Method and apparatus for managing credit inquiries within account receivables

• US 6,847,942 B1
• Filed: 05/02/2000
• Issued: 01/25/2005
• Est. Priority Date: 05/02/2000
• Status: Expired due to Fees

• Current Assignee: General Electric Canada Equipment Finance G.P. (General Electric Company)
• Original Assignee: General Electric Canada Equipment Finance G.P. (General Electric Company)
• Inventors: Getgood, Alan Bruce, Land, David MacLeod
• Primary Examiner(s): McClellan, James S.
• Application Number:
  US09/561,653
• Time in Patent Office: 1,729 Days
• Field of Search: 705/30, 705/34, 705/1, 705/37, 705/38, 705/39, 705/40, 705/33, 705/53, 705/77, 705/78, 364/411.1
• US Class Current: 705/30
• CPC Class Codes: G06Q 30/04 Billing or invoicing
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

The Accounts Receivable System'"'"'s Credit Inquiry Module reviews payment history and performs credit inquiries by analyzing data from internal and external sources. The Credit Inquiry Module uses this analysis for credit management and customer contact. The Credit Inquiry Module based on customer payment data predicts overall cash forecasting for the client. The Credit Inquiry Module is utilized for account reconciliation and audit verification for tracking transactions at the customer level.

Claims

1. A method for managing trade receivables credit and collection services using an accounts receivable system including a server system coupled to a database, said method comprising the steps of:

providing a plurality of customer devices;

associating a device with a business enterprise, the business enterprise having a client, the client having customers, wherein the business enterprise device configured with a browser;

connecting a server system associated with the business enterprise to the business enterprise device, wherein the business enterprise manages trade receivables credit for the client, manages collection services for the client, provides remittance processing for the client, and updates a general ledger of the client;

establishing a communication link between a client system and each of the business enterprise device, the server system, and the plurality of customer devices, the client system is associated with the client and manages ordering of products by customers using the plurality of customer devices, manages shipping of products to customers, and manages billing for ordered products;

authenticating the client system;

receiving customer information and purchase order information at the server system from the client system, the customer information includes financial information relating to a customer of the client, the purchase order information includes a purchase order amount for the purchase of at least one of a good and service by the customer from the client;

utilizing data from the customer information and the purchase order information;

using the server system to analyze a payment history of the customer over a predetermined period of time by comparing for each invoice received by the customer a date when the customer receives the invoice to a date when the customer pays the invoice;

retrieving through the business enterprise device credit information pertaining to the customer;

evaluating credit status of the customer based on client credit scoring options and transmitting information relating to a credit line of the customer with the client from the server system to the client through the client system;

comparing the purchase order amount to the credit line of the customer;

using the server system to process and generate journal entries for the client if the purchase order is less than or equal to the credit line of the customer; and

using the server system to post the journal entries on the general ledger of the client via the client system for financial monitoring, reporting and auditing purposes.

2. A method in accordance with claim 1 wherein said step of receiving customer information and purchase order information from a client system further comprises the step of receiving information from an Order, Ship, Bill (OSB) System of the client.

3. A method in accordance with claim 1 wherein said step of evaluating credit status further comprises the steps of identifying dilution, reviewing credit reports received from one of a credit agencies, reviewing financial statements, reviewing salesmen reports, and reviewing future business potential of the customer.

4. A method in accordance with claim 1 wherein said step of evaluating credit status further comprises the steps of visiting the customer site and performing any additional investigations through public databases or through hiring of investigators as necessary.

5. A method in accordance with claim 4 wherein said step of evaluating credit status further comprises the step of reviewing whether money borrowed through a credit line is being used in a legitimate business.

6. A method in accordance with claim 5 wherein said step of evaluating credit status further comprises the steps of:

granting a specific credit line to a customer within delegated authority limits of a credit officer; and

communicating the credit line information to the client by transmitting the credit line information from the server system to the client system.

7. A method in accordance with claim 1 wherein said step of retrieving through the business enterprise device credit information pertaining to the customer further comprises the steps of:

producing at the business enterprise device an electronic file showing a customer payment history for electronic input to at least one credit agency;

retrieving information electronically including trade information, aging, credit ratings, credit scoring, and suggested credit limit information from at least one reputed credit agency; and

receiving at the business enterprise device an electronic file from the at least one reputed credit agency.

