Customer Lock Box Setup overview

You can use lock boxes to receive payments from customers without manually depositing payments with the bank. A lock box is a post office box owned and maintained by the bank. The lock box is usually located at a post office close to the bank. Your customers send payments to your company at P.O. Box XXX, which is the lock box address. If the bank is large enough to have its own postal code, the bank assigns the P.O. Box number to you. The U.S. Postal Service delivers your customers’ payments directly to the bank.

Lock boxes provide a faster method of depositing and clearing payments. Deposits are made at your bank the day the payment is received. If your lock box is located at a bank that is part of the Federal Reserve System, checks clear the Federal Reserve Bank that evening. Funds are available earlier than they would normally be available. Lock boxes are also advantageous if the amount of daily checks received is more than can be handled internally in a day’s time.

You can create Customer Lock Box Setup records automatically whenever you run the Customer Entry Lockbox Import Report. The import matches the customer’s number to its matching record in Customer Setup and automatically creates a Customer Lock Box Setup record. The bank routing number and the customer’s checking account number is combined to create a lock box number. You must select Yes for the Create ARSL Records option in Customer Lock Box Setup Import Report to automatically create lock box records.