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 Invoice or Billing Document Credit Advice Debit Advice Remittance Advice Evaluated Receipts Settlement Credit Advice Lockbox ANSI EDI Document Number 810 812 812 820 861 SAP IDoc INVOIC01 PEXR2001 PEXR2002 PEXR2001 GSVERF01

823

FINSTA01 BENEFIT1 ORDERS01ORDERS02 ORDERS03 ORDERS04

Benefit Enrollment and Maintenance 834 Purchase Order 850

Advanced Shipment Notice

856

SHPMNT01SHPMNT03

ANSI X12 EDI Financial Document Types

The 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

135 139 144 155 d 156 d 190 191 197 d 198 d 199 d 200 201 203 205 d 206 d 207 d 208 d 209 d 260 261 b 262

Student Loan Application Student Loan Guarantee Result Student Loan Transfer and Status Verification Credit Report Entitlement Payment Recipient Account Inquiry/Response Student Enrollment Verification Student Loan Pre-Claims and Claims Real Estate Title Evidence Loan Verification Information Mortgage Settlement Information Mortgage Credit Report Residential Loan Application Secondary Mortgage Market Investor Report Mortgage Note Real Estate Mortgage Inspection Request Real Estate Mortgage Inspection Result Income Property Appraisal Report Condominium Appraisal Report Application for Mortgage Insurance Benefits Residential Appraisal Request Residential Appraisal Report

263 264 265 266 810 e,* 811 * 812 * 819 820 * 821 822 823 824 e,* 827 828 829 831 833 844 849 872

Residential Mortgage Insurance Application Response Mortgage Loan Default Status Real Estate Title Insurance Services Order Mortgage Record Change Invoice Consolidated Service Invoice/Statement Credit/Debit Adjustment Operating Expense Statement Payment Order/Remittance Advice Financial Information Reporting Customer Account Analysis Lockbox Application Advice Financial Payment Return Order/Return Notice Debit Authorization Payment Cancellation Request Application Control Totals Mortgage Credit Report Order Product Transfer Account Adjustment Response to Product Transfer Account Adjustment Residential Mortgage Insurance Application

880 Insurance 124 148 186 253d 255b 256d 268d 270 271 272 273b 275b 276 277 278 362 834 835 837

Grocery Products Invoice

Vehicle Damage Report of Injury, Illness or Incident Laboratory Reporting Data Reporting Requirements Insurance Underwriting Information Services Periodic Annuity Compensation Annuity Account Activity Health Care Eligibility/Benefit Inquiry Health Care Eligibility/Benefit Information Property and Casualty Loss Notification Insurance/Annuity Application Status Patient Information Health Care Claim Status Request Health Care Claim Status Notification Health Care Service Review Information Cargo Insurance Advice of Shipment Benefit Enrollment and Maintenance Health Care Claim Payment/Advice Health Care Claim

Autocash Lockbox Processing

by jsorsen in Uncategorized
0 What is a lockbox?

A service offered by banks to companies in which the company receives payments by mail to a post 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 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.This enables the company to put the money to work as 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 balance reporting. 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 Reporting Specifications Version 2, typically referred to as BAI2. 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.

BAI VS. BAI2:

The Bai2 format lists each invoice and the specific payment amount for that invoice. The BAI format 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 posting process. 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 as originator 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 binary or 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 data processing.
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) to give 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 Electronic Data 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 to a company.
Contrasts between EDI 820 and ED823:

EDI 820 information comes from customer not the bank. EDI 820 is not really a lockbox format but can be used like a lockbox for customer open item processing. This data is only a remittance advice not a real legal payment.

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 are contained 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 doesnt require 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 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 banking problems. 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. 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 An Unprocessed 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 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. T he remittance advice can go directly from 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 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. 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 corresponding format 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

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 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. 1. 2. 3. 4. 5. 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., Partner profiles, 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:

Data Accuracy Reduce Technical Complexity. 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 data file of the customer remittance information and payment amounts, and deposit the checks into client bank account. On regular basis, Client company receives this data file for processing to update in their accounts.

