AU717877B3 - A trading method for co-operating enterprises - Google Patents

Description

"A TRADING METHOD FOR PARTICIPATING ENTERPRISES" This invention relates to a trading method for participating enterprises and computing apparatus therefore.

Trading transactions between enterprises such as the supply of goods and/or services in return for payment often commence with the supply of goods and/or services and conclude with the payment for those goods and/or services.

Many such transactions are not concluded until the end of an accounting period or later, such as when the receiving enterprise is prepared to accept the goods and/or services or after the paperwork has gone through conventional channels for timely attention; such as at the end of an accounting period.

The delay between delivery of goods and/or services and payment creates a need for an accounting personnel to monitor accumulating transactions. The vast number of people involved in this process significantly contributes to the cost of doing business. Another very significant cost to business is that incurred through late receipt of monies which may have been expended in producing the goods and/or services.

The advent of computerised accounting systems which are employed by most business has not had any significant effect on this delayed receipt of payment for goods and/or services delivered.

Furthermore, as each business is entitled to utilise any desired accounting system, including computerised systems, at present there is no practical way of remotely collecting credit data from independent enterprises which will provide a real and independent measure of a company's credit performance. Thus credit bureaus and the like provide credit reports on enterprises based on publicly available information.

This invention aims to facilitate and/or increase the efficiency of trading between participating enterprises.

The terms defined in the definitions below are to be given their definition meaning throughout the following specification unless otherwise specified or understood from their usage herein.

"accounting period" means a period of time allowed for completion of a transaction such as by payment of an account rendered.

"bank" means a trading bank, building society, credit union or any other financial institution allowing for the operation of a trading account or nominated account by a customer.

"independent bureau" means a bureau which is functionally independent from any Participating Enterprise or Bank.

"invoice" means an invoice or any notification of payment due in return for the supply of goods and/or services.

"participating enterprise" means a business enterprise which has contracted or has otherwise agreed to trade or transact in accordance with the invention with one or more other business enterprises or consumers which are also participating enterprises.

"supplying enterprise" means a participating enterprise which supplies goods and/or services to another participating enterprise, called a "receiving enterprise", pursuant to a transaction with that receiving enterprise.

"receiving enterprise" means a participating enterprise which receives goods and/or services from another participating enterprise, called a "supplying enterprise", pursuant to a transaction with that supplying enterprise.

With the foregoing in view, this invention in one aspect resides broadly in a trading method between participating enterprises including:providing an independent bureau capable of communicating electronically with participating enterprises and their banks; obtaining from each receiving enterprise requiring delivery/provision of goods and/or services authorisation for payments to be made direct from their respective bank to the supplying enterprise or the supplying enterprise's nominated bank account upon receipt of advice of payment due of an advised amount from the independent bureau; establishing an acceptable payment period for each receiving enterprise, either generally or selectively and providing that information to the independent bureau; causing the cooperating supplier to electronically transmit details of amounts invoiced to a participating enterprise to the independent bureau, and at the relevant payment period for each invoice received causing the independent bureau to electronically advise the invoiced participating enterprise's bank of the direct payment to be made in an advised amount to the issuer of the respective invoice.

Suitably the trading method further includes providing the independent bureau with a computer system which provides a software/hardware interface having the ability to communicate with multiple software/hardware protocols so that it may communicate electronically with the computer accounting systems of participating enterprises having different computer systems or utilising different programs.

While it is not essential that independent bureau's communication with each participating enterprise requiring receipt of goods and/or services be computerised, such form of communication is preferred. However the electronic communication advising of receipt of an invoice to the participating enterprises which received the original invoice could be by way of facsimile or data transmission for example.

If desired the independent bureau may provide to participating enterprises who do not have suitable computerised accounts packages, display or printout means for advising each invoice recipient of receipt of invoice by the independent bureau for payment according to agreed period.

