US 2003/0191710 A1 · Invoice purchase order system

Abstract

An improved method and system for tracking and reconciling invoices and other payment devices, purchase orders and corresponding letters of credit is disclosed. In the system and method, information about the purchase orders and corresponding letters of credit received from the customer are compared against the performance of the manufacturer. Differences are identified automatically. Differences on the purchase order/SKU level are identified automatically and are used by the customer to determine the destiny of the order, control inventory, decide subsequent shipping, warehousing and pricing issues. The differences are communicated to the customer and may be used by the financial institution in deciding to authorize payment. Discrepancies are automatically identified and codified and are used by the customer and/or financial institution in deciding payment. Reconciliation information is also provided to the customer to aid in reconciling the customer's books in view of the plurality of purchase orders.

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Claims23

Dependent claims

A method for tracking and reconciling a plurality of purchase orders between a customer and a manufacturer and a payment between a financial institution and a beneficiary pursuant to a letter of credit corresponding to said plurality of purchase orders comprising the steps of:

receiving electronically first data from said customer, said first data regarding said purchase orders and said letter of credit at said financial institution;
storing said first data in a repository associated with a processing system associated with said financial institution;
inputting second data from said manufacturer corresponding to the performance of said manufacturer pursuant to said purchase order;
comparing automatically by said processing system said first data against said second data to automatically identify a difference, if any, between said two sets of data;
generating automatically by said processing system a message identifying said difference and at least a portion of said second data;
sending electronically said first report from said financial institution to said customer;
making a payment to said beneficiary from said financial institution pursuant to said letter of credit and debiting an amount corresponding to said payment from an account of said customer at said financial institution;
dividing automatically by said processing system said payment amount into individual purchase order payment amounts, each said individual purchase order payment amount corresponding to a purchase order;
and
providing electronically a second message to said customer containing each individual purchase order payment amount and said debit payment amount to enable said customer to reconcile the debit payment amount to the corresponding purchase orders.

7 more elements

A system for tracking and reconciling a plurality of purchase orders between a customer and a manufacturer and a payment between a financial institution and a beneficiary pursuant to a letter of credit corresponding to said plurality of purchase orders comprising:

receiving means for receiving said first data from said customer said first data regarding said customer orders and said letter of credit at said financial institution;
storing means for storing said first data;
processing mean associated with said financial institution for processing said first data;
second data corresponding to the performance of said manufacturer pursuant to said purchase order being input into said processor means;
further processing means for automatically comparing said first data against said second data to automatically identify differences between said two sets of data;
further processing means for automatically generating a first message identifying said differences;
means for sending said first message to said customer;
payment means for making a payment to said beneficiary pursuant to said letter of credit and debit means for debiting an amount corresponding to said payment from an account of said customer at said financial institution;
further processing means for automatically breaking down said payment amount into individual customer order amounts each corresponding to a purchase order;
and
means for sending a second message to said customer said second message containing said broken down information thereby enabling said customer to automatically reconcile the customer order amounts to the corresponding customer order.

8 more elements

Dependencies are inferred from the claim text.

Description9,766 words

Summary1,887 words

#This invention relates generally to systems and processes for processing purchase orders, and more particularly to a system and process for automatically tracking, reconciling and otherwise processing purchase orders and corresponding letters of credit.

#In the international marketplace, it is common practice for a purchaser—such as a retailer—to issue a purchase order when contracting with a manufacturer to produce goods for the customer. Purchase orders contain a number of provisions including a delivery date, the quantity of the goods, specifications for the manufacture of the goods, and purchase price. In order to receive payment for the goods produced under these purchase orders, the manufacturer will issue an invoice. Often, in the international marketplace, a customer will have the need to issue many purchase orders for different products or to different manufacturers. It is often useful and/or necessary for the customer to work with a financial institution who will consolidate these purchase orders under a letter of credit. This letter of credit is extended to the customer, and guarantees payment, generally to the manufacturer. It should be understood that payment may be to a beneficiary other than the manufacturer. However, for the purpose of this description, the manufacturer will be the beneficiary/payee for the letter of credit.

#The letter of credit is thus the key interface between the customer and the manufacturer. The letter of credit stipulates submitting documents of compliance by the manufacturer in order to receive payment of an invoice from the financial institution. For example, the manufacturer may be required to show a bill of lading, an invoice and a certificate of origin showing where the goods originate, and/or an inspection certificate. Upon presentation to the financial institution of the documents required by the letter of credit, the customer is debited and the manufacturer (or beneficiary of the letter of credit) is paid. In this way letters of credit assure manufacturers (or beneficiaries)—who are often in countries different from that of the customers—that the payment of funds are available and will be paid if the delivery of the goods conforms to the terms of the letter of credit. Letters of credit therefore represent a valuable tool in conducting international trade. Procedures which are generally internationally recognized for handling letter of credit are set forth in various manuals and reference books including the Uniform Customs and Practices.

Brief description of the drawings24 figures

#FIG. 1 is an overview of the integrated components and communications that comprise this Invoice Purchase Order System (often referred to as the “System” herein).

#FIG. 2 is the beginning flow chart for operating the Invoice Purchase Order System, which is a method for monitoring international trade transactions. This, and the other diagrams, unless otherwise noted, depict the steps that a Trade Service Representative would take in logging into the System and operating it.

#FIG. 3 diagrams the System Main Menu, which gives an overview of the Systems main functions.

Detailed description7,507 words

#The system (FIG. 1) is a trade transaction information management system for importers and exporters. It provides a means for customers to forward, monitor and reconcile purchase orders against corresponding invoices. Transaction information is created by the customer (Block 100) or input by the Trade Service Representative (Block 112). The customer may send Letter of Credit (LC) applications, Purchase Order (PO) information, LC Amendments, PO Amendments and replies to Discrepancies.

#This information is created in the customer environment. Where required, the customer information is converted to structured messages using software resident in the local personal computer housing the Local Transport Module (LTM) (Block 102). The messages are encrypted and sent via The Local Transport Module (Block 102) to the Electronic Message Center (EMC) (Block 104). The Customer Message Transport Module (CTM) (Block 106) retrieves the messages held in the EMC and through a “Handshake” routine passes the inbound messages to the System Message Processor (SMP) (Block 108).

#The SMP validates the messages and checks for format integrity, completeness and corruption. Messages failing validation are rejected and deleted periodically and the customer notified of the condition by means of a status message generated by the SMP and sent to the EMC via the CTM. Once validated, the Message Processor passes the messages to the system file server (Block 110), which temporarily stores the message pending acknowledgment of issuance by the Central Processor.

Invoice purchase order system

Life of this patent

Invoice purchase order system

Life of this patent

Life of this patent

Abstract

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Claims23

Description9,766 words

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Classification4 codes

Life of this patent

Description9,766 words