Automated Invoice Payment Status Identification System
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Solution Overview
Problem
Current electronic data processing systems for invoices lack the ability to accurately identify unpaid or disputed invoices, leading to misleading financial analyses and inefficient cash collection efforts, especially when dealing with a large number of customers.
Innovation Solution
A computerized method and system for processing invoices that selects invoices with balances above a preselectable value, determines payment status, and presents invoices with partial or non-payment conditions to collectors, enabling targeted cash collection and improved record keeping.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If a company manually tracks and analyzes all invoices to identify payment status, then comprehensive financial oversight is achieved, but the time and resources required increase significantly
Solution Approach 1:
The patent replaces manual mechanical tracking and analysis of invoices with an automated computer-based system that uses electronic data records and algorithms to identify payment status, thereby eliminating time-consuming manual processes while maintaining or improving accuracy
Solution Approach 2:
The system enables automatic self-assessment of invoice payment status through electronic data processing, where the computer system independently determines which invoices are paid, disputed, or at risk without requiring human intervention for each individual invoice analysis
2Reliability
If all invoices are presented to collectors for review, then no payment risks are missed, but the efficiency of cash collection decreases due to overwhelming volume
Solution Approach 1:
The patent extracts and isolates only the critical subset of invoices that require collector attention by automatically identifying those with payment issues, disputes, or high risk of non-payment, thereby removing unnecessary invoices from the collector's workload while ensuring all problematic cases are captured
Solution Approach 2:
The system applies different processing qualities to different invoices based on their payment status characteristics, providing detailed analysis and collector presentation only for invoices with payment problems, while automatically resolving or monitoring invoices with normal payment status
3Productivity
If electronic data records are used to store financial data, then data processing efficiency is improved, but the ability to accurately identify payment status and collect cash is reduced
Solution Approach 1:
The patent implements feedback mechanisms where the computer system continuously monitors electronic data records for changes in payment status, automatically updates invoice classifications, and provides ongoing information about which invoices are paid, disputed, or at risk, thereby maintaining visibility alongside efficient processing
Data Source
AI summary
Methods, computer systems, and computer-readable media describe the computerized processing of invoices. Invoices having a balance larger or smaller than preselectable values are selected from a plurality of invoices presented to two or more customers. It is determined whether payments according to the selected invoices have been made before or at the time of selection, and invoices that have been partially paid or not paid are automatically presented to a collector or collection specialist.