U.S. patent application number 10/242216 was filed with the patent office on 2003-11-13 for accounts payable process.
Invention is credited to Domaracki, Greg, Stone, James S..
Application Number | 20030212617 10/242216 |
Document ID | / |
Family ID | 29406437 |
Filed Date | 2003-11-13 |
United States Patent
Application |
20030212617 |
Kind Code |
A1 |
Stone, James S. ; et
al. |
November 13, 2003 |
Accounts payable process
Abstract
Techniques for performing an accounts payable process may
include receiving transaction data including at least one of
invoice data, purchase order data, and vendor data; and verifying a
transaction by matching a dynamic data set of client-specified
multi-dimensional criteria to the transaction data. An accounts
payable system may include a host system in communication with one
or more client systems. The host system may include a matching
database configured to receive an accounts payable file including
at least one of invoice data, purchase order data, and vendor data;
and verify a transaction by matching a dynamic data set of
client-specified multi-dimensional records to attributes of the
accounts payable file.
Inventors: |
Stone, James S.; (Wexford,
PA) ; Domaracki, Greg; (Pittsburgh, PA) |
Correspondence
Address: |
KIRKPATRICK & LOCKHART LLP
535 SMITHFIELD STREET
PITTSBURGH
PA
15222
US
|
Family ID: |
29406437 |
Appl. No.: |
10/242216 |
Filed: |
September 12, 2002 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
|
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60379848 |
May 13, 2002 |
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Current U.S.
Class: |
705/30 |
Current CPC
Class: |
G06Q 40/12 20131203;
G06Q 30/04 20130101; G06Q 30/0641 20130101; G06Q 10/087 20130101;
G06Q 40/00 20130101; G06Q 20/102 20130101; G06Q 20/403 20130101;
G06Q 40/02 20130101 |
Class at
Publication: |
705/30 |
International
Class: |
G06F 017/60 |
Claims
What is claimed is:
1. An accounts payable process comprising: receiving transaction
data including at least one of invoice data, purchase order data,
and vendor data; and verifying a transaction by matching a dynamic
data set of client-specified multi-dimensional criteria to the
transaction data.
2. The accounts payable process of claim 1, wherein the dynamic
data set comprises client-specified purchase order information.
3. The accounts payable process of claim 1, wherein the dynamic
data set comprises client-specified vendor profile information.
4. The accounts payable process of claim 1, wherein the dynamic
data set comprises client-specified invoice information.
5. The accounts payable process of claim 1, wherein the purchase
order data comprises one or more of: a PO Number, Vendor Number,
Vendor Name, Vendor Remit Address, PO Total Amount, PO Line Item
Amount, Discount Percent, Discount Days, Invoice Number, Invoice
Date, and Invoice Total Amount.
6. The accounts payable process of claim 1, wherein the vendor data
comprises one or more of: Customer Number, Vendor Name, Vendor
Remit Address, Vendor Number, Contact Name, E-mail Address, Payment
Terms, and Vendor Status.
7. The accounts payable process of claim 1, wherein the invoice
data comprises one or more of: PO Number, PO Line Item Quantity, PO
Line Item Amount, Vendor Number, Vendor Address, Invoice Number,
Invoice Date, Invoice Total Amount, Discount Percent, and Discount
Days.
8. The accounts payable process of claim 1, wherein matching
further comprises identifying a set of probable matches based on
client-specified criteria.
9. The accounts payable process of claim 8, wherein the
client-specified criteria includes a plurality of weighted
factors.
10. The accounts payable process of claim 8, wherein the
client-specified data includes a tolerance range from an exact
match.
11. The accounts payable process of claim 8, further comprising
simultaneously presenting the set of probable matches and the
transaction data on a graphical user interface.
12. The accounts payable process of claim 11, wherein the graphical
user interface comprises a split screen.
13. The accounts payable process of claim 1, further comprising
automatically correcting discrepancies between the transaction data
and client-specified information included in the dynamic data
set.
14. The accounts payable process of claim 1, further comprising
augmenting the transaction data with client-specified information
included in the dynamic data set.
15. The accounts payable process of claim 1, further comprising
initiating payment processing for a verified transaction.
16. The accounts payable process of claim 1, wherein matching
comprises a vendor matching process.
17. The accounts payable process of claim 16, wherein the vendor
matching process comprises comparing transaction data associated
with a vendor to a client-specified vendor profile.
18. The accounts payable process of claim 17, wherein the vendor
profile comprises a master vendor profile containing information
regarding a plurality of vendors.
19. The accounts payable process of claim 16, wherein the vendor
matching process comprises performing a preliminary vendor
match.
20. The accounts payable process of claim 19, wherein the vendor
matching process comprises identifying a set of probable vendor
matches in the event that the preliminary match is
unsuccessful.
21. The accounts payable process of claim 1, wherein matching
comprises a purchase order matching process.
22. The accounts payable process of claim 21, wherein the purchase
order matching process comprises comparing transaction data
associated with a purchase order to a client-specified purchase
order file.
23. The accounts payable process of claim 21, wherein the purchase
order file comprises a digital image of a purchase order.
24. The accounts payable process of claim 21, wherein the purchase
order matching process comprises performing a preliminary purchase
order match.
25. The accounts payable process of claim 24, wherein the purchase
order matching process comprises identifying a set of probable
purchase order matches in the event that the preliminary match is
unsuccessful.
26. The accounts payable process of claim 1, wherein matching
comprises an invoice matching process.
27. The accounts payable process of claim 26, wherein the invoice
matching process comprises comparing transaction data associated
with an invoice to a client-specified invoice file.
28. The accounts payable process of claim 27, wherein the invoice
file comprises a master invoice file containing information
regarding a plurality of invoices.
29. The accounts payable process of claim 26, wherein the invoice
matching process comprises performing a preliminary invoice
match.
30. The accounts payable process of claim 29, wherein the invoice
matching process comprises identifying a set of probable invoice
matches in the event that the preliminary match is
unsuccessful.
31. The accounts payable process of claim 1, further comprising
receiving an invoice in one of paper form and electronic form.
32. The accounts payable process of claim 31, further comprising
generating a digital image of an invoice received in paper
form.
33. The accounts payable process of claim 31, further comprising
automatically extracting invoice data from the received
invoice.
34. An accounts payable system comprising: a host system in
communication with one or more client systems, the host system
including a matching database configured to: receive an accounts
payable file including at least one of invoice data, purchase order
data, and vendor data; and verify a transaction by matching a
dynamic data set of client-specified multi-dimensional records to
attributes of the accounts payable file.
35. The accounts payable system of claim 34, wherein the host
system is accessible by at least one client system across a
network.
36. The accounts payable system of claim 35, wherein the network
comprises a wireless communications network.
37. The accounts payable system of claim 35, wherein the network
comprises at least one of the Internet and World Wide Web.
38. The accounts payable system of claim 34, wherein the matching
database stores the client-specified records for a customer.
39. The accounts payable system of claim 34, wherein the
client-specified records comprise at least one of purchase order
files, vendor profiles, and invoice files associated with a
particular customer.
40. The accounts payable system of claim 34, wherein the matching
database is configured to perform matching according to
client-specific matching rules.
41. The accounts payable system of claim 34, wherein the matching
database is configured to communicate probable matches to at least
one client system.
42. The accounts payable system of claim 41, wherein the matching
database is configured to allow the client system to manually
select at least one probable match.
43. The accounts payable system of claim 34, further comprising a
data transmission input device configured to communicate
transaction information to the matching database.
44. The accounts payable system of claim 34, further comprising an
unmatched processor configured to receive accounts payable files
that are not matched to a client-specified record.
45. The accounts payable system of claim 34, further comprising a
matched file processor configured to receive and process accounts
payable files that are matched to a client-specified record.
46. An accounts payable system comprising: means for receiving
transaction data including at least one of invoice data, purchase
order data, and vendor data; and means for verifying a transaction
by matching a dynamic data set of client-specified
multi-dimensional criteria to the transaction data.
47. The accounts payable system of claim 46, wherein the means for
verifying further comprises means for identifying a set of probable
matches based on client-specified criteria.
48. A computer program stored on a computer-readable medium, the
computer program comprising instructions to: receive transaction
data including at least one of invoice data, purchase order data,
and vendor data; and verify a transaction by matching a dynamic
data set of client-specified multi-dimensional criteria to the
transaction data.
49. The computer program of claim 48, further comprising
instructions to identify a set of probable matches based on
client-specified criteria.
50. The computer program of claim 48, wherein the computer-readable
medium comprises at least one of a disk, a device, and a propagated
signal.
Description
[0001] This application claims the priority benefit of U.S.
Provisional Application No. 60/379,848 filed on May 13, 2002.
TECHNICAL FIELD
[0002] The present invention relates generally to an accounts
payable process and more particularly to systems and techniques for
automatically matching client specific vendor or purchase order
information against invoices received from the client's vendors.
Aspects of the present invention include a database that is
designed to warehouse a client's vendor profiles and purchase order
information and technologies that conduct multi-dimensional
matching within specific parameters.
