Transaction accounting auditing approach and system therefor

• US 8,266,024 B2
• Filed: 08/04/2009
• Issued: 09/11/2012
• Est. Priority Date: 06/09/2004
• Status: Expired due to Fees

• Current Assignee: Syncada LLC (US Bancorp)
• Original Assignee: Syncada LLC (US Bancorp)
• Inventors: Hahn-Carlson, Dean W., Beck, Elizabeth A., Suits, David A.
• Primary Examiner(s): Zeender, F.
• Assistant Examiner(s): Buchanan, Christopher
• Application Number:
  US12/535,363
• Publication Number:
  US 20090292630A1
• Time in Patent Office: 1,134 Days
• Field of Search: None
• US Class Current: 705/34
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 30/00 Commerce
• CPC Class Codes: G06Q 30/04 Billing or invoicing
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

Accounting data is classified to facilitate transaction processing and management. According to an example embodiment, data based rules are implemented for classifying transaction-related data into accounting categories. Accounting information is processed as a function of the data based rules and accordingly automatically classified. This processing involves, for example, the identification of particular data based rules to apply to the accounting information, applying the rules and processing the information accordingly.

Claims

1. A transaction system to audit transaction data for a multitude of different transaction parties as a function of predefined contract terms data defined for a buyer of merchant offerings and a seller of the merchant offerings for each transaction, the system comprising:

a data-storing memory circuit that stores the contract terms data and data element specific classification rules,

a software-programmed circuit configured, for each of a multitude of sets of transaction data, to

respond to activity involving a transaction for at least two of the parties, by accessing the memory circuit and retrieving stored transaction data therein for the transaction;

execute an identification algorithm, using the retrieved transaction data, to identify selected ones of the data element-specific classification rules pertaining to the transaction parties;

select one of a plurality of data-auditing algorithms respectively programmed on behalf of disparate entities; and

execute the selected data-auditing algorithm to audit individual data elements within the transaction data set using the retrieved transaction data, the contract terms and the identified data element-specific classification rules as inputs to the algorithm to generate an output indicating a validation condition for each data element.

2. The system of claim 1, wherein

the software-programmed circuit is further configured to generate payment authorization data for the transaction as a function of the retrieved transaction data and the contract terms data, and

generating an output indicating a validation condition includes validating the payment authorization data as applied to each data element in the transaction data set by transforming the data element into a validated data element, the validated data element including data representing a payment authorization document for the data element.

3. The system of claim 2, wherein the software-programmed circuit is further configured to, prior to generating payment authorization data for the transaction,

associate the transaction data set with at least one of a buyer and a seller involved in the transaction,

in response to the associating, select the contract terms data used in authorizing payment, and

electronically record the transaction data set on behalf of and in electronic association with said at least one of the buyer and the seller.

4. The system of claim 1, wherein the software-programmed circuit is further configured to:

electronically record the transaction data set on behalf of and in association with at least one of the buyer and seller involved in the transaction, by recording transaction data from a transaction-based document under a general accounting code associated with at least one of the buyer and the seller, and

execute the selected data-auditing algorithm to audit individual data elements to classify transaction data including line-item transaction data by associating said line-item transaction data from the transaction data set with a line-item accounting classification data.

5. The system of claim 4, wherein the software-programmed circuit is further configured to audit individual data elements against line-item-accounting-classification rules provided by said one of the buyer and the seller by, for each line item in said transaction data set, modifying the line-item transaction data with classification data to classify the line-item transaction data under a line-item accounting classification as a function of the data element-specific classification rules and a type of accounting data in the line item.

6. The system of claim 1, wherein the software-programmed circuit is further configured to audit individual data elements against line-item-accounting-classification rules provided by one of the buyer and the seller involved in the transaction by, for each line item in said transaction data set, modifying the line-item transaction data with classification data to classify the line-item transaction data under a line-item accounting classification as a function of the data element-specific classification rules and the type of accounting data in the line item.

7. The system of claim 6, wherein the software-programmed circuit is further configured to process alphanumeric-type line item identification in accordance with the line-item classification rules to identify the type of accounting data in the line item, and modify the line-item transaction data with classification data based upon the identified type of accounting data.

8. The system of claim 6, wherein the software-programmed circuit is further configured to process a merchant offerings code in the line item transaction data in accordance with the line-item classification rules to identify the type of accounting data in the line item, and modify the line-item transaction data with classification data based upon the identified type of accounting data.

9. The system of claim 6, wherein the software-programmed circuit is further configured to process a merchant offerings code in the line item transaction data in accordance with the line-item classification rules to identify the type of accounting data in the line item, and modify the line-item transaction data with classification data based upon the identified type of accounting data.

