U.S. patent application number 15/283939 was filed with the patent office on 2017-08-10 for system and method for reconciling one or more financial transactions.
The applicant listed for this patent is III Holdings 1, LLC. Invention is credited to Ruchika Arun, Anurag Dahiya, Shino Joseph, Uday Rao Kadam, Kizhakkemadam R. Krishnan, Preeti Lobana, Raju Vishwanathan.
Application Number | 20170228827 15/283939 |
Document ID | / |
Family ID | 39331501 |
Filed Date | 2017-08-10 |
United States Patent
Application |
20170228827 |
Kind Code |
A1 |
Lobana; Preeti ; et
al. |
August 10, 2017 |
SYSTEM AND METHOD FOR RECONCILING ONE OR MORE FINANCIAL
TRANSACTIONS
Abstract
A system, method and computer program product for reconciling
one or more financial transactions of one or more business units.
The method includes capturing transaction data from the financial
transactions using a first set of data logics. The capturing
further includes extracting the transaction data from the financial
transactions using import templates and transforming the extracted
transaction data to a predefined format, using a first set of
validations. The captured transaction data is then auto-matched
with master data as reference, using one or more auto-match logics
and a second set of validations. One or more reports are then
generated on the auto-matched transaction data. The method further
includes providing user privileges for controlling the capturing,
the auto-matching, and the generation of the one or more reports
according to a first predefined criterion.
Inventors: |
Lobana; Preeti; (New Delhi,
IN) ; Arun; Ruchika; (New Delhi, IN) ;
Krishnan; Kizhakkemadam R.; (New Delhi, IN) ; Kadam;
Uday Rao; (Uttar Pradesh, IN) ; Vishwanathan;
Raju; (Uttar Pradesh, IN) ; Joseph; Shino;
(New Delhi, IN) ; Dahiya; Anurag; (New Delhi,
IN) |
|
Applicant: |
Name |
City |
State |
Country |
Type |
III Holdings 1, LLC |
Wilmington |
DE |
US |
|
|
Family ID: |
39331501 |
Appl. No.: |
15/283939 |
Filed: |
October 3, 2016 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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14183728 |
Feb 19, 2014 |
9460472 |
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15283939 |
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14071323 |
Nov 4, 2013 |
8694393 |
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14183728 |
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11552892 |
Oct 25, 2006 |
8600845 |
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14071323 |
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Current U.S.
Class: |
1/1 |
Current CPC
Class: |
G06Q 40/00 20130101;
G06Q 40/06 20130101; G06Q 40/02 20130101; G06Q 40/10 20130101; G06Q
20/10 20130101; G06Q 40/12 20131203 |
International
Class: |
G06Q 40/00 20060101
G06Q040/00; G06Q 40/02 20060101 G06Q040/02 |
Claims
1-20. (canceled)
21. A method, comprising: a computer system receiving data
indicative of a first transaction and a second transaction; the
computing system extracting first transaction data from the
received data, wherein the first transaction data is in a first
data format; the computing system extracting second transaction
data from the received data, wherein the second transaction data is
in a second data format; the computing system transforming the
first transaction data and the second transaction data into a
predefined data format; and the computing system matching the first
transaction to the second transaction based on the transformed
first transaction data and the transformed second transaction
data.
22. The method of claim 21, further comprising: based on the
matching, the computer system generating a report that includes
details on matched transaction data; and the computer system
archiving the report, wherein the report can be retrieved based on
a search using a search interface.
23. The method of claim 21, wherein the transforming is based on at
least one set of data logics and further includes: the computer
system scheduling the at least one set of data logics to be
automatically executed at specific time intervals based on a
frequency of transactions; and the computer system automatically
executing the at least one set of data logics after the specific
time intervals.
24. The method of claim 21, further comprising: the computer system
performing an audit on activities of the computer system that
include the matching and the extracting.
25. The method of claim 21, wherein the matching further comprises:
the computer system matching the first transaction to the second
transaction within a defined tolerance limit, wherein the defined
tolerance limit is expressed as a percentage value.
26. The method of claim 21, wherein the transforming is based on at
least one set of data logics and further includes: the computer
system creating the at least one set of data logics by specifying a
set of fields based on at least one of account numbers, transaction
dates, and transaction amounts.
27. The method of claim 21, wherein the extracting the first
transaction data and the second transaction data is based on a set
of validations that include approvals for performing
extractions.
28. A system, comprising: one or more processors; and a memory
having stored thereon program instructions that are executable by
the one or more processors to cause the system to perform
operations comprising: receiving data specifying a financial
statement that includes a plurality of transactions; retrieving,
from the received data, a first set of data indicative of a first
one of the plurality of transactions, wherein the first set of data
is in a first format; retrieving, from the received data, a second
set of data indicative of a second one of the plurality of
transactions, wherein the second set of data is in a second format;
transforming the first set of data and the second set of data into
a particular data format; and matching the first transaction to the
second transaction based on the transformed first set of data and
the transformed second set of data.
29. The system of claim 28, wherein the operations further
comprise: based on predefined journal entry criteria, creating a
journal entry of open transaction data that includes unmatched
transaction data of the plurality of transactions.
30. The system of claim 28, wherein the matching further comprises:
performing a currency conversion of the first transaction data to a
currency of the second transaction as indicated by the second
transaction data.
31. The system of claim 28, wherein the matching further comprises:
matching the first transaction to the second transaction using
match logic that includes one or more algorithms for matching
transaction data; and scheduling the match logic to be
automatically executed at specific time intervals based on a
frequency of receiving transactions.
32. The system of claim 28, wherein the operations further
comprise: providing, via a user interface, a notification
indicative of an error that occurred in retrieving, from the
received data, a third set of data indicative of a third one of the
plurality of transactions.
33. The system of claim 28, wherein the operations further
comprise: providing a user interface for reviewing uncaptured
transaction data and matched transaction data.