BACKGROUND
[0003] Accounts Payable (A/P) is a process employed by virtually
every business in America. In its simplest form, A/P is the
creation and distribution of a payment to settle an obligation
(typically represented by an invoice) and the associated accounting
entries to recognize the expense. While in small businesses A/P
might be handled by an accountant or bookkeeper with ledgers or
spreadsheets, A/P in larger businesses has evolved into a highly
specialized application involving Enterprise Resource Planning
(ERP) systems that link together previously disparate systems like
Purchasing, Inventory, General Ledger (G/L), and Accounts Payable
into a single, integrated system.
[0004] Using a manufacturing company as an example, Purchasing
acquires the materials necessary to maintain targeted inventory
levels in support the manufacturing process. To document the
purchase, establish the exact nature of the items desired and their
respective quantities, set prices, etc., a Purchase Order (P.O.) is
created by the Buyer and is sent to the Seller either
electronically or on paper. The Seller fills the order, completely
or partially (in accordance with the requirements of the P.O.) and
delivers the material(s) to the Buyer's designated location. Once
received by the Buyer, the material is recorded in an inventory
control system. The Seller, meanwhile, prepares and delivers to the
Buyer an invoice that represents the amount due and payable in
exchange for the materials provided. The Accounts Payable
department of the Buyer compares the invoice to the original P.O.
to ensure the purchase was properly authorized and to confirm that
the terms on the invoice are consistent with those documented in
the P.O. The A/P department also confirms through the inventory
control process that the materials represented by the invoice have
been received in a satisfactory condition.
[0005] If the invoice, P.O. and materials receipt records all match
(a "three-way match"), payment can be remitted to the Seller. In
the event that there are discrepancies in the match process (e.g.,
quantities or prices do not match, incorrect pricing, sales tax
applied inappropriately, freight charges assessed, over
shipment/billing, materials are unauthorized, items are billed but
not received, etc.), the A/P department is responsible for
researching and resolving the discrepancy.
[0006] Finally, the A/P department must classify each item on the
invoice into its appropriate expense category for G/L posting. For
example, in most businesses the costs for the inventory itself, the
associated transportation/shipping charges, and any applicable
sales taxes are recorded in different G/L categories even though
they may all appear on a single invoice. This process exists in
some form in virtually all businesses. In large businesses, it is
automated significantly through specialized software or an
integrated ERP system.
[0007] There are a number of challenges associated with managing
the A/P process. Most notable, however, is the preponderance of
paper that dominates the invoicing process. According to the Tower
Group, there are some 14.5 billion business-to-business (B2B)
invoices generated annually, and more than 95% of those are
paper-based. Paper invoices are expensive according to the
Institute of Management and Administration (IOMA), costing between
$7 and $12 per item to administer through Accounts Payable. Taken
together, these figures indicate a process that costs American
businesses somewhere between $100 billion and $175 billion per
year.
[0008] For most businesses, handling of paper invoices introduces
accounts payable process costs in the following areas: mail
receipt, invoice extraction and internal distribution; data entry
of invoice information required for accurate G/L posting; and
invoice retention.
[0009] Businesses have tried to address this challenge in several
ways. Enterprise Resource Planning (ERP) systems can be very
effective in linking together disparate systems (i.e. Purchasing,
Receiving/Inventory, General Ledger) to facilitate the required 3
way match process (PO to invoice to receipt status). However, ERP
systems do little to minimize the occurrence of paper invoices
received within an A/P operation. Furthermore, the 3 way match
process within the ERP environment occurs after all data has been
entered into the system and is entirely dependent upon the quality
of that data. Insufficient or inaccurate data will result in a
flawed matching process and minimize the transactions that can be
matched in an exact way. As a result, users very often resort to
labor-intensive and costly manual intervention and queries to
resolve data discrepancies and validate the match process.
[0010] Electronic Data Interchange (EDI) has enabled many companies
to work with their trading partners to transfer purchase order and
invoice information in an electronic format. While this process
completely eliminates the traditional paper flow, adoption of EDI
can be an expensive undertaking requiring integration resources and
mutual (i.e. buyer and seller) acceptance of the required data
formats. To date, market penetration of EDI data transfer is still
low and prevalent in mostly large corporate trading relationships.
Some businesses have resorted to imaging invoices upon arrival.
While this solution does not mitigate the mail handling or data
entry expenses, it does offer some improvement in internal
distribution and storage. Other companies have chosen to outsource
A/P processing altogether. In so doing, they can move the A/P
process to a less expensive location with less expensive labor, but
the process remains largely unchanged.
[0011] Electronic Invoice Presentment and Payment (EIPP) is, as its
name suggests, targeted specifically at automating the processes of
invoice delivery, review, approval, dispute resolution and payment
generation from the Biller's perspective. However, EIPP has thus
far been ineffective in addressing concerns of the accounts payable
manager for a variety of reasons. Because most EIPP solutions are
biller-centric, they have relatively limited built-in functionality
for the A/P manager. More importantly, EIPP has not penetrated the
invoice market because it represents a significant behavioral
and/or systematic change for both the Buyer and the Seller. Even
the best solutions, if not embraced by the majority of the
potential users, will struggle to overcome the additional burden of
being a processing "exception" in a world that favors
standardization and consistency.
[0012] Finally, some companies have chosen to convert paper
invoices to electronic transactions by data entering them prior to
their introduction into the A/P process. While promising, this
solution has several drawbacks. There is no known, reliable method
to validate the data entry that is being done outside of the A/P
process other than a manual, key verification process. Key
verification, or duplicate keying, doubles the number of keystrokes
required and significantly slows data entry while increasing costs.
Given the large number of keystrokes required to convert a paper
invoice into an electronic one with sufficient detail to allow G/L
posting, key entry has generally proven to be impractical.
[0013] What is needed is a reliable, cost-effective method of
converting the information contained in a wide variety of paper
invoices into a uniform electronic format with sufficient detail to
enable A/P processing and facilitate the three-way match.
SUMMARY
[0014] Aspects of the present invention provide a method for the
conversion of paper invoices into electronic transactions that
minimize the data entry required from an invoice by matching it
with existing electronic data from the Purchase Order and other
related files. Once matched, the data from these sources can be
integrated into a uniform format and delivered electronically to
the Accounts Payable department. This approach limits the amount of
data entry required from the paper invoice and improves the
integrity of the data conversion process by validating that data
against previously approved Purchase Order information. Because the
data has been validated, discrepancies in the match process will be
minimized or eliminated. The solution preferably employees
multi-dimensional matching technology that identifies complete
matches as well as near matches that facilitates the integration of
P.O. and invoice data into a single file.
[0015] In one general aspect, an accounts payable process includes
receiving transaction data including at least one of invoice data,
purchase order data, and vendor data; and verifying a transaction
by matching a dynamic data set of client-specified
multi-dimensional criteria to the transaction data.
[0016] Implementations may include one or more of the following
features. For example, the dynamic data set may include
client-specified purchase order information, vendor profile
information and/or invoice information. The purchase order data may
include: PO Number, Vendor Number, Vendor Name, Vendor Remit
Address, PO Total Amount, PO Line Item Amount, Discount Percent,
Discount Days, Invoice Number, Invoice Date, and/or Invoice Total
Amount. The vendor data may include: Customer Number, Vendor Name,
Vendor Remit Address, Vendor Number, Contact Name, E-mail Address,
Payment Terms, and/or Vendor Status. The invoice data may include:
PO Number, PO Line Item Quantity, PO Line Item Amount, Vendor
Number, Vendor Address, Invoice Number, Invoice Date, Invoice Total
Amount, Discount Percent, and Discount Days.
[0017] Implementations may involve identifying a set of probable
matches based on client-specified criteria. The client-specified
criteria may include a plurality of weighted factors and/or a
tolerance range from an exact match. In one embodiment, probable
matches and the transaction data may be simultaneously presented on
a graphical user interface. In some cases, the graphical user
interface may include a split screen for displaying probable
matches and the transaction data. Implementations also may include
automatically correcting discrepancies between the transaction data
and client-specified information included in the dynamic data set
and/or augmenting the transaction data with client-specified
information included in the dynamic data set. In some cases,
payment processing may be initiated for a verified transaction.
[0018] Matching may include performing a vendor matching process, a
purchase order matching process, and/or an invoice matching
process. The vendor matching process may involve comparing
transaction data associated with a vendor to a client-specified
vendor profile. The vendor profile may be a master vendor profile
containing information regarding a plurality of vendors. The vendor
matching process may include performing a preliminary vendor match
and, if unsuccessful, identifying a set of probable vendor
matches.
[0019] The purchase order matching process may involve comparing
transaction data associated with a purchase order to a
client-specified purchase order file. The purchase order file may
include a digital image of a purchase order. The purchase order
matching process may include performing a preliminary purchase
order match and, if unsuccessful, identifying a set of probable
purchase order matches.
[0020] The invoice matching process may involve comparing
transaction data associated with an invoice to a client-specified
invoice file. The invoice file may include a master invoice file
containing information regarding a plurality of invoices. The
invoice matching process may include performing a preliminary
invoice match and, if unsuccessful, identifying a set of probable
invoice matches.
