These payments are collected by the bank and applied to the company’s bank account, with data from the payments (like check routing number, Customer bank account number, check number, payment amount and invoices being paid) being made available to the company in a file format to allow for collective processing. The lockbox data is either sent daily to the company, or located at the bank, and retrieved by the company daily.

These are the business process alternatives in this scenario where you need to make a choice when testing this process:

Step 4.1: Are you processing the payment using electronic lockbox? If so, skip this step and go to the next step.

Step 4.3: Were the checks completely applied? If so, continue to the next step. Otherwise, re-run the step.

Step 4.5: Does the ADDBNKDETAIL session exist? If so, continue processing the step. If not, exit the step.

These choices are marked below with the icon.

2 PrerequisitesYou have entered the master data required to go through the procedures of this scenario. Ensure that the following scenario-specific master data exists before you test this scenario:

Field User Action or Values

Customer Information

Customer 1000XX

Company Code BP01

Description Open Pages Book Store

Lockbox Information

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Field User Action or Values

GL Account 113016

Company Code BP01

Description Lockbox – Checks in

Bank details must be maintained in the Customer master. Use transaction XD03. Ensure that you have maintained the Bank Key (ABA routing number) and Bank Account (customer’s account number) on the Payment transactions tab.

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3 Process

3.1 Process Flow Diagram

Financial Accounting - AR - Incoming Payment /Lock Box

V1D

Acc

ount

s R

ecei

vabl

eA

ccou

nts

Rec

eiva

ble

Checks InCash disc paid

Pmt diff.Customer

Down payment

Eve

ntE

vent Pmt received

from customer to Accounting

4.1Post incoming payment from

customer

1

4.2Incoming

Lockbox Filefrom Bank

Electronic Lockbox with

bank?

Yes

No

4.3Post Lockbox file

Lockbox clearingCash disc paid

Pmt diff.Customer

Down Payment

3

No

Yes

Lockbox Check InLockbox clearing

2Checks

Completely Applied

Resolve Issues

4.4Post-process

Lockbox

End Process 4.5Run Batch Input to Update Customers

Does YPCC_BANKUPD

session exist?No

Process YPCC_BANKUPD session to update Customer Master

Yes

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3.2 Process Overview TableStep Step Name External

Process Reference

Business Condition Role Transaction Code Expected Results

4.1 Post Incoming Payment from Customer

Customer payment has been received and the company does not use lockbox processing or payment will not be passed to the lockbox process.

Accounts Receivable Clerk

F-28 Payment is deposited in bank and invoices identified for the payment are cleared

4.2 Maintain Lockbox File

Customer invoice must exist. Accounts Receivable Clerk

Manual step outside SAP ECC system

Payment information entered into lockbox file in BAI2 format.

4.3 Post Lockbox File

Lockbox file from the bank is ready for processing in the system


FLB2 Payments are deposited in bank and invoices identified for the payments are cleared, where possible.

A log showing processing status of the checks is created

4.4 Postprocess Lockbox

Some payments in the lockbox file could not be systematically applied fully to Customer invoices, so further manual processing is needed to apply payments completely.


FEBA_LOCKBOX/FLB1 The lockbox clearing account has a 'zero' balance because all payments in the lockbox file have be processed by either applying to Customer account or being written-off.

4.5 Run Batch Input to Update Customers

Customer bank data updates identified by the lockbox program have been placed into a ‘batch Input session’ to apply the updates to the Customer master records.


SM35 All Customer bank updates identified by the lockbox program have been entered into the Customer master records.

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4 Scenario

4.1 Post Incoming Payment from Customer

UseThis activity posts the incoming payments from the customer. The customer sends checks directly to Accounts Receivable.

Option A: To process the payment directly, execute this step. Once you have executed this step, you are done with the entire process. Do not run any other steps.

Option B: To process the payment using Electronic lockbox, skip this step and run step 4.2.

Procedure1. Access the transaction choosing one of the following navigation options:

Option 1: SAP Graphical User Interface (SAP GUI)

SAP ECC menu Accounting Financial Accounting Customer Document Entry Incoming Payments

Transaction code F-28

Business Role Accounts Receivable Clerk

Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business role

Business role (Name) SAP_AIO_AR_CLERK-S (Accounts Receivable)

Business role Menu Accounts Receivable Payments Post Incoming Payments

2. On the Post Incoming payments : Header Data screen, enter the following information:

Field name Description User action and values Comment

Document date

<today’s date>

Company Code

BP01

Reference <check number>

Bank GL Account

113016

Amount <amount of check>

Open item selection-

<customer number>

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Account

Special G/L ind.

F If posting down payment received

3. Choose Enter.

4. On the Post incoming payments Process open items screen, double-click the USD Gross field for the invoices to be applied against the check.

You can optionally create residual items, partial payments, or charge of differences.

5. Choose Post.

To check document before posting, choose Simulate (F9) to display document, with cash discount, automatic pmt. difference entries, residual items.

ResultThe payment is deposited in bank and invoices identified for the payment are cleared. You do not need to process any other steps in this document.

Debited Accounts Credited Accounts

Bank (Lockbox – Checks in) Customer

Cash Discount Paid Down payment – customers

Pmt. Differences Payment differences

Customer (Residual items)

4.2 Maintain Lockbox File

UseIn a productive environment, the bank will provide the lockbox file with the relevant payment information formatted in the BAI2 standard. For the purposes of this example, you will manually edit the lockbox file.

