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SAP IDoc Document Types
SAP IDoc stands for intermediate document and is a standard data structure for electronic
data interchange between application programs written for the popular SAP business system
or between an SAP application and an external program.
Document Type ANSI EDI Document Number SAP IDoc
Invoice or Billing Document 810 INVOIC01
Credit Advice 812 PEXR2001
Debit Advice 812 PEXR2002
Remittance Advice 820 PEXR2001
Evaluated Receipts Settlement
Credit Advice
861 GSVERF01
Lockbox 823 FINSTA01
Benefit Enrollment and Maintenance 834 BENEFIT1
Purchase Order 850 ORDERS01ORDERS02
ORDERS03
ORDERS04
Advanced Shipment Notice 856 SHPMNT01SHPMNT03
ANSI X12 EDI Financial Document TypesThe use of EDI in the financial services industry is sometimes called Financial EDI (FEDI).
FEDI is the electronic transfer of payments, payment-related information or other financial
documents in a standardized, machine-readable format.
Finance
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135 Student Loan Application
139 Student Loan Guarantee Result
144 Student Loan Transfer and Status Verification
155 d Credit Report
156 d Entitlement Payment Recipient Account Inquiry/Response
190 Student Enrollment Verification
191 Student Loan Pre-Claims and Claims
197 d Real Estate Title Evidence
198 d Loan Verification Information
199 d Mortgage Settlement Information
200 Mortgage Credit Report
201 Residential Loan Application
203 Secondary Mortgage Market Investor Report
205 d Mortgage Note
206 d Real Estate Mortgage Inspection Request
207 d Real Estate Mortgage Inspection Result
208 d Income Property Appraisal Report
209 d Condominium Appraisal Report
260 Application for Mortgage Insurance Benefits
261 b Residential Appraisal Request
262 Residential Appraisal Report
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263 Residential Mortgage Insurance Application Response
264 Mortgage Loan Default Status
265 Real Estate Title Insurance Services Order
266 Mortgage Record Change
810 e,* Invoice
811 * Consolidated Service Invoice/Statement
812 * Credit/Debit Adjustment
819 Operating Expense Statement
820 * Payment Order/Remittance Advice
821 Financial Information Reporting
822 Customer Account Analysis
823 Lockbox
824 e,* Application Advice
827 Financial Payment Return Order/Return Notice
828 Debit Authorization
829 Payment Cancellation Request
831 Application Control Totals
833 Mortgage Credit Report Order
844 Product Transfer Account Adjustment
849 Response to Product Transfer Account Adjustment
872 Residential Mortgage Insurance Application
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880 Grocery Products Invoice
Insurance
124 Vehicle Damage
148 Report of Injury, Illness or Incident
186 Laboratory Reporting
253d Data Reporting Requirements
255b Insurance Underwriting Information Services
256d Periodic Annuity Compensation
268d Annuity Account Activity
270 Health Care Eligibility/Benefit Inquiry
271 Health Care Eligibility/Benefit Information
272 Property and Casualty Loss Notification
273b Insurance/Annuity Application Status
275b Patient Information
276 Health Care Claim Status Request
277 Health Care Claim Status Notification
278 Health Care Service Review Information
362 Cargo Insurance Advice of Shipment
834 Benefit Enrollment and Maintenance
835 Health Care Claim Payment/Advice
837 Health Care Claim
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Autocash Lockbox Processing
byjsorseninUncategorized
0
What is a lockbox?
A service offered by banks to companies in which the company receives payments by mail to apost office box and the bank picks up the payments several times a day, deposits them into the
companys account, and notifies the company of the deposit. Data entry clerks at the bank
manually enter the information into an electronic file for transmission to the company to whichthe 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, BAI2, EDI820 and EDI 823.This enables the company to put the money to workas soon as its received.
Why use Lockboxes ?
Lockbox process has several advantages:
Payment information can now be processed automatically manual intervention is not needed
Import Processing can therefore also be handled automatically on a scheduled basis. Payment Reconciliation can be auto scheduled as well via the Greenbill Autocash correction
process.
Reduction of manpower needs based on less hours spent on manually manipulating the data.
