8/28/2014 Lockbox Configuration | SCN

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created by Gagan Pareek on Sep 23, 2013 8:22 AM, last modif ied by Gagan Pareek on Apr 13, 2014 8:31 PM

Lockbox process

The predominant way payments are made in US is by checks. Lockboxs help in speedy deposit of funds and

clearance of customer accounts. Lockboxs are special depository accounts set up at a bank to which customer remit

their invoice payments.

Banks daily than submit company’s an electronic file listing all deposits and invoices that are 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 lockbox whereas others set up lockboxs at different locations thought the

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 format either you can approach them to modify it depending on your

requirement else ABAP can help in writing a preprocessing program and make file fit with SAP standard format.

Difference between BAI and BAI2

BAI2 is advised as because it has greater probability of 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

Lockbox Configuration

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Assume on Day 1 company receives 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 it in 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 House Bank Configuration

Create House banks

A. Menu Path: Financial Accounting à General Ledger Accounting à Bank – Related Accounting à Bank

Accounts à Define House Banks

Transaction Code: FI12

Under the house bank create Bank account from FBZP transaction code.

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After creation of House bank and Bank account under company code, it should look like this in FBZP transaction code.

Lock Box Configuration

A. Path: IMG à Financial Accountingà Bank Accounting à Business Transactions à Payment Transactions à Lock

box àDefine posting parameters

T Code: OBAX

Select highlighted row and click on change item button.

Document Number Length: Field is only applicable for BAI record

A. Num. of doc numbers in type 6: Field is only applicable for BAI record

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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 account in the G/L for deposits. Activating

this field is recommended

Incoming Customer payments: 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 that updates bank details of master 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 account for 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

I. IMG à Financial Accountingà Bank Accounting àBusiness Transactions àPayment Transactionsà Lock boxà

Define posting data

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 at the bank

IMG à Financial Accountingà Bank Accounting àBank Accounts à Define Lockboxes for House bank

Click on first option

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Customer Master Data

Transaction Code: XD03

Maintain Bank details in customer master data which bank will send in lockbox file

.

Customer Invoice Posting

Post one 600 amount customer invoice. Invoice will display in open state.

T code FB70

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Open the invoice

Transaction code: FB03

T code: FBL5N (Customer Report)

Below report shows customer item and it’s not cleared.

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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 that are used are 001 and 003. If file contains checks that cannot be applied against specific

invoice but for which customer account is known, SAP posts them on the customer account without reference to any

specific invoice. Using algorithm 003, SAP distributes the check across open invoices, beginning at the 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.

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Click on back button.

Transaction Code: FLB1

Enter Lockbox details and click on execute button

Select the one which contains data in file. For example if file contains 1123456 is second session name will be

1123456. Right click on 1123456 and select Process Checks options.

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Right click on Session name and click on Process option.

Vendor Document Clearing Report

Again view customer invoice it will be displayed as cleared from the payment received and posted via lockbox

Notes

1) If you get below message, modify the following in file. Unique key for each lockbox file is its header record i.e.

Destination, Origin name, Date and time. Modify the seconds’ part and rerun the file.

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Average User Rating

(8 ratings)

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1) Sap file generation

Use Test Lockbox Generation Programs RFEBLBT2 to generate BA12 format and RFEBLBT3 for IDOC format.

These programs will generate customer open items and a lockbox file for processing. Utilize program RFEBKA96 to

delete loaded test data

2) Sample File Understanding

100MANGDESTINMANGORIGIN130903123557

20000000000000000000000

56660011123557130903MANGDESTINMANGORIGIN

666600200000600000110003900345205865100000002

466600360191800000023 00000000600000000000

766600411235571309030010000060000

8666005112355713090300010000060000

9000000

File content explanation with help of differnet Color Codes

100000002 =Check Number

666 = Batch ID

1800000023 = FI customer Invoice

123557130903 = Date & time in Header (i.e. first record) 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 just modification of document number else copy from

below location

100MANGDESTINMANGORIGIN130903123557

20000000000000000000000

56660011123557130903MANGDESTINMANGORIGIN

666600200000600000110003900345205865100000002

466600360191800000023 00000000600000000000

766600411235571309030010000060000

8666005112355713090300010000060000

9000000

6962 View s Tasks: configuration Tags: ebs, lockbox, bank, bai2

BAI2.txt.zip253 bytes

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22 Comments

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Godavari SAP Sep 23, 2013 10:42 AM

Thanks a lot, Gagan. It is explained well.

