Apply Cash Payments

Run SAP Lockbox Program to Apply Cash

All cash is received by the MIT Cashier's Office and processed through its system. Within the Cashier's Office system, a file is developed daily of all cash (both debits and credits) processed and deposited that day. This file is spooled to the CAO Control Section. Payments received, which the Cashier's Office cannot identify with a customer or account, are posted to G/L Account 201100 - Unidentified Cash Receipts.

At a prescheduled time each day, the CAO Control Section will check for the existence of a Cashier's Office cash file and will execute the SAP Lockbox program. The Lockbox program automates the application of cash.

The Lockbox program will split the file in two. It will place all A/R cash transactions into G/L Account 101221 - A/R Cash Clearing, and all non-A/R cash into G/L Account 900030 - Cashier's Office System Feed, and will subsequently clear all transactions by means of Journal Vouchers. A/R payments will be posted to individual customers, which will simultaneously update account 101200 - A/R General. Petty cash and other cash and expenses will be posted to individual internal orders/cost centers/projects as identified in the Cashier's Office file.

If, for any reason, the Lockbox program should fail in attempting to post a particular transaction, the transaction will post to internal order 1069700 - Unidentified Cash Receipts. A/R personnel will research these transactions and manually execute a journal voucher to transfer the charge/credit to the appropriate internal order, cost center or project.

The Lockbox program will also generate a series of reports including a printout of the entire run and an error report that can be used to clear failed postings (see FLB1 - Apply Unprocessed Cash from Lockbox).