Method, system, and program product for electronically validating invoices

• US 20070250416A1
• Filed: 04/21/2006
• Published: 10/25/2007
• Est. Priority Date: 04/21/2006
• Status: Active Grant

• Current Assignee: International Business Machines Corporation
• Original Assignee: International Business Machines Corporation
• Inventors: Reynolds, Scotty, Fekler, Lisa, Beach, Lorrie, Cornell, Craig, Conrad, Denise
• Granted Patent: US 8,775,277 B2
• Time in Patent Office: Days
• US Class Current: 705/30
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

The present invention provides a method, system, and program product for validating invoices for transactions between trading partners that occur across jurisdictional borders (e.g., inter-country or inter-state transactions). Specifically, under the present invention, an invoice corresponding to a transaction between trading partners is electronically received (e.g., in an invoice processing system). Upon receipt, a purchaser tax jurisdiction (e.g., first country) and a seller tax jurisdiction (e.g., second country) corresponding to the transaction will be determined. Based on these jurisdictions and a set of categorization rules, a category of the transaction is determined. Using the category and a set of validation rules, a tax rate indicated on the invoice and other optional aspects (e.g., whether the invoice contains all required information) will be validated. Based on this validation it will be determined whether the overall invoice is valid or invalid.

Claims

1. A method for electronically validating invoices, comprising:

electronically receiving an invoice corresponding to a transaction between a purchaser and a seller;

determining a purchaser tax jurisdiction and a seller tax jurisdiction for the transaction;

determining a category of the transaction based on the purchaser tax jurisdiction, the seller tax jurisdiction, and a set of categorization rules;

validating a tax rate indicated on the invoice based on the category and a set of validation rules; and

determining whether the invoice is valid based on the validating.

2. The method of claim 1, wherein the purchaser tax jurisdiction is different than the seller tax jurisdiction.

3. The method of claim 1, wherein the purchaser tax jurisdiction and the receiving tax jurisdiction are determined from tax registration numbers indicated on the invoice.

4. The method of claim 1, wherein the purchaser tax jurisdiction is determined from a purchase order corresponding to the transaction.

5. The method of claim 1, further comprising determining a tax code for the transaction, wherein the validating is further based on the tax code.

6. The method of claim 1, wherein the invoice is received in an invoice processing system that automatically determines whether the invoice is valid.

7. The method of claim 1, wherein the validating further comprises determining whether the invoice contains all required information.

8. The method of claim 1, wherein the tax is a value added tax (VAT) rate.

9. A system for electronically validating invoices, comprising:

a document reception system for electronically receiving an invoice corresponding to a transaction between a purchaser and a seller;

a jurisdiction determination system for determining a purchaser tax jurisdiction and a seller tax jurisdiction for the transaction, wherein the purchaser tax jurisdiction is different than the seller tax jurisdiction;

a category determination system for determining a category of the transaction based on the purchaser tax jurisdiction, the seller tax jurisdiction, and a set of categorization rules;

a validation system for validating a tax rate indicated on the invoice based on the category and a set of validation rules; and

an invoice determination system for determining whether the invoice is valid based on a result of the validation system.

10. The system of claim 9, wherein the purchaser tax jurisdiction and the receiving tax jurisdiction are determined from tax registration numbers indicated on the invoice.

11. The system of claim 9, wherein the purchaser tax jurisdiction is determined from a purchase order corresponding to the transaction.

12. The system of claim 9, wherein the validation system further determines a tax code for the transaction, and wherein the validating is further based on the tax code.

13. The system of claim 9, wherein the set of categorization rules and the set of validation rules are stored in a set of tables.

14. The system of claim 9, wherein the validation system further determines whether the invoice contains all required information.

15. The system of claim 9, wherein the tax is a value added tax (VAT) rate.

16. A program product stored on a computer readable medium for electronically validating invoices, the computer readable medium comprising program code for causing a computer system to perform the following steps:

electronically receiving an invoice corresponding to a transaction between a purchaser and a seller;

determining a purchaser tax jurisdiction and a seller tax jurisdiction for the transaction;

determining a category of the transaction based on the purchaser tax jurisdiction, the seller tax jurisdiction, and a set of categorization rules;

validating a tax rate indicated on the invoice based on the category and a set of validation rules; and

determining whether the invoice is valid based on the validating.

17. The program product of claim 16, wherein the purchaser tax jurisdiction and the receiving tax jurisdiction are determined from tax registration numbers indicated on the invoice.

18. The program product of claim 16, wherein the purchaser tax jurisdiction is determined from a purchase order corresponding to the transaction.

19. The program product of claim 16, wherein the computer readable medium further comprising program code for causing the computer system to perform the following step:

determining a tax code for the transaction, wherein the validating is further based on the tax code.

20. The program product of claim 16, wherein the set of categorization rules and the set of validation rules are stored in a set of tables.

21. The program product of claim 16, wherein the invoice is received in an invoice processing system that automatically determines whether the invoice is valid.

22. The program product of claim 16, wherein the computer readable medium further comprising program code for causing the computer system to perform the following step:

determining whether the invoice contains all required information.

23. The program product of claim 16, wherein the tax is a value added tax (VAT) rate.

24. A method for deploying an application for electronically validating invoices, comprising:

providing a computer infrastructure being operable to;

electronically receive an invoice corresponding to a transaction between a purchaser and a seller;

determine a purchaser tax jurisdiction and a seller tax jurisdiction for the transaction;

determine a category of the transaction based on the purchaser tax jurisdiction, the seller tax jurisdiction, and a set of categorization rules;

validate a tax rate indicated on the invoice based on the category and a set of validation rules; and

determine whether the invoice is valid based on the validating.