34. The system of claim 28, wherein the retrieving the first set of
data and the second set of data is based on at least one set of
data logics.
35. A non-transitory computer readable medium having instructions
stored thereon that are executable by a computer system to perform
operations comprising: receiving information identifying one or
more financial transactions; extracting first and second
transaction information from the one or more financial
transactions, wherein the first transaction information is in a
first format, and wherein the second transaction information is in
a second format different from the first format; transforming the
first and second transaction information into a same format; and
matching the transformed first transaction information and the
transformed second transaction information.
36. The computer readable medium of claim 35, wherein the
operations further comprise: based on the matching, generating a
report that includes matched transaction information, unmatched
transaction information, and information relating to the one or
more financial transactions.
37. The computer readable medium of claim 35, wherein the
transforming includes using a set of data logics, and wherein the
operations further comprise: the computer system scheduling the set
of data logics to be automatically executed according to a one or
more criteria, wherein the one or more criteria includes a
frequency at which information identifying the one or more
financial transactions is received.
38. The computer readable medium of claim 35, wherein the
extracting includes extracting the first and second transaction
information based on a period of reconciliation.
39. The computer readable medium of claim 35, wherein the
operations further comprise: providing, to a user interface, a
notification of an error that occurred in extracting third
transaction information from the one or more financial
transactions.
40. The computer readable medium of claim 35, wherein the matching
is based on a tolerance limit defined by user having a user
privilege corresponding to defining tolerance limits.
Description
CROSS REFERENCE TO RELATED APPLICATIONS
[0001] This application is a continuation of, claims priority to
and the benefit of, U.S. Ser. No. 14/071,323 filed Nov. 4, 2013 and
entitled "SYSTEM AND METHOD FOR RECONCILING ONE OR MORE FINANCIAL
TRANSACTIONS." The '323 application is a continuation of, claims
priority to and the benefit of, U.S. Ser. No. 11/552,892 filed Oct.
25, 2006 and entitled "SYSTEM AND METHOD FOR RECONCILING ONE OR
MORE FINANCIAL TRANSACTIONS," which issued as U.S. Pat. No.
8,600,845 on Dec. 3, 2013. The '892 application shares some common
subject matter with commonly owned U.S. Pat. No. 7,895,094 issued
Feb. 22, 2011 (aka U.S. patent application Ser. No. 10/736,181,
filed Dec. 15, 2003). All of which are hereby incorporated by
reference in their entirety.
BACKGROUND OF THE INVENTION
[0002] Field of the Invention
[0003] The present invention generally relates to managing
financial transactions of one or more business units and more
particularly, to reconciliation and reporting of financial
transactions of one or more business units.
[0004] Related Art
[0005] Reconciliation is a financial process of matching debit and
credit transactions for one or more accounts of one or more
business units. The unmatched transactions may then be researched
and cleared. In organizations with one or more business units, the
business units may adopt different accounting systems. The
accounting systems may differ in, for example, the computer
operating systems, software applications, and the like. This makes
the reconciliation process for such organizations difficult, as the
financial data from different business units needs to be
transformed from different data formats. Such conversions, if
performed manually, tend to increase the volume of unmatched
transactions. Hence, in order to ensure financial control in the
business units and to comply with industry standards such as
Sarbanes-Oxley, it is important to provide a standardized and
controlled environment for the reconciliation process.
[0006] Existing reconciliation processes include manual
reconciliation of the financial transactions. These manual
reconciliation processes are error-prone and cause an increase in
the number of unmatched transactions. There exist reconciliation
tools, which provide automated reconciliation and reduce the manual
effort and intervention required during the reconciliation process.
However, the existing reconciliation tools require the data to be
uploaded manually for reconciliation. Further, there is a
limitation in auto-match logics that may be created. The existing
tools do not provide the flexibility in creation of reports on the
output of the reconciliation process. Further, the existing tools
may not manage all financial transaction categories efficiently,
and may not ensure a controlled reconciliation process.
[0007] Given the foregoing, what is needed is a system, method and
computer program product for reconciling one or more financial
transactions of one or more business units, which provide an
automated and controlled reconciliation process with the
flexibility to manage multiple data formats without manual
intervention. Further, the reconciliation process needs to provide
auto-match logic creation flexibility and strengthen the balance
sheet hygiene.
BRIEF DESCRIPTION OF THE INVENTION
[0008] The present invention meets the above-mentioned needs by
providing a system, method and computer program product for
reconciling one or more financial transactions of one or more
business units.
[0009] An advantage of the present invention is that it automates
the reconciliation of one or more financial transactions and
reduces the manual effort required in the reconciliation
process.
[0010] Another advantage of the present invention is that it
enables the reconciliation of one or more financial transaction in
a controlled and standardized manner.
[0011] Yet another advantage of the present invention is that it
provides the flexibility to manage one or more financial
transactions with different data formats.
[0012] Still another advantage of the present invention is that it
provides the flexibility to simultaneously perform multiple
activities of the reconciliation process.
[0013] Still another advantage of the present invention is that it
provides the flexibility to create auto-match logics required for
providing efficient automation of the reconciliation process.
[0014] Still another advantage of the present invention is that it
provides the capability of testing and approving different
activities of the reconciliation process.
[0015] Various embodiments of the present invention provide a
system, method and computer program product for reconciling one or
more financial transactions of one or more business units. The
method includes capturing transaction data from the financial
transactions using a first set of validations. Herein, capturing of
the transaction data includes extracting the transaction data from
the financial transactions having one or more formats, and
transforming the extracted transaction data to a predefined format,
using a first set of data logics. Thereafter, the captured
transaction data is auto-matched using master data. The
auto-matching is performed using one or more auto-match logics and
a second set of validations to provide matched transaction data and
open transaction data. Herein, the auto-match logics may include
permutations of one or more arithmetic algorithms.
