Methods for electronic multiparty accounts receivable and accounts payable systems

• US 7,536,354 B1
• Filed: 06/04/2002
• Issued: 05/19/2009
• Est. Priority Date: 08/14/2000
• Status: Expired due to Term

• Current Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Original Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Inventors: Hanan, Christopher C., Bailey, A. Graham, Saal, Matthew, deGroeve, Bernard, Mondschein, Craig, Alexander, Morio, Petroons, Jan, Gupta, Shreyas D., Mellyn, Kevin Lawrence
• Primary Examiner(s): Backer; Firmin
• Assistant Examiner(s): Winter; John M
• Application Number:
  US10/160,689
• Time in Patent Office: 2,541 Days
• Field of Search: 705/50
• US Class Current: 705/54
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• 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 40/12 Accounting

Abstract

The invention concerns methods for use in a multiparty accounts receivable and accounts payable system that allow business trading partners to use a single, shared system for both accounts receivable and accounts payable management. A system implementing the methods of the invention forms an electronic “bridge” between a plurality of business trading partners for purposes of invoicing, dispute resolution, financing, and settlement of single and multiple currency debts. As the invoicing and settlement activities of the participants in the methods of the invention are funneled through a common system, the methods allows a participant to aggregate all debts owed to other participants, aggregate all debts owed by the other participants, and net debts owed to other participants with debts owed by these participants. After aggregation and netting steps, the methods of the present invention allow a participant to issue a single payment to settle numerous accounts payable items, and to receive a single payment that settles numerous accounts receivable items. The methods allow participants to use the substantial amount of financial and cash flow information captured by a system implementing the methods of the invention to borrow more efficiently by permitting lenders to view this information. Furthermore, the methods provide a confirmation process to convert existing debt obligations into a new, independent payment obligation due on a date certain and free of any defenses to the underlying contract. The confirmed debt obligations provide a better source of working capital for the participants, or can be converted into electronic promissory notes. The invention further provides methods for electronic exchange of electronic promissory notes, allowing participants to raise working capital in various ways, for example, by selling them.

Claims

1. A method for use in an electronic multiparty accounts receivable and accounts payable system intended for use by at least two system participants who have contracted with one another and who may owe debts to one another under one or more underlying contracts and who both use the electronic multiparty accounts receivable and accounts payable system to manage their respective debt obligations and wherein with respect to a specific debt obligation, the system participant owed the debt is deemed a creditor participant and the system participant owing the debt is deemed a debtor participant, the method comprising:

storing information reflecting debts owed by the debtor participant in an electronic data storage means of the electronic multiparty accounts receivable and accounts payable system;

constructing an electronic invoice from the debt information stored in the electronic data storage means reflecting amounts owed to the creditor participant by the debtor participant on one or more underlying contracts;

presenting the electronic invoice reflecting amounts owed to the creditor participant by the debtor participant to the debtor participant for authorization;

reviewing the information reflected in the electronic invoice by one or more of the credit participant and the debtor participant;

authorizing the electronic invoice when the debtor participant agrees with the information reflected in the electronic invoice or when the debtor participant declines to contest the information, wherein authorization signifies that the debt reflected in the electronic invoice has become a payment obligation due on a date certain;

confirming the electronic invoice by the debtor participant, wherein confirmation transforms the debt reflected in the electronic invoice owed by the debtor participant into an independent payment obligation due on a date certain for a sum certain and free of defenses to the underlying contract;

storing the confirmation in the electronic data storage means of the electronic accounts receivable and accounts payable system; and

designating the confirmed electronic invoice as an electronic promissory note constituting an independent payment obligation of the debtor participant to the creditor participant;

wherein the creditor participant transfers the independent payment obligation due on the date certain for the sum certain to a third party entity as an electronic promissory note for settling a separate obligation between the creditor participant and the third party entity.

2. The method of claim 1 further comprising:

providing an electronic database of standard invoice forms for use by system participants creating electronic invoices.

