AutoLockbox (or Lockbox) is a service that commercial banks offer corporate customers to enable them to outsource their accounts

receivable payment processing. A

lockbox operation can process millions of transactions a month

We specify how we want this information transmitted and Receivables ensures that the data is valid before creating receipt batches

We can automatically identify the customer who remitted the receipt and optionally use AutoCash rules to determine how to apply the receipts to the customer's
outstanding debit items

AutoLockbox can also be used for historical data conversion. For example, we can use AutoLockbox to transfer receipts from your previous accounting system into
Receivables. AutoLockbox ensures that the receipts are accurate and valid before transferring them into Receivables

The most common problems faced:

 Significant loss of time and money: The checks coming in to the organization and sitting there in the office until an employee matches the payment to a bill and logs the
payment into the system, then takes the payments to the bank

 Companies having branches in different parts of the country: Notable amount of time and money in mailing the checks and other operative and administrative costs

 Companies having branches in different parts of the country: Notable amount of time and money in mailing the checks and other operative and administrative costs

 Payments received via checks drawn on foreign banks: Checks drawn in other countries levy a higher processing and clearing charges.
LockBox– Key Concepts

Terminology Significance

Bank Accounts This setup is required to create a bank account in the system for which the lockbox needs to be configured

Receipt Classes and Methods This setup is required to define the receipt classes and methods which will govern how the receipts will be created –
Manual / Imported and how the receipts will be matched – whether directly or they need to be reconciled with the bank
statement and system transactions
Receipt Sources Receipt sources needs to be defined to identify the lockbox receipts from the manual receipts

AutoMatch Rules AutoMatch rules are defined for SmartReceipts. AutoMatch rules help the system auto-apply receipts to invoices based on
certain weightages defined in the matching rule definitions
Lockbox Definition Lockbox definition ties up the bank accounts and the receipt source and defines how the receipts are matched to invoices