Validation approach for auditing a vendor-based transaction

A computer processing system for auditing transaction information between vendors and service providers servicing a third party's needs. The system also includes those transactions involving shippers and carriers. The system is particularly suited to efficiently and automatically audit and effect payment of a transaction and to efficiently provide access to relevant transaction and subscription information. According to one example embodiment, the system includes a processor arrangement that helps vendors validate transactions between service providers and third party customers. In some cases the system is able to monitor transactions initiated by the service provider, for the benefit of the customer, committing the vendor to certain actions not readily known by vendor. However, this is acceptable if the service provider uses a service quotation generating system, provided by the vendor, that has pre-determined parameters that vendor is willing to be committed to in order to immediately secure the new subscriber.

FIELD OF THE INVENTION

The present invention relates to a computer processing system for shipment transactions involving a shipper and a carrier or a vendor and service providers where the transaction involves services.

BACKGROUND OF THE INVENTION

Processing shipment transactions between a shipper and a carrier has been a manually intensive effort and has experienced little change. Generally, the shipment transaction process involves a goods transport path and a payment process path. The goods transport path typically starts when a carrier picks up the goods at the shipper's warehouse dock. The carrier receives a copy of a transaction document, sometimes referred to as a bill of lading (BOL), from the shipper. This type of transaction document includes information associated with the shipment transaction that is used by the shipper and carrier to track the shipment of goods. The carrier transports the goods to the receiver where the receiver signs a copy of the BOL to verify receipt of the goods. After the carrier has delivered the goods to the receiver, the carrier also submits the receiver's signed copy of the BOL to the carrier's headquarters.

At this point, records are generated that contain information about requested pick-up and delivery times, origin and destination, and type of load. The first problem in the process can occur when the carrier arrives to pick up the load. If the shipment is not ready or there are delays at the loading dock, accessorial charges may be imposed by the carrier. Because they are not part of the original BOL, the shipper may dispute these charges later, and this can cause payment delays down the line. Back at the loading dock, a second problem is created when manual changes are made on the BOL. Unfortunately, these changes rarely get recorded in the shipper's permanent electronic records causing a difference between the shipper's and the carrier's paperwork for the same load.

Now on the road, the driver needs to send the paperwork back to headquarters. Because the primary job of the driver is to get the shipment to its destination in a timely manner, paperwork can sometimes be delayed, and it may be days before the carrier headquarters receives a copy of the BOL.

The driver reaches the destination and delivers the shipment. At the point of delivery, the driver is supposed to provide notification of delivery. Again, this may or may not happen. When it does not, vital information is delayed or missing in the supply chain.

When the original and delivery copies of the BOL finally reach the clerk at the carrier's offices, the clerk sends out an invoice for the original shipment. A clerk at the shipper's office receives the invoice, often amid a pile of invoices for many carriers, and attempts to match the invoice with a copy of the original BOL. If a billing error is discovered, the clerk might send a check for a partial payment or simply hold the entire payment until the corrected invoice is provided. The carrier clerk receives this check and must then track down the original BOL and delivery copy to know why the check is for less than the total amount due. It is only after communicating with the shipper directly that the carrier finds out a mistake was made in the original paperwork. The carrier sends the shipper an amendment to the original invoice, and the shipping clerk must then organize and file all the paperwork together.

The payment process path starts when the carrier picks up the goods from the shipper. The carrier sends a copy of the BOL to the carrier's headquarters for processing. The carrier headquarters rates the BOL. Rating involves determining the shipment cost that takes into the account various shipment parameters such as the size, weight, type of material, and destination of the shipment. The carrier creates an invoice, sets up an accounts receivable, and sends the invoice to the shipper's accounts payable department. The shipper, either internally or via a third party, audits the invoice to ensure the final cost is proper.

One of the more burdensome aspects of the traditional process involves reaching agreement as to the final cost. If there is a dispute as to final cost, the shipper and carrier begin a burdensome and sometimes lengthy negotiation process in an attempt to settle the dispute. If the dispute is resolved, the shipper sets up an accounts payable for the transaction. The shipper will then send payment to the carrier and clear the accounts payable. The traditional process for paying the carrier and clearing the accounts payable involves several manually intensive steps. Upon receipt of payment, the carrier clears the accounts receivable. The traditional process for clearing an accounts receivable includes the carrier manually inputting final payment information into the accounts receivable system.

