Dynamics GP Tip #3 – Stop Depositing Checks with Lock Box Processing

Eliminate Manual Entry in Dynamics GP Tip #3 – Stop Depositing Checks with Lock Box Processing

Getting more checks in the mail is a good thing for a company. You are making more money. But what about the extra time involved?

Lock Box Processing in Dynamics GP can help.

The Manual Way to Do This

When you receive a check, you open the envelope, record the payment, and take the check to the bank to deposit. Then you get a statement from the bank telling you what was deposited from what invoices and what customer. And then you manually enter a cash receipt into Dynamics GP. The same process applies to wire transfers.

This sounds easy enough until your company grows and this starts consuming more and more of your time.

The Smart Way to Do This in Dynamics GP

When you work with your bank and set up a lock box, your clients are instructed to send payments to a PO Box. Then the bank “picks up” the payments, makes the deposit, and sends you a file that shows the payment details. This document from the bank can be easily imported into Dynamics GP using Lock Box Processing. And payments are matched with the invoice.

With Lock Box Processing you can automatically import and apply customer payment information from a lockbox transaction file provided by your bank. Lockbox Processing provides reliable receivables information, faster availability of funds, and greater fraud protection.

And yes, most Microsoft Dynamics GP users already own this for free.