System and method to manage supply chain settlement, risk and liquidity

• US 8,050,975 B2
• Filed: 12/23/2003
• Issued: 11/01/2011
• Est. Priority Date: 10/06/2003
• Status: Active Grant

• Current Assignee: Bank of America Corp.
• Original Assignee: Bank of America Corp.
• Inventors: Johnson, Paul A., Mody, Sanjay H., Jetter, William J., Corral, David G., Collis, Michael J., Keesey, James, Zanzot, Mark D., Sill, Cheryl B.
• Primary Examiner(s): Gart; Matthew
• Assistant Examiner(s): IWARERE, OLUSEYE
• Application Number:
  US10/707,593
• Publication Number:
  US 20050075941A1
• Time in Patent Office: 2,870 Days
• Field of Search: 705/26, 705/34
• US Class Current: 705/26.1
• CPC Class Codes: G06Q 10/06 Resources, workflows, human or project management; Enterprise or organisation planning; Enterprise or organisation modelling
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 30/0635 Processing of requisition or of purchase orders
• CPC Class Codes: G06Q 40/12 Accounting
• CPC Class Codes: G06Q 50/188 Electronic negotiation

Abstract

A system to manage a supply chain may include a purchase order management module operable on a processor to electronically receive purchase order information from a buyer and to store and track information associated with each purchase order. The system may also include an invoice and trade document management module to electronically store, aggregate and manage invoices and trade documents related to each purchase order and information required for presentment and reconciliation of each purchase order.

Claims

1. A system to manage a supply chain, comprising:

a purchase order management module operable on a processor to electronically receive purchase orders each purchase order comprising a document received from a buyer to buy at least one of goods or services from a seller, the buyer using the purchase order to communicate with the system so that the system can manage a process that starts with receipt of a purchase order and ends with a payment to the seller to settle a payable instrument, the purchase order management module being managed by a third party entity other than the buyer or seller;

an invoice and trade document management module to receive invoices or trade documents, each invoice is received from the seller and is related to each respective purchase order and required for presentment and reconciliation of each respective purchase order;

an image capture and key entry module to convert non-electronic information into a predetermined electronic format for receipt and use by the invoice and trade document management module;

a database associated with the purchase order management module to store and track information associated with each purchase order; and

a payment construction module to create a payable instrument in response to receiving the purchase orders, wherein the payable instrument comprises an instrument that is payable upon fulfillment of payment conditions, the payment conditions being set by the buyer to be fulfilled prior to the payable instrument being payable.

2. The system of claim 1, wherein the payment construction module sorts approved purchase orders by a predefined criteria.

3. The system of claim 1, further comprising a set of rules to control creation of each payable instrument.

4. The system of claim 3, wherein the payment construction module supports settlement under at least one of a binary condition, a qualified condition and a documentary condition, wherein settlement relates to payment from the buyer upon fulfilling the payment conditions set by the buyer.

5. The system of claim 1, wherein the payable instrument comprises at least one of a documentary credit instrument and an open account payment instrument.

6. The system of claim 1, wherein the payment construction module transmits information to the purchase order management module to indicate which purchase orders are covered under a documentary credit instrument.

7. The system of claim 1, wherein the payment construction module sends documentary credit information to an issuer to issue a documentary credit.

8. The system of claim 1, further comprising an agreement management module to warehouse, adjudicate and provide status reporting on payment conditions related to each purchase order.

9. The system of claim 8, wherein the agreement management module adjudicates payment conditions by tracking whether any payment conditions have been discharged.

10. The system of claim 8, wherein the agreement management module compares seller discharge information to payment conditions to determine whether any the payment conditions have discharged.

11. The system of claim 10, wherein the agreement management module is programmable to discharge payment conditions on at least one of an exact match comparison or predefined variances from an exact match.

12. The system of claim 1, further comprising a collaboration and workflow module to support and manage workflow between the other modules and between the buyer and seller, the collaboration and workflow module comprising a negotiation tool to enable the buyer and seller to negotiate and document discrepancies or disputes between the payment conditions set by the buyer and discharge information presented by the seller.