The predictability and reliability of the processes outlined above cause an overall reduction of
errors throughout. This means the Cash Application process as a whole can be performed in a
more timely fashion promoting better cash flow to the enterprise. This helps put the AUTO in
Autocash.
BAI Defined:
BAI (or the BAI file format) is a file format for used to facilitate cash management balancereporting. The BAI format was developed and is maintained by the Banking Administration
Institute (BAI). One common application of the BAI format is for use by banks to transmit
lockbox payment data to customers. The current release is Cash Management Balance ReportingSpecifications Version 2, typically referred to asBAI2. A BAI2 file contains both remittance
payment and item detail. It is processed in Greenbill in a similar manner as the merged 823 cash
receipt described below.
http://www.9ci.com/2009/02/autocash-lockbox-processing/http://www.9ci.com/2009/02/autocash-lockbox-processing/http://www.9ci.com/author/jsorsen/http://www.9ci.com/author/jsorsen/http://www.9ci.com/author/jsorsen/http://www.9ci.com/category/uncategorized/http://www.9ci.com/category/uncategorized/http://www.9ci.com/category/uncategorized/http://www.9ci.com/2009/02/autocash-lockbox-processing/#commentshttp://www.9ci.com/2009/02/autocash-lockbox-processing/#commentshttp://www.9ci.com/2009/02/autocash-lockbox-processing/#commentshttp://www.9ci.com/category/uncategorized/http://www.9ci.com/author/jsorsen/http://www.9ci.com/2009/02/autocash-lockbox-processing/7/29/2019 Autocash Lockbox Processing.docx
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BAI VS. BAI2:
The Bai2 format lists each invoice and the specific payment amount for that invoice. The BAIformat only list the invoices that are being payed as a whole. With BAI2 the difference of the
total check amount and the subtotal of amounts based on each invoice can be calculated, thus
allowing the cash to be applied On Account. This facilitates a more accurate cash postingprocess. The BAI format has been rendered obsolete and has been superseded by BAI2.
What is EDI (Electronic Data Interchange?)
The computer-to-computer interchange of strictly formatted messages that represent documents .
EDI implies a sequence of messages between two parties, either of whom may serve asoriginator or recipient. The formatted data representing the documents may be transmitted from
originator to recipient via telecommunications or physically transported on electronic storage
media. In EDI, the usual processing of received messages is by computer only. Human
intervention in the processing of a received message is typically intended only for error
conditions, for quality review, and for special situations. For example, the transmission of binaryor textual data is not EDI as defined here unless the data are treated as one or more data elements
of an EDI message and are not normally intended for human interpretation as part of online dataprocessing.
820
Payment Order/Remittance Advice
To provide information to a seller about the application of a specific payment by a buyer,
including (1) to order a financial institution to make payment to payee (s) on behalf of sending
party, (2) to report the completion of a payment to payee (s) by financial institution, and (3) togive advice to the payee by the payer on the application of a payment, i.e. invoice, check
number, etc. Lockbox
823
Data contents of the Lockbox Transaction Set (823) for use within the context of an ElectronicData Interchange (EDI) environment. The transaction set can be used to transmit lockbox
(incoming payments) information and totals from a bank or any other lockbox service provider toa company.
Contrasts between EDI 820 and ED823:
EDI 820 information comes from customer not the bank. EDI 820 is not really a lockbox formatbut can be used like a lockbox for customer open item processing. This data is only a remittanceadvice not a real legal payment.
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Lockbox format 823 comes from bank confirming real legal payment transactions received from
customer. This is real payment information which got credited in business account at Lockbox
/Bank. Other differences are:
1. EDI 823 since its coming from a bank will have payments for all bank customers that have your
company as a vendor. Since EDI 820 comes from the customer directly only his transactions arecontained
2. EDI 823 doesnt contain the remittance advice line item data. The 823 data is Payment(Check)
data only.
3. Note that the 823 specifies the actual payment whereas the 820 is the advice of the payment. In
Greenbill the invoice detail from the 820 is merged to the 823 and supplies the complete
remittance detail. The merged cash receipt is then available for import into Greenbill for cash
application against the Accounts Receivable.
BAI vs. EDI in Lockbox:
Both the formats are acceptable and can be used in Greenbill for processing auto import.