[0021] Implementations also may include receiving an invoice
associated with the transaction in paper form and/or electronic
form, generating a digital image of an invoice received in paper
form, and/or automatically extracting invoice data from the
received invoice.
[0022] In another general aspect, an accounts payable system
includes a host system in communication with one or more client
systems. The host system may include a matching database configured
to receive an accounts payable file including at least one of
invoice data, purchase order data, and vendor data; and verify a
transaction by matching a dynamic data set of client-specified
multi-dimensional records to attributes of the accounts payable
file.
[0023] Implementations may include one or more of the following
features. For example, the host system may be accessible by a
client system across a network such as, a wireless communications
network, the Internet, and/or the World Wide Web. The matching
database may store client-specified records including purchase
order files, vendor profiles, and/or invoice files associated with
a particular customer. The matching database may be configured to
perform matching according to client-specific matching rules. The
matching database may communicate probable matches to at least one
client system and allow the client system to manually select at
least one probable match. The AP system also may include a data
transmission input device configured to communicate transaction
information to the matching database, an unmatched processor
configured to receive accounts payable files that are not matched
to a client-specified record, and/or a matched file processor
configured to receive and process accounts payable files that are
matched to a client-specified record.
[0024] Aspects of the present invention may be implemented by an
apparatus and/or by a computer program stored on a computer
readable medium. The computer readable medium may include a disk, a
device, and/or a propagated signal.
[0025] Other features and advantages will be apparent from the
following description, including the drawings, and from the
claims.
DESCRIPTION OF THE DRAWINGS
[0026] FIG. 1 illustrates one embodiment of an AP process according
to aspects of the present invention.
[0027] FIGS. 2-7 illustrate one embodiment of an AP procedure
according to aspects of the present invention.
[0028] FIGS. 8 and 9 illustrate one embodiment of an AP system
according to aspects of the present invention.
[0029] FIGS. 10-18 illustrate one embodiment of graphical user
interfaces according to aspects of the present invention.
DETAILED DESCRIPTION
[0030] FIG. 1 illustrates one example of an AP process 10. The AP
process 10 has been divided into seven stages, i.e. Stage 1-Stage
7. Each stage includes one or more steps represented by labeled
boxes. Movement from left to right represents the progression of
the cycle. The vertical space between the steps represents time.
Therefore, the more efficient the process becomes, the smaller the
vertical space between the steps.
[0031] Stage 1 involves management of a purchase order (PO). During
Stage 1, the PO is issued (step 102). In general, the PO is issued
by a Buyer and relates to one or more products offered for sale by
the Seller. The Seller receives and processes the PO in order to
initiate a sale. In order to keep an accurate record of pending and
completed transactions, the Buyer may enter the PO into a General
Ledger (GL) (step 104).
[0032] In Stage 2, payment terms are applied. For example, payment
terms may be negotiated between a Buyer and a Seller. In some
cases, the payment terms may include financing options. The Buyer
receives the payment terms (step 106) and considers the financing
options (step 108).
[0033] In Stage 3, the transaction continues when Seller provides
the ordered product to the Buyer. Typically, a shipment receipt
accompanies the shipped product and a vendor invoice is delivered
to the Buyer at a later date. The vendor invoice may be generated
by an Accounts Receivable system, for example, in response to order
details input by the Seller. In this stage, the Buyer receives the
shipped product (step 110), receives the vendor invoice (step 112),
and then performs a three-way match of the received product with
the original purchase order and the vendor invoice (step 114).
[0034] If all three sources agree, payment origination occurs in
Stage 4. As shown, the Buyer performs an invoice posting and
administration process (step 116). The process generally may
involve reporting the invoice to a billing department, for example.
Typically, payments must be authorized before being distributed.
Assuming payment is approved (step 118), the Buyer may initiate
payment. The payment may be made by an electronic funds transfer or
other available method and may be delivered to the Seller along
with a supporting remittance detail.
[0035] Stage 5 involves AP application. In particular, the Buyer
updates the General Ledger (GL) to reflect the purchased product
(step 120). Updating the GL may involve reducing Cash and
increasing amounts of Supplies and Raw Materials. At the same time,
the Seller may use the remittance detail for cash application
within an A/R system. For instance, the Seller may reduce the
outstanding balance in Accounts Receivable and increases the amount
of cash on hand.
[0036] Usually, the Buyer will transfer funds to the Seller in an
amount indicated by the vendor invoice. However, if there is a
discrepancy when the three-way match is performed (step 114), the
Buyer may submit payment in an amount different than the original
invoice amount. In some cases, the Buyer may delay payment
altogether pending dispute resolution.
[0037] In the even that there is a discrepancy between the amount
paid and the mount owed, processing moves to Stage 6. In this
stage, dispute resolution (step 122) occurs. In general, the Buyer
and Seller exchange information in an attempt to reconcile their
differences with the possibility that any uncollected difference
will eventually be re-billed or written off.
[0038] In Stage 7, data integration (step 124) is performed. During
this stage, data accumulated in the previous Stages is used to
update an accounting system. Management information may be prepared
to measure the effectiveness of the overall process. Measures such
as Days Sales Outstanding, Cash Conversion Efficiency, and Bad Debt
Rations might be used to assess performance.
[0039] In the AP process 10, described above, there are several
inefficient process points that either require human intervention
or are problematic for companies wishing to streamline their
accounts payable process. For example, regarding invoice receipt
and validation (e.g., Stage 3), receipt of vendor invoices in
either electronic or paper form may present difficulties for some
companies. Additionally, the use of human operators to review
invoices for appropriate information and validate purchase orders
and invoice information may result in significant errors and
delay.
[0040] Regarding the payment approval and origination (e.g., Stage
4), obtaining invoice approval may involve complex processes.
Furthermore, attempting integration with payment processes in
accordance with vendor or transaction terms may be challenging.
[0041] With respect to AP application (e.g., Stage 5), application
of approved PO and relevant transaction and/or payment information
to an appropriate GL or internal systems may involve complicated
procedures. Regarding dispute resolution (e.g., Stage 6),
additional client review may be required for any unmatched and/or
unapproved transactions. For data integration (e.g., Stage 7), the
application of completed transactions to an internal application
may pose significant challenges for a company.
[0042] Referring to FIG. 2, a flow chart illustrates aspects of an
AP procedure 20. As shown, the AP procedure 20 includes procurement
(step 210), invoice receipt and entry (step 220), invoice to
purchase order matching (step 230), payment approval and generation
(step 240), and information reporting (step 250). The procedure 20
may be implemented by any suitable type of hardware (e.g., device,
computer, computer system, equipment, component); software (e.g.,
program, application, instructions, code); storage medium (e.g.,
disk, external memory, internal memory, propagated signal); or
combination thereof.
[0043] The AP procedure 20 begins with procurement (step 210),
which generally relates to the activities leading up to and
culminating with a Buyer placing an order for one or more products.
Such activities may include, for example, accessing internal and/or
external requirements, determining necessary products, selecting an
appropriate vendor, and finally ordering one or more products from
the selected vendor.
[0044] Procurement (step 210) may involve issuing a purchase order
(PO) to a Seller. In some implementations, the Buyer may generate
and/or update a PO file to reflect a pending transaction initiated
by issuing the PO. In general, the PO file may include data
representing some or all of the information contained in the PO.
The PO file also may include data identifying a PO number assigned
by the Buyer and/or Seller for referencing and/or tracking the PO.
In one particular embodiment, a PO file format may include one or
more of: PO Number, Vendor Number, Vendor Name, Vender Remit
Address, PO Total Amount, PO Line Item Quantity, PO Line Item
Amount, Discount Percent, and/or Discount Days. The PO file also
may be updated to include data such as Invoice Number, Invoice
Date, and/or Invoice Total Amount.
[0045] In cases where the PO is issued electronically, information
from the PO may be imported into the PO file automatically. In
other cases, an operator may generate and/or update a PO file by
inputting PO information into a template presented by a graphical
user interface (GUI).
[0046] The PO file may relate to one or more purchase orders and/or
transactions. For example, each Buyer may compile a master PO file
containing a comprehensive list of issued purchase orders and
associated PO information. The Buyer may update the PO file as new
purchase orders are issued. The PO file may be maintained locally
by the Buyer and/or stored on a centralized host system in a
network environment.
[0047] Procurement (step 210) further may involve generating and/or
updating a vendor profile. In general, the vendor profile may
include information about the Seller such as correspondence
address, phone number, website address, e-mail address, and/or
other contact information. The vendor profile also may include
details about pending and/or completed transactions. Information
from the PO may be imported automatically into the vendor profile
and/or entered by an operator. In one particular embodiment, a
vendor profile format may include one or more of: Customer Number,
Vendor Name, Vendor Remit Address, Vendor Number, Contact Name,
E-mail Address, Payment Terms, and/or Vendor Status. The vendor
number generally may be used to identify, distinguish, and/or
classify different vendors. The vendor number may be assigned by
Buyer and/or furnished by the Seller.
