Computer system and computer-implemented method for selecting invoice settlement options

• US 20080154769A1
• Filed: 12/21/2006
• Published: 06/26/2008
• Est. Priority Date: 12/21/2006
• Status: Active Grant

• Current Assignee: Liberty Peak Ventures, LLC (Dominion Harbor Enterprises, LLC)
• Original Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Inventors: Laufer, Greg A., Anderson, Matthew V., Dye, Jeffrey R.
• Granted Patent: US 7,606,766 B2
• Time in Patent Office: Days
• US Class Current: 705/40
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 30/04 Billing or invoicing
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A method of operating a computer system includes storing attributes of a buying organization, vendors, invoices and/or line-item details from invoices in one or more databases. Rules are established for selecting settlement options for the invoices. The rules are applied such that the computer system selects a first one of the settlement options to settle a first one of the invoices rendered by one of the vendors, and the computer system selects a second one of the settlement options to settle a second one of the invoices rendered by that vendor.

Claims

1. A method of operating a computer system, the method comprising:

storing, in a database, a plurality of attributes with respect to each of a plurality of vendors;

storing, in a database, data indicative of attributes of a plurality of invoices, each of said invoices rendered by a respective one of said plurality of vendors;

establishing at least one settlement rule for selecting, from among a plurality of settlement options, a settlement option to be used for at least some of said invoices; and

applying said at least one settlement rule to said invoices in a manner such that;

(a) the computer system selects a first one of said plurality of settlement options to settle a first one of said invoices rendered by a first one of said vendors; and

(b) the computer system selects a second one of said plurality of settlement options to settle a second one of said invoices rendered by said first one of said vendors, said second one of said plurality of settlement options different from said first one of said settlement options.

2. The method of claim 1, further comprising:

not changing said at least one settlement rule between a time when said computer system selects said first one of said plurality of settlement options and a time when said computer system selects said second one of said plurality of settlement options.

3. The method of claim 1, wherein said establishing said at least one settlement rule includes entering input into said computer system via a graphical user interface.

4. The method of claim 3, wherein the entering input includes selecting one of a first strategic option, a second strategic option and a third strategic option;

said first strategic option representing an election to maximize financial performance with respect to payment of invoices by comparing at least one financial benefit of delaying payment of an invoice with at least one financial benefit of not delaying payment of said invoice;

said second strategic option representing an election to delay as long as possible cash outlays with respect to settlement of invoices;

said third strategic option representing an election to obtain every financial benefit available from not delaying payment of invoices.

5. The method of claim 3, wherein the entering input includes selecting a group of vendors to which said at least one settlement rule applies, said group of vendors comprising two or more of said plurality of vendors.

6. The method of claim 3, wherein the entering input includes selecting a single vendor to which said at least one settlement rule applies.

7. The method of claim 1, wherein said attribute of said one of said invoices.

8. The method of claim 7, wherein said attribute of said one of said invoices is a due date of said invoice.

9. The method of claim 7, wherein said attribute of said one of said invoices is a discount available for early payment of said invoice.

10. The method of claim 7, wherein applying said at least one settlement rule includes selecting one of said plurality of settlement options based at least in part on an attribute of one of said vendors.

11. The method of claim 1, wherein said attribute of said at least one of said vendors is a list of settlement options approved for said one of said vendors.

12. The method of claim 11, wherein said at least one settlement rule includes a list of settlement options approved for said one of said vendors.

13. The method of claim 1, wherein said at least one settlement rule includes a first settlement rule applicable to invoices rendered by said second one of said vendors, said second settlement rule different from said first settlement rule.

14. The method of claim 13, wherein said second settlement rule calls for selecting among two or more settlement options based at least in part on an attribute of an invoice rendered by said second one of said vendors, said second settlement rule prescribing one settlement option in one case and a different settlement option in a different case.

15. The method of claim 1, wherein the plurality of settlement options includes two or more from the group consisting of (a) payment by check, (b) payment by payment card, (c) payment by automatic clearing house (ACH), (d) payment by electronic data interchange (EDI), and (e) payment by private network.

