Lock Box Setup in Oracle

Define lockboxes to use the Receivables AutoLockbox program. AutoLockbox automatically creates receipts in Receivables using electronic information that your bank provides. Receivables lets you specify the payment method for each lockbox you define. Payment methods provide the default accounting information for receipts you create through AutoLockbox.
Receivables displays active lockboxes as list of values choices in the Submit Lockbox Processing window.

To define a lockbox:

1. Navigate to the Lockboxes window.

2. Enter the lockbox Number provided by your bank.

3. Enter the receipt Batch Source for this lockbox. You must enter a batch source that uses automatic numbering. Receivables enters the bank name and account, address, contact person, and accounting flexfield information associated with this batch source.

4. Enter the Bank Origination Number provided by your bank. This number uniquely identifies the bank branch that sends you lockbox information.

5. Open the Receipts alternative region, then enter the Batch Size you want the Lockbox Validation program to assign to each receipt batch. For example, if you have 991 receipts, and you set Batch Size to 10, Receivables will create 99 batches with 10 receipts and 1 batch with 1 receipt. If you do not want Receivables to separate your lockbox batch into multiple receipt batches, enter a number that is larger than the number of receipts in your lockbox transmission for this lockbox, then check the Complete Batches Only check box in the Submit Lockbox Processing window when you submit your lockbox transmission. 

6. Enter your GL Date Source. This source determines the general ledger date for your receipts in this lockbox. Choose from the following sources:

• Constant Date: Receivables uses the date you enter in the GL Date field of the Submit Lockbox Processing window. If you do not enter a date when you choose Constant Date, Receivables does not validate your data.

• Deposit Date: Receivables uses the date that your bank deposits your receipts. If you choose this source and the lockbox transmission's deposit date is not defined, Receivables displays an error message indicating that you must define a deposit date to submit the lockbox.

• Import Date: Receivables uses the date on which you import your receipts.

7. If you are using this lockbox to transfer foreign currency receipts and you did not specify exchange rate type in the bank file, enter an Exchange Rate Type.

8. Enter the Receipt Method to assign to this lockbox. The default is the payment method associated with the receipt batch source you entered.

9. If you want AutoLockbox to be able to transfer receipts without billing locations into Receivables, uncheck the Require Billing Location check box. If this box is checked, AutoLockbox will only validate the receipt if the billing location is provided; otherwise, Lockbox will import and validate these receipts successfully.

Attention: If the system option Require Billing Location for receipts is set to Yes, this option should also be set to Yes for your Lockbox. If the system option is set to Yes but it is set to No for your Lockbox, Receivables displays an error message when you submit AutoLockbox. The setting at the system options level determines whether Post QuickCash can process receipts without billing locations.

10. Choose a Match Receipts By method. Lockbox uses this value to determine what type of matching numbers will be used in this transmission. Choose one of the following methods:

• Transaction Number: Match receipts with transaction numbers.

• Consolidated Billing Number: Match receipts with consolidated billing invoice numbers. To use this method, both the user profile option AR: Show Billing Number and the Send Consolidated Billing Invoice option for this customer must be set to Yes. 

Lockbox uses the Consolidated Billing Invoice number to identify the customer. Post QuickCash then uses this customer's AutoCash Rule Set to determine how to apply the receipt to each invoice. For more information, refer to the 'Clear Past Due Invoices Grouped by Payment Term' rule

• Sales Order: Match receipts with sales order numbers. Lockbox uses this number to determine the corresponding invoice number.

Note: Receivables allows more than one sales order number per invoice because different invoice lines can be generated from different sales orders. Therefore, this method is valid even if other lines on the same invoice reference different sales orders.

• Purchase Order: Match receipts with purchase order numbers. Lockbox uses this number to determine the corresponding invoice number.

Note: Receivables allows more than one invoice per sales order or purchase order. If you choose a Match Receipt By method of Sales Order or Purchase Order, Lockbox will match with the first invoice that it finds.

• Hook: Match receipts to any other type of matching number that is passed with this transmission. This is a custom matching method that you define. Lockbox uses this number to determine the corresponding invoice number

11. Choose whether to Match on Corresponding Date for transactions in this Lockbox transmission. The matching date will correspond to either the transaction, sales order, purchase order, or consolidated billing invoice date, depending on the Match Receipts By method you choose. Choose one of the following:

• Always: Always verify that the date for the transaction or other matched item is the same as the date specified in this transmission.

• Duplicates Only: Only verify that the matching date and the specified date are the same if duplicate matching numbers were found and Lockbox needs to determine which is correct.

• Never: Ignore the specified date. This is the default value.

Suggestion: If you have customers that match receipts using different methods and either Allow Payment of Unrelated Invoices is Yes for this Lockbox submission or AutoAssociate is Yes for this Lockbox, set Match on Corresponding Date to Always. Because different customers can have transactions with the same number, setting the Match on Corresponding Date option to Always ensures that Lockbox will check both the transaction number and date before matching it with a receipt.

12. If you do not want the Lockbox Validation program to use the debit item number to determine a customer, open the Transactions alternative region, uncheck the Auto Associate check box. By default, the Lockbox Validation program uses an invoice or debit memo number to determine the customer with which the receipt should be associated (if there is no customer information or MICR number in your Lockbox transmission).

13. Choose how this Lockbox will handle remaining receipt amounts that could not be applied because of invalid transaction numbers. For example, your receipt record indicates that Lockbox should apply the receipt to several invoices, but one of the invoices is invalid. Depending on how you set this option, Lockbox will:

• Post Partial Amount as Unapplied: Apply the receipt to the valid transactions, then import the remaining receipt amount with a status of Unapplied. You can then manually apply the receipt to the invalid transaction using the Applications window.

• Reject Entire Receipt: Do not import the receipt (it will remain in the AR_PAYMENTS_INTERFACE table). You need to edit the invalid record(s) in the Lockbox Transmission Data window, then resubmit the Validation step for the receipt before Lockbox can import it into Receivables.

14. Save your work.