U.S. patent application number 13/769239 was filed with the patent office on 2013-07-25 for facilitating electronic auction of prepayment of an invoice.
This patent application is currently assigned to Ariba, Inc.. The applicant listed for this patent is Jegnaw Ayele, Satyajit Choudhury, Kshitij Dayal, Andrew Hofler, Raja Polisetti, Tanvi Bakul Shah, Yuan Tung, Ramakrishna Vadla. Invention is credited to Jegnaw Ayele, Satyajit Choudhury, Kshitij Dayal, Andrew Hofler, Raja Polisetti, Tanvi Bakul Shah, Yuan Tung, Ramakrishna Vadla.
Application Number | 20130191266 13/769239 |
Document ID | / |
Family ID | 46020526 |
Filed Date | 2013-07-25 |
United States Patent
Application |
20130191266 |
Kind Code |
A1 |
Dayal; Kshitij ; et
al. |
July 25, 2013 |
FACILITATING ELECTRONIC AUCTION OF PREPAYMENT OF AN INVOICE
Abstract
Embodiments for facilitating an electronic auction of prepayment
of an invoice are disclosed. One embodiment includes a server for
facilitating an electronic auction of prepayment of an invoice. For
this embodiment, the server is operative to inform a supplier
whether the invoice is available for meeting a defined cash need of
the supplier after the invoice has been approved by the supplier
and a buyer with definite terms, receive a prepayment offer from
the buyer, and provide the prepayment offer to the supplier,
provide the supplier with information to aid the supplier in
determining whether to take the prepayment offer from the buyer, or
submit the invoice with proposed prepayment terms to an exchange
platform, electronically provide the invoice to the exchange
platform server with proposed prepayment terms if the supplier
decides to submit the invoice, wherein the exchange platform server
facilitates an electronic auction of the invoice with proposed
prepayment terms to a plurality of bidders and receive a bid from
at least one of the plurality of bidders, and electronically
facilitate payment of the invoice between the winning bidder and
the supplier if a winning bid is received.
Inventors: |
Dayal; Kshitij; (San Joe,
CA) ; Tung; Yuan; (Fremont, CA) ; Choudhury;
Satyajit; (Bangalore, IN) ; Polisetti; Raja;
(Bangalore, IN) ; Shah; Tanvi Bakul; (San Jose,
CA) ; Vadla; Ramakrishna; (Banglore, IN) ;
Ayele; Jegnaw; (San Jose, CA) ; Hofler; Andrew;
(Cranberry Township, PA) |
|
Applicant: |
Name |
City |
State |
Country |
Type |
Dayal; Kshitij
Tung; Yuan
Choudhury; Satyajit
Polisetti; Raja
Shah; Tanvi Bakul
Vadla; Ramakrishna
Ayele; Jegnaw
Hofler; Andrew |
San Joe
Fremont
Bangalore
Bangalore
San Jose
Banglore
San Jose
Cranberry Township |
CA
CA
CA
CA
PA |
US
US
IN
IN
US
IN
US
US |
|
|
Assignee: |
Ariba, Inc.
Sunnyvale
CA
|
Family ID: |
46020526 |
Appl. No.: |
13/769239 |
Filed: |
February 15, 2013 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
|
|
12942119 |
Nov 9, 2010 |
8392317 |
|
|
13769239 |
|
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|
Current U.S.
Class: |
705/37 |
Current CPC
Class: |
G06Q 30/08 20130101;
G06Q 40/04 20130101; G06Q 30/04 20130101 |
Class at
Publication: |
705/37 |
International
Class: |
G06Q 40/04 20060101
G06Q040/04 |
Claims
1. A server for facilitating an electronic auction of prepayment of
an invoice, operative to: inform a supplier whether the invoice is
available for meeting a defined cash need of the supplier after the
invoice has been approved by the supplier and a buyer with definite
terms; receive a prepayment offer from the buyer, and provide the
prepayment offer to the supplier; provide the supplier with
information to aid the supplier in determining whether to take the
prepayment offer from the buyer, or submit the invoice with
proposed prepayment terms to an exchange platform; electronically
provide the invoice to the exchange platform server with proposed
prepayment terms if the supplier decides to submit the invoice,
wherein the exchange platform server facilitates an electronic
auction of the invoice with proposed prepayment terms to a
plurality of bidders and receive a bid from at least one of the
plurality of bidders; and electronically facilitate payment of the
invoice between the winning bidder and the supplier if a winning
bid is received.