The traditional approach can lead to many disadvantages for a transaction between one shipper and one carrier. Typically, however, there are multiple carriers and shippers involved in multiple transactions, which makes the situation more complex, and that much more slow and inefficient. The process is manually intensive in that it relies on the hard copy of the BOL for proof of delivery and payment, resulting in a series of repetitive and time-consuming steps. Also, each BOL is often rated multiple times by multiple parties creating excessive redundancy.

Traditional shipment transaction systems are also highly susceptible to billing errors and fraud. For example, there is no connection between the delivery of goods and when the shipper is billed for delivery. This may result in double billing, no billing at all, or over-billing the shipper for freight delivery charges. Also, auditing error may occur which results in incorrect billing or payment. In addition, the carrier waits a disproportionately long time for payment while the invoice is being audited and/or disputed. For example, traditionally, a delivery takes about five days whereas payment takes about thirty days. This unnecessary delay adversely affects the carrier's working capital resources.

Additional costs arise as a result of the existing inefficiencies. Many of the costs are individually small, but very large in the aggregate. For example, the carrier incurs administrative costs including: the cost to create and deliver the initial invoice, costs of resolving billing disputes, costs of providing a signed copy of the BOL to the shipper, and costs of posting accounts receivable. The shipper incurs similar administrative costs.

Another disadvantage of traditional shipment transaction systems is that they have a tendency to strain relationships. Because carriers and shippers do not always have an effective way to communicate about the shipment, business partnerships can be strained when there are disputes. Continuous inaccuracies in either the shipment or invoice process cerate unnecessary tension along the entire supply chain for both shippers and carriers.

An additional disadvantage involves the inability to obtain immediate information regarding a shipment. Since the process is largely conducted manually, it is very difficult to track a shipment. To learn of the status of shipment or payment, there are various manual steps involved. For example, if the shipper wants to know if the carrier delivered the goods and if the payment has been made, the shipper must call the carrier and the appropriate financial institution.

There have been numerous attempts to improve the existing shipment and payment process. Some improvements have been made to each separate step of completing a shipment transaction, but the entire method remains relatively unchanged. For example, freight agents are used by shippers to schedule shipments and to process the invoice from the carrier. Also, third party service providers have taken over the role of managing the shipper's accounts payable department.

Another attempt to improve this burdensome transaction process involves the use of the Internet. Carriers have offered Internet access to their shipment information. Shippers access the carrier's Internet address and find out the immediate status of the shipment. A disadvantage of this system arises when, as in many applications, the shipper is using multiple carriers. In this typical situation, the shipper separately accesses the address of each carrier in order to find out the status of each shipment. This is unduly time-consuming.

Another disadvantage of traditional systems is that the shipper's reference number and the carrier's reference number are not compatible. The carrier maintains the shipment data, so the shipper accesses the data using the carrier's reference number rather than the shipper's reference number. The shipper and carrier track each shipment using multiple reference numbers.

These various attempts to improve the overall process have fallen short of providing a convenient and cost effective system to process a shipment transaction.

SUMMARY OF THE INVENTION

The present invention is directed to a shipment transaction system for processing transaction information related to goods shipped from a shipper by a carrier. According to one example implementation of the present invention, the system includes a processor arrangement that maintains shipper credit data for shippers and to process the transaction information in response to control data communicatively coupled between the processor arrangement and users of at least one type. The processor arrangement is linked with various users via a communications channel, and is programmed to receive control data from the users, to verify that the received control data is from an authorized source, and to evaluate the shipper credit data and the control data. In response, the processor arrangement determines whether to generate data that authorizes payment to the appropriate carrier(s).

According to another example implementation of the present invention, a shipment transaction system includes a processor arrangement programmed and configured to maintain shipper credit data of said one of a plurality of shippers, to process the transaction information in response to control data communicatively coupled between the processor arrangement and users of at least one type, and to automatically audit shipment transactions between shippers and carriers. The system further includes at least one communication channel communicatively linking the processor arrangement with the users of said at least one type, with the processor arrangement being further programmed to receive control data from the users, to verify that the received control data is from an authorized source, and to evaluate the shipper credit data and the control data and, in response, to determine whether to generate authorization data that authorizes payment to one of a plurality of carriers.

