Fund Allocation Configuration Through User-Defined Receivable Rules
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Solution Overview
Problem
Insurance carriers face challenges in reconciling high volumes of invoices and payments due to complex and error-prone payment allocation processes, which are often resource-intensive and require specialized programming, especially when policy changes occur.
Innovation Solution
A user interface-based tool is provided for configuring funds allocation plans, allowing users to define rules and heuristics for determining eligible receivables and their priority using filters and comparators, without requiring extensive programming knowledge.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If existing payment systems are used for reconciliation, then payment processing can be performed, but the process becomes time-consuming and resource-intensive due to complex allocation rules
Solution Approach 1:
The system pre-configures payment allocation rules and heuristics in advance through a user interface, so that when payments are received, the reconciliation can immediately apply these pre-established rules without requiring complex real-time decision-making or specialized programming knowledge
2Adaptability or versatility
If specialized programming is used to handle payment allocation rules, then complex scenarios can be managed, but the system becomes difficult to modify when policy changes occur
Solution Approach 1:
The system allows users to self-configure payment allocation rules through an intuitive user interface without requiring programmer intervention. When policy changes occur, users can directly modify allocation rules, heuristics, and filters through the interface, making the system adaptable to new scenarios without complex programming modifications
Solution Approach 2:
The user interface serves multiple functions: configuring allocation rules, setting filters, defining heuristics, and modifying policies all through a single unified interface, eliminating the need for separate programming interfaces and making the system versatile across different policy scenarios
3Adaptability or versatility
If manual configuration of allocation rules is required, then flexibility can be achieved, but the process becomes error-prone and resource-intensive
Solution Approach 1:
The system provides feedback mechanisms that validate user-configured allocation rules and heuristics, ensuring they meet required criteria and reducing errors. The interface guides users through configuration processes with appropriate constraints and validations, maintaining reliability while preserving flexibility
Data Source
AI summary
Applying funds is disclosed. A set of interfaces for configuring filtering criteria and receiving user configurations of the filtering criteria is displayed. Fund information pertaining to a fund that is to be applied to one or more receivables under an insurance policy account is received. A set of eligible receivables is identified based on filtering information included in the fund information and a set of preconfigured filtering criteria. A set of ranked receivable partitions to which the fund is applied is established based on a set of preconfigured priority criteria and using the fund information and information associated with the set of eligible receivables. The fund is applied to the ranked receivables partitions according to the rankings.