Automatic Remittance Reconciliation via Intermediary Data Structures
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Solution Overview
Problem
In business-to-business transactions, reconciling payment amounts for early payment discounts is challenging due to differences in systems used for offering and accepting discounts, leading to inaccuracies in remittance amounts and dates, which can be difficult to track and require significant effort.
Innovation Solution
A system and method for automatically reconciling remittance advice data structures with payment proposal data structures, using a reconciliation component to match remittance amounts and dates, and alerting users to discrepancies, ensuring accurate discount application and payment processing.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If different computer systems are used to offer and accept early payment discounts, then business-to-business transactions can be handled efficiently, but payment amount accuracy deteriorates due to system incompatibility
Solution Approach 1:
The patent introduces a remittance advice data structure as an intermediary that carries discount amount and date information between the buyer's remittance system and the supplier's accounts receivable system. This intermediary structure enables accurate discount tracking across incompatible systems by standardizing the information exchange format.
Solution Approach 2:
The patent segments the discount tracking information into distinct fields within the remittance advice data structure, including discount amount, discount date, and invoice identification. This segmentation allows each component to be independently validated and processed, improving overall payment accuracy.
2Reliability
If suppliers do not update accounts receivable data with anticipated discounts due to security constraints, then system security is maintained, but reconciliation difficulty increases
Solution Approach 1:
The patent applies preliminary action by having the buyer calculate and include the discount amount and discount date in the remittance advice data structure before the supplier processes the payment. This pre-computation eliminates the need for the supplier's system to modify locked accounts receivable data, maintaining security while enabling accurate reconciliation.
3Measurement precision
If manual reconciliation of remittance advice data is performed, then payment discrepancies can be identified, but significant time and effort are required
Solution Approach 1:
The patent implements self-service by enabling the system to automatically reconcile remittance advice data with invoice information. The reconciliation component automatically matches discount amounts and dates, reducing or eliminating the need for manual intervention while maintaining accurate discrepancy detection.
Solution Approach 2:
The patent establishes a feedback mechanism where the reconciliation component automatically compares remittance advice data against invoice data and provides immediate validation results. This automated feedback loop quickly identifies payment discrepancies without requiring manual review of each transaction.
Data Source
AI summary
In an example embodiment, a data structure is received and automatically reconciled with other data structures in a computer system by comparing fields such as dates, transaction amounts, and discount amounts. A user is alerted as to whether the matches or discrepancies occur by displaying a message in a user interface.