3. The method of claim 2 further comprising:

providing a means for customizing standard invoice forms according to the preferences of system participants.

4. The method of claim 1 further comprising:

establishing standards governing the form and content of electronic invoices for use in the electronic accounts receivable and accounts payable system.

5. The method of claim 4 further comprising:

verifying the electronic invoices created by system participants comply with standards governing the form and content of electronic invoices.

6. The method of claim 5 further comprising:

issuing an error message to a system participant who has created an electronic invoice not complying with standards governing the form and content of electronic invoices identifying the reasons for non-compliance.

7. The method of claim 1 wherein the electronic invoice is created from accounts receivable information stored in the electronic data storage means reflecting one or more accounts receivable owed to a creditor by a debtor participant on one or more underlying contracts.

8. The method of claim 1 wherein the electronic invoice is created from accounts payable information stored in the electronic data storage means reflecting one or more accounts payable owed to a creditor by a debtor participant on one or more underlying contracts.

9. The method of claim 1 further comprising:

storing the authorization information concerning the authorization of the electronic invoice in the electronic data storage means for access at a later time for use in financial planning purposes.

10. The method of claim 1 wherein the confirming step further comprises:

creating an electronic confirmation document; and

presenting the electronic confirmation document to the creditor participant.

11. The method of claim 10 further comprising:

storing the electronic confirmation document in the electronic data storage means for access at a later time for use in financial planning purposes.

12. The method of claim 1 further comprising:

selectively designating the electronic invoice as having a specific status.

13. The method of claim 12 wherein the electronic invoice is selectively designated as having a reconciled status.

14. The method of claim 12 wherein the electronic invoice is selectively designated as having an approved status.

15. The method of claim 1 wherein the electronic invoice specifies a currency for payment, the method further comprising:

designating a currency for payment issuance for the electronic invoice irrespective of the currency specified on such electronic invoice.

16. The method of claim 1 wherein the electronic invoice specifies a currency for payment, the method further comprising:

designating a currency for payment receipt or a specific invoice irrespective of the currency specified on such electronic invoice.

17. The method of claim 1 further comprising:

constructing an amended electronic invoice reflecting amendments to an electronic invoice previously presented by the creditor participant to the debtor participant; and

presenting the amended electronic invoice constructed by the creditor participant to the debtor participant.

18. The method of claim 17 wherein the amended electronic invoice proposes a new payment amount.

19. The method of claim 17 wherein the amended electronic invoice proposes a new payment date.

20. The method of claim 17 wherein the amended electronic invoice proposes a new payment currency.

21. The method of claim 17 wherein the amended electronic invoice proposes changes to information reflected in the previously presented electronic invoice.

22. The method of claim 17 further comprising:

authorizing the amended electronic invoice presented by the creditor participant, whereby the authorization signifies the debt reflected in the electronic invoice has become a payment obligation due on a date certain.

23. The method of claim 17 further comprising:

confirming the amended electronic invoice presented by the creditor participant, whereby the confirmation signifies the debt reflected in the electronic invoice has become an independent payment obligation due on a date certain and free of any defenses to the underlying contract; and

storing the fact of confirmation in the electronic data storage means of the accounts receivable and accounts payable system for access at a later time for use in financial planning purposes.

24. The method of claim 1 further comprising:

constructing a credit now reflecting an agreed-to credit by the creditor and debtor participant; and

presenting the credit note to the debtor participant.

25. The method of claim 24 further comprising:

associating the credit note created by the creditor participant to an electronic invoice previously presented by the creditor participant to the debtor participant.

26. The method of claim 24 further comprising:

authorizing the credit note presented by the creditor participant, whereby the authorization signifies the credit reflected in the electronic credit note has become a payment obligation due on a date certain.