[0016] Thereafter, one or more reports are generated, providing
details on the matching. The method also includes providing user
privileges for controlling the capturing of transaction data, the
auto-matching of the captured transaction data, and the generation
of one or more reports. Further, the method may include manual
matching of the captured transaction data. The method includes
performing audit trails on the capturing, the auto-matching and the
generation of reports. The method may also include performing one
or more of the aforementioned functions simultaneously.
[0017] Further features and advantages of the present invention as
well as the structure and operation of various embodiments of the
present invention are described in detail below with reference to
the accompanying drawings.
BRIEF DESCRIPTION OF THE DRAWINGS
[0018] The features and advantages of the present invention will
become more apparent from the detailed description set forth below
when taken in conjunction with the drawings, in which like
reference numbers indicate identical or functionally similar
elements. Additionally, the left-most digit of a reference number
identifies the drawing in which the reference number first
appears.
[0019] FIG. 1 is a block diagram of an exemplary system for
reconciling one or more financial transactions of one or more
business units, in which the present invention, in an embodiment,
may be implemented;
[0020] FIG. 2 is a block diagram of an exemplary system for
reconciling one or more financial transactions of one or more
business units, in which the present invention, in another
embodiment, may be implemented;
[0021] FIG. 3 is a flowchart illustrating a process of reconciling
one or more financial transactions of one or more business units,
according to an embodiment of the present invention;
[0022] FIG. 4 is a flowchart illustrating a process of reconciling
one or more financial transactions of one or more business units,
according to another embodiment of the present invention;
[0023] FIG. 5a is an exemplary screenshot illustrating a user
interface for performing auto-matching, in accordance with an
embodiment of the present invention;
[0024] FIG. 5b is an exemplary screenshot illustrating an
auto-match wizard used for auto-matching, in accordance with an
embodiment of the present invention;
[0025] FIG. 5c is an exemplary screenshot illustrating a process
for creating an auto-match wizard, in accordance with an embodiment
of the present invention;
[0026] FIGS. 6a and 6b are exemplary screenshots illustrating a
method to define an auto-match wizard using one or more substrings,
in accordance with an embodiment of the present invention;
[0027] FIG. 7 is an exemplary screenshot illustrating a scheduler,
in accordance with an embodiment of the present invention;
[0028] FIG. 8 is a block diagram of an exemplary computer system
useful for implementing the present invention.
DETAILED DESCRIPTION
I. Overview
[0029] The present invention is directed to a system, method and
computer program product for reconciling one or more financial
transactions of one or more business units. The reconciliation may
be required for financial transactions that include, for example,
bank statements, General Ledger of an organization, Sub-Ledgers,
and the like. The system and the process described herein provide
an efficient electronic reconciliation and control tool, which may
be used to automate and standardize the process of reconciliation.
In accordance with an embodiment of the present invention, the
system and the process may be used to establish compliance with
industry standards such as the Sarbanes-Oxley standard.
[0030] The present invention is now described in more detail herein
in terms of the above exemplary system, method and computer program
product. This is for convenience only and is not intended to limit
the application of the present invention. In fact, after reading
the following description, it will be apparent to one skilled in
the relevant art(s) how to implement the following invention in
alternative embodiments.
II. System
[0031] FIG. 1 is a block diagram of an exemplary system 100 for
reconciling one or more financial transactions of one or more
business units, in which the present invention, in an embodiment,
may be implemented.
[0032] System 100 may be used to manage the reconciliation of the
financial transactions, which may include, for example, financial
information related to one or more business units of an
organization. The examples of the financial transactions may
include bank statements, General Ledgers, Sub Ledgers, and the
like.
[0033] System 100 includes a capturing component 102, a matching
component 104, a reporting component 106, and a control component
108. Capturing component 102 captures transaction data from the
financial transactions. Capturing component 102 further includes an
extraction component 110 and a formatting component 112. Extraction
component 110 enables extraction of the transaction data from the
financial transactions. Formatting component 112 transforms the
extracted transaction data into a predefined format. The captured
transaction data may include specific information from the
financial transactions.
[0034] The captured transaction data is then directed to matching
component 104. Matching component 104 performs auto-matching of the
captured transaction data using master data. The auto-matched
transaction data is directed to reporting component 106. Reporting
component 106 generates one or more reports providing details on
the auto-matched transaction data. Control component 108 provides
user privileges for controlling the functions of capturing
component 102, matching component 104 and reporting component
106.
[0035] In accordance with various embodiments of the invention, the
financial transactions may have one or more data formats such as MS
Excel format, text format, comma separated values format, and the
like. Further, the financial transactions may be received from
different sources that may include for example, different
departments of the organizations, external sources such as banks,
and the like. The transaction data may include complete financial
transactions or a portion of the financial transactions. For
example, the transaction data extracted from a financial
transaction such as a bank statement may include, account numbers,
credit amounts, debit amounts, date of transactions, mode of
transactions, and the like.
[0036] In accordance with various embodiments of the invention,
capturing component 102 captures the transaction data using a first
set of data logics. The first set of data logics may include, for
example, one or more algorithms, computer codes, and the like. One
or more of the first set of data logics may be executed, for
example, by extraction component 110 to extract the transaction
data from the financial transactions and by formatting component
112 to transform the extracted transaction data from the one or
more formats to the predefined format. In accordance with an
embodiment of the invention, the first set of data logics may be
created by specifying the required fields such as account numbers,
date of transactions, credit amounts, debit amounts, and the like.
In accordance with an embodiment of the invention, the first set of
data logics may be created by one or more substrings. The
substrings may include, for example, one or more permutations of
arithmetic algorithms.
[0037] Extraction component 110 extracts the transaction data from
the financial transactions using the first set of data logics.
Formatting component 112 transforms the extracted transaction data
to the predefined format. For example, the extracted transaction
data may be transformed from text format to MS Excel format; date
of transactions in one format may be transformed to another format,
and the like. The conversion to the predefined format may be
performed to facilitate and standardize, for example, the
auto-matching, the reporting, and the like.