[0048] In some cases, the vendor profile may correspond to one
particular Seller. In other cases, the vendor profile may contain
information regarding multiple Sellers. For example, the vendor
profile may contain a comprehensive list of past, present, and
prospective Sellers identified by the Buyer. The Buyer may
continuously update the vendor profile as new orders are placed
and/or as potential Sellers are identified. The vendor profile may
be maintained locally by the Buyer and/or stored on a centralized
host system in a network environment.
[0049] The AP procedure 20 also includes invoice receipt and entry
(step 320) relating generally to the activities surrounding
receiving an invoice associated with one or more ordered products
and entering information from the invoice into an AP system. The
invoice may reference one or more purchase orders and include
information pertaining to the ordered products.
[0050] The invoice may be received in paper and/or electronic form.
Usually, a paper invoice will be presented and/or shipped with an
ordered product. After accepting the ordered product, the Buyer may
route the invoice to a designated invoice processing area. In some
implementations, an invoice may be converted from paper form into
an electronic format. For example, a paper invoice may be scanned
to generate a digital image.
[0051] The Buyer also may receive an invoice in an electronic
format. For example, the Buyer may receive electronic data
representing the invoice over a network that includes and/or forms
part of an information delivery system, such as, Internet, the
World Wide Web, and/or an analog or digital wireless
telecommunications network.
[0052] A standardized electronic format may be employed in order to
consolidate receipt of electronic and paper invoices. In general,
the electronic format may support integration of the invoice data
into a matching system (e.g., matching database) so that invoice
data may be associated with client specific purchase order
information.
[0053] Entry of invoice information may involve inputting data into
an AP system. In some implementations, an operator may review the
invoice and enter data into the AP system in accordance with client
specific data entry requirements. The requirements may include, for
example, entering an invoice number, PO total amount, and vendor
address for each received invoice. A template may be used to
establish common AP data entry requirements. In other
implementations, data may be extracted from the invoice
automatically. This may be possible, for example, where an invoice
is received electronically and/or a paper invoice is converted into
an electronic format.
[0054] Invoice receipt and entry (step 220) also may involve
validating vendor information. In general, the process of
validating may involve confirming that information associated with
a vendor is correct. In one implementation, a Buyer may validate
vendor information included in an invoice through a comparison with
a client-specific vendor profile. For instance, a Buyer may create
a vendor profile when an invoice is received from a Seller for the
first time. The vendor profile may include, for example, contact
information and a client-specified vendor number. When subsequently
receiving an invoice from the Seller, the Buyer may reference the
vendor profile to make sure that the invoice information and the
vendor profile convey the same information.
[0055] Invoice to PO Matching (step 230) relates to the process of
automatically matching client-specified information to a received
invoice. In general, a Buyer may input complex, multi-dimensional
specifications (e.g., vendor invoice data) into an AP system in
order to locate items from a dynamic data set (e.g., client's
vendor/purchase order information) that best fit the
specifications. In some implementations, after vendor information
from an invoice is validated, the Buyer conducts a
multi-dimensional match of the invoice to a client PO file.
[0056] Matching may involve presenting exact matches as well as
near matches. In general, near matches may be defined as a set of
probable matches based upon client specified multi-dimensional
criteria. The identification of near matches may be based on
numerous factors including, for example, common keying errors and
variation from an exact match. The factors considered may be
appropriately weighted according to their tendency to return a
match.
[0057] Invoice to PO matching (step 230) also may involve
augmenting invoice data with purchase order information. For
example, information from a matching PO file may be appended to
invoice data to reconcile incorrect and/or incomplete data
elements. In some cases, PO information may be appended or linked
to the scanned image of an invoice. Augmenting the invoice data in
such ways may facilitate the payment approval process.
[0058] After a PO file has been matched to the invoice, the
original payment terms may be reviewed for further confirmation
that the invoice amount is correct. In some implementations, a
prior invoice and/or a vendor profile may be referenced to verify
that the invoice amount is typical for the type of order or for the
particular vendor.
[0059] The AP procedure 20 further includes payment approval and
generation (step 240) relating to the process by which payment to
the Seller for a received product is authorized. In general, the
Buyer will approve payment for conforming goods according to the
payment terms. In some implementations, matched items (e.g.,
invoice and PO information) may be transmitted to a billing system
for presentment, review, and adjudication. For example, the matched
items may be compared against client parameters established for
automated payment approval.
[0060] The AP procedure 20 also includes information reporting
(step 250) generally relating to presenting data related to one or
more transactions in a user-specified format. In general, reporting
information may involve capturing data involved with a transaction,
generating one or more data files based on the captured data, and
outputting information regarding the one or more transactions to a
user. In some cases, data may be routed to a printing system for
reporting information in paper form. In other cases, the
information may be reported in electronic form through a graphical
user interface (GUI) that includes text, images, audio, video
and/or other media for conveying information to a user. Reporting
information in electronic form may involve utilizing the
capabilities of Internet and/or wireless technologies. For example,
information may be reported through an interactive Web page
displayed by a browser application in response to data communicated
over wired and/or wireless data pathways.
[0061] Reporting information also may involve interpreting the data
and suggesting financial strategies. For example, the Buyer may be
presented with pricing strategies and/or marketing strategies for
improving the flow of the Financial Supply Chain.
[0062] Further details regarding aspects of invoice receipt and
entry (step 220) are provided with reference to FIG. 3. In this
implementation, the process of begins when an invoice for an
ordered is product is received (step 2202). In some cases, one or
more AP operators may be assigned the task of collecting documents
(PO invoices, non-PO invoices, Vendor Statements) associated with
ordered/received products. An AP operator may collect the documents
upon arrival or at regular intervals and then sort the documents
based on an established criteria (e.g., document type). Each of the
invoices may in turn be sorted by number of pages and/or otherwise
prepared for image processing.
[0063] Next, the invoices are scanned by a visual imaging system
(step 2204). Scanning may involve generating a digital image and
associating a time stamp with each invoice. The digital images may
be maintained in one or more designated storage locations (e.g.,
database, file structure, table) within the AP system. In some
embodiments, invoices (and envelopes) may be stored as checks and
remittances by the AP system. Once the images are scanned, the AP
operator may view the image on a GUI to ensure that the image is
readable. Then, the images may be uploaded to an indexing station
and queued for further processing. Typically, the actual (i.e.,
paper) invoice also will be forwarded to the indexing station.
[0064] Next, data entry is performed for each invoice (step 2206).
In general, data may be entered according to a standard invoice
file format. The standard invoice file format may include fields
for entering one or more of: PO Number, PO Line Item Quantity, PO
Line Item Amount, Vendor Number, Vendor Name, Vendor Address (i.e.,
"Remit To" Address), Invoice Number, Invoice Date, Invoice Total
Amount, Discount Percent, and/or Discount Days. Because invoices
may or may not be associated with a PO, some information (e.g., PO
Number, PO Line Item Quantity, PO Line Item Amount) may not be
available for entry. In such cases, an AP operator may enter an
invoice category (e.g., PO invoice/non-PO invoice) for each
invoice. The category selected may automatically display the
appropriate fields on a screen for entering the invoice
information. In addition, invoices that are associated with a PO
may require having a service entry sheet entered into the AP
System.
[0065] Data entry may involve an AP operator reviewing the invoice
in paper or digital form and manually entering information into the
AP system in accordance with the invoice file format. In some
cases, a character recognition process may be applied to the
digital image so that invoice data is extracted and entered
automatically. Data entry also may include verifying that the PO
number (if applicable) on the invoice is valid, for example, by
referencing a PO file. If the PO number is invalid, further
investigation as appropriate is performed.
[0066] After confirming that the PO number is valid, the invoice
data is batched and submitted for further processing (step 2208).
In general, the invoice data may be batched in an ad hoc format
whereby invoice data is grouped and transferred for matching by the
AP system. In some cases, batching may include assigning document
numbers to each invoice so that the invoice data may be routed to
an appropriate processing unit. For example, PO invoices may be
automatically assigned a document number and directed to an
appropriate processor based on alphabetical assignment. Non-PO
invoices also may be automatically assigned a document number based
on transaction type, parked in the AP system, and directed to the
appropriate processor based on alphabetical assignment by the
Indexer.
[0067] Referring to FIG. 4, the process of invoice receipt and
entry (step 220) continues with receiving data at the AP system
(step 2210) and initiating a vendor matching process (step 2212).
In this implementation, the AP system receives the submitted
invoice data as well as a customer specified PO file and a customer
specified vendor file. In general, the PO file may be created at
the time an order is placed and may be maintained by the AP system
before the invoice for the order is received. In some cases, the
vendor file also may be created when an order is placed and
maintained by the AP system prior to receiving the invoice. The
vendor file may be, for example, a master vendor list containing
information regarding all the vendors associated with a Buyer. The
AP system may receive and add the information for each invoice to a
matching database as invoice header records.
[0068] The vendor matching process generally involves positively
identifying the vendor listed on the invoice. Usually, all invoice
records are subjected to the vendor match. In this implementation,
the AP system may initiate the vendor matching process (step 2212)
by automatically pulling vendor information from the vendor file
and/or PO file. The AP system then determines whether there is a
preliminary vendor match (step 2214).