2. The server of claim 1, wherein a winning bid is a one of a
plurality of bids received from the plurality of bidders having a
highest value
3. The server of claim 2, wherein the winning bid comprises a
combination of a plurality of bidders.
4. The server of claim 1, wherein the buyer makes payment to a
receivable account independent of whether a winning bid is
received.
5. The server of claim 4, further comprising payments being made
from the receivable account to the winning bidder if a winning bid
is received.
6. The server of claim 4, further comprising payment being made
from the receivable account to the supplier if a winning bid is not
received.
7. A system for facilitating an electronic auction of prepayment of
an invoice, comprising; a cash optimizer server; and a contract
facilitator server network connected to the cash optimizer server
and an exchange platform server, where the contract facilitator
server is operative to: electronically facilitate approval of the
invoice between a supplier and a buyer with definite terms;
electronically receive a prepayment offer from the buyer if the
cash optimizer server informs the supplier that the invoice is
available for meeting a defined cash need of the supplier; provide
the prepayment offer to the cash optimizer, and receive back
information from the cash optimizer information which is provided
to the supplier, and allows the supplier to determine whether to
accept the prepayment offer or provide the invoice to an exchange
platform for auction; provide the invoice with proposed prepayment
terms to the exchange platform server if the supplier decides to
submit the invoice, wherein the exchange platform manages an
electronic auction of the invoice with proposed prepayment terms
with a plurality of bidders; and electronically facilitate payment
of the invoice between the winning bidder and the supplier if a
winning bid is received.
8. The system of claim 7, wherein a winning bid is a one of a
plurality of bids received from the plurality of bidders having a
highest value
9. The system of claim 8, wherein the winning bid comprises a
combination of a plurality of bidders.
10. The system of claim 7, wherein the buyer makes payment to a
receivable account independent of whether a winning bid is
received.
11. The system of claim 10, further comprising payments being made
from the receivable account to the winning bidder if a winning bid
is received.
12. The system of claim 10, further comprising payment being made
from the receivable account to the supplier if a winning bid is not
received.
13. A program storage device readable by a machine, tangibly
embodying a non-transitory program of instructions executable by
the machine to perform a method of facilitating an electronic
auction of prepayment of an invoice, the method comprising:
facilitating, through a contract facilitator, approval of the
invoice with definite terms between a supplier and a buyer;
informing, by a cash optimizer, the supplier whether the invoice is
available for meeting a defined cash need of the supplier;
receiving, by the supplier, a prepayment offer from the buyer;
providing the prepayment offer to a cash optimizer, wherein the
cash optimizer provides the supplier with information to aid the
supplier in determining whether to take the prepayment offer from
the buyer, or submit the invoice with proposed prepayment terms to
an exchange platform; and if the supplier decides to submit the
invoice, then the supplier electronically submitting the invoice
with proposed prepayment terms to the exchange platform; the
exchange platform providing an electronic auction of the invoice
with proposed prepayment terms to a plurality of bidders and
receiving a bid from at least one of the plurality of bidders; if a
winning bid is received, electronically facilitating payment of the
invoice between the winning bidder and the supplier.
14. The program storage device of claim 13, wherein the winning bid
is a one of a plurality of bids received from the plurality of
bidders having a highest value
15. The program storage device of claim 14, wherein the winning bid
comprises a combination of a plurality of bidders.
16. The program storage device of claim 13, wherein the buyer makes
payment to a receivable account independent of whether a winning
bid is received.
17. The program storage device of claim 16, further comprising
payments being made from the receivable account to the winning
bidder if a winning bid is received.
18. The program storage device of claim 16, further comprising
payment being made from the receivable account to the supplier if a
winning bid is not received.
Description
RELATED APPLICATIONS
[0001] This patent application is a continuation of U.S. patent
application Ser. No. 12/942,119, filed Nov. 9, 2010, which is
herein incorporated by reference.
FIELD OF THE DESCRIBED EMBODIMENTS
[0002] The described embodiments relate generally to prepayment of
invoices. More particularly, the described embodiments relate to a
method, apparatus and system for facilitating an electronic auction
of prepayment of an invoice.
BACKGROUND
[0003] Purchase agreements (contracts or invoice) are routinely
made between suppliers and buyers. Typically, a buyer identifies
goods for purchase. The buyer submits a purchase order to the
supplier for the identified good, and the supplier submits an
invoice to the buyer. Typically, the contract between the supplier
and buyer (purchase order) includes a purchase price, and a payment
terms.
[0004] In some situations, the supplier has a need for cash after
an invoice has been approved, but before the invoice has been paid.
