Automated Payment Scheduling Based on Cashflow Patterns

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Solution Overview

Problem

Manual tracking and scheduling of business payments across multiple transactions are complex and time-consuming, especially with optional features like early payment discounts, due to the sheer volume of transactions and varying agreements between businesses.

Innovation Solution

A computerized method and system that analyzes cashflow data from invoices to generate a recommended payment schedule based on cashflow patterns, optimizing the net present value of funds by automatically scheduling payments, which reduces manual interactions and simplifies the payment management process.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If manual tracking and scheduling of payments is used, then flexibility in managing individual transactions is maintained, but the time and effort required increases significantly

Engineering Contradiction:

Improveease of payment managementVSAvoidtime for tracking payments

Core Design Contradiction:

Ease of operationVSLoss of time

Solution Approach 1:

The system enables self-service by automatically analyzing cashflow data, generating payment patterns, and scheduling payments without requiring manual intervention. The system serves itself by using its own generated recommendations and automatically scheduling payments, eliminating the need for continuous manual tracking and management of payment schedules.

Inventive Principle:

Principle #25Self-service

Solution Approach 2:

The patent replaces the mechanical manual process of tracking and scheduling payments with an automated computerized system. The system uses algorithms to analyze cashflow data, generate payment patterns, and schedule payments automatically, substituting human manual operations with automated computational processes that significantly reduce time and effort.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

2Productivity

If automated payment scheduling is implemented, then time and effort are reduced, but system complexity increases

Engineering Contradiction:

Improvepayment scheduling efficiencyVSAvoidsystem complexity

Core Design Contradiction:

ProductivityVSDevice complexity

Solution Approach 1:

The system segments the complex payment management process into distinct functional modules: cashflow data reception, cashflow pattern determination, payment pattern generation, recommendation provision, and automatic payment scheduling. Each module handles a specific aspect of the process, making the overall complex system manageable through functional decomposition and independent development of each component.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The system achieves universality by creating a multi-functional automated payment scheduling system that can handle various types of transactions, different cashflow patterns, and multiple payment scenarios through a single integrated platform. The system is designed to be broadly applicable across different business contexts while maintaining consistent operational principles.

Inventive Principle:

Principle #6Universality (Multi-functionality)

3Reliability

If payment patterns are generated based on cashflow patterns, then net present value of funds is optimized, but the difficulty of detecting and measuring cashflow patterns increases

Engineering Contradiction:

Improveoptimization of net present valueVSAvoiddifficulty of analyzing cashflow data

Core Design Contradiction:

ReliabilityVSDifficulty of detecting and measuring

Solution Approach 1:

The system implements feedback by continuously monitoring actual cashflow events and comparing them against predicted cashflow patterns. This feedback mechanism allows the system to learn from discrepancies between expected and actual cashflows, refine its pattern recognition algorithms, and improve the accuracy of payment pattern generation over time, thereby enhancing net present value optimization.

Inventive Principle:

Principle #23Feedback

Solution Approach 2:

The system performs preliminary action by analyzing historical cashflow data and determining cashflow patterns in advance before generating payment patterns. This preliminary analysis of cashflow behavior enables the system to predict future cashflows and optimize payment scheduling proactively, rather than reactively responding to each transaction as it occurs.

Inventive Principle:

Principle #10Preliminary action

Data Source

PatentUS11361390B2Scheduling a payment based on a recommended payment schedule for a business entity

Publication Date: 2022.06.14 MASTERCARD INT INC

AI summary

The disclosure herein describes scheduling an automatic payment based on a recommended payment schedule that is generated based on a cashflow pattern. Cashflow data associated with a plurality of invoices is received, the cashflow data including data associated with past paid payments, past received payments, accounts receivable, and accounts payable. A cashflow pattern is determined based on the past paid payments and the past received payments. Then, a payment pattern associated with the accounts payable is generated based on the cashflow pattern and the accounts receivable, wherein the payment pattern indicates a pattern of payments that optimizes a net present value of funds associated with the set of accounts payable over an associated period. A recommended payment schedule based on the payment pattern is then provided via a user interface and, based on receiving input in response to the provided recommended payment schedule, at least one automatic payment is scheduled based on the payment pattern.