[0069] In some cases, the AP system may look up address information
(e.g., street, city, state) assigned to a particular vendor using
the vendor number and then compare the address information to the
data entered in the Vendor Address (i.e., "Remit To" Address) field
of the invoice format. While in other implementations, vendors may
be identified by other types of information, using vendor address
information as the primary identification key is more likely to
yield a unique solution.
[0070] In addition, the vendor file and/or the PO file may be
checked against the Vendor Name field and/or the actual invoice to
verify that all information is identical. If the Vendor Name does
not agree with the PO file and the vendor file, further
investigation as appropriate is performed. Assuming that all
information associated with the vendor is correct, the AP system
validates the Vendor Number associated with the particular
transaction. The invoice data then may be maintained in a storage
location within the AP system until further processing (e.g., PO
matching) is required. In addition, the actual invoices may be
filed by date (i.e., time stamp) and stored in preparation for
further processing.
[0071] If there is no match for a vendor, however, the AP system
initiates a non-vendor matched process, aspects of which are
illustrated by FIG. 5. On the other hand, when there is a match,
the AP system queries whether the vendor utilizes purchase orders
(step 2216). The vendor file and/or the invoice data may be
references to make this determination. For example, as part of the
process of generating the vendor file, a Buyer may indicate whether
it is the standard business practice of the vendor to use purchase
orders. Additionally, if the invoice references a PO, it may be
assumed that the common practice of the vendor is to supply
products based on purchase orders.
[0072] If the vendor does indeed utilize purchase orders, the AP
system initiates a PO process, aspects of which are illustrated by
FIG. 6. Conversely, if the vendor does not utilize purchase orders
or it cannot be determined whether the vendor utilizes purchase
orders, the AP system initiates a non-PO process, aspects of which
are illustrated by FIG. 7.
[0073] Turning now to FIG. 5, the non-vendor matched process
generally may be considered as part of the procedures involved with
invoice receipt and entry (step 220). As shown, when no vendor
match is found, the invoice data is queued in an unmatched vendor
invoice table (step 2220). Table 1 is one example of a format that
may be used for the unmatched vendor table. Generally, the vendor
data is automatically placed into the appropriate fields of the
unmatched vendor invoice table where it is queued for matching.
1TABLE 1 1.sup.st Data Key 2.sup.nd Data Key 3.sup.rd Data Key
4.sup.th Data Key 5.sup.th Data Key Remit Address Remit Address
Vendor Number Remit Address Vendor Number PO Number Remit Address
Vendor Number PO Number PO Amount Remit Address Vendor Number PO
Number PO Amount Vendor Name
[0074] When the transaction (i.e., invoice data) reaches the front
of the queue, matching criteria is applied to the data within the
unmatched vendor table. Table 2 demonstrates one example of how
matching criteria may be applied to the fields in the unmatched
vendor table of Table 1.
2TABLE 2 Match Criteria Exact-Off 1 Char Off .ltoreq. 2 Characters
Exact-Off 1 Char Off .ltoreq. 2 Characters Off .ltoreq. 2
Characters Exact-Off 1 Char Off .ltoreq. 2 Characters Off .ltoreq.
2 Characters OFF .ltoreq. 2 Characters Exact-Off 1 Char Off
.ltoreq. 2 Characters Off .ltoreq. 2 Characters Off .ltoreq. 2
Characters Off .ltoreq. 2 Characters Exact-Off 1 Char
[0075] Application of the matching criteria is designed to identify
one or more vendors that match or nearly match client specified
vendor profiles resident within the AP system. In general, the
concept of applying "near matching" involves the process of
identifying the best matches based upon numerous factors that are
given appropriate weight. Near matching also encompasses the
process of suggesting probable matches by considering common keying
errors as well as suggesting probable matches falling within a
specified tolerance range of an exact match.
[0076] The AP system may present exact matches or identify a set of
likely matches based upon client specified multi-dimensional
criteria. In general, the AP system may match data fields and
determine potential matches based upon client specific requirements
and/or client profile logic. For example, the AP system may be
configured to locate specific items from a dynamic data set (e.g.,
vendor profile information) that best fit a complex,
multi-dimensional specification (e.g., vendor invoice data).
[0077] In one implementation, the AP system compares the invoice
data against a master vendor profile in accordance with the
matching criteria of Table 2. Namely, the AP system receives data
from the fields of the unmatched vendor invoice table and compares
the data against corresponding vendor profile data. As indicated by
the columns of Table 1, the unmatched vendor invoice table includes
several data keys. In this implementation, five data keys are
employed; however, more or fewer data keys may be used in other
implementations.
[0078] The first data key is the primary data key and corresponds
to the Vendor Number field. As this process is defined as a
non-vendor matched process, it already has been established that
there is not an exact match for the Vendor Number. As demonstrated
by Table 1 and Table 2, a vendor from the master vendor profile may
be identified as a near match if the Vendor Number fields differ by
only one character. That is, all vendors having a vendor number
that differs only by one character from the vendor number listed of
the invoice may be returned as near matches.
[0079] Furthermore, additional near matches may be identified based
on the remaining data keys. For example, the second data key
corresponds to the Vendor Name field. Even if the Vendor Number
fields differ by two or more characters, a vendor from the master
vendor profile may be identified as a near match so long as the
Vendor Name fields are identical or differ only by one character.
The third data key corresponds to the Vendor Address ("Remit
Address") field. Even if the Vendor Number fields and the Vendor
Name fields each differ by two or more characters, a vendor from
the master vendor profile may be identified as a near match so long
as the Vendor Address ("Remit Address") fields are identical or
differ only by one character. The fourth data key corresponds to
the PO Number field. Even if the Vendor Number fields, the Vendor
Name fields, and the Vendor Address ("Remit Address") fields each
differ by two or more characters, a vendor from the master vendor
profile may be identified as a near match so long as the PO Number
fields are identical or differ only by one character. And, the
fifth data key corresponds to the PO Amount. Even if the Vendor
Number fields, the Vendor Name fields, the Vendor Address ("Remit
Address") fields, and the PO Number each differ by two or more
characters, a vendor from the master vendor profile may be
identified as a near match so long as the PO Amount fields are
identical or differ only by one character.
[0080] In some implementations, the third data key (i.e., Remit
Address) may include matching sub-logic within this field. For
example, the field may include Street Address as first data key,
City as a second data key, State as a third data key, and Zip (plus
4) as a fourth data key. Near matching may be applied to such data
keys as described above.
[0081] It should be noted that for vendors that do not utilize
purchase orders, PO information might be unavailable. Consequently,
all data keys might not be applied. Furthermore, in some
implementations, a subsequent data key may be applied only when
application of the preceding data key fails. For example, if a
vendor having a near matching vendor number is identified, a user
(e.g., AP operator) may be asked whether that vendor is correct
before performing further searching.
[0082] Application of matching criteria may use one or more methods
broadly categorized as Instance Based Learning, Machine learning,
Knowledge discovery, Classification, Record linkage, Clustering
methods, and/or variants thereof. For example, the AP system may
employ one type of Instance Based Learning algorithm known as
k-Nearest Neighbors (kNN). In general, kNN is based on calculations
of distances between records in the dataset. All records are
assumed to be points in a multi-dimensional space. The value of any
point introduced into that space is determined by a majority vote
of its k nearest neighbors. The values of new instances may be
determined from the values of known instances. Various metrics may
be used to measure the distance in space between the records.
Examples of metrics include, but are not limited to: Euclidean,
Manhattan, Minkovsky, Tchebyshev, Canberra, and Hausdorff.
[0083] In one implementation of the AP system, the distance between
two records might be defined as a function of the difference in the
Vendor Number, Vendor Name and Vendor ZIP with each one
contributing a different weight to the distance. The classification
of records from the given dataset may take place in two stages.
First, for a given record k-nearest neighbors are searched. Next,
the record in question is assigned to the class where the majority
of records from the set of k-nearest neighbors belong. The fraction
of neighbors from different classes may serve as an estimation of
probability for assigning the record to a given class. The records
in the class to which the given record belongs to can then serve as
the near matches for it.
[0084] After one or more probable vendors are identified by the AP
system, the results are presented through a graphical user
interface and a manual vendor match may be performed (step 2222).
In some applications, an AP operator may view a split screen
presenting the probable vendor matches on one side of the screen
and the digital image of the invoice on the other side. The AP
operator visually may compare the information presented on the
split screen and determine whether the correct vendor is found
(step 2224).
[0085] If the correct vendor is found, for example a vendor having
a near matching vendor number with the same "remit to" address, the
AP operator may enter the correct vendor number on the appropriate
screen. After selecting the correct vendor, the AP system may
initiate an ad hoc matching process (step 2226). The user also may
perform ad hoc data entry by manually entering additional search
criteria. In this implementation, once the vendor record is
corrected, an ad-hoc process may be initiated to find a PO
match.
