Customer Lockbox Variance

Using the Lockbox feature, sometimes the bank may accept a customer's check that may be worth more or less than what they indicate that they are paying. This variance option can be used to define an acceptable 'variance' amount for such discrepancies, as it may be easier to just take the loss than try and collect a minimal amount.

Payment Short Example:

A customer requests the bank to pay inv#1, inv#2, inv#3 that total $100.00 with a check for $99.00
The customer has 'under-paid' but if it is within the allowable variance, the system will accept the check as the full $100.00 and post the $1.00 difference to the G/L Variance account for Lockbox.

Overpayment Example:

A customer pays inv#1, inv#2, inv#3 that total $100.00 with a check for $105.00
This customer has 'over-paid' but if it is within the allowable variance, the system will accept the check for $105.00 and write the credit to the customer's account as an invoice 'OVERPMT01' with an original amount of zero but over-paid by the lockbox payment by $5.00

Setup a variance amount for each applicable customer as follows:

CUSTOMER #

Enter the customer number that is to be given a variance allowance for Lockbox payments or press <F4> to select the customer from the window.

Variance Allowance:

Two options are offered to determine the allowable over or short variance:

• PERCENTAGE VARIANCE
  If the acceptable variance is to be measured as a percentage of the payment amount, enter the percent allowed for over or short discrepancies.

  PERCENTAGE DOLLAR ABSOLUTE

  If percent variance has been entered, enter a maximum over or short limit to be allowed, or leave this field blank if a percent variance has been entered, but there should be no limit.

  Leave the Percent Variance blank if the variance amount for this customer should be a flat rate.

• DOLLAR VARIANCE
  If the acceptable variance is to be measured as a flat amount instead of a percent of the payment, enter the maximum over or short dollar amount that should be accepted as a discrepancy for this customer.

Finished?

Click ACCEPT to log the variance information for this customer, or CANCEL to abort.

Note: If there is no variance setup for a customer, and the customer does not make exact payments to exact invoices, the information in the import file from the bank cannot be accepted and processed in Import Lockbox Payments, and it will have to be input manually in Customer Payments.