More specific implementations of one or both of the above systems involving the following. The processor arrangement permits authorized ones of the shippers and authorized ones of the carriers to review audit discrepancies using a communication channel communicatively coupled with the processor arrangement. The processor arrangement permit authorized ones of the shippers to approve payment to selected ones of the carriers without adversely impacting credit data of the authorized shippers, and permits authorized ones of the carriers to delay shipment for selected ones of the shippers without adversely impacting credit data of the authorized carriers.

In yet another embodiment, a shipment transaction system includes a processor arrangement programmed and configured to maintain shipper credit data of a shipper, to process the transaction information in response to control data communicatively coupled between the processor arrangement and users of at least one type, and to maintain a database of shippers and carriers, the database having a main parameter set for validating ones of the shippers and carriers that are qualified as users thereof and having respective data sets for the validated shippers and carriers indicating varying communication access levels for communicators of each respective validated shipper and carrier. At least one communication channel communicatively links the processor arrangement with the users of said at least one type, and the processor arrangement is audits shipment transactions and reports thereon to at least one of the validated shippers and carriers according to one of the varying communication access levels for communicators of the validated shipper and/or carrier.

Another more specific embodiment involve the above shipment transaction system with the processor arrangement further programmed and configured to audit shipment transactions and report thereon to at least one of the validated shippers and carriers according to different communication access levels, each being defined based on data provided by a respective one of the validated shippers and carriers. Further, the processor arrangement can be configured and arranged to permit and block access to shipment transaction information according to information stored in the database, and the database can include information defining payment authorization levels for communicators, wherein the processor arrangement permits approval for payment to carriers for shipment transactions according to the information defining payment authorization levels. As enhancements to this implementation, the information defining payment authorization levels for communicators in the database is defined by a specified type of user, and the information defining payment authorization levels for communicators is downloaded into the database from the user at a remote site.

According to one application, the present invention is directed to a transaction validation system for auditing transaction information related to services provided by one of a plurality of vendors and processed by one of a plurality of service providers. The system comprises a central processor arrangement programmed and configured to maintain data relating to an authorized profile list criterion that includes information about authorized users empowered to authorize payment by the vendor, and programmed and configured to process the transaction information by determining whether the transaction information satisfies the authorized profile list criterion, and using the authorized profile list criterion to generate information for auditing a transaction between one of a plurality of vendors and one of a plurality of service providers.

According to another application, the present invention is directed to a transaction validation system for auditing transaction information related to services provided by a vendor and a plurality of subvendors and processed by one of a plurality of subvendor controlled service providers. The system comprises a central processor arrangement, coupled to vendor and subvendor, programmed and configured to maintain data relating to an authorized profile list criterion that includes information about authorized users empowered to authorize payment by the vendor, and programmed and configured to process the transaction information by determining whether the transaction information satisfies the authorized profile list criterion, and using the authorized profile list criterion to generate information for auditing a transaction between the vendor and both of the plurality of subvendors and plurality of subvendor controlled service providers.

According to another application, the present invention is directed to a transaction validation system for auditing transaction information related to services provided by a vendor, the transaction information being generated by one of a plurality of service providers prior to processing by the vendor. The system comprises a central processor arrangement programmed and configured to maintain data relating to an authorized profile list criterion that includes information about authorized users empowered to authorize payment by the vendor to service provider, and programmed and configured to process the transaction information by determining whether the transaction information satisfies the authorized profile list criterion, and using the authorized profile list criterion to generate information for auditing a transaction between the vendor and one of a plurality of service providers.

Other aspects of the present invention are directed to methods for implementing the computer operations at a central control center, and to arrangements and methods for configuring and operating the coordination of the above-characterized shipment transaction system at the shipper's station and with respect to the carrier.

The above summary of the present invention is not intended to describe each illustrated embodiment, or every implementation, of the present invention. This is the purpose of the figures and of the detailed description that follows.

DETAILED DESCRIPTION

The present invention is generally applicable to a computer processing system for a shipment transaction involving a shipper and a carrier. The present invention has been found to be particularly advantageous for a system which efficiently automates the payment of a shipment transaction and efficiently provides access to shipment information.

The present invention is generally directed to a system that automates the shipment transaction process to thereby provide a convenient transaction protocol between the delivery, billing, and payment aspects of the transaction.