[0086] The next steps generally are similar to steps described in
connection with FIG. 4. For instance, the AP system queries whether
the vendor utilizes purchase orders (step 2228). Again, the vendor
file and/or the invoice data may be referenced to make this
determination. If the vendor utilizes purchase orders, the AP
system initiates a PO matching process, aspects of which are
illustrated by FIG. 6. Conversely, if the vendor does not utilize
purchase orders or it cannot be determined whether the vendor
utilizes purchase orders, the AP system initiates a non-PO process,
aspects of which are illustrated by FIG. 7. In some cases, an AP
operator may have the option of using split screen verification to
continue to work on and close out the record. Otherwise, normal
processing is followed.
[0087] If application of the matching criteria returns no near
vendor matches or if the AP operator cannot make a manual vendor
match using split screen verification, the final status of the
invoice status may be indicated as "unmatched vendor--final" (step
2230) and the customer may be notified (Step 2232). Typically, the
AP system may notify the customer (e.g., Buyer) of the final vendor
matching status and submit a request to create an additional vendor
record in the master vendor file.
[0088] Referring to FIG. 6, further details regarding aspects of
invoice to PO matching (step 230) are provided. In general, the
process attempts to match invoice data with corresponding PO
information. In some cases, an invoice may pertain to goods shipped
in reply to multiple purchase orders.
[0089] In one implementation, the AP system initiates a PO search
process (step 2302). Generally, the search process may involve
comparing certain pieces of invoice information against stored PO
data. The AP system may obtain the invoice information, for
example, by examining or processing the digital image of the
invoice or by extracting data from selected invoice data fields.
For example, the AP system may extract the data entered into the
fields for PO Number, Vendor Number, and PO Total Amount for a
particular invoice record. Based on this information, the AP system
then may make a preliminary determination as to whether a PO match
is found (step 2304). Namely, the AP system may search the
information resident within the system for a PO file having an
identical PO number, vendor number, and PO amount.
[0090] If an exact PO match is found, the AP system may create an
invoice matched to PO file (step 2306) and then send the file to
the customer (step 2308). In general, the invoice matched to PO
file may contain the invoice data including the digital invoice
image and any PO information required to authorize payment.
[0091] If an exact PO match is not found, the AP system then
determines whether manual PO matching may be performed (step 2310).
The AP system generally may possess the ability to perform manual
PO matching as long as client-specified PO files are resident
within and accessible to the AP system. If manual PO matching is
possible, the AP system may identify one or more probable PO
matches (step 2312). In general, matching criteria may be applied
to the invoice data in order to identify one or more purchase
orders that match or nearly match client specified PO files
resident within the AP system. As described above, the AP system
may be designed to return likely matches based upon numerous
weighted factors. For example, the AP may identify near or probable
matches by taking into account common keying errors, as well as a
client specified tolerance range.
[0092] In one implementation, the AP system may identify probable
or near PO matches based on data entered in the invoice data fields
for PO Date, Invoice Date, and PO Total Amount. In this case, a
first data key may be defined by the PO date field, a second data
key may be defined by the Invoice Date field, and a third data key
may be defined by the PO Total Amount field. The AP system may use
one or more of the data keys to identify a purchase order as a near
match by comparing data in the fields of a PO file with data in
corresponding invoice data fields.
[0093] In general, a purchase order may be considered to nearly
match an invoice if certain purchase order information does not
differ significantly from corresponding invoice information. In
some implementations, a purchase order may be identified as a
probable match if the compared data varies by only one character.
For instance, invoice data may be matched to a PO file so long as
the PO Number fields differ by only one character. Performing near
matching in this way may take into account discrepancies resulting
from simple keying errors, for example.
[0094] In some embodiments, a purchase order may be identified as a
near match so long as certain PO data falls within a certain
tolerance range of the corresponding invoice data. For instance, a
purchase order may be identified as a potential match if its PO
date falls within a certain tolerance range (e.g., one week) of the
PO date indicated by the invoice. Similarly, a purchase order may
be identified as a potential match if its PO total amount falls
within a certain tolerance range (e.g., above and/or below a
certain dollar amount) of the PO total amount indicated by the
invoice. The degree to which a near match is permitted to differ
from an exact match may be a preset default value or a
client-specified value.
[0095] After one or more probable purchases orders have been
identified by the AP system, the purchase orders may be presented
on a split screen and a manual PO match may be performed (step
2314). For instance, an AP operator may view a split screen
presenting the probable PO matches on one side and the digital
image of the invoice on the other side. In some cases, the matching
results may be classified into specific resolution categories. The
AP operator visually may compare the information presented on the
split screen and determine which, if any, of the identified
probable PO matches corresponds to the invoice (step 2316).
[0096] If the AP operator makes a manual match, each of the
appropriate PO files is associated with the invoice data. In
addition, the AP operator may correct and/or augment the invoice
data. For example, information from a matching PO file may be used
to correct the invoice data and reconcile incorrect and/or
incomplete data elements. Furthermore, in some cases, PO
information may be appended or linked to the scanned image of the
invoice to facilitate the payment approval process. After all PO
matches are made, the AP system may create an invoice matched to PO
file (step 2306) and send the file to the customer (step 2308), as
described above. The user also may have the ability to manually
enter additional search criteria.
[0097] If application of the matching criteria returns no PO
matches or if the AP operator cannot make a manual PO match using
split screen verification, the final status of the invoice may be
indicated as "unmatched PO--final" (step 2318), and the unmatched
invoice may be sent to the customer (step 2308).
[0098] Additionally, if the AP system is unable to perform a manual
match for the particular invoice (step 2306), the AP system may
record the invoice information in a file of unmatched invoices
(step 2320), indicate the final status of the invoice is to be
"unmatched PO--final" (step 2318), and then send the unmatched
invoice to the customer (step 2308).
[0099] Referring to FIG. 7, details regarding aspects of a non-PO
process are provided. As indicated above, a non-PO process may be
performed in situations where an invoice is received from a vendor
that does not use purchase orders. In such situations, invoice to
PO matching (step 230) generally should be avoided, since an
attempt to match the invoice data to a PO file conceivably could
identify a nearly matching yet incorrect purchase order. Therefore,
the non-PO process typically will be performed after invoice
receipt and entry (step 220) and may be considered as part of
payment approval and generation (step 240).
[0100] In general, the non-PO process match process attempts to
authorize and initiate payment based on non-PO information. In one
implementation, the AP system searches a database of stored invoice
data relating to prior transactions in order to determine if the
current invoice matches a recurring invoice (step 2402). The AP
system may search for recurring invoices that generally occur
within the same date range (e.g., placed/shipped the same time each
month), are from the same vendor, pertain to similar products,
and/or are for a comparable dollar amount, for example. If no
recurring invoice is found, the AP system may search for a vendor
profile of the vendor listed on the invoice (step 2404).
[0101] The AP system then may determine whether the current invoice
falls within a tolerance range necessary to authorize payment (step
2406). In general, the current invoice is compared to a recurring
invoice and/or the vendor profile. For instance, if a recurring
invoice is found, the AP system may determine whether payment can
be automatically authorized based on the similarities between the
current invoice and the recurring invoice. If the vendor profile is
retrieved, the AP system may determine whether the current invoice
is consistent with attributes of the vendor. For example, the AP
system may analyze the vendor profile to confirm whether the
products, service time, and/or shipment methods indicated by the
invoice are typical of the vendor in question. If the AP system is
unable to conclude with relative certainty that the current invoice
should be paid, the AP system notifies the customer (step 2408). In
general, notification may involve sending the invoice data to the
customer (e.g., Buyer) for further review.
[0102] FIG. 8 illustrates one implementation of an exemplary
computer system 30 capable of performing aspects of AP matching
described above. As shown, the computer system 30 includes an AP
host system 310 connected through a network 320 to a client system
330. For brevity, several elements in the figure are represented as
monolithic entities.
[0103] In general, the AP host system 310 may be configured to
receive, store, and/or process purchase order information, vendor
information, and invoice information. For example, the AP host
system 310 may perform matching techniques regarding invoice
information, purchase order invoice information, and/or vendor
information. In one implementation, the AP host system 310 may
automatically match client specific vendor and/or purchase order
information against invoice data related to a received invoice. The
AP host system 310 also may present exact matches or identify a set
of likely matches based upon client specified multi-dimensional
criteria. In addition, the AP host system 310 may allow vendor
verification against a vendor profile.
[0104] The network 320 may be configured to deliver data between
the AP host system 310 and the client system 330. In general, the
network 320 may be a wired or wireless communication network
capable of directly or indirectly connecting the AP host system 310
and the client system 330 irrespective of physical separation. In
one implementation, the network 320 interfaces with the AP host
system 310 through a first communication pathway 322 and interfaces
with the client system 330 through a second communication pathway
342. The first communication pathway 322 and the second
communication pathway 324 may each include one or more wired or
wireless data pathways and delivery systems configured to direct
and deliver data.
[0105] The network 320 may include one or more of: a local area
network ("LAN"), a wide area network ("WAN"), the Internet, the
World Wide Web, a telephony network (e.g., analog, digital, wired,
wireless, PSTN, ISDN, or xDSL), a radio network, a television
network, a cable network, a satellite network, and/or any other
wired or wireless communications network configured to carry data.