To address the cash need, the supplier may be willing to reduce the
price of the invoice in exchange for prepayment of the invoice. The
supplier or the buyer may then suggest reducing the amount due a
certain amount in exchange for reducing the payment term. That is,
the supplier may offer a reduction in amount due through
prepayment, in which the prepayment is made within a reduced
payment term.
[0005] The supplier, however, is limited to negotiating the
prepayment of the invoice with the buyer. Other parties are not
involved. Therefore, if the buyer cannot or will not prepay the
invoice, the supplier does not have an alternate source for
prepayment.
[0006] There is a need for a method, apparatus and a system for
providing a supplier with alternative ways to obtain prepayment of
an invoice.
SUMMARY
[0007] An embodiment includes a server for facilitating an
electronic auction of prepayment of an invoice. For this
embodiment, the server is operative to inform a supplier whether
the invoice is available for meeting a defined cash need of the
supplier after the invoice has been approved by the supplier and a
buyer with definite terms, receive a prepayment offer from the
buyer, and provide the prepayment offer to the supplier, provide
the supplier with information to aid the supplier in determining
whether to take the prepayment offer from the buyer, or submit the
invoice with proposed prepayment terms to an exchange platform,
electronically provide the invoice to the exchange platform server
with proposed prepayment terms if the supplier decides to submit
the invoice, wherein the exchange platform server facilitates an
electronic auction of the invoice with proposed prepayment terms to
a plurality of bidders and receive a bid from at least one of the
plurality of bidders, and electronically facilitate payment of the
invoice between the winning bidder and the supplier if a winning
bid is received.
[0008] Another embodiment includes a system for facilitating an
electronic auction of prepayment of an invoice. The system includes
a cash optimizer server; and a contract facilitator server network
connected to the cash optimizer server and an exchange platform
server. For this embodiment, the contract facilitator server is
operative to electronically facilitate approval of the invoice
between a supplier and a buyer with definite terms, electronically
receive a prepayment offer from the buyer if the cash optimizer
server informs the supplier that the invoice is available for
meeting a defined cash need of the supplier, provide the prepayment
offer to the cash optimizer, and receive back information from the
cash optimizer information which is provided to the supplier, and
allows the supplier to determine whether to accept the prepayment
offer or provide the invoice to an exchange platform for auction,
provide the invoice with proposed prepayment terms to the exchange
platform server if the supplier decides to submit the invoice,
wherein the exchange platform manages an electronic auction of the
invoice with proposed prepayment terms with a plurality of bidders,
and electronically facilitate payment of the invoice between the
winning bidder and the supplier if a winning bid is received.
[0009] Another embodiment includes a program storage device
readable by a machine, tangibly embodying a non-transitory program
of instructions executable by the machine to perform a method of
facilitating an electronic auction of prepayment of an invoice. The
method includes facilitating, through a contract facilitator,
approval of the invoice with definite terms between a supplier and
a buyer, informing, by a cash optimizer, the supplier whether the
invoice is available for meeting a defined cash need of the
supplier, receiving, by the supplier, a prepayment offer from the
buyer, providing the prepayment offer to a cash optimizer, wherein
the cash optimizer provides the supplier with information to aid
the supplier in determining whether to take the prepayment offer
from the buyer, or submit the invoice with proposed prepayment
terms to an exchange platform, and if the supplier decides to
submit the invoice, then the supplier electronically submitting the
invoice with proposed prepayment terms to the exchange platform,
the exchange platform providing an electronic auction of the
invoice with proposed prepayment terms to a plurality of bidders
and receiving a bid from at least one of the plurality of bidders,
and if a winning bid is received, electronically facilitating
payment of the invoice between the winning bidder and the
supplier.
[0010] Other aspects and advantages of the described embodiments
will become apparent from the following detailed description, taken
in conjunction with the accompanying drawings, illustrating by way
of example the principles of the described embodiments.
BRIEF DESCRIPTION OF THE DRAWINGS
[0011] FIG. 1 shows an example of a system that facilitates
electronic auction of prepayment of an invoice.
[0012] FIG. 2 shows an example of a system that facilitates an
electronic auction of prepayment of an invoice, and further
includes a cash optimizer.
[0013] FIG. 3 shows an example of a system that facilitates an
electronic auction of prepayment of an invoice, and further
facilitates payments between suppliers, buyers and capital
providers.
[0014] FIG. 4 is a flow chart that includes steps of an example of
a method of facilitating an electronic auction of prepayment of an
invoice.