In one embodiment of the present invention, a computer arrangement includes a main CPU communicatively coupled via the Internet to provide around the clock access of shipment transaction data to authorized shippers, carriers, operators of the main CPU and, in more specific implementations, a separate financial institution and/or an auditor that is independent of the shippers, carriers, and CPU operators (and if applicable the separate financial institution). As is conventional with Internet communications, electronic notes can be included for supplemental communication with anyone in the shipment transaction chain. The main CPU maintains a database of all information relating to the shipments of the carriers and shippers, and the main CPU is used to analyze the shipments for auditing purposes, effect payments, to facilitate changes to the rating systems, and to facilitate resolution of audit discrepancies.

When a problem arises with a shipment, for example, the shipper (or the carrier if preferred) can change the rating via the Internet. Moreover, the shipper can instruct the main CPU to delay payment. Similarly, the carrier can inform the main CPU that a delivery of a shipment is being delayed due to its problems in receiving payments from the shipper.

By permitting the shipper access to analysis of the information database, the shipper can inquire of the main CPU data useful in assisting the shipper address issues, such as: which carrier has the best on-time delivery record, and which carrier has the most cost-effective service between two locations. Carriers can also use such data to addresses issues such as to identify the shipper that generates the most business in a target region. Further, all users of the system have the potential to access an abundance of historical data including, for example, approval history, and delivery and payment information.

As shown inFIG. 1, a shipper processor24initiates the shipment transaction by acting in conjunction with a BOL rating engine30to generate a rated BOL. The shipper processor sends the rated BOL to a data processing device34of a shipper access terminal32. The data processing device34generates transaction information and sends the transaction information to a central processor40. The central processor40identifies and centrally tracks the transaction information. A carrier processing device46receives proof of delivery information and sends this information to the central processor40. The central processor40processes and stores all pertinent shipment information in a data storage unit42and allows immediate access to this information by the shipper20, the carrier22, and other authorized users. This reduces the administrative costs of the shipper20and the carrier22. The central processor40interfaces with an improved payment system including an issuing institution44and a paying institution52. An issuing processor45of the issuing institution44, maintains a credit account for the shipper20and debits the shipper's account for the cost of the shipment. A paying processor54of the paying institution52tenders payment to the carrier24.

FIG. 2is a block diagram illustrating an example flowchart for programming the shipper processor24ofFIG. 1according to the present invention. According to this example flowchart, the shipper processor24receives200an input of relevant purchase order information for storage and processing using an adequate input device202. Using a conventional desktop PC for example, a keyboard and mouse are adequate input devices. Using a more complex computer arrangement, a digital retrieving device, such as an information scanner, is used to offset some of the labor associated with this inputting effort.

The shipper processor24processes204the purchase order information including referencing inventory control and customer information systems to generate206shipment parameters. In a particular application, the shipment parameters include the identity of the carrier, identity of the receiver, the number of units, the weight of the shipment, the destination of the shipment, the date of shipment, and the estimated date of delivery. The shipper processor24is located at the shipper's premises so that the shipper processor24receives accurate information resulting in further reliability and efficiency of the system.

The shipper processor24electronically sends208the shipment parameters to the BOL rating engine30. The transmission is accomplished conventionally. The BOL rating engine30of the illustrated embodiment ofFIG. 1, is designed to suit the needs of the particular shipper, the type of goods shipped, and to provide an interface to the shipper processor24. Conventionally, BOL rating engines, which are in use today, are implemented using a computer processing device such as a stand-alone personal computer, a personal computer connected to a network, or a conventional mainframe.

FIG. 2ais a block diagram illustrating an example flowchart for programming the BOL Rating Engine30ofFIG. 1according to the present invention. The BOL rating engine receives216the shipment parameters and processes218the shipment parameters. The BOL Rating Engine30generates220a rated BOL. The BOL rating engine30is programmed to an agreed upon rate structure by the shipper20and carrier22. As a result, the BOL rating engine30produces consistently rated BOL's. This has the further advantage that the shipper20and the carrier22do not have to audit the engine often. Existing systems require frequent auditing of the results of the BOL rating engine. With no post audit adjustments, the payment to the carrier22is definite.

The BOL rating engine30sends222the rated BOL to the shipper processor24. In a particular application, the BOL rating engine30is included in the shipper processor24. The shipper processor24performs the rating function of the BOL rating engine30so that there is no need to send the shipment parameters to an external BOL rating engine. The shipment parameters are processed and a rated BOL is generated solely by the shipper processor24.