[0038] In accordance with various embodiments of the invention,
capturing component 102 captures the transaction data from the
financial transactions using one or more import templates. In
accordance with an embodiment of the invention, capturing component
102 may also include provisions to create the import templates. The
import templates may be created based on, for example, type of the
financial transactions, the formats of the financial transactions,
the predefined format required for reconciliation, and the like. In
accordance with an embodiment of the invention, the import
templates are re-usable.
[0039] For example, Table 1 depicts a financial transaction that is
reconciled using system 100.
TABLE-US-00001 TABLE 1 01,005990725,055990725,060119,0000,1,80,1,2/
02,0055990725,ABNANL2AXXX,1,060118,0000,/
03,30000200887280,GBP,010,-3299254129,,,015,-6676921745,,,045,-6676921745,-
,/ 16,399,2376,V,060118,0000,,NONREF,,/ 88,HDG=MISCELLANEOUS
CREDIT, YOUR REF=NONREF; ALLREF = SABRE MKTG UK BGC ICRM 1 3KULE6/
16,399,4073,V,060118,0000,,NONREF,,/ 88,HDG=MISCELLANEOUS CREDIT,
YOUR REF=NONREF; ALLREF = SABRE MKTG UK BGC ICRM 1 3KRTE5/
16,399,5656,V,060118, 0000,,NONREF,,/ 88,HDG=MISCELLANEOUS CREDIT,
YOUR REF=NONREF; ALLREF = AEIBGB2XXXX F/FLOW0143305310163259/
16,399,5760,V,060118, 0000,,NONREF,,/ 88,HDG=MISCELLANEOUS CREDIT,
YOUR REF=NONREF; ALLREF = SABRE MKTG UK BGC ICRM 1 3KJZ1U/
[0040] Capturing component 102 captures the relevant transaction
data from the financial transaction Table 2 depicts an exemplary
import template in which the transaction data is extracted using
the first set of data logics. Table 2 further depicts the
transformed transaction data, which has been transformed to the
predefined format.
TABLE-US-00002 TABLE 2 ACCOUNT TRXNDT REF DESC DEBIT CREDTI CHQNO
30000200887280 Jan. 18, 2006 C0EDIT, YOUR REF TRANSFER 20/02 0.00
7000000.00 30000200887280 Jan. 18, 2006 AMEX AMERICAN EXPRESS
F/FLOW/ 0.00 2940000.00 30000200887280 Jan. 18, 2006 BACS BGC BACS/
0.00 1158364.02 30000200887280 Jan. 18, 2006 BACS BGC BACS/ 0.00
1023635.90 30000200887280 Jan. 18, 2006 AMEX AMERICAN EXPRESS
F/FLOW/ 0.00 750000.00 30000200887280 Jan. 18, 2006 BACS BGC BACS/
0.00 602626.28
[0041] In accordance with another embodiment of the present
invention, the transaction data is extracted and transformed to the
predefined format manually. It may be evident to a person skilled
in the art that a combination of manual capturing and automated
capturing may also be used for capturing the transaction data.
[0042] Capturing component 102 uses a first set of validations for
capturing the transaction data. The first set of validations may
include, for example, validations for capturing the transaction
data from the financial transactions, approvals for performing the
extraction, approvals for transforming the extracted transaction
data, and the like. The first set of validations may include
general validations such as period of reconciliation,
reconciliation month, pre-account setup, approval flags, and the
like. The first set of validations may further include, checking
formats of the captured transaction data, performing checks such as
the sum of closing balances of balance sheet accounts for specified
level and currency combination being equal to zero, addition of the
opening balance and activity being equal to closing balance, and
the like.
[0043] Matching component 104 executes one or more auto-match
logics for performing the auto-matching. The auto-match logics may
include, for example, one or more algorithms for automatically
matching the captured transaction data using the master data. The
auto-match logics may be defined using standard functions such as
filters, string, right, left, concatenate, data deviation, and the
like. In accordance with an embodiment of the invention, the
auto-match logics may be created using one or more substrings. The
substrings may include, for example, permutations of arithmetic
algorithms. Further, matching component 104 performs auto-matching
using a second set of validations. The second set of validations
may include, for example, rules for performing the auto-matching,
marking the transaction data to be auto-matched, approving the auto
match logics, and the like.
[0044] Auto-matching of the captured transaction data performed by
matching component 104 provides auto-matched transaction data. The
auto-matched transaction data includes matched transaction data and
open transaction data. Herein, the open transaction data includes
unmatched transaction data. The open transaction data may then be
reviewed and processed manually.
[0045] In accordance with an embodiment of the present invention,
reporting component 106 may use automation tools such as the Cognos
reporting tool, available from Cognos Incorporated, Ottawa,
Ontario, Canada (http://www.cognos.com), for generating the
reports. The reports may include the matched and the open
transaction data and may be present in different formats such as MS
Word format, Common Data Format (CDF), and the like. Further, the
reports may be detailed or may provide summary level information.
In accordance with an embodiment of the invention, the reports may
also provide information regarding the financial transactions. The
reports may also include trend analysis of the auto-matched
transaction data using historical data. In accordance with various
embodiments of the invention, reporting component 106 may provide
options to extract the reports by, for example, printing, emailing,
and the like.
[0046] Control component 108 provides user privileges for
controlling capturing component 102, matching component 104 and
reporting component 106; privileges for transferring access rights
from one user to another user; privileges for granting multiple
roles to a user; account level privileges such as defining
tolerance limits, collapsing, manual match, and the like. The user
privileges may be provided according a first predefined criterion,
which may include, for example, hierarchy of a user in an
organization, roles assigned to the user, and the like. The user
privileges may also be provided based on, for example, transaction
level details, account level details, and the like. In accordance
with an embodiment of the invention, the user privileges may
further include approval privileges. The approval privileges may
include, for example, privileges for approving the first set of
data logics, privileges for approving the import templates,
privileges for approving the auto-match logics, privileges for
approving the use of the import templates, and the like.
