Invoice Generation System with Entitlement Pricing Logic
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Solution Overview
Problem
Generating invoices for complex contracts with varying entitlements and pricing structures is challenging due to the complexity and number of activities, contracts, and entitlements, leading to inefficiencies and errors in billing.
Innovation Solution
A system and method for generating invoices that take into account applicable entitlements by identifying relevant contracts, determining standard pricing, adjusting for discounts, and calculating savings, supporting complex pricing structures and reducing errors.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If manual invoice generation methods are used for complex contracts with multiple entitlements, then flexibility in handling various pricing structures is maintained, but errors and inefficiencies increase significantly
Solution Approach 1:
The system enables self-service automated invoice generation by allowing the computer system to automatically identify applicable contracts, retrieve entitlements, calculate pricing adjustments, and generate invoices without requiring manual intervention for each invoice, thereby improving both accuracy and efficiency
Solution Approach 2:
The patent replaces manual mechanical processes of invoice generation with an automated computer-based system that uses software algorithms to identify contracts, calculate entitlements, and generate invoices, eliminating human error while maintaining processing flexibility
2Productivity
If automated invoice generation is implemented without considering entitlements, then processing speed increases, but billing accuracy and revenue optimization decrease
Solution Approach 1:
The system performs preliminary actions by pre-identifying all applicable contracts and their associated entitlements before invoice generation, storing this information for rapid retrieval during the invoicing process, thus maintaining high speed while ensuring accurate pricing adjustments are applied
Solution Approach 2:
The system incorporates feedback mechanisms by continuously checking event details against contract terms and entitlement criteria, automatically adjusting pricing based on matched entitlements, and verifying calculations to ensure both speed and accuracy in invoice generation
3Loss of information
If the system tracks both original and revised invoice amounts to show savings, then transparency and customer satisfaction improve, but computational complexity and processing time increase
Solution Approach 1:
The system segments the pricing calculation into distinct components: original invoice amount calculation, entitlement identification, discount calculation, and savings computation. Each component handles a specific aspect independently, reducing overall computational complexity while providing complete transparency through the breakdown of original versus revised amounts
Data Source
AI summary
Techniques to generate invoices for “events” (e.g., activities, orders, and so on) and taking into account applicable entitlements. The events are for actions and/or transactions to be performed, and may be related to contracts having entitlements that may specify special pricing for the events. An entitlement may define what event items are covered (e.g., time, expenses, parts), and the amount that is covered and the applicable discounts for each event item. To generate invoices for the events, contracts applicable to the events are initially determined and any entitlements that cover the events are identified. An original invoice amount for each event may be initially determined based on a standard pricing scheme (e.g., based on standard Price and/or Rate Lists) for this type of event. A revised invoice amount and discounts (if any) may then be determined for the event based on the applicable entitlements (if any).