27. The method of claim 24 further comprising:

confirming the credit note presented by the creditor participant, whereby the confirmation signifies the credit reflected in the electronic credit note has become an in dependent payment obligation due on a date certain and free of any defenses to the underlying contract; and

storing the fact of confirmation in the electronic data storage means of the electronic accounts receivable and accounts payable system for access at a later time for use in financial planning purposes.

28. The method of claim 1 further comprising:

selectively controlling access to information stored in the electronic data storage means concerning system participants'"'"' transactions.

29. The method of claim 28 wherein the selectively controlling access step allows each system participant to selectively control access to information in dependence on the identity of the party seeking access to the information.

30. The method of claim 28 wherein the selectively controlling access step allows each system participant to selectively control access to information in dependence on category of information.

31. The method of claim 28 wherein the selectively controlling access step allows each system participant to selectively control access to information in dependence on date.

32. The method of claim 1 or 23 further comprising:

designating financial information stored in the electronic data storage means as available for review by selected third parties.

33. The method of claim 32 wherein the designating step allows the creditor participant to designate accounts receivable stored in the electronic data storage means as available for review by potential lenders from whom the participant desires to borrow money.

34. The method of claim 32 wherein the designating step allows the debtor participant to designate accounts payable stored in the electronic data storage means as available for review by potential lenders from whom the participant desires to borrow money.

35. The method of claim 32 wherein the designating step allows the creditor participant to designate authorized accounts receivable stored in the electronic data storage means as available for review by potential lenders from whom the participant desires to borrow money.

36. The method of claim 32 wherein the designating step allows the debtor participant to designate authorized accounts payable stored in the electronic data storage means as available for review by potential lenders from whom the participant desires to borrow money.

37. The method of claim 32 wherein the designating step allows the creditor participant to designate confirmed accounts receivable stored in the electronic data storage means as available for review by potential lenders from whom the participant desires to borrow money.

38. The method of claim 32 wherein the designating step allows the debtor participant to designate confirmed accounts payable stored in the electronic data storage means as available for review by potential lenders from whom the participant desires to borrow money.

39. The method of claim 23 further comprising:

authorizing the creditor participant to sell to third parties the independent payment obligation created by confirmation of an electronic invoice or credit note.

40. The method of claim 39 wherein the authorizing step further allows the debtor participant to indicate that the debtor participant agrees to allow the creditor participant to offer for sale the independent payment obligation to a predetermined group of third parties.

41. The method of claim 39 wherein the authorizing step further allows the debtor participant to indicate that the debtor participant agrees to allow the creditor participant to offer for sale the independent payment obligation to any third party.

42. The method of claim 38 wherein the authorizing step further allows the debtor participant to indicate that the debtor participant agrees to allow the creditor participant to offer the independent payment obligation to a third system participant in settlement of debt owed to a third system participant by the creditor participant.

43. The method of claim 23 further comprising:

designating confirmed electronic invoices as electronic transferable records constituting independent payment obligations of the debtor participant to the creditor participant.

44. The method of claim 23 further comprising:

designating confirmed electronic invoices as electronic bills of exchange constituting independent payment obligations of the debtor participant to the creditor participant.

45. The method of claim 23 further comprising:

designating confirmed electronic invoices as electronic drafts constituting independent payment obligations of the debtor participant to the creditor participant.

46. The method of claim 1 further comprising:

tracking electronic promissory notes that have been pledged as collateral.

47. The method of claim 1 further comprising:

selectively bundling multiple confirmed electronic invoices into an electronic promissory note.

48. The method of claim 1 further comprising:

designating electronic promissory notes held by the creditor participant as being available for discounting.

49. The method of claim 47 further comprising:

identifying the electronic promissory notes held by the creditor participant that have been designated as available for discounting; and

creating electronic records reflecting all or subset of all such electronic promissory notes; and

storing the electronic records in the electronic data storage means of the electronic accounts receivable and accounts payable system.

50. The method of claim 48 further comprising:

electronically soliciting bids from other participants or third parties for electronic promissory notes designated as available for sale.

