Method of Settling Commercial Indebtedness

• US 20080249848A1
• Filed: 04/29/2005
• Published: 10/09/2008
• Est. Priority Date: 04/29/2004
• Status: Active Grant

• Current Assignee: Obillex Ltd.
• Original Assignee: Virtual Corporate Solutions Limited
• Inventors: Kay, Alan William, Hatfield, Roy David, Kay, Jonathan Nicholas, Harte, Anthony Alan, Hirst, Michael Steven
• Granted Patent: US 8,423,460 B2
• Time in Patent Office: Days
• US Class Current: 705/14
• CPC Class Codes: G06Q 20/14 specially adapted for billing systems
• CPC Class Codes: G06Q 30/0224 based on user history
• CPC Class Codes: G06Q 30/0239 Online discounts or incentives
• CPC Class Codes: G06Q 30/04 Billing or invoicing

Abstract

A method whereby vendors and purchasers settle invoices and account for sales taxes, integrated with the drawing, accepting, guaranteeing, endorsing, discounting, presenting, and cash settlement of electronic bills of exchange in all traded currencies (Ebill). Ebills are activated automatically as a direct consequence of the approval of one or more invoices for payment. Acceptance is against a guarantee with a managed credit risk limit or endorsed Ebills. Settlement is also activated by matching a purchase order to a goods received or delivery note or bill of lading. A single instance of each invoice and Ebill is held for all functions required by vendors, purchasers, risk managers, Ebill traders, discounters, guarantors and banks. Trading accounts are represented by a single ledger instance with automated updating of their back-office ledgers. Settlement reconciliation is supported by messages related to individual transactions and by quantified debit advice notes reconciled with credit notes.

Claims

1. A computer system for the settlement of commercial indebtedness, the system being accessible by members of a settlement network including at least a vendor and a purchaser, the system comprising:

(a) an invoice submission mechanism for the submission of electronic invoices;

(b) a bill creation mechanism for the creation of electronic bills of exchange, each bill being represented by a single bill record to which common access is provided to the said members; and

(c) a settlement mechanism for the electronic settlement of approved invoices against said bills.

2. A computer system as claimed in claim 1 in which each bill is represented by a single document of record to which common access is provided to the said members.

3. A computer system as claimed in claim 1 in which each invoice is represented by a single invoice record to which common access is provided to the said members.

4. A computer system as claimed in claim 1 including a mechanism which, when an invoice is submitted, automatically instructs the bill creation mechanism to create one or more bills in settlement of the said invoice.

5. A computer system as claimed in claim 1, in which the invoice submission mechanism accepts self-billed invoices submitted by a purchaser.

6. A computer system as claimed in claim 5 in which the submission of a self-billed invoice by a purchaser causes the generation of one or more corresponding bills in settlement of the self-billed invoice, the said corresponding bills being binding contractually binding on the purchaser.

7. A computer system as claimed in claim 6 including a mechanism whereby a vendor automatically confirms its binding agreement to the said generation of one or more corresponding bills.

8. A computer system as claimed in claim 1 wherein a vendor receives the proceeds of the sale from a sale invoice submitted to the invoice submission mechanism by means of a bill, the proceeds being received on or close to an invoice date.

9. A computer system as claimed in claim 1 in which the members include a bill acceptor and in which the bill record includes a bill due date, the system being arranged to present the bill to the acceptor on or about the due date and to request or instruct collection from the acceptor of the amount of the bill.

10. A computer system as claimed in claim 9 in which, in the event of the bill being unpaid or dishonored by the acceptor, the system collects the said amount from a guarantor.

11. A computer system as claimed in claim 1 in which the system calculates and collects a bill creation fee whenever a bill is created.

12. A computer system as claimed in claim 1 in which the system creates a message thread, readable by both vendor and purchaser, in respect of each invoice.

13. A computer system as claimed in claim 1 including a mechanism for the automated collection of sales taxes.

14. A computer system as claimed in claim 1 including integrated customer and accounts-receivable accounts for displaying to a purchaser invoices held on the system for settlement by bill.