10. The system of claim 6, wherein the software-programmed circuit is further configured to process a universal product code (UPC) in the line item transaction data and modify the line-item transaction data in response to the UPC processing.

11. The system of claim 1, wherein the software-programmed circuit is further configured to:

modify line-item transaction data with classification data to classify the line-item transaction data under a line-item accounting classification as a function of the data element-specific classification rules,

authorize a user ID associated with a user inputting changes to the data element-specific classification rules in the data-storing memory circuit based upon authorization data, and modify the data element-specific classification rules based upon the input changes based upon the user ID authorization, and

in response to the modified data element-specific classification rules, re-modify line-item transaction data that has been classified under a line-item accounting classification, to re-classify the line-item transaction data under a new classification in accordance with the modified data element-specific classification rules.

12. The system of claim 6, wherein

the memory circuit further stores user profiles including user ID'"'"'s for each of the transactions, and

the software-programmed circuit is further configured to

monitor a user ID associated with a user inputting changes to the data element-specific classification rules, by storing data to track changes made to data element-specific classification rules in association with a user ID of a user implementing the changes, and

modify the data element-specific classification rules using the input changes, based upon the user ID.

13. The system of claim 1, wherein the software-programmed circuit is configured to

respond to activity involving the transaction by accessing the memory circuit and retrieving stored invoice data,

select one of the plurality of data-auditing algorithms by selecting a tracking auditing algorithm for tracking changes made to the retrieved invoice data, and

execute the tracking auditing algorithm to track changes made to the retrieved invoice data and store data indicative of the tracked changes.

14. The system of claim 1, wherein the software-programmed circuit is configured to

select one of the plurality of data-auditing algorithms by selecting an allocation auditing algorithm for reallocating invoice amounts to a different data element-specific classification, and

execute the selected allocation auditing algorithm to reallocate invoice amounts to a reallocated data element-specific classification by modifying data elements specified in an invoice with the reallocated data element-specific classification.

15. The system of claim 1, wherein the software-programmed circuit is configured to

select one of the plurality of data-auditing algorithms by selecting an allocation auditing algorithm for reallocating invoice amounts to a different data element-specific classification specified for a party'"'"'s general ledger chart of accounts, and

execute the selected allocation auditing algorithm to reallocate invoice amounts to a reallocated data element-specific classification by modifying data elements specified in an invoice with the reallocated data element-specific classification corresponding to the general ledger chart of accounts.

16. The system of claim 1, wherein the software-programmed circuit is configured to:

for electronic invoices having individual data elements for which electronic payment data has been validated, load the electronic invoices into an accounts payable system with accounting details that correspond to the data element specific classification rules, and

respond to activity involving a transaction for at least two of the parties, by accessing the memory circuit and retrieving stored transaction data by retrieving data corresponding to the loaded electronic invoices.

17. The system of claim 1, wherein the software-programmed circuit is configured to execute an identification algorithm, using the retrieved transaction data, to identify selected ones of the data element-specific classification rules pertaining to the transaction parties by matching data in an electronic invoice with data element-specific classification rules and a contract specified via the contract terms data.

18. A transaction system comprising:

a software-programmed circuit configured, for each of a multitude of sets of transaction data, to;

respond to activity involving a transaction for at least two parties to the transaction, by retrieving stored data element specific classification rules and contract terms for a buyer of merchant offerings and a seller of the merchant offerings;

execute an identification process, using the retrieved transaction data, to identify selected ones of the data element-specific classification rules pertaining to the transaction parties;

select one of a plurality of data-auditing algorithms for respectively reconfiguring the logic circuit to operate on behalf of disparate entities;

execute the selected data-auditing algorithm to audit individual data elements within the transaction data set using the retrieved transaction data and the identified data element-specific classification rules as inputs, to determine a condition of validation for each data element; and

transform the audited data elements into validated data elements by modifying the data elements with validation data based upon the determined condition of validation.

19. The system of claim 18, wherein the software-programmed circuit is further configured, for at least one of the sets of transaction data, to

execute the selected data-auditing process to determine a condition of validation for each data element by determining a condition of payment authorization for the transaction data set,

transform the audited data elements into validated data elements by assigning payment authorization data to the data elements, and

generate and output payment authorization data based upon the validated data elements.

20. The system of claim 18, wherein the software-programmed circuit is further configured, for at least one of the sets of transaction data, to

electronically record the transaction data set on behalf of and in association with at least one of the buyer and seller involved in the transaction, by modifying transaction data from a transaction-based document with data identifying a general accounting code associated with at least one of the buyer and the seller, and storing the modified transaction data, and

execute the selected data-auditing algorithm by modifying the data elements with line-item accounting classification data.