51. The method of claim 49 further comprising:

electronically advising third parties of the availability for sale of electronic promissory notes reflected in the electronic record created.

52. The method of claim 51 further comprising:

allowing third parties interested in discounting electronic promissory notes available for sale to construct electronic bids for presentation to the creditor participant holding the electronic promissory notes; and

presenting the electronic bid to the creditor participant.

53. The method of claim 52 further comprising:

constructing an electronic promissory note bid acceptance document for presentment to the third party bidding upon the electronic promissory notes held by the creditor participant; and

presenting the bid acceptance document to the third party.

54. The method of claim 52 further comprising:

transferring electronically the successfully bid-upon electronic promissory notes to the third party who successfully bid on the electronic promissory notes.

55. The method of claim 54 further comprising:

collecting electronically settlement information from the third party who successfully bid upon the electronic promissory notes held by the creditor participant.

56. The method of claim 55 further comprising:

advising electronically the debtor participant owing the debt reflected in the electronic promissory notes of the settlement formation collected from the third party.

57. The method of claim 56 further comprising:

settling electronically debt obligations associated with the electronic promissory notes; and

updating system accounts concerning the settlement of such electronic promissory notes.

58. The method of claim 56 further comprising:

providing means for allowing the electronic promissory notes to be sold and transferred in secondary markets; and

updating information stored in the electronic data storage means concerning the transfer of such electronic promissory notes.

59. The method of claim 51 further comprising:

providing third party preference specification means to permit third parties to identify electronically purchase preferences; and

collecting purchase preference information from the third parties.

60. The method of claim 59 wherein the third party preference specification step allows the third party to specify a monetary value of electronic promissory notes for purchasing and wherein the method further comprises:

bundling a number of electronic promissory notes available for discounting corresponding to the monetary value specified by the third party.

61. The method of claim 59 wherein the third party preference specification step allows the third party to specify the debtor participant on the electronic promissory notes for purchasing and wherein the method further comprises:

selecting the electronic promissory notes held by creditor participants which name the debtor participant specified by the third party;

organizing those electronic promissory notes into an electronic record for review by the third party; and

storing the electronic record in the electronic data storage means of the electronic accounts receivable and accounts payable system.

62. The method of claim 59 wherein the third party preference specification step allows the third party to specify an acceptable credit rating for debtor participants on electronic promissory notes and wherein the method further comprises:

selecting all the electronic promissory notes held by creditor participants which name debtor participants having credit ratings corresponding at least to the credit rating specified by the third party;

organizing those electronic promissory notes into an electronic record for review by the third party; and

storing the electronic record in the electronic data storage means of the electronic accounts receivable and accounts payable system.

63. The method of claim 1 or 23 further comprising:

aggregating authorized or confirmed accounts payable reflected in authorized or confirmed debt obligations owed by the debtor participant.

64. The method of claim 63 wherein the authorized or confirmed accounts payable are aggregated by currency in the aggregation step.

65. The method of claim 63 wherein the authorized or confirmed accounts payable are aggregated by date in the aggregation step.

66. The method of claim 63 wherein the authorized or confirmed accounts payable are aggregated according to creditor of the accounts payable in the aggregation step.

67. The method of claim 63 wherein the authorized or confirmed accounts payable are aggregated by other specific criteria in the aggregation step.

68. The method of claim 63 further comprising:

excluding authorized or confirmed debt obligations that have become subject of electronic promissory notes during the aggregation step.

69. The method of claim 1 or 23 further comprising:

aggregating authorized or confirmed accounts receivable reflected in authorized or confirmed debt obligations owed to the creditor participant.

70. The method of claim 69 wherein the authorized or confirmed accounts receivable are aggregated by currency in the aggregation step.

71. The method of claim 69 wherein the authorized or confirmed accounts receivable are aggregated by date in the aggregation step.

72. The method of claim 69 wherein the authorized or confirmed accounts receivable are aggregated according to debtor of the accounts receivable in the aggregation step.

