SAP

LOCKBOX FILE CREATION GUIDE
FOR

BAI & BAI2 FORMATS

Understanding SAP Lockbox

04/28/12

Overview
What is a lockbox? A company can create accounts called ‘lockbox’ accounts at its bank (or banks) that act as payment collection accounts for customer payments. The company then informs their customers that all open item payments for their accounts must be submitted to one of the established bank lockbox accounts. The bank collects these payments along with the customers’ remittance information that indicates what open items the customer payments intend to clear. Data entry clerks at the bank manually enter the information into an electronic file for transmission to the company to which the lockbox account belongs. These files are typically transferred nightly to the various lockbox owners (companies). The files adhere to one of two standard banking industry transmission formats: BAI and BAI2. What is BAI? The standards for lockbox transmission files are defined by the Bank Administration Institute (BAI). Founded in 1924, the BAI organization is a partnership composed of its own BAI membership, a Board of Directors, various banking industry advisory groups and a professional staff. The organizational mission is “to help bank administrators achieve high levels of professional effectiveness and to help solve significant banking problems.” Activities include the definition of industry file formats, such as lockbox transmissions. BAI and BAI2 are the two defined lockbox transmission formats, however, BAI is considered ‘outdated’ by the BAI organization and is no longer supported (ie. standards are no longer updated or improved). Nonetheless, many banks still offer transmissions in the old BAI format. What is the difference? BAI and BAI2 formats differ in their level of information detail. BAI does not separate out the incoming check line items by invoice subtotal reference. Instead, one check total amount simply has all invoices listed underneath it. Thus, in BAI format files, the entire check amount must match perfectly (or within configured payment difference tolerances) the total amount for all invoices listed. Otherwise, the entire check will enter into SAP as: 1. an “On account” posting (if the payment and invoice totals don’t match), or 2. an “Unprocessed” posting (if no customer account and documents could be identified from the transmission). In these scenarios, your Accounts Receivable cash application clerks will have to perform manual application to clear payments against open items on the proper accounts. Conversely, BAI2 splits the check total into separate invoice references and associated payment amounts. Thus, within a large batch, BAI2 format files will allow a “Partially applied” status in which some identifiable payments within the check total will be matched and cleared, others will land on account. As a result, your ‘hit rate’ percentage of payment-invoice matching from each transmission is likely to be higher when using BAI2 rather than BAI formats. What should you use? This decision is dictated by a cost-benefit analysis. BAI2 is a more robust file format, but you pay more for this information richness. BAI is cheaper, but may not offer you a suitable ‘hit rate’ for automatically matching payments to customer open items. If you receive a large volume of lockbox payment transmissions each day, it is recommended that you use BAI2. Otherwise, a significant portion of your A/R staff time and effort will be spent on applying failed lockbox payments. However, if you only receive a small portion of your customer payments via lockbox transmissions, then BAI is likely to provide adequate results. You will have to inquire with your bank to ensure that they still utilize the BAI formats.
If you have further questions about the Bank Administration Institute, or its file format standards, you can reach them by phone at 800-224-9889, or on the Internet at http://www.bai.org.

Understanding SAP Lockbox

04/28/12

THE

PURPOSE OF THIS DOCUMENT:

The lockbox file generation programs within SAP (RFEBLBT1 and RFEBLBT2) are designed to create their own open items in the system, and create the corresponding lockbox file that perfectly matches these open items. The result is that the open items are completely cleared by the program. This is useful for illustrating the basic function of reading a basic lockbox file. However, for consultants to test their client’s own unique, complex lockbox import and postprocessing scenarios, a more flexible method of lockbox file creation is needed. This document is designed to do two things: 1. To clearly explain the elements of a lockbox file (in both BAI and BAI2 formats)
2.

To help consultants to design their own custom lockbox files which enable them to test numerous business scenarios in a quick, repeatable fashion.

At the end of this document are several different examples of .txt files that illustrate how each file can be modified to test different business scenarios. The specific lockbox files in this document were designed as part of the creation of lockbox preconfiguration for the 4.5A release. These files may be modified as often as you need to test each scenario. There are also a few configuration tips included at the back of the document that relate to how to maintain file format consistency with what is defined within lockbox configuration. This document is written using color-coding to allow easier reading and interpretation of the data than if using variable fonts, underlining, etc. If you intend to print out this document for your reference, you will need to use a color printer.

Understanding SAP Lockbox

04/28/12

(Field name HR001) The item in green is the Priority Code of the Lockbox. (Field name HR004) Following that are the File Date in dark blue and the File Time in purple. (Field name HR003) The next item in black is the Origin of the Transmission – transit routing. The same goes for the next item. check number(s). Change this item if you want a different lockbox. and batch numbers to create a valid test file. Record Type 1 is the “Header Record”. (Field name HR002) The item in dark red is the Immediate Destination for the Lockbox. This will contain up to 9 characters (use spaces to fill up excess space if less than 9 characters exist in this item).txt). you can insert your own specific MICR (Magnetic Ink Character Recognition) numbers and invoice numbers. A lockbox import file may contain several different lockbox transmissions (from different banks) each contained between their own 1 and 9 records. All files should be saved in a text tab-delimited format (. “1” is “01”). By identifying what elements go in which place. The record data is color-coded below to make it easier to interpret this file. KEY: * * Items you must change each time you run the lockbox with this file. date. payment amount(s).LOCKBOX BAI TEMPLATE FOR USE WITHIN THE LOCKBOX DATA IMPORT PROGRAM Sample Lockbox file: 100YPCCDESTINYPCCORIGIN9812151201 2YPCCDESTINYPCCORIGIN 50010010012345981214YPCCDESTINYPCCORIGIN 60010020001000000011000390997755331 000912302001800001900180000200018000021 400100360171800002200180000230018000024001800002500180000260018000027 400100460190018000028 700100500123459812150100001000000 80010060012345981215001000010000009 1000000 1000000 9000010 Note: this file illustrates a scenario in which only one lockbox transmission is imported. The item in blue is the Record Type indicator. This item will have 2 characters (must fill both spaces. This item may contain up to 10 characters (again filling up all ten spaces. lockbox number. They will have six and four characters respectively. The following pages provide a breakdown of the lockbox file components. a conditional change item. i. There will only be one Record Type 1 in the Lockbox file. Record 1: (Table FLB01) 100YPCCDESTINYPCCORIGIN9812151201000001111122222333334444455555666 6677777888 * * * * • • • This is the first record of the Lockbox. Be sure to change the lockbox file date in order to reflect the transmission date of the simulated lockbox Understanding SAP Lockbox 04/28/12 • • . Further. multiple batches can exist within a single lockbox. and only one batch exists within that lockbox transmission.e. The program will require that the time be different for each running of the same lockbox in the same day.

(Field name SR004) Following that is the Record Length in dark blue. (Field name SR006) In dark yellow is the Format Code for the lockbox (1 characters/spaces). There will only be one Record Type 5 per batch within the Lockbox file. It is not generally used. This item will have 2 characters. Spacing is critical because the Lockbox program reads the file based on character position. Sometimes the information contained within this record will not adhere to the ‘proper’ definition. (Field name SR002) The item in dark red is the Reference Code for the lockbox. but may be filled with information. If you run this particular lockbox numerous times in the same day. If you are using the same date on multiple files. Record 2: Table FLB02 2YPCCDESTINYPCCORIGIN * • * • • • • • • • • The item in blue is the Record Type indicator. From an SAP perspective. (Field name SR003) The next item in black is the Service Code for the lockbox. others will not. use spaces or zeros to make up the excess space not used by an item within the record. you must change the batch number – the system will not allow the same batch to be input twice in the same day. (Field name HR007) The total length for this record is 80 characters. This item will use 3 characters/spaces. then it should be preceded by two blank spaces. (Field name SR008) The total length for this record is 80 characters.• • file. Batch size is defined between the customer Understanding SAP Lockbox 04/28/12 . There can be many batches in a lockbox transmission. (Field name SR007) The remainder of the record is made up of 40 characters of filler in gray. (Field name DH003) You only need to change this number if you intend to use a new batch. there can only be one Record Type 2 per lockbox transmission. Therefore. If the spacing is off in any of the records. thus many 5 Records in each lockbox. For example. Record 5 is the “Detail Header Record”. which will use 3 characters/spaces. (Field name HR005. but rather be a restatement of the Record 1 (as shown above). HR006) The remainder of the record is made up of 47 characters of filler (or blank spaces) marked here in gray. This will contain up to 3 characters (and must fill all 3 spaces). There can be many lockbox transmissions within a single file. (Field name DH002) The item in dark red is the Batch Item Number for the Lockbox. the 2 Record is not a mandatory record for lockbox importing. Some banks will utilize a 2 Record. thus many 2 Records within the file. if your Origin of Transmission only uses 8 characters. This item will have 3 characters. This will contain up to 10 characters. which the banks use for their own purposes to identify the transfer as a lockbox transfer. (Field name SR001) The item in green is the lockbox Destination/Origin. you will have to be sure to change the transmission time. (Field name SR005) In purple is the Block Size of the lockbox (3 characters/spaces). Record 2 is the “Service Record”. (Field name DH001) • • The item in green is the Batch Number for the Lockbox. If used. the program will misread the file and your lockbox process will fail. spacing! Be sure to pay attention to Record 5: Table FLB05 50010010012345981215YPCCDESTINYPCCORIGIN111112222233333444445555566666 7777788888 * * • * * * * The item in blue is the Record Type indicator.

