A/R Lockbox Payments

A lockbox is a service provided by a bank, where the bank receives, processes, and deposits all of company’s incoming checks. Follett processes lockbox payments through PNC Bank for all U.S. bookstores. The lockbox process is a Follet-preferred method that should be used by customers to pay for outstanding accounts receivable balances.

Benefits

Lockbox payment is a streamlined method to provide faster and more efficient check clearing. The bank is responsible for collecting the checks from the local post office box and processing the lockbox payments to ensure funds are available to the home office within 24 hours or less.

Lockbox Payment Process in CARRR

When the account contact/customer's entity mails a payment to the lockbox, the PNC Bank deposits the check(s) and forwards a detailed payment file to the home office. The payments appear in CARRR as unapplied payments.

Use the Apply Account Payments procedure to apply lockbox payments to accounts.

A school, third-party vendor or customer mails a payment to the lockbox.

The PNC Bank deposits the check/s and forwards a detailed payment file to the home office. The payments appear in CARRR as unapplied payments.

Use the Apply Account Payments procedure to apply lockbox payments to accounts.

Invalid Major Account for Lockbox Payment

An invalid major account for a lockbox payment displays as 777777777 in the Major Number field. This happens when the vendor does not include the major account number on the check.

To apply the payment, change the major account number for this payment to its correct major account. Use the Split Major or Correct Major Payment Adjustment to apply the payment to the correct major account. See the Split Major or Correct Major for specific instructions.