From: Tamara Rogers (trogers@depaul.edu)
Date: Tue Mar 19 2002 - 10:54:17 EST
Karen,
DePaul University went o a lockbox process in the summer of 1999. It has reduced the paper flow in the Payment center's, allowed for more timely deposits of funds fro the University and access to cash fro investment purposes. We are currently in a wholesale environment at our bank because we do not have an OCR scan line on our bills. Hopefully, within the next year we will be able to move to the retail environment with a scan line and reduce our bank fees.
You will find that you will be able to reallocate staff resources because of the reduction in payment processing. The most critical factor in lockbox processing is reconciliation. Timely access( next day) to the documentation used to process the payments and the deposit amount is imperative.
The deposit information should be reconciled to what was applied to your A/R via an overnight transmission from the lockbox processor of the payment file.
In addition you will want the paperwork that is mailed in with payments and copies of any checks that they were unable to process. Let them deposit the actual check and give you a copy. Those have to be credited the next day after investigation so that your A/R will balance with your cash in bank.
Tamara K. Rogers
Director, Student Financial Accounts
DePaul University
phone: 312-362-6731
fax: 312-362-5824
Trogers@depaul.edu
>>> "Bailey, Karen" <ksbailey@ku.edu> 03/18/02 07:22AM >>>
I'm sure that this topic has been discussed in the past but please indulge
me one more time.
We are seriously considering a lockbox service. What are the major pros and
cons of a lockbox?
Are there any special things that we should consider as we move in this
direction?
Thanks in advance for your assistance,
Karen Bailey
University of Kansas
785-864-5929
This archive was generated by hypermail 2.1.4 : Fri May 03 2002 - 11:43:39 EDT