Gagan Pareek Oct 17, 2013 6:16 PM (in response to Godavari SAP)

8/28/2014 Lockbox Configuration | SCN

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Like (0)

Thanks

Like (0)

Prasad Tatikonda Sep 23, 2013 11:29 AM

Hi Gagan, Good document.. thanks for sharing.. Kind Regards,Prasad

Like (0)

VasuDev Prabhu Sep 23, 2013 11:35 AM

Good one Gagan.. thanks

Like (0)

Mohammed Kalim Sep 23, 2013 12:44 PM

Nice Document Gagan...thanks for posting. Regards,Kalim

Like (0)

Vinod Vemuru Sep 23, 2013 2:31 PM

Good document Gagan.

Like (1)

veenu gulati Oct 17, 2013 6:51 PM

Hi Gagan, Thanks for Sharing. I have a doubt in Day 2 entry Dr Bank Account Cr IncomingPayments 2) Dr Incoming Payments Cr Customer Account Since you have already creditedthe Customer a/c in Day 1 it would be double entry in Customer's a/c Regards Veenu

Like (0)

Gagan Pareek Oct 19, 2013 8:35 AM (in response to veenu gulati)

Thanks Veenu for highlighting that ...Rectified the entries now

Like (0)

NARRA LINGESH Oct 17, 2013 8:17 PM

Nice Document..Thanks for Sharing...Gagan. Regards,Lingesh.

Like (0)

Gagan Pareek Oct 23, 2013 8:40 AM (in response to NARRA LINGESH)

Thanks @narra lingesh

Like (0)

Jandoval Nascimento Silva Junior Oct 17, 2013 8:21 PM

Hi Gagan Pareek Thanks for share the document with us.

Regards. Jandoval Nascimento.

Like (0)

Gagan Pareek Oct 20, 2013 4:30 PM (in response to Jandoval Nascimento Silva Junior)

Thanks Jandoval Nascimento

Like (0)

Lakshmi Sama Jan 10, 2014 6:31 AM

Hi Gagan, Very explained document on lockbox. Thanks for sharing! Please modify the T code as XD03 for customer master data in the document and suggested to

avoid typo erors Regards,Lakshmi S

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Gagan Pareek Oct 30, 2013 5:21 PM (in response to Lakshmi Sama)

Thanks Lakshmi.

Like (0)

S. Ramanathan Dec 18, 2013 11:05 AM

Nice document . well explained . Thanks

Like (0)

Suresh Arvapalli Jan 9, 2014 7:41 PM

Nice Document Gagan..

Like (0)

anu v Jan 28, 2014 12:09 PM

Thank you so much and it is very informative. Easy to understand. Regards,Anu.

Like (0)

Gagan Pareek Apr 6, 2014 2:52 AM (in response to anu v)

Thank Anu

Like (0)

Abhijeet Pingale Jun 10, 2014 7:56 AM

I have IBAN number in BAI2 format file. The account number & bank number in file are not correct.But if same are found using IBAN, are correct. But how FLB2 can handle IBAN field in BAI2 lockboxprocessing? Please provide solution asap.

Like (0)

Marius Reck Jul 22, 2014 2:02 PM

Thanks a lot. This helped me to get started with lockbox, as I am new to the US.

Like (0)

PRAKASH KUMAR Aug 7, 2014 3:00 PM

Thanks a ton !! I executed FLB2 and FLB1 successfully only because of this document..

Like (0)

PRAKASH KUMAR Aug 7, 2014 3:02 PM

Thanks !! Very Informative !! and the explanation for Lockbox file is amazing !! Kind Regards, Prakash Kumar