EBS Vs. LockBox Statement

[Former Member]

Hello, I'm having little confusion between EBS Vs. LockBox Statement. Major confusion comes around when thinking around two statements are imported, processed and automatically updates GL.

FYI: I'm familiar with what EBS(Statement which consists of transactions) and Lockbox (A/c @ Bank to handle payments from customer). Does the EBS statement includes all the transactions at Bank, except Lockbox transactions?

Thanks in Advance!

Sam

[Former Member · Accepted solution]

Hi,

Please refer the following thread:

http://sap.ittoolbox.com/groups/technical-functional/sap-acct/sap-ebs-vs-lockbox-3046328

Regards,

Umamageshwaran.s

[Former Member · Accepted solution]

Thanks for providing the link. I have gone through it and to my suprise that person raised same questions as me, but the question remained as open.

Can some one chip-in into the this.

Thanks

-SC

[former_member251898 · Accepted solution]

Hi there

You are right in saying that EBS includes all the transactions occuring within the bank account and Lockbox include payments from customer.

Lockbox is an additional service by your house bank that receives the remittence information (i.e. invoice number they are paying for) from your customers and provide that information to you so that you would facilitate the processing of customer payments in your subledger. Some banks only offer lockbox service with cheque but some do with electronic fund transfer.

To answer your question, EBS must include the customer payments receipt already processed by Lockbox. To illustrate the simplistic accounting flow, let´s suppose you receive a lockbox file for a customer that pay by cheque.

• Day 1 When the bank receives a cheque from your customer with remittence info and send you in Lockbox file. Lockbox file would be processed as

Dr Bank Clearing account - incoming

Cr Lockbox Clearing Account

Dr Lock box clearing account

Cr Customer account (customer subledger)

• Day 2 when the cheque is cleared in your bank, it appears in EBS. EBS would e processed as follows

Dr Bank Main GL

Cr Bank Clearing Account - incoming

Hope that this helps

cheers