Payment Prediction System Using Comparable Vendor Data
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Solution Overview
Problem
Vendors face challenges in managing cash flow due to uncertainties in customer payment timeliness, as existing systems lack comprehensive analysis of payment behaviors across vendors, leading to inadequate cash management strategies.
Innovation Solution
A method and system for payment management that identifies invoices, obtains financial transaction records, generates payment predictions, and analyzes comparable vendor data to provide recommendations for cash flow optimization, including financing, payment method changes, and invoice term modifications, presented through a graphical user interface.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If vendors rely only on their own financial transaction information, then the system complexity is low, but the accuracy of payment prediction and cash flow management is insufficient
Solution Approach 1:
The patent combines multiple data sources including the vendor's own financial transaction information with external data from comparable vendors and customer data to create a comprehensive payment prediction system. This merging of data sources increases measurement precision while the structured approach to integration manages system complexity.
Solution Approach 2:
The patent introduces an intermediary analysis layer that processes and compares financial transaction records from multiple vendors and customers. This intermediary processing layer synthesizes complex data into actionable payment predictions and cash flow recommendations, improving accuracy while maintaining manageable system complexity through structured analysis procedures.
2Reliability
If comprehensive analysis of payment behaviors across multiple vendors is performed, then cash flow management accuracy is improved, but the time required for analysis increases
Solution Approach 1:
The patent applies local quality by tailoring the analysis to specific vendors and customers based on their unique transaction patterns and relationships. Rather than uniformly analyzing all vendors, the system identifies and focuses on comparable vendors with similar business characteristics, improving reliability while reducing unnecessary analysis time for irrelevant vendors.
Solution Approach 2:
The patent performs preliminary actions by pre-identifying comparable vendors and pre-processing financial transaction records before the actual payment prediction analysis. This preliminary organization and classification of data reduces the time required during the main analysis phase while maintaining comprehensive coverage of relevant payment behaviors.
3Productivity
If payment predictions and recommendations are provided to vendors, then cash flow optimization is improved, but the information processing complexity increases
Solution Approach 1:
The patent segments the information processing into distinct functional modules: data collection from multiple sources, comparable vendor identification, payment prediction generation, and cash flow recommendation formulation. This segmentation manages information processing complexity by dividing the complex optimization task into manageable, sequential processing stages that can be handled systematically.
Data Source
AI summary
A method for payment management includes identifying an invoice for a target financial transaction between a customer and a target vendor, and obtaining financial transaction records for completed financial transactions between the customer and vendors. The vendors include comparable vendors and the target vendor. The method further includes generating, using the financial transaction records, a payment prediction for the customer to pay the target vendor, analyzing a subset of the financial transaction records for the comparable vendors to generate a recommendation, and presenting, in a graphical user interface, the payment prediction and the recommendation.