you will create another Record 6. Thus. The total length for this record is 80 characters. As with any field that you may need elongated. For example. thus there would be at least 2 batches. If there are 51 checks in a lockbox. This item will use 7 characters/spaces. A common rule is that one batch may contain up to 50 invoices. they provide a unique identification of the customer sending in the payment. which will use 9 characters/spaces. Following that is the Deposit Date in dark blue. Record 6 is the “Detail Record” which applies to a particular check in the Lockbox. Understanding SAP Lockbox 04/28/12 . (Field name DH005) (Field name DH006) In purple is the Immediate Destination of the Lockbox (10 characters/spaces). spacing! Be sure to pay attention to (Field Record 6: Table FLB06 600100200010000000110003909977553310009123020018000019001800002000180 000210 * * • * * * * * * * • • • • • • • The item in blue is the Record Type indicator. only 3 invoices can fit into the Record 6. One lockbox transmission may contain up to 999 batches.• • • • • • and the bank. zero-padded left field convention (as displayed in the sample Record 6). (Field name DR007) In bright red are the Invoice Numbers (10 characters/spaces each). This will contain up to 3 characters (and must fill all 3 spaces). element of the lockbox identification in what is known commonly as the “MICR” data (Magnetic Ink Character Recognition). you must be sure to change the lockbox number in the appropriate section of the file. (Field name DR002) The bank sets the rules for how a batch is defined. This item will use 10 spaces (use zeros if necessary in front of the amount).(FIf you are using SAP document number length of less than 10 digits. Be careful to check that the invoice numbers are correct. In purple is the Remitter Identifier: Account Number (10 characters/spaces). or a new customer’s information within the same batch. a second batch will be created. you will have to submit a modification request for an ABAP consultant to change the number of characters allowed in the field. or if the transmission contains information from several lockboxes. (Field name DR003) The next item in black is the Remittance Amount for the Lockbox Record. This item must change each time you run a batch. it is recommended that you use a right-justified. (Field name DR001) When you have a new check. The standard delivered SAP lockbox allows for only a 9-digit bank account number. Record Type 6 can appear numerous times in the Lockbox file. The next item in black is the Lockbox Number. Any extra invoices in that check and lockbox batch must be provided in a Record 4 that follows immediately after the Record 6. when more than 50 invoices are included in a lockbox transmission. It complements the Transit Routing No. This is the data that appears at the bottom of bank checks. In dark yellow is the Origin of Transmission – transit routing (10 characters/spaces). (Field name DH007) name DH008) The remainder of the record is made up of 40 characters of filler in gray. The item in green is the Batch Number for the Lockbox. This item will have 3 characters. In dark yellow is the Check Number (9 characters/spaces). As mentioned before the batch number must change when done consecutively in the same day. According to SAP table definition. The item in dark red is the Batch Item Number for the Lockbox. (Field name DH004) The lockbox number only needs to change if you are testing a transmission from a new lockbox. Together. which will use 6 characters/spaces. (Field name DR004) Following that is the Remitter Identifier: Transit Routing No. and in the proper spaces. some banks will deliver up to a maximum of 50 checks in one batch. in dark blue.

it is recommended that you use a right-justified. (Field name OR003) Bright green is the Sequence Number for the record (2 characters). This record is the overflow record (4 Record) holding the overflow from the 6 Record. you will have five 7 Records. This item will have 3 characters. For example. If you have five batches in a lockbox. This will contain up to 3 characters (and must fill all 3 character spaces). A ‘9’ indicates the last record of a Lockbox (1 character). The remainder of the 4 Record is made up of at least 9 characters (depending upon how many invoices are in this record) of filler in gray. Be sure to pay attention to spacing! Record 4 Table FLB04 400100340170018000022001800002300180000240018000025001800002600180000 2700000 * * * * * * * * • The item in blue is the Record Type indicator. A maximum of six invoices can fit into the 4 record. (Field name OR013) The total length for this record is 80 characters. (Field name OR001) • • • • • • • The item in green is the Batch Number for the Lockbox. zero-padded left field convention (as displayed in the sample Record 4). six on the 4 Record. (Field name DH002) The item in dark red is the Batch Item Number for the Lockbox. which will use 6 characters/spaces. (Field name DH006) Understanding SAP Lockbox 04/28/12 . and thus the number is a 6 to indicate where its overflow originates. (Field name OR002) The item in red is the Record Type identifier(1 character). and the remaining three on a second 4 Record. If there are more than nine invoices being sent in one check. (Field name DH004) Following that is the Lockbox Deposit Date in dark blue. This item will have 3 characters. Record Type 4 can appear numerous times in the Lockbox file. (Field name DR011) The total length for this record is 80 characters. Record Type 7 appears only once per batch in the Lockbox file. (Field name DH005) In purple is the Number of Remittances Indicator (3 characters/spaces) for the batch within the lockbox. (Field name DH003) The next item in black is the Lockbox Number (7 characters/spaces).• • The remainder of the record is made up of at least 5 characters (depending upon how many invoices are in this record) of filler in gray. (Field name OR005) The next items in black are the Invoice Numbers (10 characters/spaces each). (Field name DH001) The item in green is the Batch Number for the Lockbox. Be sure to pay attention to spacing! Record 7: Table FLB07 700100500123459812150100001000000 * • * * * * * • • • • • The item in blue is the Record Type indicator. three will be held in the 6 Record. Record 4 is the “Overflow Record” and it is used to hold invoices beyond the 3 that can be held in the preceding Record 6 for a particular invoice. It holds all extra invoices overflowing from the maximum of three allowed in the 6 Record. you will have to use consecutive 4 Records to handle the overflow. (Field name OR004) The item in yellow is the End Indicator for the Lockbox. Record 7 is the “Batch Total Record” which signifies the end of the batch within the lockbox. (Field name OR006-OR012) If you are using SAP document number length of less than 10 digits. This should change based on the number of remittances in the lockbox file. if twelve invoices arrive in one check.

