Tax | Commission | Lockbox

Tax, Commission & Lockbox is the junk drawer of monetization domains. It is a domain of loosely related categories with processes often found outside of a company’s core billing system and may be handled outright by a third party.

The Tax portion of the domain is a complex, ever-evolving mess best left to companies outside of the organization that are familiar with all of the tax rates associated with the countries, states or provinces, counties, and cities and towns.

Tax Commission Lockbox ATG Quote to Cash ATG Monetization Ecosystem™

Commissions processing tools range from sophisticated cloud-based software solutions to a guy in the basement with a calculator and pencil, while Lockbox functionality is often turned over to one of the organization’s banks to manage and report on.

Tax | Commission | Lockbox Components

Tax Commission Lockbox monetization ecosystem domain


Tax regulations vary greatly by jurisdiction, country, industry, and service type. Successful organizations often build revenues on more than one product or service offering and in more than one region/tax jurisdiction. Bundled products, each potentially with unique tax regulations, can be difficult for tax managers to account for in a subscription revenue model. Companies unable to apply taxes appropriately risk revenue leakage and regulatory scrutiny.

Savvy tax engines enable companies to calculate tax for customers and services, which can be presented clearly and accurately on a customer statement. Such offerings can be packaged inside the billing engine or provided by a third party that utilizes API integration to quickly and securely pass customer and tax information from one system to another.


Commission payouts are a common form of compensation for sales teams. Commissions can effect margins, payroll, and a company’s bottom-line. This increases the need for a well-integrated platform capable of accurately calculating commissions payouts. Quality commission systems or platforms ensure passing of financial effects upstream to quoting systems and downstream to both payroll and accounting operations. A good system maintains a seamless and secure process.


Lockboxes are a physical location maintained by the company’s bank, providing a way for companies to receive check payments in a centralized and secure location. Customers who pay by check will remit payment to a company’s lockbox. Once payment is received, the bank will process receivables and update the company’s account as needed.

Using a lockbox ensures check payments are recorded on a timely basis, especially if the company is receiving customer payments consistently through the mail. Some lockbox services offer currency conversion processing, which allows for companies to record payments in the desired currency based on up-to-date exchange rates.

Automated Clearing House (ACH)

ACH is an electronic network that facilitates direct deposit or direct payment transactions. For service providers, this is a way to quickly receive customer payments electronically, and pay expenses in the same fashion.

ACH transactions are aggregated into batches and passed to a central clearing facility, where they are sorted and passed along to the appropriate receiving institute. This vast network enables customers and businesses to make payments quickly, accelerating the collection effort in the quote-to-cash lifecycle.

Detailed: People | Process | Technology

The Finance and Finance-Billing teams are the primary company organizations within the Tax | Commission | Lockbox realm. Operations and IT are also closely connected with this very focused back-of-the-house domain.


ATG maintains a set of 75 key business processes to support management of Customers and Revenue for Service Providers. Thirteen of these processes originate, or are impacted by, the Tax | Commission | Lockbox domain. Below are the key processes that touch this domain, categorized by the Organizational Unit that owns the process:

Finance Organization

Tax Processing – Methods used to streamline complicated taxation rules and regulations.

Commissions Processing – The process of tracking sales commissions and sales rewards programs.

Finance – Billing Organization

Billing Setup Process – Tasks and functions associated with setting up the billing processes for given products and services.

Billing/Invoice Processing: Recurring/Periodic – Process for aggregating financial activities and adjustments for a given billing period and generating respective invoice.

Payment Processing – The steps taken to process different payment methods from customers.

Operations Organization

Pro-Active Customer Notification – Operations focus (CC expiry, notification of payment received) – A proactive approach to notify customers of pertinent payment information.


Maintenance and Oversight of Monetization Ecosystem – processes around ensuring that all touch points and connections within the ecosystem are optimized to their fullest potential.