73. The method of claim 69 wherein the authorized or confirmed accounts receivable are aggregated by other specific criteria in the aggregation step.

74. The method of claim 69 further comprising:

excluding authorized or confirmed debt obligations that have become subject of electronic promissory notes in the aggregation step.

75. The method of claim 1 or 23 further comprising:

netting electronically the amount owed by the debtor participant to the creditor participant under authorized or confirmed debt obligations by any amounts owed to the debtor participant by the creditor participant in respect of amounts due on a specified payment date in a specified currency.

76. The method of claim 75 further comprising:

excluding authorized or confirmed debt obligations that have become subject of electronic promissory notes in the netting step.

77. The method of claim 1 or 23 wherein the debtor participant owes debts to a plurality of creditor participants, the method further comprising:

netting the amount owed by the debtor participant to a plurality of creditor participants under authorized or confirmed debt obligations by any amounts owed to the debtor participant by the plurality of creditor participants in respect of amounts due on a specified payment date in a specified currency.

78. The method of claim 77 further comprising:

excluding authorized or confirmed debt obligations that have become subject of electronic promissory notes in the netting step.

79. The method of claim 1 or 23 further comprising:

determining payments a debtor participant must make on accounts payable reflected in authorized or confirmed electronic invoices in respect of a specified payment date and a specified currency.

80. The method of claim 79 further comprising:

advising the creditor participant a predetermined number of days before the payments are due of payments to be made by the debtor participant.

81. The method of claim 79 further comprising:

advising the debtor participant a predetermined number of days before the payments are due of payments that should be made to the creditor participant.

82. The method of claim 79 further comprising:

advising the creditor participant and debtor participant of completion or failure of the payments due from the debtor participant to the creditor participant; and

updating settlement information stored in the electronic data storage means with information regarding the completion or failure of the payments.

83. The method of claim 79 further comprising:

authorizing electronically the automatic issuing of payment instructions on behalf of the debtor participant to the bank of the debtor participant concerning payments due.

84. The method of claim 79 further comprising:

processing payment failures.

85. The method of claim 79 further comprising:

verifying electronically that a payment for the amount due has been issued from the account of the debtor participant at the debtor participant'"'"'s bank to either the trust account at an agent bank or account of the creditor at the creditor'"'"'s bank; and

presenting the electronic debtor participant payment remittance verification information.

86. The method of claim 79 further comprising:

verifying that payment has been received from the debtor participant and credited to a trust account at an agent bank; and

presenting the electronic trust account payment receipt information.

87. The method of claim 85 further comprising:

updating the information stored in the electronic data storage means with the trust account payment receipt information concerning the payment made by the debtor participant into a trust account of an agent bank.

88. The method of claim 85 further comprising:

issuing instructions electronically to the trustee of the trust account into which the debtor participant made payment to issue a payment from the trust account into an account of the creditor at the creditor'"'"'s bank.

89. The method of claim 88 further comprising:

verifying that an amount reflected in the trust account payment instruction has been transferred from the trust account at an agent bank to an account of the creditor at the creditor'"'"'s bank; and

presenting the electronic trust account payment remittance information.

90. The method of claim 89 further comprising:

verifying that the creditor'"'"'s bank verifies receipt of the payment from the trust account at an agent bank into the account of the creditor at the creditor'"'"'s bank; and

presenting the creditor payment receipt information.

91. The method of claim 90 further comprising:

updating the information stored in the electronic data storage means with information concerning the payment made from the trust account at an agent bank into the account of the creditor at the creditor'"'"'s bank.

92. The method of claim 91 further comprising:

automatically creating and submitting a payment instruction to the bank of the debtor participant instructing the bank to issue a payment for the amount due from the account of the debtor participant into a trust account at an agent bank.