Each network may include one or more interconnection elements, such
as, for example, intermediate nodes, proxy servers, adapters,
routers, and/or switches.
[0106] The client system 330 may be configured to present
information to a client (e.g., Buyer), receive information from the
client (e.g., data input), and exchange information with the AP
host system 310 through the network 320. For example, the client
system 330 may present and/or receive information through
interactive GUIs. The client system 330 may generate purchase order
files and/vendor profiles in response to information specified by
the client. In some cases, presented information may be reviewed by
the client for approval and dispute management.
[0107] In some implementations, the client system 330 presents and
receives information from a customer in accordance with aspects of
AP matching techniques, described above. For example, the client
system 330 may receive matched invoice and purchase order
information from the AP host system 310. The client system 330 also
may be presented with vendor information and/or purchase order
information that exactly or nearly matches invoice data
requirements. In such cases, the client system 430 may receive
input from the customer indicating a confirmation and/or selection
of the correct vendor information and/or purchase order
information.
[0108] The AP host system 310 and the client system 330 each may
include or form part of a computer system having hardware and/or
software components for communicating with each other through the
network 320 and for interacting to perform aspects of AP matching.
The AP host system 31.0 and the client system 330 may be structured
and arranged to communicate using various communication protocols
(e.g., http, WAP) and/or encapsulation protocols (e.g., UDP), to
establish connections (e.g., peer-to-peer) between network
elements, and/or to operate within or in concert with one or more
other systems (e.g., the Internet and/or Web).
[0109] In one implementation, the AP host system 310 includes one
or more devices operating under the direction of a host control
module 312, and the client system 330 includes one or more devices
operating under the direction of a client control module 332.
Examples of such devices include, but are not limited to: a
general-purpose computer, a special-purpose computer, a personal
computer ("PC"), a workstation, a server, a laptop, a Web-enabled
telephone, a Web-enabled personal digital assistant ("PDA"), an
interactive television set, a set-top box, an on-board (i.e.,
vehicle-mounted) computer, or any other computing element capable
of responding to and executing instructions.
[0110] An example of a control module is a software application
(e.g., operating system, Internet service provider application,
browser application, server application, proxy application, gateway
application, tunneling application, and/or other communications
application) loaded on a device for commanding and directing
communications enabled by the device. Other examples include a
computer program, a piece of code, an instruction, another device,
or some combination thereof, for independently or collectively
instructing a device to interact and operate as desired. The
control module may be embodied permanently or temporarily in any
type of machine, component, physical or virtual equipment, storage
medium, or propagated signal capable of providing instructions to a
device. In particular, the control module (e.g., software
application, computer program) may be stored on a storage media or
device (e.g., ROM, magnetic diskette, or propagated signal)
readable by a computer system, such that if the storage media or
device is read by a computer system, the functions described herein
are performed.
[0111] Turning now to FIG. 9, further details of the system 30 are
provided. In one implementation, the AP host system 310 includes a
data transmission input device 3102, a matching database 3104, an
unmatched file processor 3106, a matched file processor 3108, a
data transmission output device 3110, and a maintenance processor
3112.
[0112] In general, the image data entry and transmission device
3102 may contain hardware and/or software for implementing
processes related to invoice receipt and data entry (step 220)
and/or invoice to purchase order matching (step 230). For example
the image data entry and transmission device 3102 may be configured
to receive invoices in paper and/or electronic form, convert paper
invoices to digital images, extract data from a digital image,
and/or accept data entry from a user. The image data entry and
transmission device 3102 also may generate AP files containing
invoice data and forward such files to the matching database 3104
for integration.
[0113] The matching database 3104 may contain hardware and/or
software for implementing processes related to invoice receipt and
data entry (step 220) and/or invoice to purchase order matching
(step 230). While implementations of the matching database 4104 are
not limited to any particular hardware and/or software, one
embodiment of the matching database specifically contemplates
modifications to iX Matching technology available from Powerloom
Inc., dba Dynamix.
[0114] In general, the matching database 3101 may be provided with
image access capabilities, decision-making logic, and matching
criteria. The matching database 3104 may be capable of connecting
to multiple sites within the AP system 30 as well as multiple
client sites across the network 320. Digital images and other
electronic data may be supported in a variety of formats by the
matching database 3104 so that data may be accessed, aggregated,
and/or moved within the AP system 30 and across the network 320.
Control of the matching database 3104 may be provided from a
centralize access control site and/or be distributed across several
sites.
[0115] In one implementation, the matching database 3104 may be
designed to receive invoice data, purchase order data, and vendor
data from a variety of sources and in a variety of file formats.
The matching database 3104 may support simultaneous AP processing
for multiple enterprise customers and provide each customer with a
private portal to interact with the AP processing service.
[0116] As described above, the matching database 3104 may receive
invoice data including digital images of scanned invoices from the
data transmission input element 3102. In addition, the matching
database 3104 may import purchase order data and/or vendor data
from one or more sources. For example, the matching database 3104
may receive PO files and vendor profiles through the data
transmission input device 3102, from the client system 430, or from
some other system (e.g., billing system, vendor system). In
general, the matching database 3104 may be configured to maintain
flexibility so that data may be periodically imported and/or
imported on demand.
[0117] The matching database 3104 may be configured to store
received data in a variety of ways. In some cases, the matching
database 3104 may maintain client-specific records for each
customer. For example, the matching database 3104 may maintain and
aggregate PO files and/or vendor profiles associated with a
particular customer. In one implementation, the matching database
3104 warehouses PO files for each customer's pending and/or
completed transactions. The matching database 3104 also may include
a master vendor table containing a comprehensive list of vendors
with whom the customer has business dealings.
[0118] The matching database 3104 may be configured to validate a
transaction based on one or more of invoice data, PO data, and/or
vendor data. In some cases, the matching database 3104 may verify
the reliability of PO information and vendor information by
performing routine comparisons of client-specific data. For
example, upon receiving a new PO file, the matching database 3104
may compare the PO information to data in a vendor profile table
and/or other invoice data. The matching database 3104 also may
reference PO files and/or invoice associated with a customer when a
new vendor is added.
[0119] In one implementation, the matching database 3104 may open
an AP file pertaining to a specific transaction in response to
receiving invoice data from the data transmission input device
3102. Generally, when an invoice for an ordered product is
received, data is entered through the data transmission input
device 3102 and sent to the matching database 3104. In response,
the matching database 3104 may open an AP file, include the invoice
data within the AP file, and then may attempt to validate and/or
complete the AP file with matching data.
[0120] The matching database 3104 may attempt to validate the
vendor information listed on the invoice based upon a comparison of
invoice data in the AP file against client specific vendor profiles
resident within the database. In particular, the matching database
3104 may attempt to match vendor attributes of the invoice data
(e.g., vendor number, vendor name, vendor address) to a
corresponding vendor profile. If an exact vendor match is found,
the matching database 3104 approves the vendor. Otherwise, the
matching database 3104 may indicate that the AP file is "unmatched"
and identify a set of probable or near matches.
[0121] In general, the matching database 3104 may utilize software
that identifies vendors that nearly match the transaction
information. The matching database 3104 may provide users with
multiple choices regarding match/resolution options. For instance,
the matching database 3104 may enable providers and users to
determine how information should be posted and/or matched. In some
cases, the matching database 3104 may maintain client-specific
matching rules for suggesting probable matches that fall within a
specified tolerance range of an exact match. The matching database
3104 also may set rules for how to react once potential choices are
found by utilizing templates to present near matching data, for
example.
[0122] In one implementation, the matching database 3104 may be
configured to locate specific items from a dynamic data set (e.g.,
client's vendor/purchase order information) that best fit a
complex, multi-dimensional specification (e.g., vendor invoice
data). For example, the matching database 3104 may identify a
predetermined number of vendor profiles--for example, the top five
vendor profiles that best match the invoice data--and include them
in the AP file.
[0123] In order to reconcile unmatched AP files, the matching
database 3104 may be configured to perform a manual matching
process. In general, manual matching provides operators with the
ability to visually inspect probable matching candidates.
[0124] In one implementation, the unmatched information is
presented to a user (e.g., AP operator, client) in a split screen
format. That is, invoice image data and/or the invoice image may be
displayed on one portion of a GUI and near matching vendor
information may be displayed on another portion of a GUI so that a
user may visually compare the presented information. In this
implementation, unmatched transactions (either invalid vendor data
or unmatched invoices) are viewed through a split screen for one of
two options: (1) supplemental data entry may occur whereby the AP
file is then re-routed through the vendor validation workflow or
(2) a manual match of a vendor is accomplished.
[0125] Once the vendor information has been verified, the matching
database 3104 then may attempt to match the invoice data to a
purchase order based upon a comparison of invoice data in the AP
file against client specific PO files resident within the database.
In one implementation, the matching database 3104 may attempt to
match attributes of the invoice data (e.g., vendor number, invoice
amount, invoice date) to one or more corresponding PO files. If no
exact PO match is found, the matching database 4104 may indicate
that the AP file is "unmatched" and identify a set of probable or
near matches.