EDI(820,823) technology requires the use of an EDI translator program. It creates intermediate
document holding the information for further process. On the other side BAI format doesntrequire this.
Some additional advantages of EDI are:
Data is more accurate from an A/R open item perspective since the 820 comes directly from the
customer.
820 Remittance detail data is cleaner than BAI. The remittance detail is piped directly from the
A/R system of the customer and keying mistakes made at the bank with BAI are therefore
avoided.
Understanding Lockbox
Submitted by Chandra Wipro
Objective of this document is to explain the meaning, purpose, advantages and disadvantages of the lockbox.This document also explains various types of formats that can be used to process the lockbox data.
What is a lockbox?
A company can create accounts called lockbox accounts at its bank (or banks) that act as payment collectionaccounts for customer payments. The company then informs their customers that all open item payments fortheir accounts must be submitted to one of the established bank lockbox accounts. The bank collects thesepayments along with the customers remittance information that indicates what open items the customerpayments intend to clear. Data entry clerks at the bank manually enter the information into an electronic file for
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transmission to the company to which the lockbox account belongs. These files are typically transferred nightlyto the various lockbox owners (companies). The files adhere to one of two standard banking industrytransmission formats: BAI, BAI2, EDI820 and EDI 823.
Advantages of Lockbox:
Lockbox process has several advantages. Some of them can be illustrated as under.
Avoid Manual handling of checks
Timely processing of Checks
Easy reconciliation
Reduction of manpower cost
Avoid clearing Errors
What is BAI?
The standards for lockbox transmission files are defined by the Bank Administration Institute (BAI). Founded in1924, the BAI organization is a partnership composed of its own BAI membership, a Board of Directors, variousbanking industry advisory groups and a professional staff. The organizational mission is to help bankadministrators achieve high levels of professional effectiveness and to help solve significant bankingproblems. Activities include the definition of industry file formats, such as lockbox transmissions. BAI andBAI2 are the two defined lockbox transmission formats, however, BAI is considered outdated by the BAIorganization and is no longer supported (ie. standards are no longer updated or improved). Nonetheless, manybanks still offer transmissions in the old BAI format.
BAI vs. BAI2?
BAI and BAI2 formats differ in their level of information detail. BAI does not separate out the incoming checkline items by invoice subtotal reference. Instead, one check total amount simply has all invoices listedunderneath 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 enterinto SAP as:
an On account posting (if the payment and invoice totals dont match), or
An Unprocessed posting (if no customer account and documents could be identified from thetransmission).
In these scenarios, your Accounts Receivable cash application clerks will have to perform manual application toclear payments against open items on the proper accounts.
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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 identifiablepayments within the check total will be matched and cleared, others will land on account. As a result, your hitrate percentage of payment-invoice matching from each transmission is likely to be higher when using BAI2rather than BAI formats.
Electronic Data Interchange:
Network transfer of structured electronic data from one computer application to another using standardmessage formats. EDI is described as the interchange of structured data according to agreed messagestandards between computer systems by electronic means. This standard format is nothing but a Set of rules,agreed upon, accepted, and voluntarily adhered to, by which data is structured into message formats for
exchange of business and operational information. Lockbox related formats are Edi 820 and 823.
EDI 820:
The 820 Payment Order/Remittance Advice transactions can be used to make a payment, send a remittanceadvice, or make a payment and send a remittance advice. The 820 transaction can be an order to a financialinstitution to make a payment to a payee. It can also be a remittance advice identifying the detail needed to
perform cash application to the payees accounts receivable system. T he remittance advice can go directlyfrom payer to payee, through a financial institution, or through a third party agent.
EDI 823
The 823 Lockbox formats are sent by bank as confirmation of payments received from customers of lockboxowner. EDI 823 format contains information like Bank details of lockbox service provider, total quantity ofchecks in each format transmission, total amount involved in total checks, number of batch involved ( batchrepresents maximum quantity of checks in each lot). Further break up like, customer name, customer bankrouting number, customer bank account number, check number and amount, number of invoices paid, amount
per invoice, discounts for each invoice, deductions if any involved and credit memos etc.
Information available in these formats are generally used for clearing customer open items in SAP depends
upon the business requirement. Following EDI configuration is required to read the data from correspondingformat and process customer open items.