[0047] FIG. 2 is a block diagram of an exemplary system 200 for
reconciling one or more financial transactions of one or more
business units, in which the present invention, in another
embodiment, may be implemented.
[0048] System 200 includes capturing component 102, matching
component 104, reporting component 106 and control component 108.
System 200 also includes a first scheduler 202, a testing component
204, a master component 206, a second scheduler 208, an archiving
component 210, a research and clearance component 212 and an audit
component 214. Capturing component 102 further includes extraction
component 110 and formatting component 112.
[0049] Capturing component 102 captures transaction data from the
financial transactions using the first set of data logics and the
first set of validations. In accordance with an embodiment of the
invention, capturing component 102 may provide notifications on the
errors made during capturing of the transaction data. Capturing
component 102 may provide the notifications using one or more
views. The views may include, for example, user interfaces, display
windows, and the like. In accordance with various embodiments of
the invention, the views facilitate reviewing of the uncaptured
transaction data. The reviewing may include, for example,
rectification of the uncaptured transaction data, updating the
captured transaction data, and the like. The reviewed data may then
be captured using capturing component 102.
[0050] In accordance with various embodiments of the invention, the
first set of data logics may be scheduled for automatic execution
at a specific time. Further, the execution of the first set of data
logics may be performed regularly after specific time intervals.
The scheduling of the first set of data logics is performed using
first scheduler 202 according to a second predefined criterion. The
scheduling enables automatic capturing of the transaction data.
Herein, examples of the second predefined criterion may include,
the frequency at which the financial transactions are received,
time interval after which scheduling is performed, and the like.
For example, the first set of data logics may be scheduled for
execution at the start of every month.
[0051] The captured transaction data is then provided to matching
component 104. Matching component 104 may perform splitting of the
captured transaction data to facilitate auto-matching. In
particular, the splitting may be used to match a consolidated
captured transaction data with a non-consolidated captured
transaction data. For example, a consolidated General Ledger
transaction of $100 may be broken down into five transactions of
$20 each and may then be matched. In accordance with an embodiment
of the invention, the splitting may be performed manually.
[0052] Testing component 204 is used to test the import templates
created using capturing component 102. In accordance with various
embodiments of the invention, testing component 204 may also be
used for testing the first set of data logics and the auto-match
logics. In accordance with an embodiment of the invention, testing
component 204 enables testing of the import templates while
performing reconciliation using system 200.
[0053] Matching component 104 uses the master data as reference for
auto-matching. The master data may also be used as a reference by
other components of system 200 such as capturing component 102,
matching component 104, and reporting component 106. The master
data is set up by master component 206. Herein, the master data may
include rules and conditions, for example, currency conversion,
hierarchy level of the organization, and the like, required for
performing the capturing, the auto-matching and the reporting.
Examples of the master data may include, a business unit master, a
business hierarchy level master, an account master, a currency
master, a bank and system holiday master, a department master, a
remarks master, a user master, a look-up table master, a reporting
group master, and the like. In accordance with an embodiment of the
invention, master component 206 may perform the setting up of the
master data for more than one business units simultaneously.
[0054] In accordance with an embodiment of the invention, matching
component 104 optionally performs tolerance matching. Tolerance
matching includes matching of the captured transaction data within
a predefined tolerance limit. Herein, the tolerance limit may be
expressed as a percentage value or may have, for example, an
absolute dollar ($) value. For example, if the tolerance limit has
an absolute value of $5, then a transaction with an absolute value
of $100 may be matched with another transaction with absolute value
of $105. In accordance with an embodiment of the invention, the
tolerance matching is performed automatically using, for example,
arithmetic algorithms. In accordance with another embodiment of the
invention, the tolerance matching may be performed manually.
[0055] In accordance with an embodiment of the invention, matching
component 104 may also enable manual matching of the captured
transaction data.
[0056] In accordance with various embodiments of the invention, the
auto-match logics may be scheduled for automatic execution at a
specific time, using second scheduler 208. Second scheduler 208
enables the execution of the auto-match logics according to a third
predefined criterion. Examples of the third predefined criterion
may include the frequency at which the financial transactions are
received, time interval after which the scheduling is performed,
and the like. For example, the auto-match logics may be scheduled
for execution at the start of every month. In accordance with an
embodiment of the invention, more than one of the auto-match logics
and the first set of data logics may be scheduled for execution at
the same time.
[0057] In accordance with an embodiment of the invention, matching
component 104 may also enable providing reason and resolution
remarks on the open transaction data. Matching component 104 may be
used to perform a multi-level search for details like the
transaction data, the captured transaction data, the auto-matched
transaction data, and the like. For example, the multi-level search
may include searching for account level information and transaction
level information in a database. Herein, the database may be used
to save the details with related information, such as a
timestamp.
[0058] Reporting component 106 generates one or more reports on the
auto-matched transaction data. Reporting component 106 may also
generate one or more reports on the captured transaction data.
Examples of the reports may include, master reports, ad-hoc
reports, audit trail reports, historical reports, and the like.
Reporting component 106 also enables extraction of the reports, for
example, by taking printouts. The reports may be generated for a
currently captured transaction data or a previously captured
transaction data stored in, for example, the database.
[0059] Archiving component 210 archives the reports generated by
reporting component 106. The reports may be retrieved when
required, by using, for example, a search interface enabling
searching based on the relevant account numbers and timestamps.
Archiving component 210 also archives and performs versioning of
the captured transaction data, the matched transaction data, the
open transaction data, the master data, the reports, and the like.
In accordance with an embodiment of the invention, archiving
component 210 may perform archiving at regular time intervals. In
accordance with another embodiment of the invention, archiving may
be performed on ad-hoc basis.
[0060] Research and clearance component 212 manages the open
transaction data by performing research and clearance of the open
transaction data. This may include creating Journal Entries of the
open transaction data, based on predefined Journal Entry criteria.