[0126] Again, the matching database 3104 may perform a manual
matching process to reconcile the unmatched AP file. The unmatched
information may be presented to a user (e.g., AP operator, client)
in a split screen format. For example, the invoice image data
and/or the invoice image may be displayed on one portion of a GUI
and the purchase orders identified by the matching database 3104 as
probable matches may be displayed on another portion of a GUI. The
user may visually compare the presented information and manually
select the appropriate purchase order.
[0127] Sometimes an unmatched AP file cannot be reconciled by the
matching database 3104. This may the case where no near matches can
be identified given the matching criteria or where the appropriate
vendor or purchase order cannot be identified through manual
matching. In such cases, the matching database 3104 may indicate
the AP file to be "unmatched--final."
[0128] In one implementation, unmatched-final AP files may be
routed to and stored by an unmatched file processor 3106. The
unmatched file processor 3110 may include decision logic for
handling exceptions. For instance, the unmatched file processor
3106 may implement rules for establishing who should be contacted
(and how they should be reached) or what application should be
alerted when a particular event occurs at a specific time. In some
cases, unmatched AP files may be transferred to a designated web
site to await resolution and approval. Notification tools also may
be utilized to connect to personnel assigned to review and manage
unmatched invoices.
[0129] In situations where the invoice data is successfully matched
to appropriate vendor information and/or PO information, the
matching database 3104 may indicate the AP file to be "matched." In
some cases, the matching database 3104 may augment the invoice data
of matched AP files with corresponding vendor and/or PO information
to facilitate payment approval. In addition, in cases where a
manual matching process is successful, the matching database 3104
may recognize and correct data entry errors based on the manual
match. Thus, the matching database 3104 makes it possible to
automatically match invoices to vendors and purchase orders and, in
turn, eliminates the majority of exception processing. Matched AP
files may be routed to and stored by a matched processor 3108.
[0130] In some implementations, the matched file processor 3108 may
compare the matched items against automatic payment approval
criteria. The automatic payment criteria may define a threshold for
initiating automatic payment. If the matched items meet the
criteria for automatic payment, for example, in cases where there
is little doubt that payment is proper, the matched AP file may be
transferred to the data transmission output device 3110.
[0131] Upon receipt of the matched AP file, the data transmission
output device 3110 may initiate payment processing. For example,
the data transmission output device 3110 may be configured to
extract invoice and/or vendor information from the AP file and
transmit the information to a billing application for presentment,
review and adjudication.
[0132] In some cases, the general ledger (GL) may be updated to
reflect the impact of the transaction. In one implementation, the
data transmission output device 3110 may transfer details of a
transaction to a GL update interface 3302 of the client system 330.
The GL update interface 3302 may be implemented as an interactive
GUI (e.g., Web page) and may be used to update the GL, PO files
and/or vendor profiles.
[0133] In cases where automatic payment does not occur, the
unmatched file processor 3106 and/or the matched file processor
3108 may present the items to the client system 330 for approval.
For instance, prior to receiving approval, invoice data may be
balanced against purchase order information and/or invoice
exceptions may be resolved.
[0134] Typically, unmatched items will not be approved. However,
there may be situations where a customer may wish to authorize
payment of an unmatched invoice--such as payment to a new vendor
that does not use purchase orders, for example. In some
implementations, therefore, the unmatched file processor 3106 may
present the unmatched items to an approval interface 3304 on the
client system 330. The approval interface 3304 may be implemented
as an interactive GUI, such as a Web page, for example. A user
(e.g., AP operator, customer) may visually inspect the unmatched
items and then grant or deny approval using the interface. If
approval is denied, dispute management procedures may commence.
Upon approval, the AP file may be forwarded to the data
transmission output device 3110 for payment processing.
[0135] In general, approval is more likely for matched items. In
one implementation, the matched file processor 3108 may classify
the matching results according to vendor, date, transaction type,
and/or other client-specified criteria to facilitate approval. The
matched file processor 3108 then may present the information from
the matched AP file to a user through the approval interface 3304
of the client system 330. The user (e.g., AP operator, customer)
may visually inspect the matched items and then grant or deny
approval using the interface. Upon approval, the matched file
processor 3108 may forward the matched AP file to the data
transmission output device 3110 for payment processing. Otherwise,
dispute management procedures may commence.
[0136] Typically, the AP system 30 may be configured to report
general information regarding the status of pending and completed
transactions related to a particular customer. In one
implementation, the AP system may include a maintenance processor
3112 configured to retrieve data from one or more sources. For
example, the maintenance processor 3112 may obtain data from the
matching database 3104, the unmatched file processor 3106, and/or
the matched file process 3108 and present the current status of the
transactions associated with a particular customer to a user (e.g.,
AP operator, customer). In some cases, the maintenance processor
3112 may link image data (e.g., invoice image, purchase order
image) with related invoice data, purchase order data, and/or
vendor data. The maintenance processor 3112 also may perform
session logging and record an audit trail of user activity.
[0137] In one embodiment, the maintenance processor 3112 may
aggregate the transaction information associated with a customer
and present the information through a reporting interface 3306 on
the client system 330. The reporting interface 3306 may be
implemented as an interactive GUI, such as a Web page, for example.
A user (e.g., AP operator, customer) may use the reporting
interface 3306 to review and analyze current and/or historical
transaction information.
[0138] In some implementations, the reporting interface 3306 may
provide the ability to report information for: daily
matched/assumed items, daily unmatched items, daily activity by
vendor, monthly matched/assumed items, monthly unmatched items,
monthly activity by vendor, monthly aged unmatched items (e.g.,
>5 business days), and/or other ad hoc reports. In addition, the
reporting interface 3306 may support general customer service
options including control of access requirements, screen layouts,
report generation, and/or other user preferences.
[0139] FIGS. 10-18 illustrate aspects of one embodiment of a web
site that may be presented by the AP system 30. In general, the web
site may be designed to enable secure client access and support all
resolution, approval, and client servicing needs. In one
implementation, the web site may utilize 128 byte encryption as a
security measure, require client user id and password verification,
establish client/user administration profiles, identify exact and
probable candidates for automatic and manual matching, and/or allow
viewing of matched and unmatched items for initiating payment and
performing reconciliation.
[0140] FIG. 10 illustrates one embodiment of a GUI 40 that may be
presented by the AP system 30. As shown, the GUI 40 includes a
log-in screen for providing secure access to client
information.
[0141] FIG. 11 illustrates one embodiment of a GUI 42 that may be
presented by the AP system 30. As shown, the GUI 42 includes an
invoice list identifying all invoices for a specific time period.
The GUI 42 also may indicate specific purchase order status
information for each transaction--that is, whether a purchase order
has been matched to the invoice. In some cases, the GUI 42 may
include the ability to access an image of each item.
[0142] FIG. 12 illustrates one embodiment of a GUI 44 that may be
presented by the AP system 30. As shown, the GUI 44 includes a
purchase order list identifying all unmatched purchase orders
processed for a specific time period. The GUI 44 may provide
specific purchase order information and links to potential order
matches identified by a matching database. In some cases, the GUI
44 may include links to images of potential purchase order
matches.
[0143] FIG. 13 illustrates one embodiment of a GUI 46 that may be
presented by the AP system 30. As shown, the GUI 46 includes a
purchase order match screen for viewing potential matches for a
purchase order. In this implementation, the GUI 46 includes the top
five invoice candidates that potentially match the purchase order.
The GUI 46 may provide links to an image of potential purchase
order matches and include various viewing capabilities.
[0144] FIG. 14 illustrates one embodiment of a GUI 48 that may be
presented by the AP system 30. As shown, the GUI 48 includes the
ability to assign specific matches to an unmatched item. The GUI 48
also provides that ability to render a purchase order to pending or
rejected status.
[0145] FIG. 15 illustrates one embodiment of a GUI 50 that may be
presented by the AP system 30. As shown, the GUI 50 may link to a
matching database for performing client or vendor profile
maintenance. For example, the GUI 50 may provide the ability to
change vendor name, change vendor address, change vendor number,
deactivate a vendor, establish vendor PO matching thresholds,
and/or adjust vendor matching criteria.
[0146] FIG. 16 illustrates one embodiment of a GUI 52 that may be
presented by the AP system 30. As shown, the GUI 52 provides the
ability to change a client contact name.
[0147] FIG. 17 illustrates one embodiment of a GUI 54 that may be
presented by the AP system 30. As shown, the GUI 54 provides the
ability to establish file transfer formats, frequency of file
transfer and other profile parameters.
[0148] FIG. 18 illustrates one embodiment of a GUI 56 that may be
presented by the AP system 30. As shown, the GUI 56 provides the
ability to establish or adjust data entry requirements and data
threshold levels. In this implementation, the GUI 56 includes
specific vendor/invoice usage criteria.
[0149] A number of implementations have been described.
Nevertheless, it will be understood that various modifications may
be made and that other implementations are within the scope of the
following claims.
* * * * *