Format Idoc type Message type Process code
EDI 820 Pexer2002 REMADV REMA
EDI 823 FINSTA01 LOCKBOX LBX
Continued..
Understanding Lockbox
..Previous
http://www.sapfunctional.com/FI/LockBox/Page2.htmhttp://www.sapfunctional.com/FI/LockBox/Page2.htmhttp://www.sapfunctional.com/FI/LockBox/Page1.htmhttp://www.sapfunctional.com/FI/LockBox/Page1.htmhttp://www.sapfunctional.com/FI/LockBox/Page1.htmhttp://www.sapfunctional.com/FI/LockBox/Page2.htm7/29/2019 Autocash Lockbox Processing.docx
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Difference between EDI 820 and 823:
In general EDI 820 formats will be used to send information to Vendor furnishing details of payment for hissupplies. From business standpoint, EDI 820 information comes from customer as the business is vendor to itscustomer. In fact EDI 820 is not a lockbox format but can be used in place of lockbox for customer open itemprocessing. This information however is not a real payment but only a remittance advice.
Where as lockbox format is an exclusive format that comes from bank confirming the payments received fromcustomer. This is real payment information which got credited in business account at Lockbox /Bank. Besidesthis basic difference between these two formats some other differences can be summarized as under.
1. EDI 820 will have one to one information. Each customer will send remittance information to thebusiness. EDI 823 format will have several customer information in one format.
2. Customer can not use EDI 823 format where as Bank can use EDI 820 format.3. EDI 820 is only an advice but 823 is a payment.
4. Technical settings viz., Partner profiles, Basic type, Message type, function modules used in SAP aredifferent between these two.5. Level of information will be different. EDI 823 will have Total number of checks involved, total payment
amount involved, break up of checks and amount per batch, per customer etc will not be available incase of EDI 820.
BAI vs. EDI in Lockbox:
Both the formats are acceptable and can be used in SAP for processing customer open items. However theearlier one is (BAI) is file based and the later format is (EDI) is idoc based. File based is batch mode and EDI isreal time information. BAI can not be made as real time process but EDI can be made as batch process.
EDI technology requires mapping tool. It creates intermediate document holding the information for further
process. On the other side BAI format doesnt require this.
As far as processing and of clearing customer open items in SAP is concerned, whether the format is BAI orEDI system will follow same transactions. FB01 > FBE1 > FB05. In either of the case if information is notsufficient to clear open items, it is available for manual process.
Some additional advantages of EDI are:
Data Accuracy
Reduce Technical Complexity.
Lowe Personnel needs.
Accelerates information exchange.
Avoid Data Entry Errors.
Lockbox Process - Data file to SAP open item clearing
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What Bank will do?
Bank Receives the payments, create a data file of the customerremittance information and payment amounts, and deposit the
checks into client bank account. On regular basis, Client companyreceives this data file for processing to update in their accounts.
What lockbox data filecontain?
Depending upon the choice of services with the Bank, the lock boxfile will contain information viz., Customer name, Customer
Number, Customer MICR number ( Bank routing and AccountNumber), Check amount, Invoice number, Payment date, Payment
amounts and other information.
Lockbox Data Flow
As shown in the following picture, customers send their paymentsto a lockbox. Then bank collects the data and sends (either through
EDI 820 and 823 formats) to R/3 users EDI server (standard
Process). The server translates the message using as standardEDI interface into an IDOC (Intermediary documents) and sends itto the SAP Server.
What happens in SAP server
Once the message is received and stored in SAP table, a programis clicked (RFEBLB30 or FLBP transaction) to check the
information stored in bank statement tables and create paymentadvices with Payment amount, invoice numbers and customer
number.
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Matching of customeropen items
The lockbox program uses detailed information from the payment advice toautomatically search and match customer open items. The document
number on the payment advice is matched against the document number inthe customer open item file. Therefore, accurate payment data is necessary
for automatic clearing to take place.
Payment Advice
Status
If the checks were applied or partially applied, the advice is deleted from
the system after processing. If the check was unprocessed or placed onaccount of customer, the advice is kept on file for further processing.