93. The method of claim 92 further comprising:

verifying that a payment for the amount due has been issued from the account of the debtor participant at the debtor participant'"'"'s bank to the trust account at an agent bank; and

presenting the electronic debtor participant payment remittance verification information.

94. The method of claim 93 further comprising:

verifying that payment has been received from the debtor participant and credited to a trust account at an agent bank; and

presenting the electronic trust account payment receipt information.

95. The method of claim 94 further comprising:

updating the information stored in the electronic data storage means with the trust account payment receipt information concerning the payment made by the debtor participant into a trust account of an agent bank.

96. The method of claim 94 further comprising:

issuing instructions to the trustee of the trust account into which the debtor participant made payment instructing the trustee to issue a payment from the trust account into an account of the creditor at the creditor'"'"'s bank.

97. The method of claim 96 further comprising:

verifying that an amount reflected in the trust account payment instruction has been transferred from the trust account at an agent bank to an account of the creditor at the creditor'"'"'s bank; and

presenting the electronic trust account payment remittance information.

98. The method of claim 97 further comprising:

verifying that the creditor'"'"'s bank verifies receipt of the payment from the trust account at an agent bank into the account of the creditor at the creditor'"'"'s bank; and

presenting the creditor payment receipt information.

99. The method of claim 98 further comprising:

updating the information stored on the electronic data storage means with information concerning the payment made from the trust account at an agent bank into the account of the creditor at the creditor'"'"'s bank.

100. The method of claim of claim 79 further comprising:

confirming that the bank of the creditor participant confirms receipt of the payment from the bank of the debtor participant; and

presenting the creditor participant payment receipt information to the debtor participant.

101. The method of claim 100 further comprising:

updating the information stored on the electronic data storage means with information concerning the payment made by the debtor participant into the account of the creditor participant.

102. The method of claim 79 further comprising:

issuing automatically payment instructions to a bank of the debtor participant authorizing the bank of the debtor participant to transfer an amount equal to the payment due into an account of the creditor participant at a creditor participant'"'"'s bank.

103. The method of claim 102 further comprising:

updating the information stored in the electronic data storage means with the creditor participant account payment authorization information concerning the payment made on behalf of the debtor participant from the bank of the debtor participant into the account of the creditor system participant.

104. The method of claim 103 further comprising:

confirming that the bank of the creditor participant confirms receipt of the payment from the bank of the debtor participant; and

presenting the creditor participant payment receipt information to the debtor participant.

105. The method of claim 104 further comprising:

updating the information stored on the electronic data storage means with information concerning the payment made by the debtor participant into the account of the creditor participant.

106. The method of claim 79 wherein a debtor participant holds an electronic promissory note and further comprising:

using the electronic promissory note for settlement of debts owed to a creditor participant in satisfaction of the payment obligations owed to the creditor participant.

107. The method of claim 106 further comprising:

transferring to the creditor participant the electronic promissory note used by the debtor participant to settle payment obligations owed to the creditor participant.

108. The method of claim 107 further comprising:

collecting settlement information from the creditor participant who accepted the electronic promissory note in satisfaction of debt obligations owed by the debtor participant.

109. The method of claim 108 further comprising:

presenting the settlement information collected from the creditor participant who accepted the electronic promissory note in satisfaction of debt obligations owed by the debtor participant to the debtor participant.

110. The method of claim 109 further comprising:

updating the information stored in the electronic data storage means with the settlement information concerning the payment made by the debtor participant using the electronic promissory note for satisfying debt obligations owed to the creditor participant by the debtor participant.

111. The method of claim 110 further comprising:

constructing an electronic remittance advice document advising that the debtor participant has made a payment different from the payment amount reflected the electronic invoice rejected by the debtor participant; and

presenting the electronic remittance document.

112. The method of claim 111 further comprising:

rejecting the unilateral payment by the debtor participant by instructing an agent bank not to transfer funds paid by the debtor participant into the account of the creditor participant at the creditor'"'"'s bank; and

presenting the unilateral payment rejection information.

