Patent ID: 7340421
Filing Date: 2008-03-04
Classification: G06Q

Abstract:
1. A system for account reconciliation between a parent business entity and a subsidiary of the parent business entity, said system comprising: at least one remote computer associated with the subsidiary, the subsidiary computer configured to prompt a user associated with the subsidiary to enter account data relating to business activities of the subsidiary; at least one remote computer associated with the parent, the parent computer configured to prompt a user associated with the parent to enter account data relating to business activities of the subsidiary; a centralized database for storing account information including account data maintained by the parent relating to business activities of the subsidiary, account data maintained by the subsidiary relating to the business activities of the subsidiary, and variance data showing differences between the parent account data and the subsidiary account data; and a server associated with the parent in communication with each of the subsidiary computer, the parent computer and the centralized database, the server programmed to: receive the parent maintained account data from the parent computer; receive the subsidiary maintained account data from the subsidiary computer; calculate an account variance based on the parent maintained account data and the subsidiary maintained account data; report the account variance to a user associated with the subsidiary by displaying on the subsidiary computer the account variance, an amount booked by the parent, and an amount booked by the subsidiary; display a data entry table on the subsidiary computer for prompting the user associated with the subsidiary to input additional accounting entries for reconciling the reported account variance; display on the subsidiary computer guidelines to assist the user associated with the subsidiary to input the additional accounting entries in the displayed data table, wherein the specific guidelines displayed depend upon accounting standards applicable to the parent and accounting standards applicable to the subsidiary and whether any differences exist between the applicable accounting standards including whether differences in accounting standards exist due to the parent and subsidiary being located in different countries, and wherein the guidelines relate to at least one of a timing of recording items including whether there are time lags between a time when the parent records an account receivable or an account payable associated with the subsidiary and a time when the subsidiary records the same account receivable or account payable, methods used for reporting account information including whether the parent account data and the subsidiary account data are based on a cash basis or an accrual basis, a discrepancy in an amount, exchange rates used by the parent and subsidiary, whether at least one of an overhead charge and a management fee has been charged to the subsidiary by the parent, and whether there have been any improper entries charged to the subsidiary; reconcile the account variance by processing the additional accounting entries inputted into the data entry table relating to the business activities of the subsidiary; automatically compare the additional accounting entries to the account data stored in the database to determine whether any of the additional accounting entries are duplicative of the account data stored in the database; automatically update the account variance and the amount booked by the subsidiary as displayed on the subsidiary computer based on the additional, non-duplicative accounting entries; and update the account information stored in the database based on the additional, non-duplicative accounting entries.