Monitoring & Testing of Vendor Functional Releases – As ecosystem components release updates and patches, each is checked and tested to confirm all systems are working together as required by the business’ requirements.

Vendor Management of Monetization Ecosystem – oversight and communication duties of ecosystem software components and their vendors, including management of vendor road map and change logs and general relationship nurturing.

Cross-Training of Monetization Ecosystem Components – process for training organizational resources on the appropriate software systems.

Security Oversight of Monetization Ecosystem – process for maintaining and controlling access and permissions to ecosystem components.

Data Stewardship Across Monetization Ecosystem – process of assigning ownership and sources of truth for data within the organization.

All Organizations

Daily, Periodic, or Ad Hoc Reporting (Extraction, Load, Report, Dashboard) – movement of data between domains to create single source of truth for reporting and dashboarding.

As might be expected, there are three technology classes involved in the Tax | Commission | Lockbox domain, one for each of the titled processes. Rarely are the three combined into a single piece of software, but often each may be included in other domain offerings, such as Billing & Collection Engine, Order & Contract Management, or even Credit Card Processing.

The various domain-specific solutions for Tax | Commission | Lockbox can be on-premise or cloud based, depending on the vendor and the software version.

Software Category Alert
The Tax | Commission | Lockbox key vendor section is divided into three separate categories matching the three tasks called out in the domain’s title.

Tax Key Vendors

Founded: 2004
HQ: Bainbridge Island, WA
Company Type: Privately held
Cloud/On-Premise: Cloud

Avalara is a cloud-based software platform that delivers an array of compliance solutions related to sales tax and other transactional taxes, such as Value-Added Tax (VAT). Avalara integrates with leading Enterprise Resource Planning and e-commerce software systems. The platform works within financial, billing, e-commerce, or point of sale systems to deliver accurate tax calculations in real time. Avalara’s cloud-based software platform manages the complexity and simplifies the process of sales tax and other transaction tax compliance. Some taxation areas Avalara’s products tackle are:

  • Tax Rate Calculation – Avalara AvaTax calculates tax in more than 10,000 taxing jurisdictions.
  • Exemption Certificate Management – Avalara CertCapture creates, validates, and stores sales tax exemption certificates and reseller certificates in the cloud.
  • Filing and Returns – Avalara Returns automates the entire sales tax filing process, saving time and money.

Avalara targets companies of all sizes that are looking to streamline and automate their taxation systems.

Watchguard Technologies – provider of network security products and computer appliances

Backwoods, Inc. – family-owned outdoor gear and apparel store

Case Logic – manufacturer and retailer of portable home storage accessories for electronics

CORE Security Technologies – provider of security intelligence solutions for enterprises and government organizations

Founded: 2008
HQ: Seattle, WA
Company Type: Privately held
Cloud/On-Premise: Cloud

TaxCloud is an internet-based sales tax compliance service created by FedTax. The service is free to retailers, as it receives funds as a Certified Service Provider to many state Revenue Departments. The platform automatically keeps track of how transactions follow different taxation rules across all states, while automatically recognizing sales tax holidays, integrating with shopping carts and ordering systems, and helping online retailers instantly calculate, collect, and remit sales tax.

TaxCloud targets businesses of all sizes, since their service shifts tax compliance efforts upon the states instead of individual businesses.

BrainTree – payment-processing company

Mastercard – financial services corporation

Netsuite – software company that sells an eponymous group of software services to manage a business’s operations and customer relations

PayPal – online payment processing system

Stripe – technology company that assists in online credit card payment processing

Founded: 2002
HQ: Lake Oswego, OR
Company Type: Privately held
Cloud/On-Premise: Cloud

Thomson Reuters Sabrix provides transaction tax management services and software. Sabrix was acquired by Thomson Reuters in 2009, adding their popular ONESOURCE and Checkpoint® software to the technology and information solutions already provided by Thomson Reuters.