113. The method of claim 111 further comprising:

rejecting the unilateral payment by the debtor participant by instructing the creditor participant'"'"'s bank not to transfer funds paid by the debtor participant into the account of the creditor participant at the creditor participant'"'"'s bank; and

presenting the unilateral payment rejection information.

114. The method of claim 79 further comprising:

determining and executing foreign exchange transactions for debtor participants and creditor participants concerning pairs of foreign currencies in advance of settlement of payment obligations.

115. The method of claim 79 further comprising:

determining the foreign exchange required by the system to cover payments to be made in different currencies from trust accounts at an agent bank into accounts of the creditors at the creditors'"'"' banks in respect of authorized or confirmed debt obligations.

116. The method of claim 115 further comprising:

determining and executing foreign exchange transactions concerning pairs of foreign currencies in advance of settlement of payment obligations that require payments to be made from the trust account at an agent bank.

117. The method of claim 1 comprising:

instituting electronic workflow management strategies that selectively allocate or perform accounts receivable or accounts payable management work.

118. The method of claim 117 wherein the instituting step allows the system participant to institute workflow management rules based on the characteristics of the electronic invoice or credit note.

119. The method of claim 117 further comprising:

instituting automatically workflow management strategies that include automatic, system-initiated actions that do not require participant intervention using an automatic workflow allocation means.

120. The method of claim 1 wherein the data entry step allows a creditor participant to manually or automatically enter accounts receivable information in the electronic data storage means.

121. The method of claim 1 wherein the data entry step allows third parties to manually or automatically enter on behalf of a creditor participant accounts receivable information in the electronic data storage means.

122. The method of claim 1 wherein the data entry step allows a debtor participant to manually or automatically enter accounts payable information in the electronic data storage means.

123. The method of claim 1 wherein the data entry step allows third parties to manually or automatically enter on behalf of a debtor participant accounts payable information in the electronic data storage means.

124. The method of claim 1 wherein the data entry step allows a creditor participant to manually or automatically enter other information in the electronic data storage means.

125. The method of claim 1 wherein the data entry step allows a debtor participant to manually or automatically enter other information in the electronic data storage means.

126. The method of claim 1 wherein the data entry step allows third parties to manually or automatically enter on behalf of a system participant other information in the electronic data storage means.

127. The method of claim 1 further comprising:

customizing the design of invoice or credit note templates used for generating invoices or credit notes.

128. The method of claim 1 wherein the electronic invoice created in the constructing an invoice step includes the name of the creditor.

129. The method of claim 1 wherein the electronic invoice created in the constructing an invoice step includes the name of the debtor.

130. The method of claim 1 wherein the electronic invoice created in the constructing an invoice step describes the transaction creating the debt reflected in the electronic invoice.

131. The method of claim 1 wherein the electronic invoice created in the constructing an invoice step sets forth the taxes payable on the transaction reflected in the electronic invoice.

132. The method of claim 1 wherein the electronic invoice created in the constructing an invoice step includes line items listing the component elements of debts owed to the creditor by the debtor, and evidenced by such invoice.

133. The method of claim 1 further comprising:

including additional information or graphics in an electronic invoice created in the constructing an invoice step.

134. The method of claim 1 further comprising:

creating reports concerning participants'"'"' financial information.

135. The method of claim 134 further comprising:

performing cash flow analysis for analyzing cash flows into, and out of, the participant'"'"'s system account.

136. The method of claim 134 further comprising:

performing other analysis and reporting.

137. The method of claim 134 wherein the creating a report step allows each participant to specify the category of data, the particular analysis to be performed, and the format of the report to be generated.

138. The method of claim 134 wherein the creating a report step allows each participant to create a list of analysis reports used by the participant.

139. The method of claim 134 wherein the creating a report step allows the system to perform analysis and reporting.

140. The method of claim 134 wherein the creating a report step allows the system to track individual participants'"'"' credit risks.