Lockbox Processing with Dynamics GP

Video Demo: Lockbox Processing with Dynamics GP

Looking for new software? Check it out, Dynamics GP 2015 Trials Free Small Business Accounting Software Demo »


Dynamics GP includes functionality to automatically create cash receipts transactions in GP based on information from your bank.

There is a simple configurator that allows you to match your bank’s file format to Dynamics GP. The required information is pretty basic:

  • Check number
  • Check amount
  • Invoice number
  • Invoice amount being paid
  • Some way to identify the customer

There are different levels of accuracy you can specify as GP attempts to match the payments to existing invoices in accounts receivable. This is referred to as the, “Lockbox Apply Method”.

The standard documentation for this, follows:

None – No payments will be applied until you apply them manually.

Document Number – Payment first are applied to the document with the lowest document number, regardless of the document type.

Invoice Number – Payments first are applied to all invoices, starting with the lowest document number. Payments then are applied to documents in the following document type order, lowest document number first: debit memos, finance charges, and services/repairs.

Due Date/Oldest Document – Payments first are applied to the document with the oldest due dates. If more than one document has the same due date, payments first are applied to the document with the lowest document number.

Due Date/Oldest Invoice – Payments first are applied to invoices, starting with the oldest due date. Payments then are applied to documents in the following document type order, oldest due date first: debit memos, finance charges, and services/repairs. If more than one document has the same due date, payments first are applied to the document with the lowest document number.

Document Date – Payments first are applied to documents with the oldest document date. If more than one document has the same document date, payments first are applied to the document with the lowest document number.

Specific Invoices – Payments are applied only to the invoice you specify. When you select this method as the apply method, the alternate apply method you select will be used if any payments are left to be applied when the invoice you specified has been paid in full.

Once you have the configuration built, it’s an easy matter to process the lockbox file and create cash receipts transactions.

Go to the Lockbox Entry transaction screen, enter a batch ID, and click on, “Transactions”.

GP will read the file and attempt to match the bank information with existing open invoices in GP. If you encounter errors, you can manage them within the Lockbox Transactions screen. Once you’re satisfied with the results you can click on the, “Create Batch” button and cash receipts transactions will be created for you in the batch you previously identified.

It’s a pretty straight forward setup and process.

Here’s the sample file I used in my example: Cash Receipts

This is a very good article explaining some of details of setting up the configuration: http://support.microsoft.com/kb/858289

What’s Next? Learn more…

Outgrowing QuickBooks

, , ,

No comments yet.

Leave a Reply