Another advantage associated with the process in which a rated BOL is produced is that only one BOL rating engine30is needed for the entire shipment transaction system. This saves duplicate efforts by the carrier22and ensures exact payment. A significant benefit of this illustrated embodiment ofFIG. 1is that the cost depicted on the BOL is the final cost of shipment. Therefore, the shipper20and carrier22will immediately know the final cost of shipment before the goods are delivered. The BOL rating engine30removes ambiguity from the shipment transaction payment process which significantly offsets time-consuming payment disputes.

The shipper processor24receives212the rated BOL and sends214the rated BOL to a shipper access terminal32located at the shipper's premises. In an alternative embodiment, the BOL rating engine30is located off the shipper's premises so that the shipper processor24can access the BOL rating engine30on an as-needed basis. One advantage is that one standardized BOL rating engine could be electronically linked to multiple shipper processors thereby reducing the cost to each individual shipper.

FIG. 3is a block diagram illustrating an example flowchart for programming the data processing device34ofFIG. 1according to the present invention. The shipper access terminal32contains a data processing device34that receives300the rated BOL. The data processing device34validates312the rated BOL to ensure that the rated BOL contains data that is complete, error-free, and properly formatted. The data processing device34processes312the rated BOL and generates316a list of transaction information. The transaction information includes the information as seen in table 1 below. The columns in Table 1 represent the following: Data Element is the data that will reside in that particular element location, Length is the length of the data element; type is the type of data element which is either numeric or alpha-numeric, and Description simply describes the function of the data element if necessary.

The data processing device34sends the transaction information to a central processor40. In one embodiment, the data processing device34is implemented using a conventional personal computer programmed to operate under the control of an operating system stored in the memory. These types of computer arrangements are not presently programmed to conventionally interface with a central processing center and a processing device located at a shipper's premises. One advantage of interfacing the central processor40with shipper access terminal32is that the shipper access terminal32can control the quantity, quality, and timing of information that is transmitted between the shipper processor24and the central processor40. The access terminal32can also control the communication sessions between the shipper processor24and the central processor40. The shipper access terminal32is designed so that the shipper20may directly access the transaction information. The shipper20will not be allowed to make changes to the transaction information, but is able to add additional information. This ensures the integrity of the transaction information. An additional advantage of the access terminal32is that the data processing device34can receive real-time information from the shipper processor24regarding the shipment transaction.

In an alternative embodiment, the shipper access terminal32is linked to a magnetic stripe card reader. The card reader accepts a card and transmits the data contained therein to the data processing device34of the shipper access terminal32. The magnetic stripe card reader accepts an identification card from a user of the system. The identification card contains relevant user information. In an alternative application, the access terminal32is linked to a bar code reader that is designed to receive information from a bar code and input the bar code information into the data processing device34. The bar code is printed on the BOL or on a carrier identification card.

The data processing device34sends318the transaction information to the central processor40. The design of the central processor40is dictated by the desired speed, the number of users, and the amount of data to be processed.

FIG. 4is a block diagram illustrating an example flowchart for programming the central processor40ofFIG. 1to manipulate the transaction information according to the present invention. The central processor40receives402the transaction information and performs404an integrity check on the incoming information to ensure that the information is correctly formatted and contains no errors. If the integrity check is unsuccessful, the transaction information is stored in a suspense file in a data storage unit42. Once the error is corrected, the corrected transaction may be sent into the normal process flow. If the integrity check is successful, the central processor40retrieves406authorized user profile lists from the data storage unit42.

The data storage unit42is essentially a memory unit that stores information relevant to the shipping transaction. The design of the data storage unit42is dictated by the amount of data needed to be stored.

The authorized user profile lists represent the users and combination of users that are authorized to use the system. Authorized user profile lists include a shipper profile list, a carrier profile list, a carrier/shipper profile list, and a shipper access terminal profile list. The profile lists provide the cross-reference between the payment ID (assigned by central processor40), an account ID (assigned by an issuing processor45), and a merchant number (assigned by a paying processor54).

An authorized shipper profile list identifies information regarding the shipper and the shipment as can be seen below in Table 2.

An authorized carrier profile list identifies information regarding the carrier22and the shipment transaction as can be seen below in table 3. Included in the carrier profile is a merchant number that a paying processor54assigns to the carrier22. Each carrier22can have multiple merchant numbers if desired. This allows carrier flexibility to assign different merchant numbers for different regions or different shippers. This flexibility facilitates the carrier's business management process. It is not known of existing systems that provide such flexibility.