Sabrix helps businesses by optimizing performance and reducing tax liabilities and manageability by customized Sabrix reports related to transactions. It enables finance, tax, and IT professionals to achieve accurate, timely, and cost-effective compliance for sales tax, use tax, Value Added Tax (VAT), excise tax, and industry-specific taxes and fees.

Thomson Reuters Sabrix tends to target companies of all sizes who are looking to achieve tax compliance. – electronic commerce and cloud computing company

BASF – chemical producer

Cisco – multinational technology company that designs, manufactures, and sells networking equipment

IBM – multinational technology and consulting corporation

Qualcomm – global semiconductor company that designs and markets wireless telecommunications products and services

Founded: 1978
HQ: Berwyn, PA
Company Type: Privately held
Cloud/On-Premise: Cloud

Vertex offers the industry’s most comprehensive, integrated suite of Corporate Tax solutions—including the groundbreaking Vertex Enterprise tax management platform, a suite of technology and consulting services for automating the management of indirect and direct taxes. Every Vertex offering is designed to promote not only the efficiency but also the strategic impact of the Corporate Tax department.

  • Vertex Enterprise solves the data management challenges of global corporations with multiple entities and multiple financial systems. It enables valuable modeling and planning. And it provides a single technology platform to manage the end-to-end tax lifecycle from provision and compliance to audit and planning.
  • Indirect Tax Solutions – Vertex is the industry leader in helping tax departments simplify and automate the complexity of calculating, collecting, and reporting on sales, consumer use, and retail taxes, as well as VAT, GST, and other indirect tax types.
  • Income Tax Solutions – Vertex offers business income tax solutions that automate and streamline tax management across all phases of the tax lifecycle. Vertex solutions help companies operate with greater speed, accuracy, and efficiency—all the way from Vertex Enterprise, which combines all the data, tax applications, and analytics needed to manage income tax on a global scale; to desktop tools and applications for enhancing the way companies track due dates and manage documents.

Vertex tends to target companies of all sizes who are looking to achieve tax compliance.

American Honda Motor Company – japan-based world leader in a manufacture of quality cars and trucks

Bristol-Myers Squibb – US pharmaceutical company

Callaway Golf – leading US golf equipment and clothing manufacturer

Mercedes Benz USA – luxury car manufacturer

Founded: 1987
HQ: Alphen aan den Rijn, Netherlands
Company Type: Public
Cloud/On-Premise: Cloud

Wolters Kluwer provides legal, business, tax, accounting, finance, audit, risk, compliance, and healthcare professionals the essential information, software, and services they need to make decisions with confidence.

Wolters Kluwer operates under four divisions: Legal & Regulatory Solutions, Tax & Accounting, Health and GRC Solutions. The company is active in over 150 countries. Approximately 77% of the company’s revenue came from online, software and services in 2013.

Wolters Kluwer tends to target customers in the legal, business, tax, accounting, finance, audit, risk, compliance, and healthcare professions.

Cardinal Software – global software company specializing in middleware

Zecco Trading – an online stock brokerage

MyEZCarCare – discount travel and car maintenance company


Commission Key Vendors

Founded: 1996
HQ: Dublin, CA
Company Type: Public
Cloud/On-Premise: Cloud

CallidusCloud is a leading provider of cloud-based sales, marketing, and learning solutions. They enable organizations to accelerate and maximize their lead to money process with a complete suite of solutions that identify the right leads, ensure proper territory and quota distribution, enable sales forces, automate configure price quote, and streamline sales compensation — driving bigger deals, faster.

Their Cloud Computing platform enables customer access to:

  • Rapid time to value
  • High availability
  • High performance
  • Bullet-proof security
  • Compliance
  • Anytime, anywhere access

CallidusCloud tends to target small, medium and large enterprises across multiple industries globally that want to optimize the lead to money process to close more deals for more money quickly and efficiently.