In accordance with various embodiments of the invention, research
and clearance component 212 may also enable a user to automatically
execute the Journal Entry criterion. Once Journal Entries of the
open transaction data are created, the open transaction data may be
referred as closed. The closing of the open transaction data may
then be archived by archiving component 210. In accordance with
various embodiments of the invention, research and clearance
component 212 may enable searching for the captured transaction
data, the open transaction data, and the like.
[0061] Audit component 214 performs audit trails on the activities
of the components of system 200. For example, audit trails may be
performed on modifications in the import templates, the manual
matching and the auto-matching, the auto-match logics, the first
set of data logics, the captured transaction data, the master data,
the privileges granted to a user, and the like. Audit component 214
may also be used for maintaining adequate and complete date, time
and user identification stamp for every activity performed using
system 200.
[0062] In accordance with various embodiments of the invention,
system 200 may provide multiprocessing of different components of
system 200. Herein, the users may perform different activities of
the reconciliation process simultaneously. These activities may
include manual as well as automated activities.
[0063] In accordance with various embodiments of the invention,
control component 108 may provide functions such as lookup tables
for transforming, for example, a bank code into a General Ledger
code, reporting group for extracting one or more reports,
pagination, and the like. Herein, pagination may be used to select
relevant transaction data from multiple financial transactions.
Further, control component 108 may also provide a first level
notification facility. The first level notification facility may
include sending notifications for, for example, an incomplete
scheduled activity. For example, control component 108 may send a
notification to a user through email when a scheduled task
fails.
[0064] In accordance with an embodiment of the invention, system
200 may enable remote matching in a controlled manner. The remote
matching may be performed manually by a user at a remote location.
In accordance with an embodiment of the invention, the remote
location may not be directly connected to system 200. In this case,
the transaction data captured by capturing component 102 is
directed to the remote location where a manual matching may be
performed. The matched transaction data and the open transaction
data are then directed back to system 200 for reporting. In
accordance with an embodiment of the invention, the captured
transaction data is attached to an executable application and
directed to the remote location. The application may be executed at
the remote location and the captured transaction data may be
extracted at the remote location. The application may also be
configured to assist manual matching of the captured transaction
data. System 200 may also keep an identification (ID) of the user
performing the manual matching. In accordance with an embodiment of
the invention, control component 108 may provide controls and
define user privileges for the remote matching. In accordance with
various embodiments of the invention, the second set of validations
may also include validations for controlling the remote matching.
In accordance with an embodiment of the invention, system 200 may
also provide a parent-child facility for sequencing the activities
of the components of system 200. For example, a parent activity,
which may include, for example, the capturing of the transaction
data and a child activity, which may include, for example, the
auto-matching, may be executed in a sequence. Further, the
parent-child facility may enable execution of the child activity
such as the auto-matching, based on a predefined condition, which
may include, for example, successful completion of the capturing
step.
III. Process
[0065] FIG. 3 is a flowchart illustrating a process 300 of
reconciling one or more financial transactions of one or more
business units, according to one embodiment of the present
invention.
[0066] Process 300 begins at step 302, which includes capturing
transaction data from one or more financial transactions of one or
more business units. The financial transactions may have one or
more data formats. Herein, capturing the transaction data further
includes the steps of extracting the transaction data and
transforming the extracted transaction data into a predefined
format. The capturing of the transaction data is performed using a
first set of data logics and a first set of validations. The first
of data logics and the first set of validations are explained in
conjunction with FIG. 1 and FIG. 2.
[0067] At step 304, the captured transaction data is auto-matched
using master data. The auto-matching is performed using one or more
auto-match logics and a second set of validations. Herein, the
auto-match logics may include permutations of one or more
arithmetic algorithms. The auto-match logics and the second set of
validations are explained in conjunction with FIG. 1 and FIG.
2.
[0068] The auto-matching of the captured transaction data provides
the auto-matched transaction data including the matched transaction
data and the open transaction data. At step 306, one or more
reports are generated on the auto-matched transaction data. The
reports may include details on the matched transaction data and the
open transaction data. At step 308, user privileges are provided
for controlling the capturing, the auto-matching and the generation
of one or more reports. In accordance with various embodiments of
the invention, the user privileges may be provided according to a
first predefined criterion, which may include, for example roles
assigned to a user, capabilities of the roles assigned, hierarchy
level of the user in the organization, and the like. It may be
evident to a person skilled in the art that the step 308 may also
be performed at any stage of the process 300 to ensure a controlled
reconciliation process.
[0069] FIG. 4 is a flowchart illustrating a process 400 of
reconciling one or more financial transactions of one or more
business units, according to another embodiment of the present
invention.
[0070] Process 400 begins at step 402, where the financial
transactions are received for reconciliation. In accordance with
various embodiments of the invention, the financial transactions
may be received from different sources such as banks and other sub
systems, or may include General Ledger entries within an
organization. The financial transactions received from the
different sources may have one or more data formats. At step 404,
transaction data is captured from the financial transactions.
Herein, the capturing further includes the steps of extracting the
transaction data from the financial transactions and transforming
the extracted transaction data into a predefined format. In
accordance with an embodiment of the invention, the transaction
data is extracted and transformed using one or more import
templates.
[0071] The capturing of the transaction data is performed using the
first set of data logics and the first set of validations. In
accordance with an embodiment of the invention, the first set of
data logics may be scheduled for automatic execution at a specific
time. Step 404 may further comprise testing the import templates,
the first set of data logics, the first set of validations, and the
like.
[0072] At step 406, master data is set up. In accordance with an
embodiment of the invention, step 406 may be performed before step
404 to enable the use of master data in capturing of the
transaction data using the first set of validations. At step 408,
the captured transaction data is auto-matched using the master data
and one or more auto-match logics. In accordance with an embodiment
of the invention, step 408 may further include splitting of the
transaction data to facilitate the auto-matching. Further, the
auto-match logics may be scheduled for automatic execution of the
auto-matching at a specific time. Step 408 may also include testing
the import templates, the auto-match logics, the second set of
validations, and the like. In accordance with an embodiment of the
invention, step 408 may be performed manually.