(Fie Filler spaces or characters may take up the remaining 47 positions. These items should be changed to reflect the batch totals from the checks on the 6 Records in the lockbox.• • In dark yellow is the Remittance Dollar Total for this Lockbox (10 characters/spaces – fill with spaces or zeros to take up space). (Field name DH008) Understanding SAP Lockbox 04/28/12 .

d name ST011) The total length for this record is 79 characters. spacing! Be sure to pay attention to Record 9: 9000010 * • • • The item in blue is the Record Type indicator. Record 9 is the “Trailer Record” which signifies the end of the Lockbox file.Record 8: Table FLB08 800100600123459812150010 10000009 10000001111122222333334444455 1000000 * • • • • • • • • • • • * * * * * * * * The item in blue is the Record Type indicator.) change the check numbers. or populated with the lockbox remittance total dollar amount. This should change based on the number of remittances in the lockbox file. Record Type 8 appears only once in the Lockbox file. otherwise the payments will be identified as being already cleared and thus placed “on account”. there will be a Filler Record of 73 spaces. (Field name TR001) The item in green is the Number of Records indicator. They can be left blank. (Field name TR002) Following this record item. they need to be processed under Lockbox  Postprocess. (10) These are not often utilized by the customer. you will have to : a. A ‘9’ indicates the end of the record. This item will have 6 characters. Be very careful when making new data entries into the file to ensure that you observe the spacing rules – otherwise you will have data misread by the program and no payments will be applied. This item will have 3 characters. but are delivered in standard SAP. This will contain up to 3 characters (and must fill all 3 spaces).) change the Lockbox batch number. Record Type 9 appears only once in the Lockbox file. Whenever you load a particular Lockbox number into bank storage by running the Lockbox program. or else your next Lockbox run will also not apply itself because an advice and cash exist on the account to clear the open item(s). b. (Field name ST004) Following that is the Lockbox Deposit Date in dark blue. it will not allow you to run the same Lockbox number at the same time on the same date. Record 8 is the “Service Total Record” which signifies the end of all Lockbox bundles. (Field name ST008) Also in dark yellow are the TM Amount and MTD Amount for the Lockbox (11 spaces each). These items should be changed to reflect the batch totals from the 4 and 6 records in the lockbox.) change the File Creation Time. You must be sure to use different Invoice Numbers each time you run the Lockbox file. When a Lockbox file fails. which will use 6 spaces. there will be a 9 Record at the end of each transmission. (Field name ST006) In dark yellow is the Remittance Dollar Total for this Lockbox (10 spaces – fill with spaces or zeros to take up space). (Field name ST007) In bright red is the Last Record Indicator(1 space). You will identify the lockbox you just ran by the batch number. (Field name ST003) The next item in black is the Lockbox Number (7 spaces). (Field name ST002) The item in dark red is the Batch Item Number for the Lockbox. you will have to remove the payment advice by performing lockbox post-processing and clear the item off the account. which can be either filled with characters or left blank. 2. 3. Thus. The remainder of the record is made up of 22 characters of filler in gray. Understanding SAP Lockbox 04/28/12 . and the item is left “on account” and a payment advice is created. and c. 4. (Field name TR003) NOTES: 1. (Field name ST001) The item in green is the Batch Number for the Lockbox. In a file with multiple lockbox transmissions from separate banks. T005) In purple is the Number of Remittances Indicator (4 spaces). When lockboxes fail.

• All deductions taken in a BAI transmission must be manually processed through post-processing. It will treat the payment difference as being outside of customer tolerance limits and post the payment onto the customer account. whereas in BAI2 format items can be paid with deductions accompanied by reason codes (using external reason code conversion).BAI Issues: • When the customer pays at gross. Understanding SAP Lockbox 04/28/12 . the lockbox will not ignore the payment terms to allow the payment at gross to be applied. the BAI2 format is supposedly capable of ignoring payment terms on an item in the event that the customer is paying the item at gross. Conversely. despite being entitled to discounts under the payment terms.

providing the invoice number. lockbox number. deduction amount and external reason code. the file uses the “6 Record” as an identifier of the check dollar amount. not for each individual invoice. it costs more. In the BAI2 format. Following the “6 Record” are a series of “4 Records” which contain one invoice each. invoice dollar amount. No invoices are contained in this record.txt). All files should be saved in a text tabdelimited format (. which takes more time. * * All items marked with an asterisk are items that you will change each time you run the lockbox with this file. the file can use the “6 Record” to hold the first three invoices. The dollar amount is given for that check. Thus. the MICR number and the check number. date. 8. payment amount(s). The record data is color-coded below to make it easier to interpret this file. and 9. 5. However. and batch numbers to create a valid test file. A red asterisk indicates a conditional change item. you can insert your own specific MICR and invoice numbers. The BAI and BAI2 formats use the same record types for 1. Understanding SAP Lockbox 04/28/12 . and consecutive “4 Records” to hold the overflow of up to 6 invoices each. This level of detail in the BAI2 record improves the “hit rate” for the lockbox program. By identifying what elements go in which place. Why? Because the bank has its clerks enter in more information into the file.LOCKBOX BAI2 TEMPLATE FOR USE WITHIN THE LOCKBOX DATA IMPORT PROGRAM Sample Lockbox file: 100YPCCDESTINYPCCORIGIN9812151202 2YPCCDESTINYPCCORIGIN 50020010012345981215YPCCDESTINYPCCORIGIN 60020020000090000011000390556677889 010203419 4002003601716000002 00000100000000000000gh 4002004602918000018 00001000000000000000gh 700200500123459812150020000090000 80020060012345981215000200000900009 0090000 0090000 9000002 The Principle: What is different between the BAI and BAI2 formats? In the BAI format. per check. cost-benefit analysis should be performed by each customer to justify the decision. 2. The following pages provide a breakdown of the lockbox BAI2 file components. check number(s).

(Field name HR001) The item in green is the Priority Code of the Lockbox. This will contain up to 10 characters (use blank spaces to fill up excess space if less than 10 characters exist in this item). This item will use 3 characters/spaces. the 2 Record is not a mandatory record for lockbox importing. It is not generally used. (Field name SR006) In dark yellow is the Format Code for the lockbox (1 characters/spaces). Sometimes the information contained within this record will not adhere to the ‘proper’ definition. (Field name HR003) The next item in black is the Origin of the Transmission. This item will have 2 characters (must fill both spaces. use spaces or zeros to make up the excess space not used by an item within the record. others will not. Spacing is critical because the Lockbox program reads the file based on character position. Some banks will utilize a 2 Record. (Field The total length for this record is 80 characters. Be sure to pay attention to spacing! Understanding SAP Lockbox 04/28/12 . but may be filled with information. Record Type 1 is the “Header Record”. “1” is “01”).Record 1: Table FLB01 100YPCCDESTINYPCCORIGIN981215120200000111112222233333444445555566666777778888899 * • • • • • • • * * * This is the first record of the Lockbox. There will only be one Record Type 1 in the Lockbox file. For example. there can only be one Record Type 2 per lockbox transmission. i. Record 2 is the “Service Record”. if your Origin of Transmission only uses 8 characters. (Field name SR007) The remainder of the record is made up of 40 characters of filler in gray. which will use 3 characters/spaces. There can be many lockbox transmissions within a single file. Record 2: Table FLB02 2YPCCDESTINYPCCORIGIN * • * • • • The item in blue is the Record Type indicator. (Field name HR005) The remainder of the record is made up of 47 characters of filler in gray. which the banks use for their own purposes to identify the transfer as a lockbox transfer. This will contain up to 10 characters. If used. ield name SR003) • • • • The next item in black is the Service Code for the lockbox. name HR006) The total length for this record is 80 characters. then it should be preceded by two blank spaces. (Field name HR004) Following that are the File Date in dark blue and the File Time in purple. (Field name SR001) The item in green is the lockbox Destination/Origin. This item may contain up to 10 characters (again filling up all ten characters/spaces). but rather be a restatement of the Record 1 (as shown above). (Field name SR004) • Following that is the Record Length in dark blue.SR005) In purple is the Block Size of the lockbox (3 characters/spaces).e. Therefore. The item in blue is the Record Type indicator. They will have six and four characters respectively. This item will have 2 characters.eld name SR002) The item in dark red is the Reference Code for the lockbox. (Field name HR002) The item in dark red is the Immediate Destination for the Lockbox. thus many 2 Records within the file. From an SAP perspective.