13. The system of claim 12, wherein the collaboration and workflow module comprises a digital rights management feature to manage rights to and ownership of electronic title documents.

14. The system of claim 1, wherein the invoice and trade document management module receives invoice information from a seller.

15. The system of claim 14, wherein the invoice information is receivable via one of a printed format, facsimile and a communication network.

55. The system of claim 12, wherein the negotiation tool comprises a browser to negotiate disputes or discrepancies interactively and on-line.

16. A system to manage a supply chain, comprising:

a purchase order management module operable on a processor to electronically receive purchase orders, each purchase order comprising a document received from a buyer to buy at least one of goods or services from a seller, the buyer using the purchase order to communicate with the system so that the system can manage a process that starts with receipt of a purchase order and ends with a payment to the seller to settle a payable instrument, the purchase order management module being managed by a third party entity other than the buyer or seller;

an invoice and trade document management module to receive invoices or trade documents, each invoice is received from the seller and is related to each respective purchase order and required for presentment and reconciliation of each respective purchase order;

a payment construction module to create a payable instrument in response to the purchase order information; and

an agreement management module to warehouse, adjudicate and provide status reporting on payment conditions related to each purchase order, the payment conditions being set by the buyer to be fulfilled prior to the payable instrument being payable, wherein the agreement management module is programmable to discharge payment conditions on at least one of an exact match comparison or predefined variances from an exact match.

17. The system of claim 16, further comprising a database associated with the purchase order management module to store and track information associated with each purchase order.

18. The system of claim 16, wherein the payment construction module sorts purchase orders by a criteria predefined by the buyer.

19. The system of claim 16, further comprising a set of rules to control creation of each payable instrument.

20. The system of claim 16, wherein the payment construction module supports settlement under at least one of a binary condition, a qualified condition and a documentary condition.

21. The system of claim 16, wherein the payable instrument comprises at least one of a documentary credit instrument and an open account instrument.

22. The system of claim 16, wherein the payment construction module transmits information to the purchase order management module to indicate which purchase orders are covered under a documentary credit instrument.

23. The system of claim 16, wherein the payment construction module sends documentary credit information to a service provider to issue a documentary credit.

24. The system of claim 16, wherein the agreement management module adjudicates payment conditions by tracking whether any payment conditions have been discharged.

25. The system of claim 16, wherein the agreement management module compares seller discharge information to payment conditions to determine if the payment conditions have been discharged.

26. The system of claim 16, further comprising a negotiation tool to enable the buyer and seller to negotiate and document discrepancies or disputes.

27. The system of claim 26, wherein the negotiation tool comprises a browser to negotiate disputes or discrepancies interactively and on-line.

28. The system of claim 16, wherein the collaboration and workflow module comprises a digital rights management feature to manage rights to and ownership of electronic title documents.

29. The system of claim 16, wherein the invoice and trade document management module receives invoice information from a seller.

30. The system of claim 16, further comprising an image capture and key entry module to convert non-electronic information into predetermined electronic format for receipt and use by the invoice and trade document management module.

31. A method to manage a supply chain, comprising:

creating a payable instrument in an electronic format using a computer in response to purchase order information of a purchase order, each purchase order comprising a document received from a buyer to buy at least one of goods or services from a seller, the buyer using the purchase order to communicate with the system so that the system can manage a process that starts with receipt of a purchase order and ends with a payment to the seller to settle a payable instrument, wherein said creating a payable instrument is performed by an entity other than the buyer or seller;

converting any non-electronic information into a predetermined electronic format

adjudicating any payment conditions, the payment conditions being set by the buyer to be fulfilled prior to the payable instrument being payable so that the payable instrument is only payable when the payment conditions are fulfilled; and

settling the payable instrument in response to adjudicating any payment conditions.

32. The method of claim 31, wherein adjudicating any payment conditions comprises at least one of discharging any payment conditions, accepting any payment condition discrepancies or accepting any payment condition discrepancies with changes.

33. The method of claim 31, further comprising electronically storing invoice and trade document information related to each purchase order.

