Lockbox options have been created for agencies that have clients who send payments straight to a Lockbox address at a bank instead of directly to the agency to which they owe payment. Use of these new options reduces the need to use the A/R Cash Receipts option to distribute cash.
Upon receipt of client checks, the bank deposits the amount in the agency’s account then has data entry personnel key in the agency’s invoice numbers, the date of receipt, and amounts on the check’s remittance advice for identification. Afterwards, the bank creates a text file of this information then puts it in a queue to be transmitted each night over the Internet using encryption software to a secure File Transfer Protocol (FTP) site. Once this file is transmitted to the FTP, information is automatically moved to the Mediaocean server. The file is processed then renamed to identify the bank that is transferring payments, the date of receipt (YYMMDD format) (this date also determines the accounting month) and the first three digits of the hours/minutes of the day. After 30 days, this file is deleted; therefore, if a copy of the file is required, it must be requested before the file is deleted.
Note: Before the Lockbox options can be used, lockbox identifiers for each bank code must be established first in the Bank Code Maintenance option in the Central Data Base. For BMG Netting users, the G/L Account Defaults (gain/loss account) must be set up for all companies/offices, all BMG bank codes must have lockbox information keyed as well using the Bank Code Definition option in the Central Data Base, and all Hyperion codes associated with a Company/Office for BMG processing must have a BMG bank code keyed in the Company/Office Records in the Agency Profile.
Each day, the agency can use the Receive Lockbox Files (or Receive BMG Netting Files) option to request that cash payments in the file be matched to unpaid invoices in the Mediaocean F|P Accounts Receivable application. If errors are found (set up has not been completed or file has already been processed), the matching process stops. Errors can be found and identified on the Error Report that is produced. After errors have been corrected, matching can be requested again through the Receive Lockbox Files option. If there are no errors, the Lockbox Receipts Successfully Received Report is produced.
Cash receipts that cannot be entirely matched must be maintained by the agency. To maintain cash receipts, the agency must use the A/R Lockbox Maintenance option. Maintenance can include correcting any invalid invoice numbers, adding multiple lines to break an amount down by different clients/products, changing amounts for partial payments, and classifying any unknown amounts as unapplied cash. If no match can be found whatsoever, then the check is recorded unapplied cash. This type of check can then be applied through the A/R Lockbox Maintenance option.
The Unposted Lockbox Report option can be used at any time to produce the Outstanding Lockbox Receipts Not Posted report. This report shows either all unposted lockbox receipts, fully matched unposted receipts, or unposted receipts that are not fully matched.
After maintenance has been made to applicable receipts and totals match the amount received from the bank, users can post through the Post Matched Lockbox Receipts option.