[0073] In accordance with an embodiment of the invention, step 408
may optionally include performing manual matching of the captured
transaction data at a remote location. Herein, the transaction data
is captured from the financial transactions and manual matching of
the captured transaction data is performed without accessing the
system such as system 200, which performs the steps of process
400.
[0074] At step 410, one or more reports on the auto-matched
transaction data are generated. In accordance with an embodiment of
the present invention, the reports are generated using the Cognos
reporting tool. At step 412, research and clearance of the open
transaction data is performed. The research and clearance of the
open transaction data includes creation of one or more Journal
Entries into a General Ledger system. In accordance with an
embodiment of the invention, research and clearance may be used for
tracing details of the open transaction data and facilitates in
clearing of the open transaction data. At step 414, archiving of
the transaction data, the captured transaction data, the
auto-matched transaction data, the reports, and the master data may
be performed. In accordance with an embodiment of the invention,
archival may be controlled by month-close process that includes
versioning of the transaction data, the auto-matched transaction
data and the reports.
[0075] In accordance with an embodiment of the invention, user
privileges may be defined to enable control on the execution of the
steps of process 400. Further approvals may be required for
performing the steps of process 400. The user privileges and the
approvals may be granted based on a predefined criterion.
[0076] In accordance with an embodiment of the invention, process
400 may also include performing audit trails at one or more steps
of process 400. The audit trails may be used to log the inputs and
the outputs at each step and may also include information like a
timestamp, user identification, and the like. The audit trails may
also be used to log the information related to control of process
400 and the access privileges of each user. The information
captured in the audit trails enables efficient control of the
reconciliation process.
[0077] FIG. 5a is an exemplary screenshot illustrating a user
interface for performing auto-matching, in accordance with an
embodiment of the present invention. FIG. 5a illustrates a section
502, a section 504, a section 506, a section 508, and a section
510. Section 502 is a link to a first interface, which may be used
for creating an auto-match wizard. The auto match wizard may
include one or more auto match logics that are similar to the
auto-match logics explained in conjunction with FIG. 1 and FIG. 2.
Section 504 indicates a link to a second interface and may be used
for linking the auto-match wizard with appropriate financial
transactions, business units, and the like, for which auto-matching
is to be performed. Section 506 indicates a link to a third
interface, which may be used to approve the auto-match wizard.
Further, the third interface may be used to approve linking of the
auto-match wizard with the financial transactions. Section 508 is a
link to a fourth interface, which may be used for executing the
auto-match wizard. In accordance with an embodiment of the
invention, the execution of the auto-match wizard may be performed
manually. In accordance with another embodiment of the invention,
the execution of the auto-match wizard may be scheduled using the
fourth interface. Section 510 is a link to a fifth interface, which
may be used for testing the auto-match wizard.
[0078] FIG. 5b is an exemplary screenshot illustrating an
auto-match wizard 512 used for auto-matching, in accordance with an
embodiment of the present invention. The auto-match logics may be
created using the predefined fields in the auto-match wizard.
[0079] FIG. 5c is an exemplary screenshot illustrating a process
for creating a new auto-match wizard, in accordance with an
embodiment of the present invention. FIG. 5c includes a section
514, a section 516, a section 518, a section 520, a section 522,
and a section 524. Section 514 indicates a link, which may be used
for selecting a financial transaction category, for which
auto-matching is to be performed. In particular, section 514
includes a dropdown menu for selecting a predefined financial
transaction category. Section 516 is used for illustrating a
template name. The template name may be an auto-generated number
assigned to an auto-match wizard. Section 518 is used for
specifying auto-match description which may include description of
the auto-match logics. Section 520 may be used for specifying a
test account code, which may be used for testing the results of the
auto-matching. Section 522 is a link to a sixth interface that may
be used to create the auto-match wizard. Section 524 is a link that
may be used for marking zero balance and zero activity financial
transaction as complete. Further section 524 enables approval of
the completed transactions.
[0080] FIGS. 6a and 6b include exemplary screenshots illustrating a
method to define an auto-match wizard using one or more substrings,
in accordance with an embodiment of the present invention. FIG. 6a
includes a section 602, a section 604, and a section 606. Section
602 indicates a filter criterion and its application in the
auto-matching. For example, a filter criterion which provides
screening of only the transactions having a reference starting with
string AEB may be considered for auto-matching. Section 604
specifies a match condition for auto-matching. For example, the
match condition may include a comparison of entire description of
one transaction with five characters, starting from position five,
with description of another transaction, as shown in FIG. 6a.
Section 606 is an interface for illustrating a matching grid. The
matching grid includes the captured transaction data such as group
numbers, matching references, description, credit amounts, and the
like.
[0081] FIG. 6b illustrates a process for using the substrings for
performing the auto matching. In FIG. 6b, complete transaction data
from general ledger 1 (GL1) is matched with a portion of the
transaction data of general ledger 2 (GL2). Section 608 illustrates
an interface for defining the substring for performing the matching
as explained in conjunction with FIG. 6a.
[0082] FIG. 7 is an exemplary screenshot illustrating a scheduler,
in accordance with an embodiment of the present invention. The
scheduler may be similar to the first scheduler and the second
scheduler explained in conjunction with FIG. 1 and FIG. 2. The
screenshot is used for scheduling, for example, the first set of
data logics, the auto match logics, and the like, by specifying the
required information fields such as job identification, job name,
identification of the requesting user, run time, and the like. The
screenshot also provides an option to specify desired occurrence of
scheduling, for example, daily, weekly, and the like; duration of
scheduling; notification to be provided when a scheduled task is
completed successfully, notification to be provided when a
scheduled task fails, email address for providing notifications,
and the like.
