Automated Invoice Payment Scheduling System

Resolve Bottlenecks,
Find Innovative SolutionsGenerate Solutions

Solution Overview

Problem

Current systems lack the ability to efficiently and automatically determine optimal payment schedules for invoices based on the unique controls and preferences of both buyers and suppliers, leading to inefficiencies and increased staff time in managing multiple invoices across various relationships.

Innovation Solution

A processing server system that receives invoice data and identifies supplier controls and buyer preferences to determine an optimal payment schedule, which can include accepted payment methods, fees, discounts, and timelines, and can automatically initiate payments based on these determinations.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If manual methods are used to determine payment schedules for each invoice, then buyers can consider supplier controls and preferences, but the process requires significant staff time and effort especially when dealing with hundreds of invoices and supplier relationships

Engineering Contradiction:

Improveease of determining payment scheduleVSAvoidstaff time for invoice payment determination

Core Design Contradiction:

Ease of operationVSLoss of time

Solution Approach 1:

The system enables self-service by automatically determining optimal payment schedules without requiring manual staff intervention. The processing server autonomously evaluates supplier controls, buyer preferences, and invoice details to generate payment recommendations, eliminating the need for staff to manually analyze each invoice

Inventive Principle:

Principle #25Self-service

Solution Approach 2:

The patent replaces the manual mechanical process of payment schedule determination with an automated electronic system. The processing server uses computational algorithms to evaluate multiple payment options and generate recommendations, substituting human staff effort with automated technology

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

2Productivity

If automated systems are implemented to determine optimal payment schedules, then efficiency and accuracy are improved, but system complexity increases due to need to process multiple supplier controls and buyer preferences

Engineering Contradiction:

Improveefficiency of invoice payment processingVSAvoidcomplexity of payment optimization system

Core Design Contradiction:

ProductivityVSDevice complexity

Solution Approach 1:

The processing server is designed as a universal system that handles multiple functions: retrieving supplier controls, obtaining buyer preferences, analyzing invoice details, evaluating payment options, and generating recommendations. This multi-functional approach consolidates complexity into a single versatile platform rather than requiring separate systems for each function

Inventive Principle:

Principle #6Universality (Multi-functionality)

Solution Approach 2:

The processing server acts as an intermediary between buyers and suppliers, managing the complexity of coordinating multiple supplier controls and buyer preferences. It serves as a neutral mediator that automatically reconciles different requirements and generates optimal payment schedules without requiring direct complex interactions between trading parties

Inventive Principle:

Principle #24Intermediary (Mediator)

3Measurement precision

If multiple payment options are evaluated for each invoice considering various supplier controls and buyer preferences, then optimal payment determination is improved, but the number of possibilities increases making manual selection difficult

Engineering Contradiction:

Improveprecision of optimal payment selectionVSAvoidnumber of payment possibilities to evaluate

Core Design Contradiction:

Measurement precisionVSDevice complexity

Solution Approach 1:

The system dynamically evaluates payment options based on the specific combination of supplier controls and buyer preferences for each invoice. Rather than using a static approach, the processing server adapts its analysis to the unique requirements of each trading relationship, considering factors like discounts for early payment, preferred payment methods, and due date requirements

Inventive Principle:

Principle #15Dynamics

Solution Approach 2:

The system changes multiple parameters simultaneously to determine optimal payment schedules, including payment timing, payment method, discount amounts, and fee structures. By systematically varying these parameters across different payment scenarios, the processing server identifies the combination that best satisfies both supplier controls and buyer preferences

Inventive Principle:

Principle #35Parameter changes

Data Source

PatentUS20240144210A1Method and system of optimizing buyer and supplier communications

Publication Date: 2024.05.02 MASTERCARD INT INC

AI summary

A method for optimizing invoice payments according to supplier and buyer controls includes: receiving one or more received data message including invoice data, a buyer identification value, a supplier identification value, and a plurality of buyer optimization priorities, wherein the invoice data is associated with an invoice and includes an invoice amount and due date; identifying a plurality of supplier controls associated with the supplier identification value; identifying one or more buyer preferences associated with the buyer identification value; determining an optimal payment schedule for one or more payment transactions for the invoice based on the invoice data, the buyer optimization priorities, the plurality of supplier controls, and the one or more buyer preferences; transmitting a transmitted data message including the determined optimal payment schedule.