1.

Lockbox Processing

The basic : operation of a lockbox system CRUX is fundamental to large businesses but is almost transparent to those without some knowledge of corporate treasury operations. The objective of a lockbox operation is to have the customer remit a payment check to a local post office box to minimize mail transit time. The checks are processed by the bank on a daily basis and the funds collected are usable by the receiving business much quicker than with the traditional process. The illustration below shows

PROCESS :

The bank sends XYZ, Inc. a detail data file of the checks posted to its account along with a daily total. The data is transmitted using BAI or BAI2 format. The SAP lockbox program translates the file and posts to a GL cash account, creates payment advices that are matched against

Formats:

Lockbox Architecture

the processing:
Receive a file of check data from the bank. Some banks allow dial in and download. Execute the Lockbox Import Program Post the G/L transaction reflecting the receipt of cash Creates a payment advice. Open items are automatically cleared/ Access the lockbox post-process transaction to process any checks that could not be fully applied by the Lockbox Import Program

Advantages of the lockbox service By accelerating check collection, deposit and credit memo, the payee can earn a return on the early collection of cash. o The payee can reduce his or her own internal processing costs.
o

SAP lockbox processing consists of an import program (RFEBLB00) and a post processing transaction (FLB1). The import program RFEBLB00 o imports the file into bank date storage, o generates the payment advices and postings, and o generates a log of the checks and postings. Transaction FLB1 is used for post processing the checks

Configuratio n: 1 : Define Lockbox Step

Here we need to define the Lockbox in a Company code

Step 2 : Define Control Parameters

We Define the file Formats which will be uploaded to SAP system for Lockbox function

Step 3 : Define posting date

Here we Define: Bank Details Outgoing bank GL Account Document Type Customer Posting document type Posting Keys for Debit & Credit for GL Account & Customer Account

Step 4 : Uploading data & passing entries

We will upload the BAI File using transaction code FLB2 and by using Transaction code FLBP, system will post all the entries in system.

2.Bill Of Exchange

Please ensure that following accounts are created for the bills of exchange receivable transaction 1.Bank Account : GL account in which we will debit the collection of bills exchange receipts 2. Dr. Reconciliation Account : It is GL control account , where ordinary transaction with reference customer will be debited or credited 3. Bill of Exchange Reco. Account : It is a GL Control account where transaction related to bills of exchange will be debited or credited 4. Bills of Exchange Liability account : It is also GL account , where we will maintain bills of exchange liability account from banks point of view. It should be open item management and check box for automatic posting should be checked 5. Bills of Exchange Discounting charges account : At time of discounting bill of exchange , bank will deduct discounting charges . Such type of charges will be posted in this account. 6. Bank charges: For collection of bills of exchange , bank usually charges its service charge . We will debit such type of charges in this account 7. Customer : We have created one customer with the

Configuratio n:
A. Define Alternative Reconciliation Acct for Bills/Exchange Receivable
Path IMG Financial Accounting Bank Accounting Business Transactions Bill of Exchange Transactions Bill of Exchange Receivable Post Bill of Exchange Receivable Define Alternative Reconciliation Account for Bills/Exchange Receivable T Code OBYN

In this activity we will define the accounts in which bill of exchange payments are recorded in the general ledger. When you post bills of exchange, the system will post the entries to these accounts instead of to the normal receivables account (reconciliation account). This way it is possible to keep bills of exchange separate from the normal receivables. A transfer posting for balance sheet purposes is no longer necessary. Select the function and double click , we will be taken to the next screen, where we will find various SPL. GL transaction key

B. Define Accounts for Bill of Exchange Transactions

Path IMG Financial Accounting Bank Accounting Business Transactions Bill of Exchange Transactions Bill of Exchange Receivable Post Bill of Exchange Receivable Define Accounts for Bill of Exchange Transactions T Code OBYH

In this step, we will define the account numbers and the posting keys for automatic postings which the system makes when posting the payment by bill of exchange and bill of exchange usage. For some transactions (posting a bill of exchange payment request, for example) you only need posting keys. Select the function, we will find the following screen, where we will define various account determination.

From the above business transaction , we will define accounts determination for bank discounting charges (BDS) and Bank collection charges (BIK)

C. Define Bank Sub accounts

Path IMG Financial Accounting Bank Accounting Business Transactions Bill of Exchange Transactions Bill of Exchange Receivable Present Bill of Exchange Receivable at Bank Define Bank Sub accounts T Code OBYK

We will specify the bank sub accounts that display the bill of exchange liability from the point of view of the bank. The bill of exchange liability results from the bill of exchange usage. Select New entries and update the fields as give below

D. Tax code & collection charges

Path IMG Financial Accounting Bank Accounting Business Transactions Bill of Exchange Transactions Bill of Exchange Receivable Post Bill of Exchange Receivable Prepare BE Charges statement

We can define discount rate.

We can define any collection charges

We can define any tax code if applicable

Practical:
Raise an Invoice in FB70. Go to following path for payment of Bill:
Path Easy Accounting Financial Accounting Customers Document entry Bill of Exchange Payment Transaction Code- F-36

Enter Customer Account Number from whom we received bill as accepted

At last Click on Process open item to select open item.

Choose Bank GL Account. Check box ACCEPTED and mention the due date

Select the open item

Final Posting