IV. Example Implementations
[0083] The present invention (i.e., system 100, system 200, process
300, process 400 or any part(s) or function(s) thereof) may be
implemented using hardware, software or a combination thereof, and
may be implemented in one or more computer systems or other
processing systems. However, the manipulations performed by the
present invention were often referred to in terms, such as
comparing or checking, which are commonly associated with mental
operations performed by a human operator. No such capability of a
human operator is necessary, or desirable in most cases, in any of
the operations described herein, which form a part of the present
invention. Rather, the operations are machine operations. Useful
machines for performing the operations in the present invention may
include general-purpose digital computers or similar devices.
[0084] In fact, in accordance with an embodiment of the present
invention, the present invention is directed towards one or more
computer systems capable of carrying out the functionality
described herein. An example of the computer systems includes a
computer system 800, which is shown in FIG. 8.
[0085] Computer system 800 includes one or more processors, such as
a processor 802. Processor 802 is connected to a communication
infrastructure 804, for example, a communications bus, a cross over
bar, a network, and the like. Various software embodiments are
described in terms of this exemplary computer system 800. After
reading this description, it will become apparent to a person
skilled in the relevant art(s) how to implement the present
invention using other computer systems and/or architectures.
[0086] Computer system 800 includes a display interface 806 that
forwards graphics, text, and other data from communication
infrastructure 804 (or from a frame buffer which is not shown in
FIG. 8) for display on a display unit 808.
[0087] Computer system 800 also includes a main memory 810, such as
random access memory (RAM), and may also include a secondary memory
812. Secondary memory 812 may include, for example, a hard disk
drive 814 and/or a removable storage drive 816, representing a
floppy disk drive, a magnetic tape drive, an optical disk drive,
etc. Removable storage drive 816 reads from and/or writes to a
removable storage unit 818 in a well known manner. Removable
storage unit 818 represents a floppy disk, magnetic tape, optical
disk, and the like. Removable storage unit 818 may be read by and
written to by removable storage drive 816. As will be appreciated,
removable storage unit 818 includes a computer usable storage
medium having stored therein, computer software and/or data.
[0088] In accordance with various embodiments of the present
invention, secondary memory 812 may include other similar devices
for allowing computer programs or other instructions to be loaded
into computer system 800. Such devices may include, for example, a
removable storage unit such as removable storage unit 818, and an
interface. Examples of such may include a program cartridge and
cartridge interface (such as that found in video game devices), a
removable memory chip (such as an erasable programmable read only
memory (EPROM), or programmable read only memory (PROM)) and
associated socket, and other removable storage units and
interfaces, which allow software and data to be transferred from
removable storage unit 818 to computer system 800.
[0089] Computer system 800 may also include a communication
interface 820. Communication interface 820 allows software and data
to be transferred between computer system 800 and external devices.
Examples of communication interface 820 may include a modem, a
network interface (such as an Ethernet card), a communications
port, a Personal Computer Memory Card International Association
(PCMCIA) slot and card, and the like. Software and data transferred
via communication interface 820 are in the form of a plurality of
signals, hereinafter referred to as signals 824, which may be
electronic, electromagnetic, optical or other signals capable of
being received by communication interface 820. Signals 824 are
provided to communication interface 820 via a communication path
(e.g., channel) 822. Communication path 822 carries signals 824 and
may be implemented using wire or cable, fiber optics, a telephone
line, a cellular link, a radio frequency (RF) link and other
communication channels.
[0090] In this document, the terms "computer program medium" and
"computer usable medium" are used to generally refer to media such
as removable storage drive 816, a hard disk installed in hard disk
drive 814, signals 824, and the like. These computer program
products provide software to computer system 800. The present
invention is directed to such computer program products.
[0091] Computer programs (also referred to as computer control
logic) are stored in main memory 810 and/or secondary memory 812.
Computer programs may also be received via communication interface
820. Such computer programs, when executed, enable computer system
800 to perform the features of the present invention, as discussed
herein. In particular, the computer programs, when executed, enable
processor 802 to perform the features of the present invention.
Accordingly, such computer programs represent controllers of
computer system 800.
[0092] In accordance with an embodiment of the present invention,
where the present invention is implemented using software, the
software may be stored in a computer program product and loaded
into computer system 800 using removable storage drive 816, hard
disc drive 814 or communication interface 820. The control logic
(software), when executed by processor 802, causes processor 802 to
perform the functions of the present invention as described
herein.
[0093] In another embodiment, the present invention is implemented
primarily in hardware using, for example, hardware components such
as application specific integrated circuits (ASICs). Implementation
of the hardware state machine so as to perform the functions
described herein will be apparent to persons skilled in the
relevant art(s).
[0094] In yet another embodiment, the present invention is
implemented using a combination of both the hardware and the
software.
V. Conclusion
[0095] While various embodiments of the present invention have been
described above, it should be understood that they have been
presented by way of example, and not limitation. It will be
apparent to persons skilled in the relevant art(s) that various
changes in form and detail can be made therein without departing
from the spirit and scope of the present invention. Thus, the
present invention should not be limited by any of the above
described exemplary embodiments, but should be defined only in
accordance with the following claims and their equivalents.
[0096] In addition, it should be understood that the figures and
screen shots illustrated in the attachments, which highlight the
functionality and advantages of the present invention, are
presented for example purposes only. The architecture of the
present invention is sufficiently flexible and configurable, such
that it may be utilized (and navigated) in ways other than that
shown in the accompanying figures.
[0097] Further, the purpose of the foregoing Abstract is to enable
the U.S. Patent and Trademark Office and the public generally, and
especially the scientists, engineers and practitioners in the art
who are not familiar with patent or legal terms or phraseology, to
determine quickly from a cursory inspection the nature and essence
of the technical disclosure of the application. The Abstract is not
intended to be limiting as to the scope of the present invention in
any way.
* * * * *
References