APPLY CUSTOMER PAYMENTS

Run SAP Lockbox program to apply cash

At a prescheduled time each day, the CAO Control Section will check for the existence of a Cashier's Office cash file and will execute the SAP "Lockbox" program. The Lockbox program automates the application of cash.

The Lockbox program will split the file in two. It will place all A/R cash transactions into G/L Account 101221 - A/R Cash Clearing, and all non-A/R cash into G/L Account 900030 - Cashier's Office System Feed, and will subsequently clear all transactions by means of Journal Vouchers. A/R payments will be posted to individual customers, which will simultaneously update account 101200 - A/R General. Petty cash and other cash and expenses will be posted to individual internal orders/cost centers/projects as identified in the Cashier's Office file.

If, for any reason, the Lockbox program should fail in attempting to post a particular transaction, the transaction will post to internal order 1069700 - Unidentified Cash Receipts. A/R personnel will research these transactions and manually execute a Journal Voucher to transfer the charge/credit to the appropriate internal order, cost center, or project.

The Lockbox Program will also generate a series of reports including a printout of the entire run and an error report that can be used to clear failed postings (see FLB1 - Apply Unprocessed Cash from Lockbox).

Post unidentified checks/wire transfers

On occasion, the Cashier's Office will receive checks which, for various reasons, cannot be matched to a customer account. Such checks will be deposited, along with others received that day, but since these amounts cannot be positively identified with a particular customer account, they are posted to G/L Account 201100 - Unidentified Cash Receipts.

Subsequently, the Cashier's Office will forward copies of all unidentified checks to A/R, where A/R personnel will research the payments and contact the issuer of the check, if necessary, to determine the intent of the payment.

Should the payment ultimately be found to relate to an outstanding A/R balance, A/R personnel will execute a credit memo (see F-27 - Enter Credit Memo) to credit the customer's account with the payment and will debit G/L Account 201100 - Unidentified Cash Receipts.

Another method of crediting a customer account and debiting the appropriate G/L account is using F-26 - Post Wire Transfers/Checks via Fast Payment.

Should the payment ultimately be found to relate to some other purpose outside A/R, A/R personnel will execute a Journal Voucher crediting the payment to the appropriate cost center, internal order, or project and will debit G/L Account 201100 - Unidentified Cash Receipts.