An authorized shipper/carrier profile list identifies information regarding valid shipper carrier combinations as can be seen below in table 4.

TABLE 4Shipper/Carrier ProfileDATADATACOLUMN NAMEWIDTHTYPEDESCRIPTIONShipper ID10NCarrier SCAC4A/NMerchant Number10NAssigned by Paying processor54. If blank, use defaultvalue from carrier profile.Proof of Delivery1A“Y” for POD to be required,(POD)“N” for POD not requiredType of POD4AIdentifies in what manner thePOD is to be received.Auto close days2NNumber of days after which thetransaction will close and bepaid to the Carrier 22 regardlessof whether or not POD hasbeen posted.Open Date8NAutomatically supplied byCP 40 when record is built.YYYYMMDD formatDate of First8NAutomatically supplied byActivityCP 40 when first BOL recordis received by system -YYYYMMDD formatDate of Last8NAutomatically updated byActivityCP 40 every time a BOLrecord is processedCurrent Status4AValid values are OPEN, CLSD,HOLD. Automatically updatedon effective date if effectivedate was pre-entered or as partof on-line transaction wheneffective date is set to today.Current Status Date8NAutomatically updated byCP 40 when current statusfield is updated, YYYYMMDDformatPending Status4AUser will key statusEffective Date8NDefault to today's date withuser ability to overrideto a future date. YYYYMMDDformatLast update date8NAutomatically stamped by CP 40Last update time4NAutomatically stamped byCP 40 HHMM formatLast Update User8A/NAutomatically pulled fromuser profile lists

An authorized shipper access terminal profile identifies the shipper20as well as the shipping dock. A shipper has a separate shipper access terminal profile for each dock. The central processor40assigns a different dock ID for each dock. The information included in the access point profile is listed below in table 5.

The central processor40authenticates408the transaction information by comparing elements of transaction information with the authorized user profile lists. The elements of the transaction information used for authentication include; the identity of the shipper, the identity of the shipper's dock, and the identity of the carrier. If the authentication is successful, the central processor40assigns410a payment identification number (payment ID) to the transaction information and stores412the transaction information in the data storage unit42. The payment ID is a unique key for the transaction record which the central processor40uses to centrally track the transaction. The payment ID includes specific information regarding the shipment transaction including; the shipper identification number, the BOL number, and the shipping date. The advantage of the payment ID is that it allows the central processor40to more efficiently and accurately track the different actions occurring within the system. The payment ID can be referenced to the specific identification numbers that any of the users may assign. The payment ID is now considered “open”. Open is a term used to signify that the shipper20has transferred the goods to the carrier22, and the carrier22has not yet completed the shipment.

If the authentication is unsuccessful, the central processor40stores414the invalid transaction in a suspense file in the data storage unit42. When an invalid transaction is stored, a notification is sent which indicates that an error has occurred and is in need of further review and correction. Once the error is corrected, the corrected transaction may be sent into the normal process path.

The central processor40sends the authenticated transaction information, including the shipper identity and the cost of the shipment, to an issuing institution44for authorization.FIG. 5is a block diagram illustrating an example flowchart for programming the issuing processor45ofFIG. 1to perform an authorization check according to the present invention. The issuing institution44contains an issuing processor45. The issuing processor45maintains accounts for one or more shippers. Each account includes information regarding credit limits, open authorizations, unpaid balances, and the resulting open-to-buy. Open-to-buy measures the unused credit limit.

The issuing processor45receives502the authorization request from the central processor40. The issuing processor45compares504the authorization request to the open-to-buy of the shipper and attempts to approve506the request. If the shipper20has enough open to buy, the issuing processor45approves the authorization request. The issuing processor45stores507the approved authorization request and decreases508the open-to-buy. The issuing processor45sends510the authorization approval to the central processor40and the central processor40updates the records in the data storage unit42. If the authorization is successful, the payment ID is considered “authorized”. If the authorization is unsuccessful, the issuing processor45sends512an authorization decline to the central processor40.

After the goods are delivered to a receiver, the payment ID must be “closed”. Closed refers to providing proof of delivery (POD) of the shipment in order to complete the shipment transaction. POD includes the identity of the shipper, the BOL number, the carrier invoice number, the delivery date and time, the person acknowledging receipt, and the condition of the shipment. A carrier processor46receives the POD and sends the information to the central processor40.