For example. which will use 6 spaces. This item will use 7 spaces. d name DH006) 007) In dark yellow is the Origin of Transmission – transit routing (10 characters/spaces). or you may leave it blank. (Field name DR005) In purple is the Remitter Identifier: Account Number (10 characters/spaces). If there are 51 checks in a lockbox. This will contain up to 3 characters (and must fill all 3 spaces). Record 6 is the “Detail Record” which applies to a particular check in the Lockbox. a user-defined field. This will contain up to 3 characters (and must fill all 3 spaces). but only once per check. in dark blue. If there are four batches. There will be one Record Type 5 in each batch within the Lockbox file. there will be four 5 Records. spacing! Be sure to pay attention to Record 6: Table FLB26 60020020000090000011000390556677889 010203412 * * • * * * * • • • • • • • The item in blue is the Record Type indicator.Record 5: Table FLB 05 50020010012345981215YPCCDESTINYPCCORIGIN11111222223333344444555 556666677 * • * * * * * • • • • • • • • The item in blue is the Record Type indicator. This item will use 10 characters/spaces (use zeros if necessary in front of the amount). (Field name DH005) In purple is the Immediate Destination of the Lockbox (10 characters/spaces). thus there would be at least 2 batches. The total length for this record is 35 characters. name DH004) Following that is the Deposit Date in dark blue. which will use 9 characters/spaces. (Field name DR007) After the check number is the Data Element for the Article field. (Field name DH001) The item in green is the Batch Number for the Lockbox. (Field name DR004) Following that is the Remitter Identifier: Transit Routing No. A new 6 Record marks the start of a new item number. (Field name DR002) The bank sets the rules for how a batch is defined. some banks will deliver up to a maximum of 50 checks in one batch. This item will have 3 characters. Field name DR006) In dark yellow is the Check Number (9 characters/spaces). The remainder of the record is made up of 40 characters of filler in gray. (Field name DR001) The item in green is the Batch Number for the Lockbox. Record 5 is the “Detail Header Record”. (Field name DR003) The next item in black is the Remittance Amount for the Lockbox Record. Record Type 6 can appear numerous times in the Lockbox file or in each batch. You may use dummy numbers to fill out this record. The item in dark red is the Batch Item Number for the Lockbox. This item will have 3 characters. (Field name DH003) The next item in black is the Lockbox Number. There can be many batches in a lockbox transmission. (Field name DR008) Understanding SAP Lockbox 04/28/12 . DH008) ld name The total length for this record is 80 characters. (Field name DH002) The item in dark red is the Batch Item Number for the Lockbox.

They may be left blank if desired. (Field name OR005) The item in yellow is the End Indicator for the Lockbox. This item will have 3 characters/spaces. (Field name DH006) In dark yellow is the Remittance Dollar Total for this Lockbox (10 characters/spaces – fill with spaces or zeros to take up space). Record 4 is the “Item Record” and it is used to hold one invoice each. (Field name DH001) The item in green is the Batch Number for the Lockbox. This will contain up to 3 characters (and must fill all 3 character spaces). (Field name DH007) • Filler spaces or characters may take up the remaining 47 positions. This item will have 3 characters. A ‘9’ indicates the last record of a Lockbox (1 space). If you have five batches in a lockbox. (Field name DH004) Following that is the Lockbox Deposit Date in dark blue. In this case. Only 1 invoice is placed into each 4 Record. The items in dark yellow are the Payment Amounts per invoice (10 characters/spaces). Record 7 is the “Batch Total Record” which signifies the end of the batch within the lockbox. (FiT) The items in gray are the Deduction Amounts per invoice (10 characters/spaces). MT) Dark Blue is the External Reason Code for the payment. Record Type 4 can appear numerous times in the Lockbox file. (Field name OR002) The item in red is the Batch Item Number for the Lockbox. you will have five 7 Records. These items should be changed to reflect the batch totals from the checks on the 6 Records in the lockbox. blank-padding right for the invoice number(as shown in the Record 4 above). (Field name OR003) The item in purple Type of Overflow record (1 space). (Field name RESTG) Up to the next 30 character spaces are available for short text.Record 4: Table FLB24 4002003401716000002 4002004402918000018 00000100000000000000 00001000000000000000gh * • • • • • • • * * * • • • • The item in blue is the Record Type indicator. not an item overflowed from a preceding 6 Record. (Field name DH008) Understanding SAP Lockbox 04/28/12 . (Field name OR004) Bright green is the Sequence Number for the record (2 spaces). This should change based on the number of remittances in the lockbox file. (Field name DH005) In purple is the Number of Remittances Indicator (3 characters/spaces) for the batch within the lockbox. it is a ‘4 record’ because it contains only its own item. Record Type 7 appears only once per batch in the Lockbox file. (Field name DH003) The next item in black is the Lockbox Number (7 characters/spaces). (Field name DH002) The item in dark red is the Batch Item Number for the Lockbox. which will use 6 characters/spaces. This item will have 3 characters. (Field name OR006) The next items in black are the Invoice Numbers (16 characters/spaces each). (Field name OR001) The item in green is the Batch Number for the Lockbox. (Field name OR011) Record 7: Table FLB07 700200500123459812150020000090000 * • * * * * * • • • • • • The item in blue is the Record Type indicator. (Field name IVCNR) The best field format convention would be to use left-justification.

Record Type 9 appears only once in the Lockbox file. (Field name ST004) Following that is the Lockbox Deposit Date in dark blue. which will use 6 characters/spaces. This item will have 6 characters. (Field name ST009-ST010) The remainder of the record is made up of 22 characters of filler in gray. (Field name ST002) The item in dark red is the Batch Item Number for the Lockbox. This will contain up to 3 characters (and must fill all 3 spaces). (Field name ST008) TM Amount and MTD Amount for the Lockbox (11 spaces each). spacing! Be sure to pay attention to Record 9: 9000002 • • • The item in blue is the Record Type indicator. Record 8 is the “Service Total Record” which signifies the end of all Lockbox bundles. although they may appear in some files and thus will be read: • • • • Last Record Indicator(1 space): A ‘9’ indicates the end of the record. (Field name ST006) In dark yellow is the Remittance Dollar Total for this Lockbox (10 characters/spaces – fill with spaces or zeros to take up space). which can be either filled with characters or left blank. (Field name ST001) The item in green is the Batch Number for the Lockbox. (Field name ST007) The following fields in the file are optional – the file will function without any data provided in these fields.Record 8: Table FLB08 80020060012345981215000200000900009 0090000 0090000 * • • • • • • • * * * * * * * * The item in blue is the Record Type indicator. (Field name TR002) Following this record item. (Field name ST003) The next item in black is the Lockbox Number (7 characters/spaces). This item will have 3 characters. (Field name ST011) The total length for this record is 79 characters. Record Type 8 appears only once in the Lockbox file. (Field name TR001) The item in green is the Number of Records indicator. Record 9 is the “Trailer Record” which signifies the end of the Lockbox file. there will be a Filler Record of 73 spaces. (Field name ST005) In purple is the Number of Remittances Indicator (4 characters/spaces). (Field name TR003) Understanding SAP Lockbox 04/28/12 .

Make sure that the spacing remains the same when you input new file information. it may be best to simply enter in: c:\temp\saplockboxbai. it is advisable to have a program variant set up for running your files. Then each time. it is advisable to use the same base file name and simply modify the name with a unique end identifier.txt .. enter in the a. When you run the lockbox program. and so on… Eventually. it is usually easiest to have the Lockbox program look for the lockbox file in the pathway C:\temp\ .txt. Give it a default file name that you must modify for running each file. otherwise the program will not read the file properly. Follow the logic in this to make the necessary changes for your own scenarios. ie. Simply copy the file 1 through 9) and paste into another new MS Word document or text editor Save the file as a . Otherwise.txt file which the lockbox program can read to help you various scenarios for your lockbox configuration. it will perceive that it has already read the file. place the file into the directory and network drive that will hold your lockbox file as imported from the bank transmissions into the mainframe. when you intend to test the ability to acquire the file from the network. Understanding SAP Lockbox 04/28/12 . test out document of scenario will be listed above the actual file. Attached with this file are several sample BAI and BAI2 format lockbox files. Thus.txt. or the b. saplockboxbai-b. Each one will be spaced properly for testing various scenarios. If you are using the lockbox to test scenarios.txt. The type (Records screen.Closing notes: In the beginning. saplockboxbai-a.

