Automated Transaction Accounting Classification System

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Solution Overview

Problem

Current transaction processing systems face challenges in efficiently classifying and managing accounting data due to incompatibilities in reference numbers, manual processing errors, and the lack of real-time data availability, leading to inefficiencies and potential fraud in expense tracking and compliance with accounting standards.

Innovation Solution

A transaction processing system that uses transaction data-based rules to classify and assign accounting codes automatically, ensuring accurate and compliant accounting data management by integrating user profiles and contract terms, and utilizing a database to store and apply accounting codes for each party involved in a transaction.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Productivity

If manual processing of transaction documents is used, then flexibility in handling different document formats is maintained, but processing time and error rates increase significantly

Engineering Contradiction:

Improveprocessing speedVSAvoiderror rate

Core Design Contradiction:

ProductivityVSReliability

Solution Approach 1:

The patent replaces manual mechanical processing of transaction documents with an automated computer-based system that uses optical character recognition (OCR) and data parsing technologies to extract information from documents, thereby increasing processing speed while reducing human error

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Solution Approach 2:

The system enables self-service processing where the automated system independently performs document parsing, data extraction, classification, and coding without requiring manual intervention, allowing the system to process its own data autonomously and consistently

Inventive Principle:

Principle #25Self-service

2Adaptability or versatility

If transaction data from multiple parties is processed, then comprehensive transaction monitoring is achieved, but data compatibility and categorization difficulties increase

Engineering Contradiction:

Improvedata format compatibilityVSAvoiddata organization complexity

Core Design Contradiction:

Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The patent implements a universal data processing framework that can handle multiple document formats and data structures from different parties (buyers, sellers, shippers, financial institutions) through a common parsing and classification system, enabling the system to adapt to various data formats without requiring separate processing mechanisms for each party

Inventive Principle:

Principle #6Universality (Multi-functionality)

Solution Approach 2:

The system introduces a standardized data classification and coding mechanism as an intermediary layer between the diverse data formats from different parties and the final accounting records, translating and harmonizing data from various sources into a unified classification structure

Inventive Principle:

Principle #24Intermediary (Mediator)

3Adaptability or versatility

If reference numbers and codes from different parties are used, then each party can maintain their own identification system, but cross-party data access and monitoring become difficult

Engineering Contradiction:

Improvereference number compatibilityVSAvoiddata accessibility

Core Design Contradiction:

Adaptability or versatilityVSLoss of information

Solution Approach 1:

The patent creates a centralized database and standardized reference system that acts as an intermediary between different parties' identification systems, mapping and translating various party-specific reference numbers and codes into a unified reference framework that enables consistent data access and monitoring across all parties

Inventive Principle:

Principle #24Intermediary (Mediator)

4Productivity

If accounting codes are assigned manually, then classification accuracy can be maintained, but processing time and labor costs increase

Engineering Contradiction:

Improvecoding speedVSAvoidclassification accuracy

Core Design Contradiction:

ProductivityVSManufacturing precision

Solution Approach 1:

The patent replaces manual accounting code assignment with an automated computer system that uses predefined classification rules and algorithms to assign codes to transaction data, significantly increasing coding speed while maintaining or improving classification accuracy through consistent application of standardized criteria

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Solution Approach 2:

The system incorporates feedback mechanisms where assigned codes can be reviewed and validated, allowing the system to learn from corrections and improve its classification accuracy over time, ensuring that automated coding maintains the precision required for accurate accounting

Inventive Principle:

Principle #23Feedback

Data Source

PatentUS7574386B2Transaction accounting auditing approach and system therefor

Publication Date: 2009.08.11 SYNCADA LLC

AI summary

Accounting data is classified to facilitate transaction processing and management. According to an example embodiment, data based rules are implemented for classifying transaction-related data into accounting categories. Accounting information is processed as a function of the data based rules and accordingly automatically classified. This processing involves, for example, the identification of particular data based rules to apply to the accounting information, applying the rules and processing the information accordingly.