System and method for account reconciliation

• US 7,756,784 B2
• Filed: 01/03/2007
• Issued: 07/13/2010
• Est. Priority Date: 08/25/2000
• Status: Active Grant

• Current Assignee: Liberty Peak Ventures, LLC (Dominion Harbor Enterprises, LLC)
• Original Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Inventors: Provinse, Shirley J.
• Primary Examiner(s): Akintola, Olabode
• Application Number:
  US11/619,290
• Publication Number:
  US 20070130028A1
• Time in Patent Office: 1,287 Days
• Field of Search: 705/5, 705/33, 705 35- 40
• US Class Current: 705/39
• CPC Class Codes: G06Q 10/02 Reservations, e.g. for tickets, services or events
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/023 the neutral party being a clearing house
• 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 30/04 Billing or invoicing
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/12 Accounting
• CPC Class Codes: G06Q 40/128 Check-book balancing, updating or printing arrangements

Abstract

An account reconciliation system having a particular usefulness in the reconciliation of centrally billed accounts and more specifically, in the reconciliation of centrally billed accounts in the travel industry is provided. The system and methods of the present invention expand on the traditional match/non-match techniques and provide complete transaction management for every item on a client'"'"'s account. In another sense, reconciliation is redefined to include each and every transaction on an account regardless of it'"'"'s reconciliation status, i.e., matched, unresolved, pending, etc. Consequently, the present invention reconciles the client'"'"'s account to the account balance.

Claims

1. A computer-implemented method for reconciling a first charge and a second charge to a merchant record, said method comprising:

matching, by a computer and in accordance with default criteria, said first charge in a financial database to a first amount of said merchant record in a merchant database, wherein a department code is related to a client and said department code is associated with said merchant record, and wherein said merchant record in said merchant database includes said first amount and first data;

assigning, by said computer, said first charge in said financial database to said department code;

associating, by said computer and in accordance with at least a portion of client-specific criteria, said second charge in said financial database with said merchant record in said merchant database, wherein said merchant record in said merchant database does not include said second charge in said financial database, and wherein said second charge in said financial database is associated with a change to said merchant record in said merchant database;

assigning, by said computer, said second charge in said financial database to said department code associated with said merchant record in said merchant database; and

,

creating, by said computer, a report categorized by said department code, wherein said report comprises said first charge and said second charge associated with said department code.

2. The method of claim 1, wherein said associating a second charge with said first data of said merchant record comprises:

selecting said second charge from a pending list;

identifying a match criteria on said second charge; and

searching a plurality of merchant records based on said match criteria.

3. The method of claim 1, wherein said merchant record relates to at least one of:

airline, lodging or rental car.

4. The method of claim 1, further comprising:

compiling matches and near-matches on an approved items list; and

generating a report from said compilation.

5. The method of claim 1, wherein said first data of said merchant record relates to at least one of:

an air carrier ticket, lodging, or car rental from said merchant database, wherein said merchant database is a Customer Reservations System (CRS).

6. The method of claim 1, further comprising receiving, from said financial database, a plurality of charge transactions comprising said first charge and relating to purchases using a charge account, wherein said financial database is at a transaction account management system.

7. The method of claim 1, further comprising storing a plurality of merchant transactions and a plurality of charge transactions on a pending list within a host database.

8. The method of claim 1, wherein said client defined criteria includes at least one of:

account number, passenger name, transaction amount, booking fee, and ticket number.

9. The method of claim 1, further comprising determining said department code based on said associating.

10. The method of claim 1, further comprising identifying a near-match between said second charge and said first data, within a predetermined tolerance level based upon said client-defined criteria.

11. The method of claim 1, further comprising determining said department code based on a near-match between said second charge and said first data.

12. The method of claim 1, wherein said associating said second charge with said merchant record is also based upon said default criteria.

13. The method of claim 1, wherein said associating said second charge with said merchant record is based upon all client-defined criteria.

14. The method of claim 1, wherein said associating said second charge with said merchant record is based upon:

calculating a first list total by tallying together a dollar amount associated with a plurality of matches of said first charge to said first amount;

calculating a second list total by tallying together a dollar amount associated with a plurality of nearly-matched said second charge to said first data;

calculating a third list total by tallying together a dollar amount from a plurality of unapproved near-matches;

calculating an ending balance by subtracting said first list total and said third list total from a balance of said account; and

comparing said ending balance with said second list total.

15. The method of claim 1, wherein said assigning, by said computer, said first charge in said financial database to said department code is accomplished by writing said department code to a field corresponding to said first charge in said financial database.

16. The method of claim 1, wherein said first data relates to non-monetary information.

17. An account reconciliation system for reconciling a first charge and a second charge to a merchant record, said system comprising:

a network interface communicating with a memory;

said memory communicating with a processor; and

said processor, when executing a computer program, is configured to;

match, in accordance with default criteria, said first charge in a financial database to a first amount of said merchant record in a merchant database, wherein a department code is related to a client and said department code is associated with said merchant record, and wherein said merchant record in said merchant database includes said first amount and first data;

assign said first charge in said financial database to said department code;

associate, in accordance with at least a portion of client-specific criteria, said second charge in said financial database with said merchant record in said merchant database, wherein said merchant record in said merchant database does not include said second charge in said financial database, and wherein said second charge in said financial database is associated with a change to said merchant record in said merchant database;

assign said second charge in said financial database to said department code associated with said merchant record in said merchant database; and

,

create a report categorized by said department code, wherein said report comprises said first charge and said second charge associated with said department code.

18. The system of claim 17, further configured to search for a common set of numbers within said merchant record and said first data.

19. The system of claim 17, further configured to identify a basic matching criteria.

20. The system of claim 17, further configured to confirm said association by matching basic matching criteria between said merchant record and said first data.

21. The system of claim 17, further configured to confirm said association by matching at least a portion of client-defined criteria.

22. A tangible computer-readable medium having stored thereon a plurality of instructions, which when executed on a computer, perform operations for providing account reconciliation for an account comprising:

matching, in accordance with default criteria, a first charge in a financial database to a first amount of a merchant record in a merchant database, wherein a department code is related to a client and said department code is associated with said merchant record, and wherein said merchant record in said merchant database includes said first amount and first data;

assigning said first charge in said financial database to said department code;

associating, in accordance with at least a portion of client-specific criteria, a second charge in said financial database with said merchant record in said merchant database, wherein said merchant record in said merchant database does not include said second charge in said financial database, and wherein said second charge in said financial database is associated with a change to said merchant record in said merchant database;

assigning said second charge in said financial database to said department code associated with said merchant record in said merchant database; and

,

creating a report categorized by said department code, wherein said report comprises said first charge and said second charge associated with said department code.