16. An apparatus for paying invoices, comprising:

a processor; and

a memory in operative communication with the processor, the memory for storing a plurality of processing instructions enabling the processor to;

store, in a database, a plurality of attributes with respect to each of a plurality of vendors;

store, in a database, data indicative of attributes of a plurality of invoices, each of said invoices rendered by a respective one of said plurality of vendors;

establish at least one settlement rule for selecting, from among a plurality of settlement options, a settlement option to be used for at least some of said invoices; and

apply said at least one settlement rule to said invoices in a manner such that;

(a) the apparatus selects a first one of said plurality of settlement options to settle a first one of said invoices rendered by a first one of said vendors; and

(b) the apparatus selects a second one of said plurality of settlement options to settle a second one of said invoices rendered by said first one of said vendors, said second one of said plurality of settlement options different from said first one of said settlement options.

17. A computer-readable medium encoded with instructions for implementing a method, performed by a computer, for paying invoices, the method comprising:

storing, in a database, a plurality of attributes with respect to each of a plurality of vendors;

storing, in a database, data indicative of attributes of a plurality of invoices, each of said invoices rendered by a respective one of said plurality of vendors;

establishing at least one settlement rule for selecting, from among a plurality of settlement options, a settlement option to be used for at least some of said invoices; and

applying said at least one settlement rule to said invoices in a manner such that;

(a) the computer selects a first one of said plurality of settlement options to settle a first one of said invoices rendered by a first one of said vendors; and

(b) the system selects a second one of said plurality of settlement options to settle a second one of said invoices rendered by said first one of said vendors, said second one of said plurality of settlement options different from said first one of said settlement options.

18. A method of operating a computer system, the method comprising:

storing a first settlement rule and a second settlement rule in the computer system, the first settlement rule applicable to a first vendor, the second settlement rule different from the first settlement rule and applicable to a second vendor different from the first vendor;

the computer system applying the first settlement rule to a first invoice rendered by the first vendor to select a first settlement option for the first invoice from among a plurality of settlement options;

the computer system applying the first settlement rule to a second invoice rendered by the first vendor to select a second settlement option for the second invoice from among the plurality of settlement options, the second settlement option different from the first settlement option;

the computer system applying the second settlement rule to a first invoice rendered by the second vendor to select a selected settlement option for the first invoice rendered by the second vendor from among the plurality of settlement options; and

the computer system applying the second settlement rule to a second invoice rendered by the second vendor to select another selected settlement option for the second invoice rendered by the second vendor from among the plurality of settlement options, the another selected settlement option different from the selected settlement option for the first invoice rendered by the second vendor.

19. The method of claim 18, wherein the plurality of settlement options includes two or more from the group consisting of (a) payment by check, (b) payment by payment card, (c) payment by automated clearing house (ACH), (d) payment by electronic document interchange (EDI), and (e) payment by private network.

20. The method of claim 18, wherein said storing includes entering input into said computer system via a graphical user interface.

21. The method of claim 20, wherein the entering input includes selecting one of a first strategic option, a second strategic option and a third strategic option;

said first strategic option representing an election to maximize financial performance with respect to payment of invoices by comparing at least one financial benefit of delaying payment of an invoice with at least one financial benefit of not delaying payment of said invoice;

said second strategic option representing an election to delay as long as possible cash outlays with respect to settlement of invoices;

said third strategic option representing an election to obtain every financial benefit available from not delaying payment of invoices.

22. The method of claim 20, wherein the first settlement rule and the second settlement rule are stored in a settlement rules database that simultaneously holds the first and second settlement rules.

23. A method of operating a computer system, the method comprising:

storing, in a database, a plurality of attributes with respect to each of a plurality of vendors;

storing in a database, data indicative of attributes of an invoice, the invoice including a plurality of line items;

establishing at least one settlement rule for selecting, from among a plurality of settlement options, a respective settlement option to be used for each of said line items; and

applying said at least one settlement rule to said invoice in a manner such that;

(a) the computer system selects a first one of said plurality of settlement options to settle a first one of said line items; and

(b) the computer system selects a second one of said plurality of settlement options to settle a second one of said line items, said second one of said plurality of settlement options different from said first one of said settlement options.