invoice payment at discount.00 Incoming lockbox file: 100YPCCDESTINYPCCORIGIN9812151201 2YPCCDESTINYPCCORIGIN 50010010012345981215YPCCDESTINYPCCORIGIN 60010020001000000011000390556677889 000912303180000221800002318000024 40010036017180000251800002618000027180000281800002918000030 4001004601918000031 700100500123459812150100001000000 80010060012345981215001000010000009 1000000 1000000 9000010 Result: should match and clear open items ------------------------------------------------------------------------------------------------------------------------------------------------------- Scenario 2: Lockbox file match to open invoices and customer account.00 Incoming lockbox file: 100YPCCDESTINYPCCORIGIN9812151202 2YPCCDESTINYPCCORIGIN 50020010012345981215YPCCDESTINYPCCORIGIN 60020020000176000011000390556677889 000912304180000321800003316000001 700200500123459812150030001000000 80020060012345981215000300001760009 0176000 0176000 9000003 Result: should match invoices and credit memo.00 with 2% discount/ One SAP Credit Memo #16000001 for $200.00/ SAP Invoice #18000033 for $1000. deduct discount allowance.18000031 / Gross Amount $10.00 / Net Amount $1760.000.BAI TESTS: Scenario 1: Lockbox file perfect match to multiple open invoices on customer account Documents: SAP Invoices # 18000022 . and reference to a credit memo to explain a short-payment (invoices at discount/credit memo at gross) Documents: SAP Invoice # 18000032 for $1000. and clear open items ------------------------------------------------------------------------------------------------------------------------------------------------------- Understanding SAP Lockbox 04/28/12 .

00 / Gross Amount $3000.00 each / Gross amount $3000.00 Incoming lockbox file: 100YPCCDESTINYPCCORIGIN9812151204 2YPCCDESTINYPCCORIGIN 50040010012345981215YPCCDESTINYPCCORIGIN 60040020000300000011000390556677889 000912306180000371800003818000039 700400300123459812150030000300000 80040040012345981215000300003000009 0300000 0300000 9000003 Result: the system will find reference in the transmission for three open items on two customers. Documents: SAP Invoices # 18000034. ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- Scenario 4: Invoice payment via Alternate Payer Worklist Documents: SAP Invoices # 18000037-18000039 for $1000. incorrect MICR listed on master record. recognize that one customer (parent) pays the bills for the other (subsidiary). and use the payment to clear the open items from both customer accounts.00 On customer #1000001. ----------------------------------------------------------------------------------------------------------------------------------------------------- Understanding SAP Lockbox 04/28/12 . Incoming lockbox file: 100YPCCDESTINYPCCORIGIN9812151203 2YPCCDESTINYPCCORIGIN 50030010012345981215YPCCDESTINYPCCORIGIN 600300200003000000110003905566778891000912305180000341800003518000036 700300300123459812150030000300000 80030040012345981215000300003000009 0300000 0300000 9000003 Result: lockbox program searches for customer by invoice numbers. 18000036 for $3000. 18000035. and creates a batch session to update the correct MICR number onto the customer’s master record for future transmissions. The items are cleared. account identified via invoice numbers on the account. The payment will arrive with the MICR information of the parent customer. It identifies the customer. It will check the master records of both.Scenario 3: Wrong MICR information on the customer account.

Any extra deduction beyond tolerance limits must be written off to a payment differences G/L account maintained in the configuration **** Scenario 6 may be used to test the customer’s business scenarios for lockbox postprocessing in dealing with unauthorized payment differences. If the strictest tolerance (between customer and user) is set for $5 or more.00 / Payment $1995. with several residual items. If there is no payment difference tolerance. generate multiple deductions to specific different ship-to numbers.Scenario 5: Short payment allowed under customer/user tolerances Documents: SAP Invoices # 18000040-18000041 for $1000. generate multiple deductions.00 Incoming lockbox file: 100YPCCDESTINYPCCORIGIN9812151205 2YPCCDESTINYPCCORIGIN 50050010012345981215YPCCDESTINYPCCORIGIN 60050020000199500011000390556677889 0009123071800004018000041 700500300123459812150020000199500 80050040012345981215000200001995009 0199500 0199500 9000002 Result: the result depends upon the tolerance rules set for this customer. In this scenario.00 Incoming lockbox file: 100YPCCDESTINYPCCORIGIN9812151206 2YPCCDESTINYPCCORIGIN 50060010012345981215YPCCDESTINYPCCORIGIN 60060020000199000011000390556677889 0009123081800004218000043 700600300123459812150020000199000 80060040012345981215000200001990009 0199000 0199000 9000002 Result: the result depends upon the tolerance rules set for this customer. then process a partial payment • ability to apply a check. then the extra deduction taken will cause the lockbox to fail and the payment will be placed on the customer’s account for post-processing. you the system should allow you to post with the difference under set short-pay tolerances. allowing discount under the customer’s tolerance & user’s tolerance. If there is no payment difference tolerance. than the lockbox will automatically apply the payment to the open items and clear the account. and another item which belongs on an account which is not in a worklist • ability to distribute payment differences by age • ability to charge off differences within the customer/user tolerance Understanding SAP Lockbox 04/28/12 . Scenario 6: Short payment refused under customer/user tolerances / postprocessing required Documents: SAP Invoices # 18000042-18000043 for $1000. generate a deduction with any reason code that doesn’t generate correspondence. or items which cannot be located • ability to apply a check which pays an item which belongs on an account that is in a worklist. dispute or write-off • ability to apply a check. then the extra deduction taken will cause the lockbox to fail and the payment will be placed on the customer’s account for post-processing.00 each / Gross amount $2000. but write-off to disputed balance • ability to apply a check. generate a deduction with a reason code that generates a letter • ability to apply a check.00 / Payment $1990. such as: • ability to apply a check. and also using a reason code to write-off to discount • performing the same process as above. the payment difference exceeds the tolerance limits. In this case. than the lockbox will automatically apply the payment to the open items and clear the account. several partial payments with reference to closed items. If the strictest tolerance (between customer and user) is set for $5 or more.00 each / Gross amount $2000. generate multiple deductions. and thus the user must perform lockbox post-processing to write-off the excess difference to a G/L account or back to the customer’s account as an open item.

and referenced invoices and credit memos. These scenarios also provide a good test of the Document Flow functionality in the Deductions Management Component.00 / Payment $2000.00 each / Gross amount $2000. make sure to change the check dollar amount.00 each / Gross amount $4000.00 Incoming lockbox file: 100YPCCDESTINYPCCORIGIN9812151208 2YPCCDESTINYPCCORIGIN 50080010012345981215YPCCDESTINYPCCORIGIN 60080020000100000011000390556677889 00091230918000046 60080030000100000011000390556677889100098930918000047 700800400123459812150020000200000 50090010012345981215YPCCDESTINYPCCORIGIN 60090020000100000011000390556677889 0009012311800004818000049 700900300123459812150020000200000 80090040012345981215000200004000009 0400000 0400000 9000004 Result: the payments will apply to the items on both customers. and the impact upon the individual accounts. The ‘print statistics’ function of the lockbox program will create a page which shows the two batch items in one batch. ------------------------------------------------------------------------------------------------------------------------------------------------------ Understanding SAP Lockbox 04/28/12 . as well as batch number and time. The ‘print statistics’ function of the lockbox program will create a page that shows the two batch items separately and the impact upon the individual accounts.• ability to redirect a check which has been identified to the wrong account Scenario 7: Lockbox transmission received with multiple customer payments in one batch Documents: SAP Invoices # 18000044-18000045 for $1000.00 / Payment $4000. To modify the file to fit each of these scenarios.00 Incoming lockbox file: 100YPCCDESTINYPCCORIGIN9812151207 2YPCCDESTINYPCCORIGIN 50070010012345981215YPCCDESTINYPCCORIGIN 60070020000100000011000390556677889 00091230818000044 60070030000100000011000390556677889100098930918000045 700700400123459812150020000200000 80070050012345981215000200002000009 0200000 0200000 9000002 Result: the payments will apply to the items on both customers. and another batch item on another batch. Scenario 8: Lockbox transmission received with multiple batches in one lockbox Documents: SAP Invoices # 18000046-18000049 for $1000.

