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Former Member

Lockbox

Hi friends, what lockbox in sap fi/co for what purpose we are using this. if you have any refference material please forward to sap.suresha at gmail.com.

i will assign the full points.

regards,

sam.

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  • author's profile photo Former Member
    Former Member
    Posted on Apr 11, 2008 at 04:56 AM

    Sam

    This is an interesting function used in most advanced countries. Lockbox is typically a service extended by banks in assisting you to ease the collection/outstanding receivables process.

    The arrangement of a compaqny with the service providing bank is as follows:

    1. Company appraoches a bank for a lockbox service

    2. The bank then agrees to provide the service at a charge (% of outstanding)

    3. The customers (AR) are then notified to remit funds into this bank directly with payment advice note

    4. The bank collects the payment on behalf of the company

    5. The payments along with a payment advice note is then transferred into the company server

    6. This transfer happens with a process called EDI format

    7. Te data from the server is then extracted into SAP tables with the help of idocs

    8. After extraction, the system updates the cash balances and the clears open items

    9. While this process 8 takes place there are four possibilities:

    Either the customer and the invoice is located and the open item is updated fully or partially or credits the customer on-account or remains unprocessed depending on the data made available from the bank and the details in the open items.

    Should you need any more info you could write back or assign points.....

    regards

    Shankar

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  • author's profile photo Former Member
    Former Member
    Posted on Apr 11, 2008 at 07:43 AM
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