Lockbox Reconciliation Extension

Client Industry – Applicable to all clients implementing/ implemented AR Auto Lockbox

Business Case – Client wants to be able to handle lockbox reconciliation advance cash receipts and receipt matching in EBS by reading from the receipt lines present in the electronic version of the bank statements received from the bank. Client needs an automated way to match the detailed lockbox receipts in the Oracle A/R module to the summary level deposit information processed through the BAI2 file in the Oracle Cash Management module

Solution – A custom auto lockbox reconcile extension was developed which will match the detailed lockbox receipts in the Oracle A/R module to the summary level deposit information processed through the BAI2 file in the Oracle Cash Management module. The Cash Management module matches the receipt transaction in the A/R module to the BAI2 bank statement file and creates an appropriate accounting entry in General Ledger when the amounts are different.

An additional custom form developed will store all the accounting reference into the GL Account code column for discount, charge back, bank charges item types for both lockbox and credit / debit card settlements. The Custom Lockbox Reconciliation program will derive the account and create an accounting entry in General Ledger to reconcile the receipt.

Detailed Approach - When BAI2 files are received from the Bank they are processed in the Cash Management module. The Custom Lockbox Reconciliation will match the sum of all the receipt amount for the AR receipts batch in (AR_Cash_Receipts) with the net amount received in the Bank.

On a daily basis, the lockbox reconciliation extension will process and check the bank statement transaction details and match based on the unique identifiers with receipts in Receivables, it will create an accounting in GL for difference amount of receipt from bank deposit and accounting entries for any charge.