Method, system, and program product for electronically validating invoices

• US 8,775,277 B2
• Filed: 04/21/2006
• Issued: 07/08/2014
• Est. Priority Date: 04/21/2006
• Status: Expired due to Fees

• Current Assignee: International Business Machines Corporation
• Original Assignee: International Business Machines Corporation
• Inventors: Conrad, Denise L., Fekler, Lisa C., Reynolds, Scotty J., Beach, Lorrie K., Cornell, Craig C.
• Primary Examiner(s): ADE, OGER GARCIA
• Application Number:
  US11/408,913
• Publication Number:
  US 20070250416A1
• Time in Patent Office: 3,000 Days
• Field of Search: 705 26- 28
• US Class Current: 705/28
• 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 present invention provides a method, system, and program product for validating invoices for transactions between trading partners that occur across jurisdictional borders such as inter-country or inter-state transactions. Specifically, under the present invention, an invoice corresponding to a transaction between trading partners is electronically received for instance in an invoice processing system. Upon receipt, a purchaser tax jurisdiction and a seller tax jurisdiction corresponding to the transaction will be determined. Based on these jurisdictions and a set of categorization rules, a category of the transaction is determined. Using the category and a set of validation rules, a tax rate indicated on the invoice and other optional aspects, such as whether the invoice contains all required information will be validated. Based on this validation it will be determined whether the overall invoice is valid or invalid.

Claims

1. A method for electronically validating invoices, comprising:

electronically receiving an invoice corresponding to a transaction between a purchaser and a seller;

determining a purchaser tax jurisdiction for the transaction from a tax registration number that is unique to the purchaser and a seller tax jurisdiction for the transaction from a tax registration number that is unique to the seller;

determining, using a computer device, a category of the transaction based on the purchaser tax jurisdiction, the seller tax jurisdiction, and a set of categorization rules, the category of the transaction defining a relationship between the purchaser and seller tax jurisdictions;

validating a tax rate indicated on the invoice based on the category and a set of validation rules; and

determining whether the invoice is valid based on the validating.

2. The method of claim 1, wherein the purchaser tax jurisdiction is different than the seller tax jurisdiction, and wherein the purchaser tax jurisdiction is a first country and the seller tax jurisdiction is a second country.

3. The method of claim 1, wherein the purchaser tax jurisdiction and the receiving tax jurisdiction are determined from tax registration numbers indicated on the invoice, each of the tax registration numbers being assigned by a respective tax jurisdiction.

4. The method of claim 1, wherein the purchaser tax jurisdiction is determined from the tax registration number of the purchaser on a purchase order corresponding to the transaction, the tax registration number of the purchaser being one of a plurality of tax registration numbers that are unique to the purchaser.

5. The method of claim 1, further comprising determining a tax code for the transaction, wherein the validating is further based on the tax code.

6. The method of claim 1, wherein the invoice is received in an invoice processing system that automatically determines whether the invoice is valid.

7. The method of claim 1, wherein the validating further comprises determining whether the invoice contains all required information.

8. The method of claim 1, wherein the tax rate is a value added tax (VAT) rate.

9. A system for electronically validating invoices, comprising:

a document reception system for electronically receiving an invoice corresponding to a transaction between a purchaser and a seller;

a jurisdiction determination system for determining a purchaser tax jurisdiction for the transaction from a tax registration number that is unique to the purchaser and a seller tax jurisdiction for the transaction from a tax registration number that is unique to the seller, wherein the purchaser tax jurisdiction is different than the seller tax jurisdiction;

a category determination system for determining a category of the transaction based on the purchaser tax jurisdiction, the seller tax jurisdiction, and a set of categorization rules, the category of the transaction defining a relationship between the purchaser and seller tax jurisdictions;

a validation system for validating a tax rate indicated on the invoice based on the category and a set of validation rules; and

an invoice determination system for determining whether the invoice is valid based on a result of the validation system.

10. The system of claim 9, the purchaser tax jurisdiction and the receiving tax jurisdiction are determined from tax registration numbers indicated on the invoice, each of the tax registration numbers being assigned by a respective tax jurisdiction.

11. The system of claim 9, wherein the purchaser tax jurisdiction is determined from the tax registration number of the purchaser on a purchase order corresponding to the transaction, the tax registration number of the purchaser being one of a plurality of tax registration numbers that are unique to the purchaser.

12. The system of claim 9, wherein the validation system further determines a tax code for the transaction, and wherein the validating is further based on the tax code.

13. The system of claim 9, wherein the set of categorization rules and the set of validation rules are stored in a set of tables.

14. The system of claim 9, wherein the validation system further determines whether the invoice contains all required information.

15. The system of claim 9, wherein the tax rate is a value added tax (VAT) rate.

16. A program product stored on a computer readable medium for electronically validating invoices, the computer readable medium comprising program code for causing a computer system to perform the following steps:

electronically receiving an invoice corresponding to a transaction between a purchaser and a seller;

determining a purchaser tax jurisdiction for the transaction from a tax registration number that is unique to the purchaser and a seller tax jurisdiction for the transaction from a tax registration number that is unique to the seller;

determining a category of the transaction based on the purchaser tax jurisdiction, the seller tax jurisdiction, and a set of categorization rules, the category of the transaction defining a relationship between the purchaser and seller tax jurisdictions;

validating a tax rate indicated on the invoice based on the category and a set of validation rules; and

determining whether the invoice is valid based on the validating.

17. The program product of claim 16, the purchaser tax jurisdiction and the receiving tax jurisdiction are determined from tax registration numbers indicated on the invoice, each of the tax registration numbers being assigned by a respective tax jurisdiction.

18. The program product of claim 16, wherein the purchaser tax jurisdiction is determined from the tax registration number of the purchaser on a purchase order corresponding to the transaction, the tax registration number of the purchaser being one of a plurality of tax registration numbers that are unique to the purchaser.

19. The program product of claim 16, wherein the computer readable medium further comprises program code for causing the computer system to perform the following step:

determining a tax code for the transaction, wherein the validating is further based on the tax code.

20. The program product of claim 16, wherein the set of categorization rules and the set of validation rules are stored in a set of tables.

21. The program product of claim 16, wherein the invoice is received in an invoice processing system that automatically determines whether the invoice is valid.

22. The program product of claim 16, wherein the computer readable medium further comprises program code for causing the computer system to perform the following step:

determining whether the invoice contains all required information.

23. The program product of claim 16, wherein the tax is a value added tax (VAT) rate.

24. A method for deploying an application for electronically validating invoices, comprising:

providing a computer infrastructure that includes a computer device, the computer infrastructure being operable to;

electronically receive an invoice corresponding to a transaction between a purchaser and a seller;

determine a purchaser tax jurisdiction for the transaction from a tax registration number that is unique to the purchaser and a seller tax jurisdiction for the transaction from a tax registration number that is unique to the seller;

determine a category of the transaction based on the purchaser tax jurisdiction, the seller tax jurisdiction, and a set of categorization rules, the category of the transaction defining a relationship between the purchaser and seller tax jurisdictions;

validate a tax rate indicated on the invoice based on the category and a set of validation rules; and

determine whether the invoice is valid based on the validating.