Post Processing
The post process function entails reviewing the status of the checks appliedthrough the lock box function. User must manually clear any checks that
were on-account of customer or not applied to customer account.
The Lockbox overview screen details the number of checks in eachcategory. Depending on the status of the check, the user determines what
needs to occur to apply checks.
On account: If the bank keyed in the correct invoice number, the LockboxImport Program posts the payment on account. In the post processingstep, you access the payment advice and correct the document number
and upon saving the changes, the post process function clears the openitem, deletes the payment advice and sets the check status to applied.
Partially Applied: Checks that are partially applied may require furtherprocessing. Ex: Check may have paid 5 invoices, but one was in correctlykeyed. The first 4 invoices would clear. The payment amount for the 5th
invoice would be put on-account and would have to be post processed toclear.
Unprocessed: Any payment that could not be identified either by customerMICR number (check) or the document number would remain
Unprocessed. Once the payment is researched and the customer andinvoice is identified, it would be applied during post processing.
What configurationneeds to be done?
Control Parameters: It determines the import format BAI, BAI2 & ANSI andthe types of postings generated by the lockbox program. These control
parameters are needed for importing lockbox file sent by bank.
Posting Data: Company code, Bank Information, G/L accounts for postingand clearing, document types and Posting keys.
RFEBLB30 or FLBPtransaction
Lock Box data, Processing parameters (Procedure & Algorithm) Accountassignment (Profit center), output control and Mode of call transaction.
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70 people here. 17 are sap. Rest are business and senior management. They have contracts
management team (Implemented Revitas).
They have SD, MM FI (No Costing as yet)
ECC 6.0 EHP 7.
1st
April = Deeksha project goes live.
Devised a report based on VA05. Whereas they input a column in the open orders report where they
show the actual available stock.
In general EDI 820 formats will be used to send information to Vendorfurnishing details of payment for his supplies. From business standpoint, EDI
820 information comes from customer as the business is vendor to its
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customer. In fact EDI 820 is not a lockbox format but can be used in place of
lockbox for customer open item processing. This information however is nota real payment but only a remittance advice.
Where as lockbox format is an exclusive format that comes from bank
confirming the payments received from customer. This is real paymentinformation which got credited in business account at Lockbox /Bank.
Besides this basic difference between these two formats some otherdifferences can be summarized as under.
1. EDI 820 will have one to one information. Each customer will sendremittance information to the business. EDI 823 format will have
several customer information in one format.2. Customer can not use EDI 823 format where as Bank can use EDI 820
format.3. EDI 820 is only an advice but 823 is a payment.4. Technical settings viz., Partner profiles, Basic type, Message type,
function modules used in SAP are different between these two.
5. Level of information will be different. EDI 823 will have Total numberof checks involved, total payment amount involved, break up of checks
and amount per batch, per customer etc will not be available in case ofEDI 820.
BAI vs. EDI in Lockbox:
Both the formats are acceptable and can be used in SAP for processing
customer open items. However the earlier one is (BAI) is file based and thelater format is (EDI) is idoc based. File based is batch mode and EDI is realtime information. BAI can not be made as real time process but EDI can be
made as batch process.
EDI technology requires mapping tool. It creates intermediate document
holding the information for further process. On the other side BAI formatdoesnt require this.
As far as processing and of clearing customer open items in SAP is
concerned, whether the format is BAI or EDI system will follow same
transactions. FB01 > FBE1 > FB05. In either of the case if information is notsufficient to clear open items, it is available for manual process.
Some additional advantages of EDI are:
Data Accuracy
Reduce Technical Complexity.
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Lowe Personnel needs.
Accelerates information exchange.
Avoid Data Entry Errors.
Lockbox Process - Data file to SAP open item clearing
What Bank will do?
Bank Receives the payments, create a datafile of the customer remittance information
and payment amounts, and deposit the checksinto client bank account. On regular basis,
Client company receives this data file forprocessing to update in their accounts.
What lockbox datafile contain?
Depending upon the choice of services with
the Bank, the lock box file will containinformation viz., Customer name, Customer
Number, Customer MICR number ( Bankrouting and Account Number), Check amount,
Invoice number, Payment date, Paymentamounts and other information.
