Hi -

 

There are many ways to construct the 820.  Think of them as bundled and
unbundled.  I recommend that the customer sends the details of the invoicing
in an 820 directly to you (the vendor) while sending an 820 summary with ACH
(payment authorization to the bank) to pay you at the same time.  These two
have a key or code indicating that the details correspond to one another.
The bank then passes to you the lockbox transactions (823) with this key.  

 

You can also work with the bank and customer, so that all the information
comes at the same time thru.  Frequently banks charge rather heavily for
this.   Ensure that in your General Ledger, that the payment date matches
the date it appears in the lockbox.  

 

Susan

 

From: [email protected] [mailto:[email protected]] On Behalf Of John
Sent: Tuesday, November 16, 2010 11:01 AM
To: [email protected]
Subject: [EDI-L] 820 and 823 documents

 

  

Can someone please give me an idea of what the 'normal' use of the 820 and
823 is? I have a client that is receiving in an 820 from a bank and wants to
switch it to an 823. Use small words, I have just enough finance background
to balance my checkbook.

John Meyer
CompuSolv





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