[0015] FIG. 5 is a flow chart that includes steps of another
example of a method of electronically modifying terms of an
agreement.
DETAILED DESCRIPTION
[0016] The embodiments described include methods and apparatuses
for providing alternate avenues to suppliers for prepayment of
invoices. At least some of the described embodiments provide
suppliers with the availability and capability of auctioning of the
invoice, thereby allowing the supplier to obtain prepayment of the
invoices. The auctions provide that supplier to capital from
sources other than the buyer. Additionally, some of the described
embodiments provide the suppliers with a cash optimizer that can
inform the supplier of invoice available to meet a defined cash
need. Additional embodiments can include the cash optimizer
informing the supplier of the potential success of an auction of an
invoice.
[0017] While the described embodiments include an invoice
containing the contractual terms between a supplier and a buyer, it
is to be understood that the invoice is a purchase agreement which
may be referred to in a different way.
[0018] FIG. 1 shows an example of a system that facilitates an
electronic auction of prepayment of an invoice. A contract
facilitator network 110 can provide an interface between a supplier
120 and a buyer 130. For example, the buyer 130 can submit a
purchase order (PO) which is received by the supplier 120. In
response, an invoice can be submitted by the supplier 120 to the
buyer 130. Typically, the invoice includes definite terms that
include, for example, a payment amount, and a time duration in
which the payment is due to be paid by the buyer 130 to the
supplier 120. The definite terms of the invoice can be agreed upon
between the supplier 120 and the buyer 130 through the contract
facilitator network 110, or the definite terms of the invoice can
be agreed upon between the supplier 120 and the buyer 130
independent of the contract facilitator network 110.
[0019] After the definite terms of the invoice are in place, either
the buyer can offer to prepay the invoice (that is, submit payment
before the time required per the invoice), or the seller may
request prepayment. In exchange for prepayment, the supplier 120
can offer a reduction in the payment amount required to complete
the invoice. However, the buyer may be unable or unwilling to
prepay.
[0020] An exchange platform 140 provides the supplier 120 with an
alternate method of receiving prepayment. The supplier 120 can
submit the invoice between the supplier 120 and the buyer 130 to
the exchange platform 140. An embodiment includes the supplier
additionally providing proposed prepayment terms, however, other
embodiment include the supplier confirming, but not directly
submitting proposed prepayment terms. The exchange platform 140
makes the terms of the invoice available to multiple capital
providers 150. The capital providers 150 can then bid to purchase
the invoice. The purchase appears to the supplier 120 to be a
prepayment of the invoice. To the buyer 130, the terms of the
invoice remain the same. However, the payment from the buyer to the
capital provider can be electronically managed without the buyer
even being aware. The capital providers 150 are essentially
investors that provide capital (for example, dollars) that is
transferred to the suppliers with the assumption that the amount
they (the capital provider) will receive per the contract from the
buyer will be greater than the amount they paid.
[0021] The exchange platform 140 makes the terms of the contract
and prepayment terms available to the capital providers 150. The
capital providers 150 can the auction on prepayment of the
contract. That is, the exchange platform 140 receives bids from the
capital providers 150.
[0022] For an embodiment, the supplier 120 must register with the
exchange platform. Demographic information and other details of the
supplier can be provided to the exchange platform.
[0023] Once an auction is initiated by the supplier 120 through the
exchange platform 140, the supplier 120 can approve or disapprove
of a winning bid. A winning bid is typically the bid offering the
greatest payment under a proposed prepayment term. However, there
can be other factors that determine a winning bid.
[0024] FIG. 2 shows an example of a system that facilitates an
electronic auction of prepayment of a contract, and further
includes a cash optimizer 210. Situations can arise in which a
supplier 120 is offered a prepayment with certain terms from a
buyer. The supplier, however, is faced with a decision of whether
to take the offer of the buyer 130 or attempt to put the contract
up for auction through the exchange platform 140. One embodiment of
the cash optimizer 210 informs the supplier 120 of invoices
available to meet a defined cash need. Other embodiments of the
cash optimizer 210 include aiding the supplier 120 with information
to allow the supplier 120 to decide whether an auction is
optionally better for the supplier 120 than dealing directly with
the buyer 130. Other embodiments of the cash optimizer 210 provide
predictions of how successful the auction of the invoice on the
exchange platform 140 will be.