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Lockbox Data Flow
As shown in the following picture, customers
send their payments to a lockbox. Then bankcollects the data and sends (either through
EDI 820 and 823 formats) to R/3 users EDIserver (standard Process). The server
translates the message using as standard EDIinterface into an IDOC (Intermediary
documents) and sends it to the SAP Server.
What happens in
SAP server
Once the message is received and stored in
SAP table, a program is clicked (RFEBLB30 orFLBP transaction) to check the information
stored in bank statement tables and create
payment advices with Payment amount,invoice numbers and customer number.
300 charge back documents.
McKesson is the largest transporter of 824.
No credit card
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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, BAI2, EDI820 and EDI 823.
Advantages of Lockbox: Lockbox process has several advantages. Some of them can be
illustrated as under.
Avoid Manual handling of checks
Timely processing of Checks
Easy reconciliation
Reduction of manpower cost
Avoid clearing Errors
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 bankingproblems. 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.
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BAI vs. BAI2?
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:
an On account posting (if the payment and invoice totals dont match), or AnUnprocessed 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.
Electronic Data Interchange:
Network transfer of structured electronic data from one computer application to another
using standard message formats. EDI is described as the interchange of structured data
according to agreed message standards between computer systems by electronic
means. This standard format is nothing but a Set of rules, agreed upon, accepted, and
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voluntarily adhered to, by which data is structured into message formats for exchange
of business and operational information. Lockbox related formats are Edi 820 and 823.
EDI 820:
The 820 Payment Order/Remittance Advice transactions can be used to make a
payment, send a remittance advice, or make a payment and send a remittance advice.
The 820 transaction can be an order to a financial institution to make a payment to a
payee. It can also be a remittance advice identifying the detail needed to perform cash
application to the payees accounts receivable system. The remittance advice can go
directly from payer to payee, through a financial institution, or through a third partyagent.
EDI 823:
The 823 Lockbox formats are sent by bank as confirmation of payments received from
customers of lockbox owner. EDI 823 format contains information like Bank details of
lockbox service provider, total quantity of checks in each format transmission, total
amount involved in total checks, number of batch involved ( batch represents maximum
quantity of checks in each lot). Further break up like, customer name, customer bank
routing number, customer bank account number, check number and amount, number
of invoices paid, amount per invoice, discounts for each invoice, deductions if any
involved and credit memos etc.
Difference between EDI 820 and 823:
In general EDI 820 formats will be used to send information to Vendor furnishing
details of payment for his supplies. From business standpoint, EDI 820 information
comes from customer as the business is vendor to its customer. In fact EDI 820 is not a
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lockbox format but can be used in place of lockbox for customer open item processing.
This information however is not a real payment but only a remittance advice.
Where as lockbox format is an exclusive format that comes from bank confirming the
payments received from customer. This is real payment information which got credited
in business account at Lockbox /Bank. Besides this basic difference between these two
formats some other differences can be summarized as under.
EDI 820 will have one to one information. Each customer will send remittance
information to the business. EDI 823 format will have several customer information in
one format. Customer can not use EDI 823 format where as Bank can use EDI 820
format. EDI 820 is only an advice but 823 is a payment. Technical settings viz., Partnerprofiles, Basic type, Message type, function modules used in SAP are different between
these two. Level of information will be different. EDI 823 will have Total number of
checks involved, total payment amount involved, break up of checks and amount per
batch, per customer etc will not be available in case of EDI 820.
BAI vs. EDI in Lockbox:
Both the formats are acceptable and can be used in SAP for processing customer open
items. However the earlier one is (BAI) is file based and the later format is (EDI) is idoc
based. File based is batch mode and EDI is real time information. BAI can not be made
as real time process but EDI can be made as batch process.
EDI technology requires mapping tool. It creates intermediate document holding the
information for further process. On the other side BAI format doesnt require this.
As far as processing and of clearing customer open items in SAP is concerned, whether
the format is BAI or EDI system will follow same transactions. FB01 > FBE1 > FB05. In
either of the case if information is not sufficient to clear open items, it is available for
manual process. Some additional advantages of EDI are:
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Data Accuracy
Reduce Technical Complexity.
Lower Personnel needs.
Accelerates information exchange. Avoid Data Entry Errors.
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