ADT – supplier of security systems, home automation, alarms, and video surveillance

AVG – specialist in computer security software

DirecTV – provider of satellite-based digital television service

Siemens – engineering company with divisions in industry, energy, healthsure, and infrastructure & cities

Telefonica – global provider of broadband and telecommunications

Founded: 1991
HQ: Chester, PA
Company Type: Privately held
Cloud/On-Premise: Cloud

Synygy helps many of the world’s largest enterprises overcome constraints to making their sales operations more efficient, their sales forces and sales channels more effective, and their bottom lines more attractive. They call this approach Sales Performance Management as a ServiceTM (SPMaaSTM).

Sales Performance Management as a ServiceTM refers to an integrated framework of competencies and technologies that help organizations plan, model, and execute strategies to make change a routine part of enabling sales and channel performance.

Synygy’s sales-performance improvement solutions include:

  • Sales Operations Management
  • Sales Compensation Management
  • Sales Enablement and Effectiveness
  • Sales Analytics and Business Intelligence

Synygy tends to target large companies in a variety of industries including insurance, financial services, telecom / media, healthcare, medical devices, pharmaceuticals, software / high-tech, business services, retail / distribution, and manufacturing.

Kowa Pharmaceuticals America (KPA) – pharmaceutical company that primarily focusses on cardio-metabolic therapeutics

Kforce – professional staffing firm

McKesson Provider Technologies (MPT) – healthcare IT company

Echo Global Logistics – provider of technology-enabled transportation and supply chain management services

Boehringer Ingelheim Corporation – pharmaceutical company

Founded: 2003
HQ: Toronto, ON, Canada
Company Type: Privately held
Cloud/On-Premise: Cloud

Varicent, an IBM company, offers sales compensation management software. This company’s solutions aim to streamline commissions and sales performance measurements. These solutions include:

  • Incentive Compensation Management
  • Territories and Quota Management
  • Analytics and Optimization

Varicent offerings are applicable to finance, sales, human resources, and IT departments. These solutions are also available on premise or via cloud-based deployment.

Varicent tends to target midsize to enterprise level companies in a wide variety of industries. These industries include automotive, banking, and electronics, as well as energy and utilities, among others.

Destination XL – men’s big and tall clothing retailer

Elavon – provider of credit card transaction services

Getty Images – supplier of over 80 million stock images

Founded: 2005
HQ: San Jose, CA
Company Type: Public
Cloud/On-Premise: Cloud

Xactly is a computer software company specializing in compensation and commissions management software. This company provides many key offerings, including:

  • Xactly Insights – sales compensation planning
  • Xactly Objectives – employee performance management
  • Xactly Incent Enterprise – sales performance management
  • Xactly Incent Express – incentive compensation
  • eDocs & Approvals – sales document workflow

Xactly tends to target SMBs to large enterprise level businesses in a wide variety of industries.  These industries include business services, cloud/SaaS, communications, life sciences, software, travel/hospitality, and financial services.

DocuSign – electronic signature management company

SalesForce – cloud computing company

Hyatt – international hotel company

Rosetta Stone – provider of educational software

EVault – provider of backup and recovery software solutions

Lockbox Key Vendors

Founded: 1904
HQ: Charlotte, NC
Company Type: Public
Cloud/On-Premise: Cloud

Bank of America is an American-based, multinational banking and financial services corporation. It provides a remote image, wholesale lockbox service allowing quick conversion of checks and/or electronic payments into available funds.  This cloud-based service uses imaging technology to automate the processing of check payments received through the lockbox. Additional features include:

  • Indexing of key information fields for ease of image location online or in a CD-ROM archive
  • Ability to import data into Excel or other programs
  • Protected access to images of remittance, check, and related correspondence
  • Color JPEG format or black-and-white TIFF format of images

Bank of America’s Lockbox Service tends to target small to large businesses, and large enterprises receiving large volumes of check payments on a daily basis. Such companies include corporations, governments, and institutions worldwide.