[0025] For an embodiment, the cash optimizer 210 or the contract
facilitator maintains a data base or prior prepayment contract
auctions of the exchange platform 140. Based on prior auctions, the
probable results of a future auction can be predicted. That is,
prior auctions involving similar contact with similar prepayment
terms can be accessed and analyzed to provide an estimate of the
probable outcome of an auction of a present contract and prepayment
terms.
[0026] Other embodiments of the cash optimizer 210 can provide ways
for step wise refinement of invoices. Additionally, the cash
optimizer 210 can be enhanced to include buyer specific auction
rates from historical data.
[0027] FIG. 3 shows an example of a system that facilitates an
electronic auction of prepayment of a contract (invoice), and
further facilitates payments between suppliers, buyers and capital
providers. More specifically, FIG. 3 includes an account 360 that
facilitates payments between the parties. After the contract has
been agreed upon, an embodiment includes the buyer making payment
to the account 360 per the terms of the contract whether an auction
occurs or not. That is, the exchange platform 140 and the capital
providers 150 do not influence the obligations and activities of
the buyer 130. However, if a successful auction of the contract
with prepayment terms does occur, the supplier 120 is prepaid by
the account 360 after the winning bidder (capital provider 150) has
made the prepayment per the terms of the auction to the account
360. If a successful auction of the contract does not occur, the
supplier 120 receives payment from the account after the buyer
makes payment to the account 360 per the terms of the original
contract.
[0028] FIG. 4 is a flow chart that includes steps of an example of
a method of facilitating an electronic auction of prepayment of an
invoice. A first step 410 includes a supplier and a buyer approving
the invoice with definite terms. A second step 420 includes the
supplier electronically submitting the invoice with proposed
prepayment terms to an exchange platform. A third step 430 includes
the exchange platform providing an electronic auction of the
invoice with proposed prepayment terms to a plurality of bidders
and receiving a bid from at least one of the plurality of bidders.
A fourth step 440 includes electronically facilitating payment of
the invoice between the winning bidder and the supplier if a
winning bid is received.
[0029] For an embodiment, the winning bid is a one of a plurality
of bids received from the plurality of bidders having a highest
value. For embodiments, a single invoice, or even a batch of
invoices can be auctioned and subsequently purchased (bought) by
multiple bidders. That is, for example, multiple bidders A, B, C
could each bid for 33.33% of the auction. Upon settling of the
invoice, each of the winning bidders A, B, C each get 33.33% of the
proceeds. That is, for an embodiment, the winning bid comprises a
combination of a plurality of bidders.
[0030] Once a winning bid has been identified an approved by the
supplier, the winning bidder makes payment to the supplier
according to the proposed prepayment terms. At a later date the
winning bidder receives payment according the definite terms of the
invoice. The winning bidder can be a capital provider who receives
payment from the buyer that is greater than the payment made by the
winning bidder.
[0031] Embodiments of the exchange platform include the bidders
being registered capital providers. Additionally or alternatively,
the buyers are qualified.
[0032] For an embodiment, before being electronically submitted to
the exchange platform, at least one of the supplier and the buyer
proposes prepayment terms of the invoice. The proposed payment
terms can provide the basis for prepayment terms submitted to the
exchange platform.
[0033] For an embodiment, the buyer makes payment to a receivable
account independent of whether a winning bid is received. If a
winning bid is received by the exchange platform, payment is made
from the receivable account to the winning bidder. Further, if a
winning bid is not received, payment being made from the receivable
account to the supplier per the original agreement.
[0034] An embodiment further includes a cash optimizer. The cash
optimizer provides the supplier with a projection how successful an
auction of the invoice would be, aiding the supplier in determining
whether to submit the invoice to the exchange platform. For an
embodiment, the cash optimizer provides the projection based on
historical information of previous auctions.
[0035] FIG. 5 is a flow chart that includes steps of another
example of a method of facilitating an electronic auction of
prepayment of an invoice. A first step 510 includes a supplier and
a buyer approving the invoice with definite terms. A second step
520 includes subsequently, at least one of the supplier and the
buyer proposing prepayment terms of the invoice. A third step 530
includes the supplier electronically submitting the invoice with
the proposed prepayment terms to an exchange platform. A fourth
step 540 includes the exchange platform providing an electronic
auction of the invoice with the proposed prepayment terms with a
plurality of bidders and receiving a bid from at least one of the
plurality of bidders. A fifth step 550 includes electronically
completing payment of the invoice between the winning bidder and
the supplier if a winning bid is received.
[0036] Although specific embodiments have been described and
illustrated, the embodiments are not to be limited to the specific
forms or arrangements of parts so described and illustrated.
* * * * *