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Dynamics functional consultants and developers at AXPulse Consulting have been successfully able to innovate an existing solution, AXPulse Lockbox Services, to support BAI & BAI2 file format. Accordingly the BAI/BAI2 file format forwarded by a lockbox service provider can directly be extracted within Accounts receivable module and relevant information will automatically fill a payment journal at lines level.

Let me begin by giving an introduction to lockbox services…

INTRODUCTION

Lockbox Services can be classified as a financial management tool, whereby the service provider (financial agent) is responsible for; collecting mail from a specified P.O. Box on behalf of the company, extracting & sequentially arranging the contents, recording a copy of the receipts for future references, and finally depositing the financial instrument into the outsourcing company’s bank account. The outsourcing company receives the account summary either as a hard copy or via electronic format.

PROCESS FLOW

 

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The above shown process can be broken down into the following steps:

  • The Lockbox Service Provider appoints a post office box for your customers. All payments from the customers will be forwarded to this particular post office box.
  • The Lockbox Service Provider will process your mail, arrange and deposit the receipts into the company’s bank account.
  • The Lockbox Service Provider will now update the company’s collections department by sending a file of the processed receipts.
  • The customer control account and the accounts receivable balance is updated at this point by the collections department.

 

TYPES OF LOCKBOX

  • Wholesale Lockbox is recommended for companies with low volume transactions of large dollar receivables.
  • Retail Lockbox is recommended for companies with larger volume of transactions with small dollar receivables.

 

BENEFITS OF LOCKBOX

  • Decrease accounts receivable days
  • Maintain a healthy cash operating cycle
  • Optimize treasury management
  • Segregation of duties to avoid fraud
  • Third party records for better audit trail
  • Improve liquidity of the company
  • Strengthen company’s image
  • Provide flexibility to customers

 

HOW AXPULSE LOCKBOX SERVICES CAN HELP?

AXPulse Lockbox Service application can assist users by decoding the electronic file format, as sent by the Lockbox Service Provider, and process it in Microsoft Dynamics 365/AX2012. Previously the solution was only able to import transaction details through csv file format. The current upgrade will enable users to broaden the scope of the solution, as now BAI and BAI2 file formats will also be able to get extracted into Dynamics 365/AX2012.

BAI vs BAI22

BAI/BAI2 formats include the above explained information encoded within the file sent by the lockbox service provider. The solution developed is able to decode the relevant details required to fill in transaction attributes at the accounts receivable payment journal line level.

The application can be configured using the following steps:

STEP 1: SETUP METHODS OF PAYMENT IN ACCOUNTS RECEIVABLE MODULE

STEP 2: PROCESS PAYMENT JOURNAL

STEP 3: VERIFY RECEIPTS THROUGH THE CUSTOMER LIST PAGE

 

CONCLUSION

This application is useful for converting the electronic file format sent by the Lockbox Service Provider into Microsoft Dynamics 365/AX 2012 readable format. The customer account balance is readily updated with the feature of showing any outstanding balances against any specified invoice.

 

 

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