15. A computer system as claimed in claim 1 including an automated mechanism for accepting a bill in settlement of one or more invoices following approval of the said one or more invoices.

16. A computer system as claimed in claim 1 including a mechanism for a member to endorse a bill to an endorsee, the system then recording the endorse as the payee for the bill.

17. A computer system as claimed in claim 1 including a mechanism for a vendor as drawer to endorse and discount to a discounter a bill to cash without recourse to vendor as endorser.

18. A computer system as claimed in claim 17 including a mechanism for the discounter to consolidate a plurality of bills and to create an instrument for onward discounting.

19. A computer system as claimed in claim 1 in which one of the members is a guarantor or bill trader, the system being arranged to record in connection with a bill a guarantee by the guarantor or bill trader of the amount of the bill or a part thereof.

20. A computer system as claimed in claim 19 including a mechanism for a purchaser to accept a bill and to obtain a guarantee therefore by endorsing to the guarantor or a bill trader one or more bills or a part thereof, which the purchaser already holds.

21. A computer system as claimed in claim 1 including a mechanism for a member to set charge and interest rates to be applied when evaluating a bill which has been endorses to said member by a purchaser.

22. A computer system as claimed in claim 21 including a mechanism for the aggregation of bills which have been endorsed by the purchaser and for the guarantee of the aggregate amount by a guarantor or bill trader.

23. A computer system as claimed in claim 21 wherein a purchaser endorses to a bill trader a bill or bills the total amount of which exceeds that required as collateral for the issuance and guarantee by the bill trader of bills accepted by the purchaser may issue to the purchaser a bill for the excess amount, less fees.

24. A computer system as claimed in claim 21 wherein a purchaser endorses to a bill trader a bill or bills total amount of which is less than that required as collateral for the issuance and guarantee by the guarantor or bill trader of bills accepted by the purchaser, the guarantor or bill trader may cover the excess amount by a further guarantee.

25. A computer system as claimed in claim 1 in which the system automatically authorizes transmission of the bill amount to a bill drawer or an endorsee on the due date specified by the bill.

26. A computer system as claimed in claim 25 in which the system automatically aggregates for payment all bills having a common due date.

27. A computer system as claimed in claim 1 in which one of the members is a guarantor, the system being arranged to monitor and enforce a maximum exposure limit in respect of bills for which it has guaranteed payment.

28. A computer system as claimed in claim 1 in which the system automatically amends the amount of a bill when a purchaser withholds from acceptance the whole or part of any corresponding invoice.

29. A computer system as claimed in claim 1 including an automated mechanism for drawing and accepting of bills by a purchaser in settlement of its vendors.

30. A computer system as claimed in claim 1 in which the bill record includes data representative of the drawer and acceptor of the corresponding bill, and optionally their respective digital signatures.

31. A computer system as claimed in claim 30 in which the bill record further includes data representative of any guarantor, endorser, endorsee or holder for value.

32. A computer system as claimed in claim 1 in which the bill record includes data representative of the trading history of the corresponding bill.

33. A computer system as claimed in claim 1 in which, on receipt of an instruction from the purchaser, the system initiates a process for the generation of a bill.

34. A computer system as claimed in claim 1 which provides the vendor and the purchaser with electronic data for updating their respective back-office systems.

35. A computer system as claimed in claim 1 which provides the vendor with sales credit tracking information.

36. A computer system as claimed in claim 1 including a mechanism for the vendor to review individual invoices, to hold invoices from payment, and to accelerate payment of invoices.

37. A computer-operated method for the settlement of commercial indebtedness between at least a vendor and a purchaser, the method comprising:

(a) the submission of electronic invoices to a computer system;

(b) the creation by the system of electronic bills of exchange, each bill being represented by a single bill record to which common access is provided to the vendor, the purchaser and other members, if any, of a settlement network; and

(c) the electronic settlement of approved invoices against said bills.