Microsoft Dynamics SL has a powerful Lockbox module that was developed by Sandler/Kahne Software. The module was developed in the Dynamics SL toolset and looks and feels like the other modules that Microsoft licenses.
Why do people consider lockboxes rather than having checks mailed directly to them? Here are a few reasons:
- To increase cash velocity by reducing the outstanding float created by not sending the money straight to the bank. Many large banks deposit money several times a day so often your cash gets deposited a day earlier as well.
- To save time as the lockbox software does the cash application for you automatically. When the bank scans the checks using Optical Character Recognition (OCR), they are picking up the invoice numbers and amount to pay off for each of your bills that your customer is paying. This means you don’t have to waste half a day or more applying the cash.
- To avoid keying errors. Avoiding a round of manual keying by having your computer apply the cash from a file increases your accuracy in applying the payments to the correct invoice.
Many banks offer the ability to get a scanned image of the check your customer sent you. This avoids questions as well when you can see both the check and the remittance advice itself.
Lockbox programs such as the Sandler/Kahne module allow you to receive cash from different companies and different bank accounts. This further facilitates data entry by not needing to go in and out of companies (Dynamics SL 2011 greatly reduces the time going in and out of companies if you have not upgraded yet.)
So if you have high volumes of checks being mailed to you or you have checks, EFT’s, and Credit Cards being paid to you, you might consider this inexpensive module.
While the total cost of ownership of your software may go up slightly, the labor you save will help you get more out of your existing accounting staff both by eliminating the unrewarding work of applying payments against invoices and simply from automating the process itself.
The Sandler/Kahne website and the Lockbox module datasheet can be downloaded at “Dynamics SL Lockbox Module”.
These handy components can be ordered from your Dynamics SL Value Added Reseller which would be Boyer & Associates if you are here in Minnesota.