The independent bureau may have a host program which can recognise the accounting package of participating enterprises, communicate with the various accounts packages through a network protocol and convert received information to a standard format which the bureau can manipulate. Alternatively the bureau may mirror the various accounts packages of the participating enterprises to facilitate communication between the bureau and the participating enterprises.

The standard format may include a capacity for encryption to maintain security of data stored.

The communication may be limited to one way communication to enhance security of information kept in the computer files of the bureau and the computer files of the participating enterprises. Alternatively the communication may be two way communication with appropriate access rights provided to suit the circumstances.

Suitably a disputes mechanism is established by the independent bureau such that it does not provide clearance to the respective bank for payments to be made where a dispute exists between the participating enterprises in respect of a particular transaction until the dispute has been resolved.

Furthermore it is preferred that should a bank fail to transfer an advised amount that default be automatically notified to the independent bureau for relay to the participating enterprises for resolution. Such notifications reside in the independent bureau's computer as a historical record of each participating enterprise for inclusion in an independent credit report which may be provided by the independent bureau to participating enterprises or other parties.

The trading method also suitably includes providing the independent bureau with a computer system which maintains auditable records of all transactions processed by the independent bureau and accessing those auditable records to provide a credit report on a selected participating enterprise.

The independent bureau may transmit the details of invoiced amounts to the participating enterprise invoiced and suitably this is done within a set minimum turn around time such as twenty-four hours. This is not essential as the receipt of the original invoice from the supplier may serve as sufficient notification of the invoice details to the invoice recipient who will be aware that the funds will automatically be deducted from his account.

Funding of the independent bureau may be achieved in any suitable manner. Suitably however the independent bureau establishes authorisation from each participating enterprise requiring receipt of goods and/or services or the participating enterprise issuing invoices clearance for payments to be made direct from their respective bank to the independent bureau based on an agreed amount.

This agreed amount could be a percentage of the invoiced amount, a fixed fee for each invoice or for example an annual charge.

In order that this invention may be more readily understood and put into practical effect, reference will now be made to a typical example which illustrates the present invention and wherein:- FIG. 1 is a schematic illustrating the basic functions of the typical example; FIG. 2 is a schematic illustrating the basic communications required by the independent bureau, and FIG. 3 is a schematic illustrating the basic functions of a typical dispute mechanism.

Referring to the drawings it will be seen that the independent bureau 10 has computing means such as a host mainframe computer capable of accessing local computer systems of participating enterprises 11, 12 for downloading relevant invoice information.

The host mainframe computer includes data files for the participating enterprises 11,12 which contain information for effecting transactions such as the agreed time period between issue of an invoice from respective participating enterprises 11,12 and automatic payment thereof from the invoice recipient's bank 14.

The host mainframe computer also accumulates appropriate information on all transactions so that it may provide a credit performance or rating report on any one of the participating enterprises. Information considered may include transactions effected on its behalf including invoices issued, payment made, defaults, payments deducted and payments due to and from the account of a participating enterprises.

In use, authorisation would be obtained from each participating enterprise 11,12 that would permit access to their relevant bank account for the payment into and deduction of amounts as notified to the bank by the independent bureau. For deductions for payments of invoices, authorisation would also be obtained for effecting the deduction after a fixed payment period. In some instances, a second working account may be required to be set up from which deductions could be effected and deposits made. However, the responsibility to ensure adequate funds remain in the account to cover invoiced amounts would be borne by the participating enterprises 11, 12.

The payment period may vary from participating enterprise to participating enterprise and within the files of a single participating enterprise such as for paying different participating enterprises. Where a participating enterprise's credit history indicates an overly long payment period the independent bureau may cause the relevant participating enterprise to bring this period into line within more acceptable limits. This may be effected gradually over an agreed period of time.

The trading method could commence after the necessary authorisations have been obtained and agreements established with the various banks to effect transactions between banks based on information supplied by the independent bureau and upon ensuring that the computing apparatus of the independent bureau can communicate with the computing apparatus of the participating enterprises issuing invoices to other participating enterprises.

