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COPYRIGHT 2004 National Association of Credit Management
In today's world, many types of payments can be received from multiple sources and need to be posted to the end client's account as quickly and accurately as possible. The question is: How is this accomplished?
A good place to start is with the size and/or industry of your customer (i.e., retailer, small to large corporate, etc.).
To simplify our review, let's assume that all payments are received through a lockbox--either paper, electronic or a combination of both. Very often, lockboxes that are housed internally to a company function much the same way as an outsourced lockbox--especially if the company has invested in the right technology and processes. Posting to the accounts receivable system can occur from lockbox posting files or from the internal process, with all deposit information coming from the bank.
Paper Payments
Consumer-to-Business
The first step in automated posting begins with the biller. Bills usually include a coupon to be returned with the payment. (This coupon and the envelope must meet specific lockbox equipment requirements). In retail, the bill is often of consistent size and look, and should contain a scanable Optical Character Recognition (OCR) line. This allows for the equipment to read and process payments, with little or no manual intervention.
Upon receipt, the lockbox processes the payment in an automated fashion; envelopes may be discarded while the transit routing number and account number (MICR information) on the bottom of the check is captured and OCR information is read. If the check amount and the coupon...
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