What lockbox data file contain?

Depending upon the choice of services with the Bank, the lock box file will contain information viz., Customer name, Customer Number, Customer MICR number ( Bank routing and Account Number), Check amount, Invoice number, Payment date, Payment amounts and other information. As shown in the following picture, customers send their payments to 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 standard EDI interface into an IDOC (Intermediary documents) and sends it to the SAP Server. Once the message is received and stored in SAP table, a program is clicked (RFEBLB30 or FLBP transaction) to check the information stored in bank statement tables and create payment advices with Payment amount, invoice numbers and customer number.

Lockbox Data Flow

What happens in SAP server

Continued..

Payment advice Processing

Matching of customer open items

The lockbox program uses detailed information from the payment advice to automatically search and match customer open items. The document number on the payment advice is matched against the document number in the customer open item file. Therefore, accurate payment data is necessary for automatic clearing to take place. If the checks were applied or partially applied, the advice is deleted from the system after processing. If the check was unprocessed or placed on account of customer, the advice is kept on file for further processing. The post process function entails reviewing the status of the checks applied through 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 each category. 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 Lockbox Import Program posts the payment on account. In the post processing step, you access the payment advice and correct the document number and upon saving the changes, the post process function clears the open item, deletes the payment advice and sets the check status to applied. Partially Applied: Checks that are partially applied may require further processing. Ex: Check may have paid 5 invoices, but one was in correctly keyed. 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 to clear. Unprocessed: Any payment that could not be identified either by customer MICR number (check) or the document number would remain Unprocessed. Once the payment is researched and the customer and invoice is identified, it would be applied during post processing.

Payment Advice Status

Post Processing

What configuration needs to be done?

Control Parameters: It determines the import format BAI, BAI2 & ANSI and the 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 posting and clearing, document types and Posting keys.

RFEBLB30 or FLBP transaction

Lock Box data, Processing parameters (Procedure & Algorithm) Account assignment (Profit center), output control and Mode of call transaction.

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 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 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. 1. 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. 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 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:

Data Accuracy Reduce Technical Complexity.

Lowe Personnel needs. Accelerates information exchange. Avoid Data Entry Errors.

Lockbox Process - Data file to SAP open item clearing

What Bank will do?

What lockbox data file contain?

Bank Receives the payments, create a data file of the customer remittance information and payment amounts, and deposit the checks into client bank account. On regular basis, Client company receives this data file for processing to update in their accounts. Depending upon the choice of services with the Bank, the lock box file will contain information viz., Customer name, Customer Number, Customer MICR number ( Bank routing and Account Number), Check amount, Invoice number, Payment date, Payment amounts and other information.

Lockbox Data Flow

What happens in SAP server

As shown in the following picture, customers send their payments to 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 standard EDI interface into an IDOC (Intermediary documents) and sends it to the SAP Server. Once the message is received and stored in SAP table, a program is clicked (RFEBLB30 or FLBP 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

Net 60 / 90 no special installment terms, No Rebates. What about discounts - customers take discounts those are accounted for separate journal entries. Those are problems in AR. No taxes are in place. Issue with the 2% payment discount has been fixed.

1 company code 2 divisions 2 distribution channel

No workflow.

DM01001 (001 ending in this is the sold to party) sap partner function. No

Issue needs discussed in detail cannot separate payment terms for same sold to 3 banks Citibank / JP Morgan Chase Biplam Majumdar Bank Reconciliation New GL Functionality (was an upgrade from version 4.7)

What is a lockbox?

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 banking problems. 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.

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 An Unprocessed 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

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 party agent.

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

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., Partner profiles, 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:

 Data Accuracy Reduce Technical Complexity. Lower Personnel needs. Accelerates information exchange. Avoid Data Entry Errors.