Typically, a supplying enterprise 11 would issue an invoice to a receiving enterprise 12 with goods and/or services supplied to the receiving enterprise. On generating the invoice and despatch of the goods and/or services, the supplying enterprise 11 would electronically transmit details of their invoice to the independent bureau 10. The independent bureau 10 would then, within 24 hours, electronically transmit a copy of details received from the supplying enterprise 11 to the receiving enterprise 12 who would be able to match those details with the actual invoice received from the supplying enterprise 11 with the goods and/or services. If the receiving enterprise did not dispute the invoice, then at the agreed time period, such as 30 days, the independent bureau 10 would transmit advice to the bank 14 of the receiving enterprise 12 requesting transfer of the amount due less an agreed percentage to the account of the supplying enterprise 11. The agreed percentage would simultaneously be deposited in the relevant account of the independent bureau 10. Thus the transaction would occur.with minimum effort and surveillance by either of the participating enterprises and in a timely fashion.

Should a dispute arise as to details appearing on the invoice, a dispute mechanism could operate as per the flow chart illustrated in Fig. 3 and at the resolution of the dispute, the appropriate advice would be provided by the independent bureau to the relevant banks. The independent bureau 10 may also issue a deduction advice to the supplying and/or receiving enterprises at an agreed period prior to the deduction being notified to the bank 14 such as two days prior to the due date for deduction.

Should an account not contain sufficient funds to pay the invoiced amount, a default would be recorded and the invoiced participating enterprises would be advised. Such details as to the length of time and difficulty of obtaining of funds would remain in the files of the independent bureau 10 and provide an up to date reference for credit reports and the like. The independent bureau 10 may provide statements at set periods or on request and charging mechanisms would be put in place for additional cost incurred by the independent bureau 10 such as for disputes or defaults.

From the above it will be seen that the trading method according to this invention will facilitate efficient trading between participating enterprises as it will substantially reduce accounts personnel dedicated to maintaining and updating records of transactions between participating enterprises. It will cause automatic timely payments of invoices issued by participating enterprises unless a receiving enterprise is unable to pay. In such instances the supplying enterprise will receive early notice of such default so that the accumulation of defaults will be minimised.

It will be understood that the above has been given by way of illustrative example of the present invention and that all such modifications and variations thereto as would be apparent to persons skilled in the art are deemed to fall within the broad scope and ambit of the invention as is defined in the appended claims.

Claims (3)

1. A method of trading between participating enterprises including:- providing an independent bureau capable of communicating electronically with participating enterprises and their banks; obtaining from each receiving enterprise requiring delivery/provision of goods and/or services authorisation for payments to be made direct from their respective bank to the supplying enterprise or the supplying enterprise's nominated bank account upon receipt of advice of payment due of an advised amount from the independent bureau; establishing an acceptable payment period for each receiving enterprise, either generally or selectively and providing that information to the independent bureau; causing the cooperating supplier to electronically transmit details of amounts invoiced to a participating enterprise to the independent bureau, and at the relevant payment period for each invoice received causing the independent bureau to electronically advise the invoiced participating enterprise's bank of the direct payment to be made in an advised amount to the issuer of the respective invoice.

2. A method of trading as claimed in claim 1 and including providing the independent bureau with a computer system which provides a software/hardware interface having the ability to communicate with multiple software/hardware protocols so that it may communicate electronically with the computer accounting systems of participating enterprises having different computer systems or utilising different programs.

3. A method of trading as claimed in claim 1 or claim 2 and including providing the independent bureau with a computer system which maintains auditable records of all transactions processed by the independent bureau and accessing those auditable records to provide a credit report on a selected participating enterprise. DATED THIS Eleventh DAY OF May 1999. INTERKEY TECHNOLOGIES PTY LTD ACN 085 746 989 BY PIZZEYS PATENT TRADE MARK ATTORNEYS