18000031 / Gross Amount $10.000.00 / Net Amount $1760.BAI2 TESTS: Scenario 1: Lockbox file perfect match to multiple open invoices on customer account Documents: SAP Invoices # 18000022 .00 Incoming lockbox file: 100YPCCDESTINYPCCORIGIN9812151202 2YPCCDESTINYPCCORIGIN 50020010012345981215YPCCDESTINYPCCORIGIN 60020020000176000011000390556677889 010203412 4002003601716000002 00000200000000000000 4002004602718000033 00000960000000000000 4002005603918000018 00001000000000000000 700200600123459812150030000176000 8002007001234598121500030000176000 9000003 Result: should match invoices and credit memo. invoice payment at discount.00 with 2% discount/ One SAP Credit Memo #16000002 for $200. and clear open items ------------------------------------------------------------------------------------------------------------------------------------------------------- Understanding SAP Lockbox 04/28/12 . deduct discount allowance. and reference to a credit memo to explain a short-payment (invoices at discount/credit memo at gross) Documents: SAP Invoice # 18000018 for $1000.00 Incoming lockbox file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esult: should match and clear open items ------------------------------------------------------------------------------------------------------------------------------------------------------- Scenario 2: Lockbox file match to open invoices and customer account.00/ SAP Invoice #18000033 for $1000.

It identifies the customer. 18000035 for $450. recognize that one customer (parent) pays the bills for the other (subsidiary). ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- Scenario 4: Invoice payment via Alternate Payer Worklist Documents: SAP Invoices # 18000037-18000039 for $1000. 2 invoices on customer 1000001 Incoming lockbox file: 100YPCCDESTINYPCCORIGIN9812151204 2YPCCDESTINYPCCORIGIN 50040010012345981215YPCCDESTINYPCCORIGIN 60040020000300000011000390556677889 010203414 4004003601718000037 00001000000000000000 4004004602718000038 00001000000000000000 4004005603918000039 00001000000000000000 700400600123459812150030000300000 8004007001234598121500030000300000 9000003 Result: the system will find reference in the transmission for three open items on two customers. Incoming lockbox file: 100YPCCDESTINYPCCORIGIN9812151203 2YPCCDESTINYPCCORIGIN 50030010012345981215YPCCDESTINYPCCORIGIN 60030020000090000011000390556677889 010203413 4003003601718000034 00000450000000000000 4003004602918000035 00000450000000000000 700300500123459812150020000090000 8003006001234598121500020000090000 9000002 Result: lockbox program searches for customer by invoice numbers.00 On customer #1000001. The items are cleared. incorrect MICR listed on master record.00 each / Gross amount $3000. account identified via invoice numbers on the account. Documents: SAP Invoices # 18000034. ----------------------------------------------------------------------------------------------------------------------------------------------------- Understanding SAP Lockbox 04/28/12 . It will check the master records of both.Scenario 3: Wrong MICR information on the customer account. The payment will arrive with the MICR information of the parent customer. and use the payment to clear the open items from both customer accounts.00 each / Gross Amount $900. and creates a batch session to update the correct MICR number onto the customer’s master record for future transmissions.00 1 invoice on customer 1000000.

and thus the user must perform lockbox post-processing to write-off the excess difference to a G/L account or back to the customer’s account as an open item. generate multiple deductions to specific different ship-to numbers. the payment difference exceeds the tolerance limits.00 / Payment $1990. with several residual items. but write-off to disputed balance • ability to apply a check. If there is no payment difference tolerance. and also using a reason code to write-off to discount • performing the same process as above. then the extra deduction taken will cause the lockbox to fail and the payment will be placed on the customer’s account for post-processing. generate multiple deductions. than the lockbox will automatically apply the payment to the open items and clear the account.00 Incoming lockbox file: 100YPCCDESTINYPCCORIGIN9812151205 2YPCCDESTINYPCCORIGIN 50050010012345981215YPCCDESTINYPCCORIGIN 60050020000199500011000390556677889 010203415 4005003601718000040 00001000000000000000 4005004602918000041 00000995000000000000 700500500123459812150020000199500 8005006001234598121500020000199500 9000002 Result: the result depends upon the tolerance rules set for this customer.Scenario 5: Short payment allowed under customer/user tolerances Documents: SAP Invoices # 18000040-18000041 for $1000. generate multiple deductions. such as: • ability to apply a check. Scenario 6: Short payment refused under customer/user tolerances / postprocessing required Documents: SAP Invoices # 18000042-18000043 for $1000. several partial payments with reference to closed items. If there is no payment difference tolerance.00 each / Gross amount $2000. If the strictest tolerance (between customer and user) is set for $5 or more. generate a deduction with a reason code that generates a letter • ability to apply a check. than the lockbox will automatically apply the payment to the open items and clear the account. then process a partial payment • ability to apply a check. generate a deduction with any reason code that doesn’t generate correspondence. you the system should allow you to post with the difference under set short-pay tolerances. Any extra deduction beyond tolerance limits must be written off to a payment differences G/L account maintained in the configuration **** Scenario 6 may be used to test the customer’s business scenarios for lockbox postprocessing in dealing with unauthorized payment differences. dispute or write-off • ability to apply a check. If the strictest tolerance (between customer and user) is set for $5 or more.00 each / Gross amount $2000. allowing discount under the customer’s tolerance & user’s tolerance. In this case.00 Incoming lockbox file: 100YPCCDESTINYPCCORIGIN9812151206 2YPCCDESTINYPCCORIGIN 50060010012345981215YPCCDESTINYPCCORIGIN 60060020000199000011000390556677889 010203416 4006003601718000042 00001000000000000000 4006004602918000043 00000990000000000000 700600500123459812150020000199000 8006006001234598121500020000199000 9000002 Result: the result depends upon the tolerance rules set for this customer.00 / Payment $1995. In this scenario. then the extra deduction taken will cause the lockbox to fail and the payment will be placed on the customer’s account for post-processing. or items which cannot be located Understanding SAP Lockbox 04/28/12 .

• ability to apply a check which pays an item which belongs on an account that is in a worklist.00 / Payment $4000.00 / Payment $2000. and the impact upon the individual accounts. and another item which belongs on an account which is not in a worklist • ability to distribute payment differences by age • ability to charge off differences within the customer/user tolerance • ability to redirect a check which has been identified to the wrong account Scenario 7: Lockbox transmission received with multiple customer payments in one batch Documents: SAP Invoices # 18000044-18000045 for $1000.00 Incoming lockbox file: 100YPCCDESTINYPCCORIGIN9812151208 2YPCCDESTINYPCCORIGIN 50080010012345981215YPCCDESTINYPCCORIGIN 60080020000200000011000390556677889 010203417 4008003601718000046 00001000000000000000 4008004601918000047 00001000000000000000 700800500123459812150020000200000 50090010012345981215YPCCDESTINYPCCORIGIN 600900200002000000110003905566778891010203418 4009003601718000048 00001000000000000000 4009004602918000049 00001000000000000000 700900500123459812150020000200000 8009006001234598121500040000400000 9000004 Result: the payments will apply to the items on both customers. Understanding SAP Lockbox 04/28/12 .00 each / Gross amount $2000. as well as the impact upon the individual accounts. and two items in another batch. The ‘print statistics’ function of the lockbox program will create a page which shows the two batch items in one batch.00 each / Gross amount $4000.00 Incoming lockbox file: 100YPCCDESTINYPCCORIGIN9812151207 2YPCCDESTINYPCCORIGIN 50070010012345981215YPCCDESTINYPCCORIGIN 60070020000100000011000390556677889 010203415 4007003601718000044 00001000000000000000 600700400001000000110003905566778891010203416 4007005602918000045 00001000000000000000 700700600123459812150020000200000 8007007001234598121500020000200000 9000002 Result: the payments will apply to the items on both customers. The ‘print statistics’ function of the lockbox program will create a page that shows the two items within the same batch displayed separately. Scenario 8: Lockbox transmission received with multiple batches in one lockbox Documents: SAP Invoices # 18000046-18000049 for $1000.