Prerequisites A customer invoice must be created.

Procedure1. Open the file YPCC_BAI2_00.TXT from the Documentation DVD (which is available in the Misc

folder under Baseline US).

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2. Edit the following highlighted (in bold) text:

In the example below:

In the first line, replace the string after YPCCORIGIN (that is 031008) with your current date (YYMMDD format) and 0030 with your current time.

In the third, sixth, and seventh lines, replace the highlighted text with your current date in the format YYMMDD.

In the fifth line, replace the highlighted invoice number with your invoice number.

100YPCCDESTINYPCCORIGIN0310080030

2IGNOREDBYSAP0000000000

58660010012345031008YPCCDESTINYPCCORIGIN

686600200000400000110003900345205865345205867

4866003601918000014 00000400000000000000

786600400123450310080010000040000

8866005001234503100800010000040000

9000000

3. Save the file to your hard drive with another name.

Result The payment information is entered into the lockbox file in the BAI2 format.

4.3 Post Lockbox File

UseThe lockbox process uses a 'lockbox clearing' account to post all payments directly to bank G/L account. This allows the bank account to have a correct balance while the clearing account has non-zero balance until all payments are applied to Customers or written off. The lockbox posting log should be printed for future reference (especially in resolving issues for post-processing). The lockbox posting log should be printed for future reference (especially in resolving issues for post-processing). The lockbox process will provide Customer updates to bank details, if the data does not already exist, and the program find payments that can identified to a specific Customer based on invoices paid.

The bank sends the lockbox file to Accounts Receivable. The system checks whether the lockbox file has already been processed based on date and time stamp contained in the file.

After executing this transaction, you need to view the log that shows the processing status of the checks.

Option A: If the checks were completely applied, go to step 4.5.

Option B: If the checks did not apply completely, go to the next step.

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SAP ECC menu Accounting Financial Accounting Banks Input Lockbox Import

Transaction code FLB2




Business role Menu Accounts Receivable Payments Import Lockbox File

2. In the Main Lockbox program screen, make the following entries:


Import into bank data storage

Selected

PC Upload Selected

Lockbox file YPCC_BAI2_00.TXT

Procedure Lockbox

Input record format

BAI2

Invoice numbers

<enter the four invoice numbers you generated previously>

Enhanced invoice no.check

Selected

Algthm: Checks with advice

001

Algthm: Checks without advice

001

Assign value date

Selected

Print statistics

Selected

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We recommend that you create a variant with basic data that can be retrieved before execution.

3. Choose Execute.

4. The system displays a lockbox activity report.

ResultPayments are deposited in the bank and invoices identified for the payments are cleared, where possible. A log showing processing status of the checks is created.


Bank (Lockbox – Checks in) Customer

Bank (Lockbox – clearing) Bank (Lockbox – clearing)

Pmt. Differences Payment differences

Customer (Residual items)

Down payment – customers

Cash discount paid

4.4 Postprocess Lockbox

UseLockbox processing creates payments advices for any payment that cannot be applied fully. These payment advices are stored, and post processing uses these advices to correctly apply payments to the Customer. You can make changes to advices if needed, or just use the advice to show the Customer invoices and apply as partial or residual items.

PrerequisitesLockbox processing has been performed and lockbox data exists to be re-processed.



SAP ECC menu Accounting Financial Accounting Banks Input Lockbox Reprocess

Transaction code FEBA_LOCKBOX / FLB1



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Business role Menu Accounts Receivable Payments Postprocessing Lockbox Data

2. On the Postprocessing Lockbox Data screen, enter selection data (such as the creation date of the lockbox file, or the check status) and choose Enter.

3. If a list of lockboxes displays, double-click the lockbox you need to work on. If there is only one lockbox that matches the selection parameters, the system displays it automatically.

4. On the Lockbox Data Overview screen, double-click the row for the batch you want to process.

5. Select a row to process, then choose Post.

6. Various Post with Clearing screens display. The system may also display a Document created message if a posting discrepancy was resolved.

ResultsThe lockbox clearing account has a 'zero' balance because all payments in the lockbox file have be processed by either applying to Customer account or being written-off.


Bank (Lockbox - clearing) Customer

Cash discount paid Pmt. Differences

Pmt. Differences

Customer (residual items)

Down payment - customers

4.5 Run Batch Input to Update Customers

UseIn this activity, you run the batch input process to update the information in the Customer Master Records.

PrerequisitesUpdates have been identified by the lockbox program and added to a BDC session.



SAP ECC menu System Services Batch Input Sessions

Transaction code SM35

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Business role Menu Control Panel Background Processing Batch Input Monitoring

2. In the Batch Input: Session Overview screen, select the YPCC_BANKUPD session and choose Process (F8).

Option A: If the YPCC_BANKUPD session does not exist, there are no updates that need to be made to the customer master. You can exit this transaction and end the process.

Option B: If the session does exist, continue with this step.

3. On the Process session dialog box, select Background then choose Enter.

4. Continue to choose Enter until the session disappears.

If the Transactions with errors column shows an error count, select the YPCC_BANKUPD session and choose Process (F8). Select Display errors only. Fix each error.

ResultsAll Customer updates identified by the lockbox program have been entered into the Customer master records. The process is complete.

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V1D Financial Accounting – AR Incoming Payment Lockbox

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