In one embodiment, the carrier processor46is a conventional bar code reader. The bar code reader is used by the carrier22to read a bar code on the shipment. The bar code reader sends the POD information to the central processor40.

In an alternative embodiment, the carrier processor46is a voice response unit48(VRU).FIG. 6is a block diagram illustrating an example flowchart for programming the VRU48according one embodiment of the present invention. In this embodiment, the central processor40extracts an open payment ID from the data storage unit42. The central processor40sends information relating to the open payment ID, including the BOL number and the shipper ID, to the VRU48. The VRU48receives602the open BOL number.

A standard touch-tone telephone is used to access the VRU48. While the location of the telephone is not critical, locating it at the receiver's premises promotes efficiency, convenience, and accuracy. It is convenient and efficient because the carrier22can call the VRU48at the exact time the shipment is delivered. It is accurate in that the phone number of the receiver, automatically captured by the VRU48, will identify where and when the call was made.

The VRU48prompts604the carrier22for the shipper ID. The VRU48receives606the shipper ID and attempts to match608the entered shipper ID with an open shipper ID. If the shipper ID is matched, the VRU48prompts610the carrier22for the BOL number. The VRU48receives612the entered BOL number and attempts to match614the combination of the entered BOL number and shipper ID with an open BOL number and Shipper ID. If the BOL number and shipper ID combination is matched, the VRU48prompts616the carrier22for condition of shipment. The VRU48receives618the condition of shipment and sends620the POD information which includes BOL number, the shipper ID, and the condition of the shipment to the central processor40.

If the VRU48cannot match either the shipper ID and the BOL number, the VRU48prompts622the carrier22to either try again or routes624the carrier22to customer service where the problem can be resolved.

FIG. 7is a block diagram illustrating an example flowchart for programming the central processor40ofFIG. 1generating a deposit file according to the present invention. The central processor40receives702the matched BOL number, the shipper ID, and the condition of the shipment from the carrier processor46. The central processor40validates704the incoming data to ensure that it is error free and properly formatted. The central processor40extracts706the open payment ID from the data storage unit42. The central processor40authenticates708the matched BOL number with an open payment ID. If the BOL number and payment ID are authenticated, the payment ID is considered complete. The central processor stores710the completed transaction and corresponding payment ID in the data storage unit42. If authentication is unsuccessful, the central processor40stores712the information in a suspense file where the problem can be manually resolved as discussed above.

A payment ID can be completed by the above manner or a payment ID can expire. A payment ID expires when a pre-programmed number of days have elapsed since the shipping date. This preprogrammed number of days is defined as auto close days in the data storage unit42. A particular transaction is identified by the shipper and carrier to expire on a specific date, the effective date, whether or not the proof of delivery is received. On the effective date, the payment process begins. This has the advantage that the carrier22will be paid for every shipment carried. Payment to the carrier22is expedited if proof of delivery is received.

The central processor40periodically extracts714from the data storage unit42the transactions that are listed as “completed and authorized” or “expired and authorized.” The central processor40sorts and batches716the transactions by the merchant number. The central processor40generates718a deposit file50for those authorized transactions that are completed or expired and which have not been previously extracted. In a particular application, one deposit file50is created for all transactions completed by each carrier. The deposit file50is formatted so that it is compatible with the paying processor's54format. The deposit file50includes the payment ID, the account ID, the carrier identity, the BOL number, the destination city, the destination state, the destination zip code, and the cost of shipment. The cost of the shipment represents the amount that is owed by the shipper20and payable to the carrier22.

The central processor40performs720a general integrity check on the deposit file50. The integrity check includes: ensuring that the payment ID has been authorized, ensuring that the BOL is completed or expired, and ensuring that payment has not yet occurred for the particular payment ID.

If the central processor40validates the deposit file50, the processor40sends722the deposit file50to a paying processor54of a paying institution52. In a particular application, the deposit file50is conventionally sent via a telephone transmission. The paying institution has a paying processor54which processes financial information and maintains financial accounts for the carrier22. The paying processor54is generally designed to process financial information. The paying institution52maintains one or more accounts for each carrier22.

FIG. 8is a block diagram illustrating an example flowchart for programming the paying processor54ofFIG. 1according to the present invention. The paying processor54receives802the deposit file50and sends804a confirmation message to the central processor40that the deposit file50was received.