Barclays United Kingdom – a British multinational banking and financial services company

Barclays Africa Group Limited – a South African subsidiary of Barclays providing financial services

Deutsche Bank – a German global banking and financial services company

China Construction Bank – one of the “big four” banks in the People’s Republic of China

Founded: 1872
HQ: Winston-Salem, NC
Company Type: Public
Cloud/On-Premise: Cloud

BB&T Corporation (Branch Banking and Trust) is a U.S. based financial service holding company providing home, banking, lending, investing, retirement, insurance, and online services. A specific service is BB&T’s lockbox for the management of business receivables. The lockbox reduces mail, processing, and checks clearing float times. Lockbox is available to retail, wholesale, and healthcare companies. AR-Box Electronic Lockbox is a solution designed for companies that receive high volumes of consumer payments electronically. Features of AR-Box include:

• Consolidation of multiple online bill payment processors into a single customized posting file
• Transaction search and easy-to-use web-based reporting tools
• Electronic rejection or stop payment of postings
• Multi-level access and security

BB&T tends to target retail companies receiving large volumes of low dollar payments, wholesale companies processing high dollar payments, corporate-to-corporate payments, and healthcare providers needing claim file integration with payment data.

Progressive – U.S. based car and home insurance provider

Chartis – American multinational insurance corporation renamed AIG Property Casualty in 2012

Travelers – American insurance company providing commercial property casualty insurance

The Hartford – U.S. based investment and insurance company

Safeco Insurance – U.S. based insurance company and member of Liberty Mutual Group

Founded: 1988
HQ: Minneapolis, MN
Company Type: Public
Cloud/On-Premise: Cloud

U.S. Bank is an American diversified financial services holding company providing payment services, wholesale banking, wealth management and securities services, and consumer banking. U.S. Bank also specializes in collection services for treasury management, such as Lockbox services, for wholesale, retail, and property management businesses. Such services provide the customer with acceleration of funds availability, reduction of overhead costs, visibility and control of payments, enhanced customer service, and streamlined payments processes from start to finish. Additional services are available, including:

  • Image Look – view and save images of check payments, remittance documents, etc.
  • Web Decisioning – straight-through processing and exception review of transactions
  • Lockbox remote Capture – scan and electronically transmit payments and remittance documents

U.S. Bank tends to target wholesale organizations with high-dollar transactions, retail businesses with high-volume consumer payments, and property management companies with recurring rental payments from tenants.

Colorado State University-Pueblo – regional comprehensive public institution of higher learning

Gonzaga University – private Roman Catholic university located in Spokane, WA

North Dakota State University – public University of Agriculture and Applied Sciences located in Fargo, ND

University of Nevada, Las Vegas – public research university with the only dental and law schools in the state

Founded: 1852
HQ: San Francisco, CA
Company Type: Public
Cloud/On-Premise: Cloud

Wells Fargo & Company is a nationwide, diversified financial services company providing banking, insurance, investments, mortgage, and consumer and commercial finance for personal, small business, and commercial purposes. Specifically for commercial purposes, Wells Fargo provides treasury management of receivables via lockbox services and is the largest wholesale lockbox network in the U.S., and the largest image-equipped network in North America. This service accelerates receivable processing and improves deposit availability. In addition, lockbox services help to:

  • Reduce outstanding day’s sales
  • Improve staff productivity
  • Decrease theft, fraud, and error potential
  • Access decision-critical information
  • Process remittances and improve overall cash flow

Wells Fargo tends to target businesses of all sizes in need of accounts receivable solutions and diversified accommodations for ways in which customers can pay.

National Fish and Wildlife Foundation – non-profit organization focused on the conservation of fish, wildlife, and their habitats

Hispanic Scholarship Fund – provides Latino families with the knowledge and resources to complete higher education

Tesla Motors – American automotive and energy storage company that designs, manufactures, and sells luxury electric cars and vehicle powertrain components, and battery products

American Express – American multinational financial service corporation specializing in credit card, charge card, and traveler’s check businesses



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