34. The method of claim 31, wherein creating a payable instrument comprises applying a set of predefined rules.

35. The method of claim 31, wherein adjudicating any payment conditions comprises adjudicating any binary condition, qualified condition or documentary condition.

36. The method of claim 31, wherein creating a payable instrument comprises creating one of a documentary credit instrument and an open account instrument.

37. The method of claim 36, further comprising sending documentary credit information to an issuer to issue a documentary credit.

38. The method of claim 31, further comprising reporting status on payment conditions related to each purchase order.

39. The method of claim 31, wherein adjudicating any payment conditions comprises tracking whether any payment conditions have been discharged.

40. The method of claim 31, further comprising comparing seller discharge information to payment conditions to determine whether any payment conditions are dischargable.

41. The method of claim 40, further comprising discharging any payment conditions on at least one of an exact match between seller discharge information and payment conditions or a predefined variance from an exact match.

42. The method of claim 31, further comprising negotiating any discrepancies or disputes.

43. The method of claim 42, wherein negotiating any discrepancies or disputes comprises using a browser.

44. The method of claim 31, managing digital rights to and ownership of electronic title documents.

45. A method to manage a supply chain, comprising:

receiving one or more purchase orders from a buyer electronically using a computer, each purchase order comprising a document received from a buyer to buy at least one of goods or services from a seller, the buyer using the purchase order to communicate with the system so that the system can manage a process that starts with receipt of a purchase order and ends with a payment to the seller to settle a payable instrument, wherein the purchase order information is received from an entity other than the buyer or seller;

creating an accounts payable instrument in response to receiving the one or more purchase orders, wherein the accounts payable instrument is created according to rules or conditions established by the buyer;

receiving one or more invoice or trade documents from a seller, each invoice or trade document is received from the seller and is related to each respective purchase order and required for presentment and reconciliation of each respective purchase order;

adjudicating any payment conditions;

comparing seller discharge information to payment conditions to determine whether any payment conditions are dischargable; and

discharging any payment conditions on at least one of an exact match between seller discharge information and payment conditions or a predefined variance from an exact match.

46. The method of claim 45, wherein adjudicating any payment conditions comprises at least one of discharging any payment conditions, accepting any payment condition discrepancies or accepting any payment condition discrepancies with changes.

47. The method of claim 46, further comprising tracking adjudication of any payment conditions.

48. The method of claim 45, wherein adjudicating any payment conditions comprises adjudicating any binary condition, qualified condition or documentary condition.

49. The method of claim 45, wherein creating a payable instrument comprises creating one of a documentary credit instrument and an open account instrument.

50. A computer-readable medium having computer-executable instructions for performing a method, comprising:

creating a payable instrument in an electronic format using a computer in response to one or more purchase orders, each purchase order comprising a document received from a buyer to buy at least one of goods or services from a seller, the buyer using the purchase order to communicate with the system so that the system can manage a process that starts with receipt of a purchase order and ends with a payment to the seller to settle a payable instrument;

adjudicating any payment conditions, the payment conditions being set by the buyer to be fulfilled prior to the payable instrument being payable so that the payable instrument is only payable when the payment conditions are fulfilled;

settling the payable instrument in response to adjudicating any payment conditions;

comparing seller discharge information to payment conditions to determine whether any payment conditions are dischargable; and

discharging any payment conditions on at least one of an exact match between seller discharge information and payment conditions or a predefined variance from an exact match.

51. The computer-readable medium having computer-executable instructions for performing the method of claim 50, wherein adjudicating any payment conditions comprises at least one of discharging any payment conditions, accepting any payment condition discrepancies or accepting any payment condition discrepancies with changes.

52. The computer-readable medium having computer-executable instructions for performing the method of claim 50, wherein creating a payable instrument comprises creating one of a documentary credit instrument and an open account instrument.

53. The computer-readable medium having computer-executable instructions for performing the method of claim 50, wherein adjudicating any payment conditions comprises adjudicating any binary condition, qualified condition or documentary condition.

54. The computer-readable medium having computer-executable instructions for performing the method of claim 50, tracking discharge of any payment instruments.