Hi Mohit,
Point 1) Lockbox and Bank Reconciliation are two different things. I will try to give below example for better understanding:
If you are having Vodafone or Airtel connection and wanted to make payment through cheques then you drop your cheque along with Vodafone or airtel bill slip to nearest location. Now, Vodafone or airtel executive will come and collect all the cheques from that drop box and deposit the cheques into the bank.
Similarly, lockbox is like a depository set up in bank where customers drops their cheques along with slip and remit their invoice payments. A bank setup lockboxes at different locations like Vodafone or airtel store to ease the customers in making the payments.
Bank Reconciliation will be done at later stage when cheques get presented into the bank.
Point 2) One House Bank and 3 sub accounts are needed for Bank Reconciliation and one GL for lockbox clearing. For Eg
House Bank : CITIBK
CITI Bank Main A/c
CITI Bank Clearing Incoming A/c
CITI Bank Clearing Outgoing A/c
and one GL for Lockbox Clearing A/c
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 CITI Bank Clearing Incoming A/c
Cr Lockbox Clearing Account
Dr Lock box clearing account
Cr Customer account
when cheques get realized from the bank then through EBS or Manual Bank Reconciliation, following entry will get passed.
Dr CITI Bank Main A/c
Cr CITI Bank Clearing Incoming A/c
3) For lockbox configuration, you can refer link provided by Shiva above.
Thanks,
Ankur
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