Intelligent Open Item Matching for Multi-Method Resource Allocation
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Solution Overview
Problem
Large businesses face difficulties in efficiently and intelligently processing thousands of open items, which are unpaid supplier invoices, due to the complexity of allocating financial resources using various payment methods, such as cash, bank transfer, cheque, and bills of exchange, without a systematic approach.
Innovation Solution
An open item matching tool is employed to assign open items to allocation methods based on a user-defined allocation strategy, utilizing tree traversal algorithms to optimize the allocation of positive and negative open items according to due dates and target amounts, ensuring adherence to user preferences and strategy configurations.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If manual processing of open items is used, then flexibility in decision-making is maintained, but processing efficiency and productivity deteriorate due to the large volume of thousands of open items
Solution Approach 1:
The patent segments the large volume of open items into smaller batches that can be processed in manageable chunks. The system divides the overall allocation task into multiple processing stages, handling subsets of open items sequentially or in parallel, which makes the complex task more tractable and efficient while maintaining control over the allocation process
Solution Approach 2:
The system enables self-service processing by automatically matching open items with allocation methods based on predefined criteria and user preferences. The intelligent processing engine autonomously performs the allocation task without requiring manual intervention for each individual open item, significantly improving productivity while the user can still override decisions when needed
2Adaptability or versatility
If multiple allocation methods are used to distribute financial resources, then allocation flexibility and adaptability are improved, but the complexity of managing and tracking allocations across different methods increases
Solution Approach 1:
The patent implements a universal allocation management system that can handle multiple allocation methods (cash, bank transfer, cheque, bills of exchange) through a single integrated platform. The system provides consistent functionality across different allocation methods, managing them through common interfaces and tracking mechanisms, which reduces the perceived complexity while maintaining versatility
Solution Approach 2:
The system introduces an intermediary allocation management layer that sits between the various allocation methods and the open items. This intermediary layer standardizes the interaction with different allocation methods, providing a unified view and control mechanism that simplifies management complexity while preserving the flexibility to use multiple allocation methods
3Measurement precision
If intelligent processing with tree traversal algorithms is implemented, then allocation precision and optimization are improved, but computational complexity and processing time increase
Solution Approach 1:
The system performs preliminary actions by pre-processing and categorizing open items before the actual allocation process. It prepares the data structure, identifies candidate allocation methods in advance, and sets up the tree traversal structures beforehand. This preliminary preparation reduces the computational burden during the actual allocation, improving both accuracy and reducing processing time
Solution Approach 2:
The patent applies partial action by using tree traversal algorithms selectively rather than exhaustively searching all possible allocations. The system traverses the allocation tree to a sufficient depth to achieve acceptable optimization without exploring every possible combination, balancing allocation precision with reasonable processing time by stopping when a satisfactory solution is found
Data Source
AI summary
Embodiments describe techniques for assigning a large volume of open items associated with a external entity to a diverse range of allocation methods. A user may define a planned target resource amount for each allocation method and an allocation strategy configuration. The open item matching tool may receive these information and begin assigning open items to the different allocation methods in a manner that satisfies the constraints provided in the allocation strategy configuration.