All document numbers must fit within the allowed maximum number of spaces defined here. Such files can be used to test: matching by account gross owing. The file must then adhere to this specification. Once you have these basic templates. within a lockbox file. Understanding SAP Lockbox 04/28/12 . You may use SAP invoice numbers. There are certainly other scenarios that can be tested using these variable lockbox files. You will need to specify this requirement to the client bank for them to incorporate it into the lockbox files that they send. matching by account owing net of discounts. You must maintain configuration for the program to know what to expect in the file.00 / Unidentifiable document #99009999 for $995. MICRCREATE) into the blank field. Post-processing will be required for the unprocessed item. the program will fail as it attempts to create payment advice notices.0B: Financial Accounting  Bank Accounting  Business Volume  Payment Transactions  Lockbox  Define Control Parameters In the BAI format entry. Files are very flexible. IMPORTANT CONFIGURATION NOTES: When you are creating the files. if they have been configured for that document length within SAP. the check status will be “partially applied”. The only difference in the file is that no invoice numbers are provided. etc. if you wish to activate the program’s logic for creating the MICR number from lockbox information for customer’s that are missing this data in their master record. you must define here how many documents will be attached to the 6 Record and to the 4 Record. Further. Third.Scenario 9: Partial application status achieved based upon one invoice applied and one invoice unprocessed (unidentifiable) SAP Invoice # 18000113 for $1000. then you may use up to 5 documents in each record. The second payment will arrive into SAP in an “unprocessed” status. However. Executing the batch session will automatically create the MICR information on the customer’s master record. the 4 Record has a maximum number of documents specified in the configuration. Second. customer legacy system document numbers. This number sets the number of spaces the lockbox program will read for each document number. The file used for testing a user exit program (you have to develop this separately) which acts upon lockbox files that omit invoice numbers is the same. and so on. you must be aware of the lockbox configuration in the system.00 100YPCCDESTINYPCCORIGIN9812171207 2YPCCDESTINYPCCORIGIN 50070010012345981217YPCCDESTINYPCCORIGIN 60070020000199500011000390556677889 010203407 4007003601718000113 00001000000000000000 4007004602999009999 00000995000000000000 700700500123459812170020000199500 8007006001234598121700020000199500 9000009 Result: the first payment will be applied against the correct SAP document. you must be aware of the document number length specified. matching by account owing minus credit memos. The system will read documents which are shorter. When running the lockbox for a customer in this scenario. then you must “overflow” into a series of consecutive 4 Records. If you define the 6 Record to have zero documents. and the lockbox will not apply the payments to the specified open items. If there are more than 5 documents to be sent for that customer. invoices. or a combination of both. Thus. a batch session will automatically be created with the name you define in this screen. then you should ensure that the incoming lockbox file also has no documents in the 6 Record. then you must click the box for Insert Bank Details and create your own batch session name (ie. Otherwise. If the configuration dictates to the program that each 4 Record will have 5 documents. Of particular importance is the configuration accessed via the following menu path in 4. you can test different scenarios simply by changing dollar payment amounts. you must utilize all 5 document spaces within a 4 Record before overflowing into a new 4 Record. These are just a few of the ones commonly encountered on a client engagement. short payments. matching by aging bucket.

From a G/L perspective. The proposed solution would utilize a reason code for movement of the payment portion that belongs on a different company code. user exit logic must be incorporated to prevent the system from matching a lockbox payment with an open item if the MICR has not enabled the proper identification of the proper customer. a better semi-manual approach is suggested. you will have to have the field definition modified in the table. This function will utilize the company code clearing function and thereby not cause any intercompany problems. as well as the lockbox A/R G/L accounts. account net owing less credits. This indicates that the program should create one posting per lockbox. On the second screen of the G/L master record.0B. Otherwise.If you wish to increase the number of spaces possible for a particular field. if you wish to expand the bank’s ABA number field from 9 to 16 (maximum) spaces. you can limit the number of postings into the Lockbox A/R account by selecting ‘2’ in the G/L postings field. (In the event that a customer is found by MICR. sometimes duplicate reference document numbers will exist in SAP simultaneously. This is because a lockbox in SAP is defined as being specific to a single company code. you will have to perform a table modification. a reason code WLP (Wrong Lockbox Paid) could be created. clear the payment portion against the open item in the first company code. It cannot handle the splitting of payments across company codes during autocash processing. you should click on the box labeled ‘Relevant to cash flow’. a work-around solution must be designed. This will enable the lockbox to post to items across customers on a worklist. and assign the WLP reason code to the incorrectly assigned payment portion (to flag it for cross-company posting). Understanding SAP Lockbox 04/28/12 . While one option may be to attempt to include complex logic in a user exit that uses external table look-up for company code identification. this is now a ‘closed’ item and it will have the status Applied. In the event that payments are received into a lockbox that exists in one company code. This is important because it allows you to ‘close’ the On Account posting that exists in the lockbox bank storage records. Now. net aging buckets. and associate it with the payment residual item that exists in the incorrect company code. As far as the lockbox tracking is concerned. rather than per check. Important Procedural Tips: 1. and duplicate XBLNR values exist. Handling a lockbox payment that the customer intends to use to clear open items on more than one company code. etc. but are intended to pay open items that exist on the same customer in multiple company codes. 2. the system can erroneously apply the cash to the wrong account based upon which open item was created most recently. the cash application clerk can go to the customer’s account. Up through release 4. for example document length. For instance. By using the FLB1 transaction for post-processing. gross aging buckets. you will need to have a special User Exit program written to provide logic for such selection algorithms as account gross owing. the AR clerk must perform the Transfer with Clearing function (F-30) to search the correct company code for the open item to be cleared. account net owing. Dealing with the issue of multiple external reference invoice numbers (BSEG-XBLNR) per company code When dealing with legacy-created documents that are imported into SAP. For handling lockbox files which lack document numbers. you must make a change in the G/L bank account master records. For example. If you want to be able to utilize the Alternate Payer logic within lockbox. Reports may be generated to list all payments that have been received into the wrong company code (by the WLP reason code) and may also be connected to a user-defined SAP Script correspondence that requests that the customer remit separately all payments to their appropriate remit-to address and lockbox. the system will select and clear the appropriate open item). This is particularly valuable for companies who have high-volume lockbox transactions and don’t wish the Lockbox A/R account to become inundated by lots of individual lockbox postings. This will require SAP approval.

review a list of all posted items (up to 45 days in past). SunTrust Bank offers customers an Intranet-accessible (via secure server connection) lockbox activity tracker that is updated every five minutes to show all incoming cash postings to their lockbox account. and viewing remittance information.Valuable Cash Management Services Available from Banks: As of summer 1999. Understanding SAP Lockbox 04/28/12 . and download a current lockbox account extract. a handful of banks now offer an online lockbox status tracking service. Among the few. Such a service can be used for simple cash management tracking functions. This enables customers to view check images. verifying payments. This service will soon be Internet-based.

background job can only access data from the server. date 02/05/03 ID Itm/Batch Check number Customer Amount Deduction amount Understanding SAP Lockbox 04/28/12 . etc. In later steps.46. System Project Manager. such as amount. FLB02. confidential transmission of lockbox data. However. Each payment advice contains important data about an incoming check. Inc. because SAP makes it clear that you would be responsible for transporting your data dictionary changes to future releases. a Reformat Program. Improve Your Lockbox Performance with User Exits. Reformat bank BAI/BAI2 data to SAP format Many SAP clients receive customized formats from their bank. depending on the user selection of the search rule for invoice numbers on the selection screen of the main program. and Customized Reports.1 This program imports the lockbox file from the server (or user’s local drive) As you know. payment date. using a reformat program is the most efficient way to converting bank’s lockbox data to meet SAP BAI/BAI2 standards. which lists matching results for each check and corresponding invoices and payment advice numbers created for the check. according to SAP BAI or BAI2 format.14 Date 02/05/2003 RFEBLB00/LOCKBOXB Page 1 00000203 Destination ABCCOMPANY Origin 0012345678 Lockbox 0000100Pay. greater detail is provided as to how a user I will call ABC Company implemented its lockbox solution for each of the following five steps of the process: 1. and Reports by Qian Sharon Tang. the customized format must be rearranged and mapped to the SAP standard data structures (FLB01-09 and FLB24. An elaborate transmission process was set up to ensure reliable. In this online section. FLB24.. It then reads the data and uses it to create payment advice per check submitted via the lockbox. please refer to the May issue of FI/CO Expert newsletter for examples and ideas. In this case.IVCNR) in the payment advice with either the document number or/and reference document number of the billing document or A/R invoice. invoice number. A report log of imported checks (Figure 1) is generated. a Reformat Program. The author supplements her article on lockbox performance in the May issue of FI/CO Expert with information on implementing the functionality. 3.2 It also calls the program RFEBLB20 to map imported data to standard SAP data structures such as FLB01.2003 May Issue For: "Improve Your Lockbox Performance with User Exits. Receive check data file from the bank via FTP over the Internet. Inc. Applied Materials. 3." by Qian Sharon Tang. Applied Materials. Execute lockbox main program (RFEBLB00) 3. etc. Systems Project Manager. 2. As for reformat program design. 26). You can either write an ABAP program to reformat the custom file or you can modify the data dictionary to match your customizations. the lockbox attempts to match the lockbox invoice number (imported as Invoice number field. ABC Company San Jose Lockbox Log of imported checks Time 13.

