ADMINISTRATIVE PROCEDURE

Bank Lockbox Deposits

Overview

Payment for goods or services provided by the University may be received directly at a bank via a "lockbox." Rather than having customers mail payments to the University unit, customers receiving invoices will be provided with a special mailing address for their payment; this address includes a P.O. Box for one of the University's banks (referred to as a lockbox).

Making a Bank Lockbox Deposit: Department

  1. The Billing Specialist in the cluster creates a bill in the financial system for the goods or services. The invoice will contain the address to which the payment should be made.
  2. The departmental revenue will be booked to the general ledger when the bill is created, and there will be an open Accounts Receivable item until the funds are received.
  3. Once the payment has been received at this "lockbox" address and reconciled by Non-sponsored AR Services, the departmental AR item will be closed.
Monitoring Outstanding Accounts Receivable Items

Departments are responsible for monitoring their Accounts Receivable balances for outstanding items to ensure the University has received cash for the revenue. If payment is not received, the department may have a bad debt expense charged against the revenue, effectively reversing the revenue.

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