Universal Payment Module for Invoice Processing
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Solution Overview
Problem
Current electronic invoicing and payment systems are complex, costly, and often require deep integration, which is impractical for small vendors and infrequently used vendors, leading to inefficiencies in managing invoices and payments across multiple customers with varying requirements, and lack standardization, resulting in time-consuming and manual processes for both buyers and vendors.
Innovation Solution
A universal payment module (UPM) that facilitates electronic invoicing and payment by allowing vendors to interact with buyers' and their own accounting systems without sharing financial account information, enabling seamless payment processing through image cash letters and automated clearing house transfers, and providing a centralized repository for vendor and buyer information, thus reducing the need for manual data entry and third-party integrators.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If deep integration systems are implemented for electronic invoicing and payment, then payment processing efficiency is improved, but system complexity and implementation cost increase significantly
Solution Approach 1:
The patent introduces a universal payment module (UPM) as an intermediary component that sits between the vendor's accounting system and the buyer's payment system. This UPM receives invoice data from the vendor, processes payment information, and interfaces with the buyer's accounting system without requiring deep integration between the two systems. The UPM acts as a standardized mediator that simplifies the interaction complexity while maintaining efficient payment processing capabilities.
2Extent of automation
If deep integration systems are implemented, then electronic payment capability is improved, but implementation cost and third-party integrator requirements increase
Solution Approach 1:
The universal payment module is designed to be a multi-functional component that can handle various payment scenarios and interface with different accounting systems through standardized protocols. This universal design allows the same module to serve multiple buyers and vendors without requiring custom integration for each party, thereby reducing implementation costs and eliminating the need for expensive third-party integrators while maintaining full electronic payment capability.
3Ease of operation
If buyer-specific invoice and payment systems are used, then invoice presentment capability is improved, but standardization and cross-buyer efficiency decrease
Solution Approach 1:
The patent segments the invoice presentment functionality into two distinct layers: a standardized data exchange layer handled by the universal payment module, and a buyer-specific display/presentation layer. The UPM handles standardized data transmission between vendor and buyer systems, while each buyer's system maintains its own customized invoice presentation interface. This segmentation allows standardization in data exchange while preserving buyer-specific presentation capabilities.
Data Source
AI summary
Methods, systems and instructions stored on computer-readable media for receiving an invoice associated with a buyer from a vendor that includes an invoice amount. The invoice is sent to the buyer. A buyer financial institution and a buyer account are determined. A check is received from the buyer to pay the invoice. A vendor financial institution and a vendor account is determined. A custodian financial institution and a custodian account is determined. An ICL is created based in part on the received check. The ICL includes the buyer account, the buyer financial institution, the custodian account, and the payment amount to transfer into the vendor account. The ICL is sent to the custodian financial institution to transfer the payment amount from the buyer account into the custodian account. An ACH transfer of funds in the amount of the payment amount from the custodian account to the vendor account is initiated.