or unprocessed.00 Advice total 11.09 3100053635 1400003257 Applied Part.3 RFEBLB20 also triggers a separate job. a check can be applied.00 3100053634 1400003256 4. partially applied. A report named Lockbox Posting Log (Figure 2) is produced at the end of this run.56 0001234570 3. and corresponding G/L and A/R postings. but also uses the payment advices created earlier (in Step 3. This functionality is activated if the option Insert Bank Details is selected in configuration T049B with a batch input session name specified. This job executes program RFEBBU00. (AR) Doc on act 11.36 Date 02/05/2003 RFEBBU00/LOCKBOXB Page 1 00000203 Destination ABCCOMPANY Origin 0012345678 Lockbox: 0000100 Date 02/05/03 ID Check number Customer 128966 1253901 99998 99999 Amount Doc. It carries out what SAP calls ‘area-specific’ postings. This job generates a batch input session that can change customer master records to insert new bank MICR numbers whenever the customer is identified and the corresponding MICR number is new. which provides check number.1 001 128966 99998 CUSTOMER UVW 0001891011 11. A 04/28/12 Understanding SAP Lockbox . Depending on the matching and clearing results. applied Itm/Batch Advice 1 001 1 900 Figure 2 4 Sample (standard) report: lockbox posting log Standard batch input process program RSBDCSUB can be used to automatically process the batch input session created in Step 3.50 0001234571 602.621.316.395. Customer identified via invoice numbers Document found Document found Document found Document found Document found Document not found created." If the configuration in table T049B is set up as such.046.59 0001234568 1.395. 1 900 1253901 99999 Customer XYZ 0001234567 1.4 The main lockbox program RFEBLB00 triggers yet another job.395.00 Payment advice D 0000099998 01478571 Worklist Document found created.2) to clear against open items in accounts receivable that match with the searching criteria in the payment advice. it not only posts G/L transaction reflecting cash receipt. with an approach that can be described as “one stone. 3.00 0001234572 2. This is the point where the lockbox program may fail to carry out clearing of invoices fully.07Advice total 4.09 Payment advice D 0000099999 012953904 Figure 1 Sample standard report: log of imported checks 3.395. posted on account. two birds.09 Check amount 4. RFEBLB00-LOCKBOX. (G/L) Doc. check application status.51 0001234569 298.838. Lbox Bank Details.316.316.46.3 to update customer bank data MICR numbers on the customer master data records.00 Check amount 11. ABC Company San Jose Lockbox: Posting log Time 13.

00 Lockbox Total 17. Job name Lockbox_Main_Job CUST-MICR Lbox bank details RFEBLB00-LOCKBOX Lockbox_statistics_ job Scheduled Released Ready Active Finished Cancelled X X X X X Understanding SAP Lockbox 04/28/12 . see Figure 4).24 Date 02/05/2003 RFEBLBR1/ LOCKBOXB Page 3 Amount 11. Lockbox_statistics_job.00 200. 5 Standard R/3 report Lockbox Totals Report.500. one of which contains a minimum of four steps.000. and the customer hit rate of the checks.0 % Lockbox Day Summary For: 02/05/2003 Applied Partially Applied On Account Unprocessed Lockbox Total Customer Hit Rate: Figure 3 Sample (standard) report: lockbox totals report To fully appreciate the complexity of SAP Lockbox process. the lockbox main program automatically triggers two more jobs of its own. It sheds some light on the overall status of lockbox applications for the day and provides a good reference for the collection department. and reporting on customers that have an MICR number added to their master data.911.36.09 Lockbox number: 0000100 On Account 2. They are job RFEBLB00-LOCKBOX to carry out posting and clearing of the data. how many checks were processed. executing the main lockbox program.36. such as how much cash was collected.00 Statement Time: 13:30:00 Partially Applied 4.09 2. is to provide statistics for a lockbox run. RFEBLBR1 (Figure 3) can be executed to provide useful statistics regarding the amount and percentage of all different application statuses and its success rate for each lockbox that runs for a loading date. In addition to the job (Lockbox_Main_Job) that contains steps for reformatting the data.09 00. processing the session to insert MICR numbers.00 Lockbox number: 0000200 On Account 0.00 Unprocessed 0. You can find the logic of the program in the May 2003 issue of FI/CO Expert newsletter. let’s count how many jobs are processed for its purpose per one lockbox run (for an overview. Lockbox Totals Report Time 16.000. which execute Lockbox Totals Report.00 ABC Company San Jose Lockbox Totals Report Time 16.00 38.09 ABC Company San Jose Lockbox Totals Report Time 16.316.00 Statement Time: 13:30:00 Partially Applied 20.316.395.000.00 Unprocessed 200.0 % Checks 11 2 1 2 16 100.411. and job Lbox bank details to create a batch input session for the MICR number insertion.customized program can be created to report the list of customers and corresponding MICR numbers that have been newly added to the customer master.36.24 Date 02/05/2003 RFEBLBR1/ LOCKBOXB Page 2 Checks 1 1 0 0 2 Lockbox Posting Summary Amount Statement Date: 02/05/2003 Applied 500.00 Lockbox Total 20.24 Date 02/05/2003 RFEBLBR1/ LOCKBOXB Page 1 Checks 10 1 1 2 14 ABC Company San Jose Lockbox Posting Summary Amount Statement Date: 02/05/2003 Applied 11.895. That’s total of five jobs.00 24.

she was a senior FI/CO application consultant at SAP China for about three years. 358959: These notes should be applied if customers make multiple partial payments for one invoice at different lockbox runs. OSS notes 458841. Understanding SAP Lockbox 04/28/12 . 407799.. and 160257: These notes fix a clearing issue that is triggered when a customer is referencing a credit memo. focusing on FI/CO modules with emphasis on FI-GL/AR/AP. OSS note 451121.437490. Prior to this. She also has experience with SD and SM. Without the note applied. ABC Company applied these OSS notes to fix the bugs and have the lockbox program work smoothly: OSS note 105231: The lockbox program can search by either invoice number or reference document number. whenever a check contains some invoices that are partially paid and all other invoices are invalid document numbers. If not applied. it will clear off the first partial payment item and post the total amount of two partial payments to account. The error message makes no sense since there are no foreign currencies involved during the whole billing and clearing process. focusing on the stabilizing and enhancing of various areas of SAP systems and leading SAP development projects. Qian (Sharon) Tang is a system project manager at Applied Materials Inc.accts are not defined for account & currency & appears in the lockbox posting log. OSS note 561171: This note should be applied when customers submit partial payments. SAP provided remedies (OSS notes) for these messages. however. CO-CCA. She has been working with SAP since 1995. Instead. the lockbox program will terminate with the message Error in Routine INPUT_PRUEFEN.Figure 4 List of jobs for a complete lockbox run OSS Messages and Notes During the lockbox implementation. CO-PA. Error message Exchange rate diff. She can be reached at qian_s_tang@yahoo. ABC Company encountered a number of lockbox program bugs and created OSS messages for them. which may inherit the same reference document number from the original invoice.com. if it searches by reference document number and the reference document happens to have a null value document number or is a reversal document. and cross-module integration between FI/CO and logistics. CO-PC. but only takes the credit amount partially. the second partial payment won’t be able to be applied to the original invoice. 391311. It has performance issues.