Document Reference Code for Financial Payment Matching
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
The existing methods for communicating financial documents in financial transactions face challenges due to the mismatching of financial documents and electronic payments, primarily because conventional electronic payment clearance systems have limited communication bandwidth, making it difficult for payees to match payment details on their bank statements with the received financial documents.
Innovation Solution
A system that includes a payments adviser system, where a payer or payee sends a payment and an identifier through a payments clearance system, allowing the payee to access a financial document via a document reference code embedded in the electronic payment file, which is displayed on the bank statement, thereby simplifying the matching process.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If conventional electronic payment clearance systems are used to send financial documents and payments separately, then the system can process payments through limited communication bandwidth, but the payee cannot easily match financial documents with corresponding payments on bank statements
Solution Approach 1:
A document reference code is introduced as an intermediary element that bridges the gap between financial documents and electronic payments. This code is embedded in the electronic payment file and displayed on the bank statement, serving as a mediator that enables the payee to easily locate and match the corresponding financial document without requiring complex matching processes
Solution Approach 2:
The document reference code acts as a simplified copy or representation of the full financial document information. Instead of transmitting or displaying all document details through the limited bandwidth payment system, a condensed reference code is created that preserves the essential linkage information while fitting within system constraints
2Reliability
If financial documents are sent separately from electronic payments, then the payment can be processed through the clearance system, but the document and payment can arrive at different times causing matching difficulties
Solution Approach 1:
The document reference code is preliminarily embedded in the electronic payment file before the payment is processed and sent through the clearance system. This preliminary inclusion of the reference code ensures that when the payment arrives at the payee's account, the linkage information is already present, enabling immediate matching with the financial document regardless of when the document itself is received
3Loss of information
If detailed financial document information is included in electronic payment files, then complete information is transmitted, but the limited communication bandwidth of the clearance system cannot accommodate the data
Solution Approach 1:
The essential linkage information is extracted from the full financial document and placed into the electronic payment file as a document reference code. This extraction allows the payment system to carry the necessary matching information without being overwhelmed by the complete document data, while the full document can be accessed separately through the reference code
Data Source
AI summary
A payee (300A) sends a financial document (335) such as an invoice to a payer (1A) via a payment adviser service (2001, 3001). The payer (1A) sends a financial document (45) such as an advice of payment to the payment adviser service (2001, 3001) and instructions for payment (80) to a payment clearance system (100). The payment clearance system sends to the payee (300A) information on where to access the financial document (45) by including it in the payee's bank statement (315).