Why Should You Use a Lockbox?
Lockbox processing allows units to streamline receiving and processing check and credit card payments. With a lockbox, when customers and business partners send you a check or pay by credit card, these payments are processed the day they are received, and your unit is credited the following morning. For units with a large volume of receipts, lockbox processing offers speed and efficiency; for small units with few staff members, in addition to the speed and efficiency, lockbox processing provides segregation of duties.
If your unit is interested in establishing a lockbox, please complete an Application for Lockbox Processing (XLSX) and send it to Cash Management by e-mail at cashmanagement@cornell.edu. Your unit will be contacted by a staff member in Cash Management to complete the process.
How Lockbox Processing Works
- A post office (P.O.) box is established for your unit.
- The unit directs its customers to send their remittances to the P.O. box address.
- The unit provides contact information (generally, an e-mail address) to the lockbox department.
- The bank provides a bank-generated user ID to the unit's contact person who then establishes a password to access the banking information related specifically to the unit.
- Twice daily (morning), the bank removes all materials received in the P.O. box and processes the receipts.
- After the unit's remittances are processed for the day, an e-mail, accompanied by a PDF file containing transactions processed, is sent to the unit.
- The bank provides a comma-delimited file that the unit can use to upload its receipts into an accounts receivable system or other system.
- The bank posts the total daily proceeds from the lockbox to the Cornell depository account, and Cash Management posts it to the general ledger.
