972-836-7750 Request a demo Talk to an expert
Talk to an expert Request a demo Call sales 972-836-7750

X12 transaction guide · Finance

EDI 823 Lockbox

The X12 document a bank or lockbox provider sends to give a company the detail and totals of the payments it received.

Sent by
Bank or lockbox service provider
Received by
Company receiving the payments
Standard
ANSI ASC X12

What is an EDI 823?

The EDI 823 Lockbox is the ANSI X12 transaction set used to transmit lockbox information, the incoming payments a bank or other lockbox service provider has received for a company, together with their totals. It lists each deposit and the payments within it, with details such as amounts, check numbers and remitter information.

Companies load 823 data into accounts receivable to apply cash. Combined with remittance detail, for example from an 820, it lets payments be matched to open invoices without keying them from paper.

How the EDI 823 worksDiagram of the EDI 823 Lockbox. Bank or lockbox service provider sends it to company receiving the payments. It usually starts the exchange. It is usually followed by 997. Inside the ISA, GS and ST envelopes, X12 release 008010 requires, in the heading: the required N1 loop with N1 (Party Identification) and detail: the required DEP loop with DEP (Deposit), AMT (Monetary Amount Information) and QTY (Quantity Information). 1 optional loops are listed by their first segment.How the EDI 823 worksLockbox: who sends it, where it fits and what the standard marks required1 WHERE IT FITSUSUALLY FOLLOWSStarts the exchangeEDI 823SENDERBank or lockboxservice providerRECEIVERCompany receiving thepayments997 or 999 acknowledgment back, if the partners agreeUSUALLY FOLLOWED BY997FunctionalAcknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDsISA … IEAFunctional group, ID code LBGS … GETransaction set 823ST … SEHEADINGRequired loop N1 · repeats up to 2N1Party IdentificationDETAILRequired loop DEP · repeats up to 100DEPDepositAMTMonetary Amount InformationQTYQuantity Information+ 1 optional loop, starting with:BATBlue box: required loop. Optional loops are listed by the segment that starts them; when a loop is used, that first segment is required. Optional segmentsoutside loops are not drawn.Structure: required segments and loops in the X12 008010 listing for the 823. Your trading partner's implementation guide adds its own requirements.
How the EDI 823 worksDiagram of the EDI 823 Lockbox. Bank or lockbox service provider sends it to company receiving the payments. It usually starts the exchange. It is usually followed by 997. Inside the ISA, GS and ST envelopes, X12 release 008010 requires, in the heading: the required N1 loop with N1 (Party Identification) and detail: the required DEP loop with DEP (Deposit), AMT (Monetary Amount Information) and QTY (Quantity Information). 1 optional loops are listed by their first segment.How the EDI 823 worksLockbox: who sends it, where it fits and whatthe standard marks required1 WHERE IT FITSUSUALLY FOLLOWSStarts the exchangeEDI 823SENDERBank or lockboxservice providerRECEIVERCompanyreceiving thepayments997 or 999 acknowledgment back, if the partnersagreeUSUALLY FOLLOWED BY997Functional Acknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDs (ISA… IEA)Functional group, ID code LB (GS … GE)Transaction set 823 (ST … SE)HEADINGRequired loop N1 · repeats up to 2N1Party IdentificationDETAILRequired loop DEP · repeats up to100DEPDepositAMTMonetary AmountInformationQTYQuantity Information+ 1 optional loop, starting with:BATBlue box: required loop. Optional loops are listedby the segment that starts them; when a loop isused, that first segment is required. Optionalsegments outside loops are not drawn.Structure: required segments and loops in the X12008010 listing for the 823. Your trading partner'simplementation guide adds its own requirements.

How to read this diagram: the top row shows who sends the 823, to whom, and which documents usually come before and after it. The lower part shows what X12 release 008010 itself requires: the envelopes around the 823 and the segments and loops the standard marks as required, area by area. Optional loops are listed by the segment that starts them rather than drawn in full. This is the standard's minimum, not a trading partner's requirement: each partner's implementation guide usually makes some optional loops mandatory, restricts the codes and may use a different release.

Expand diagram Download SVG

When it is used

  • Daily reporting of lockbox deposits by a bank
  • Automating cash application in accounts receivable
  • Reconciling deposits with bank statements

Where it fits in the document flow

This document 823 Lockbox
Usually followed by 997 Functional Acknowledgment

Structure

Mandatory segments in the 823 (X12 release 008010)

The segments X12 release 008010 marks as mandatory at their level, in order. Segments inside optional loops are needed only when the loop is used. This is the standard's requirement, not your trading partner's: each partner's implementation guide names the release it uses, adds the optional segments it requires and restricts the values. The requirement status comes from one published X12 reference listing and has not been checked against a second source.

  • ST
  • N1
  • DEP
  • AMT
  • QTY
  • BAT
  • BPR
  • ADX
  • REF
  • IT1
  • SAC
  • SLN
  • RMR
  • TXP
  • DED
  • LX
  • NM1
  • AIN
  • PEN
  • INV
  • SE

Practical example

The 823 in practice

A manufacturer's customers mail checks to a bank lockbox. Each morning, the bank sends an 823 listing the previous day's deposit, every check and the invoice numbers written on the remittance stubs. The manufacturer's ERP applies most payments to open invoices automatically, and the team reviews only the exceptions.

Implementation

Implementation considerations for the 823

  • Agree with the bank on file timing and the remittance detail captured from each payment.
  • Reconcile 823 totals with the bank deposit before applying cash.
  • Handle payments without a clear invoice reference in an exception queue.

How ECOM helps

Automate the 823 with ECOM

Solution

Financial Document Automation

Automate invoices, remittances, payment files and bank statements from capture to posting.

Industry

Financial Services

Secure file transfer and B2B integration for banks and financial institutions.

Solution

Order-to-Cash Automation

Automate the flow from purchase order to payment across every customer channel.

More general questions about EDI are answered in the EDI FAQ.

Related transactions

Related finance documents

All 58 finance documents

Need help with the EDI 823?

ECOM maps, tests and monitors X12 documents for your trading partners and integrates them with your ERP.

Request a Demo Contact us