8. A method in accordance with claim 1 wherein said step of receiving customer information at the server system further comprises the step of receiving information manually and not through the client system.

9. A method in accordance with claim 1 wherein the server system is coupled to the client system by at least one of a wide area network, a local area network and the Internet, said step of receiving customer information comprises the step of:

establishing a communication link between the client system and the server system.

10. A method in accordance with claim 9 wherein said step of establishing a communication link comprises the step of establishing a link to an Order, Ship, Bill (OSB) System of the client.

11. A method in accordance with claim 9 wherein said step of establishing a communication link between the client system and the server system comprises the step of linking the client system to the server system by a telephone link.

12. A method in accordance with claim 1 wherein the server system is coupled to a credit analyst computer, said method further comprises the step of providing access to the customer information in the server system to the credit analyst computer.

13. Apparatus for managing trade receivables credit and collection services using an accounts receivable system including a server system coupled to a database, said apparatus comprising:

a plurality of customer devices;

a device associated with a business enterprise, the business enterprise having a client, the client having customers, wherein said business enterprise device configured with a browser;

a server system associated with the business enterprise connected to said business enterprise device, wherein the business enterprise manages trade receivables credit for the client, manages collection services for the client, provides remittance processing for the client, and updates a general ledger of the client;

a client system associated with the client in communication with each of said business enterprise device, said server system, and said plurality of customer devices, said client system manages ordering of products by customers using said plurality of customer devices, manages shipping of products to customers, and manages billing for ordered products; and

a database for storing information pertaining to a plurality of clients of the business enterprise and a plurality of customers of the clients; and

said server system configured to;

communicate with the client system via the communication link;

authenticate the client system;

receive customer information and purchase order information from the client system, the customer information includes financial information relating to a customer of the client, the purchase order information includes a purchase order amount for the purchase of at least one of a good and service by the customer from the client;

utilize data from the customer information and the purchase order information;

analyze a payment history of the customer over a predetermined period of time by comparing for each invoice received by the customer a date when the customer receives the invoice to a date when the customer pays the invoice;

retrieve credit information pertaining to the customer;

evaluate credit status of the customer based on client credit scoring options and transmit information relating to a credit line of the customer with the client to the client through the client system;

compare the purchase order amount to the credit line of the customer;

process and generate journal entries for the client if the purchase order is less than or equal to the credit line of the customer; and

post the journal entries on the general ledger of the client via the client system for financial monitoring, reporting and auditing purposes.

14. Apparatus in accordance with claim 13 wherein said server system is further configured to analyze credit status based on financial dilution, analysis of credit reports received from one of a credit agencies, analysis of customer financial statements, analysis of salesmen reports, and analysis of future business potential of the customer.

15. Apparatus in accordance with claim 13 wherein said server system is further configured to:

grant a specific credit line to a customer based on delegated authority limits of a credit officer; and

communicate the credit line information to the client by transmitting the credit line information to the client system.

16. Apparatus in accordance with claim 13 wherein said server system is further configured to:

produce an electronic file showing a customer payment history for electronic input to at least one credit agency;

retrieve information electronically including trade information, aging, credit ratings, credit scoring, and suggested credit limit information from at least one reputed credit agency; and

accept an electronic file from the at least one reputed credit agency.

17. Apparatus in accordance with claim 13 wherein said server system is further configured to receive and process customer information from the client manually.

18. Apparatus in accordance with claim 13 wherein said server system is further configured to receive customer information through a communication link established between the client system and the server system.

19. Apparatus in accordance with claim 18 wherein the communication link is at least one of a wide area network, a local area network and the Internet.

20. Apparatus in accordance with claim 13 wherein said server system is further coupled to a credit analyst computer to provide access to the customer information in the server system to the credit analyst computer.

21. Apparatus in accordance with claim 20 wherein said server system is further configured to monitor the activities of the credit analyst to ensure that credit decisions made by the credit analyst are within a delegated authority.

22. Apparatus in accordance with claim 20 wherein said server system is further configured to monitor customer credit limits electronically and generate a flag to the credit analyst when customer'"'"'s outstanding balance exceeds the pre-set credit limit.

23. Apparatus in accordance with claim 20 wherein said server system is further configured to automatically generate a variety of letters to customers to provide one of a payment detail, notification of return check, reminder for the payment, notification of past due invoices, response to disputes.

24. Apparatus in accordance with claim 13 wherein said server system is coupled to the client system by a telephone link.