Lockbox
A bank service that receives a company's customer payments, deposits them and sends back the payment and remittance data for cash application.
With a lockbox, customers mail checks to a post office box managed by the bank, which deposits them and captures images of the checks and remittance documents. Many banks include electronic payments in the same data file.
A lockbox speeds up deposits, but matching still depends on the remittance. If it's missing or doesn't match the invoices, the payment still needs research.
Related terms
- Cash applicationMatching incoming payments to the open invoices they pay and posting them in the ERP, so receivables and cash stay accurate.
- BAI2 fileA standard bank file format that reports account balances and transactions, used to import bank activity for cash application and reconciliation.
- Remittance adviceThe details a customer sends with or alongside a payment, saying which invoices it covers and explaining any deductions.