The paying processor54validates806the incoming deposit file and generates808payment to the carrier22. The paying processor54tenders810payment to the carrier24and sends812this information to the central processor40so that the central processor40can update the data storage unit42. In a particular application, the paying processor54tenders payment by directly paying the carrier22. In an alternative embodiment, the paying processor54sends the payment to the carrier's bank conventionally through the Federal Reserve's Automated Clearing House.

One advantage associated with the generation of payments to the carrier22is that the carrier22is paid relatively soon after the carrier22has completed the shipment. This provides the carrier22with improved cash flow and reduces the carrier's working capital requirements. Another advantage is that the carrier22does not have to audit or rate the payment that saves time and money. This streamlined approach reduces the carrier's administrative costs associated with processing a payment.

The paying processor54generates814a systems bill for the carrier22. This systems bill represents the amount the carrier22owes for the service provided by the system of the present invention. The paying processor54sends816the systems bill to the carrier22. The paying processor54sends818the systems bill information to the central processor40where the information is stored in the data storage unit42. The paying processor54delivers820the paid shipment transactions to the issuing processor45of the issuing institution44.

The issuing institution44maintains one or more accounts for the shipper20and extends and manages credit to the shipper20. The issuing processor45maintains the amount paid to each carrier22on behalf of each shipper20.FIG. 9is a block diagram illustrating an example flowchart for programming the issuing processor45ofFIG. 1to credit a transaction according to the present invention. The issuing processor45receives902the paid transactions from the paying processor54. The issuing processor45retrieves904the approved authorization list and compares906the authorization list with the paid transactions. The issuing processor45attempts to match908the paid transactions with an authorized transaction. If a match is made, no change is made to the open to buy. If a match is not made, the issuing processor45decreases910the open to buy.

The issuing processor45posts912the cost of shipment for all paid transactions to the shipper's account thereby increasing the balance due from the shipper20. The issuing processor45periodically bills914the shipper20for the posted financial transactions paid on behalf of the shipper20and periodically receives916payment from the shipper20. When the issuing processor45receives payment, the processor45posts payment to the shipper's account and increases918the open-to-buy.

The issuing processor45communicates with the central processor40and sends information regarding shipper20payment and billing. The central processor40updates the data storage unit42with this information.

In an alternative embodiment, the paying institution52is incorporated into the issuing institution44. This results in one processor performing the functions of the issuing processor45and the paying processor54.

A further advantage of the computer processing system for a shipment transaction involving a shipper and a carrier is that the data storage unit42and central processor40interface to store and provide value-laden information to the users of the system. The central processor40provides a security check for all information entering and leaving the data storage unit42. The central processor edits incoming files and provides on-line alarms for duplicate files, stale dated files, out of balance files, and files with corrupt data. The central processor40maintains a suspense file in the data storage unit42where incoming invalid transaction information and unmatched proof of delivery information are stored. With a centrally located suspense file, the problem resolution process is more efficient.

The central processor40maintains data views and tables and stores this information in the data storage unit42. The central processor40maintains a BOL Header Table for each BOL number that generally includes a summary of all information relating to that shipment transaction. This information is shown in the table 6 below. The source of the particular data element is indicated in column four of table 6.

In addition, the central processor40maintains BOL line item details from the transaction information. The BOL line item details generally consist of information relating to the goods of the shipment as can be seen below in table 7.

In the example system application ofFIG. 1, the carrier22will not have access to the BOL line item product value, but will be able to see the line item freight charges.

A further advantage of the shipment transaction system ofFIG. 1is that the system allows multiple users to obtain information about the same shipment from the same source. Since the system supplies information from the same source, all users will obtain the same information at the same time. This advantage of timeliness does not exist in current systems. Existing systems are not known to provide a single source of up-to-date information regarding multiple shipment transactions.

In an alternative embodiment, multiple users access the shipment information via the central processor40. The shipment information is stored in the data storage unit42. The central processor40is electronically linked to a multitude of user stations. The link between the central processor40and a user station allows for conventional two-way communication. The user station is a standard personal computer comprising of a video display, a keyboard, a central processor, and a modem link. A user initiates a request for information by accessing the central processor40using the personal computer. When the user is logged into the central processor40, the central processor40prompts the user to enter a password.

The central processor40provides a security check on all information requests. The security check is programmed such that the shipper20and carrier22are restricted to accessing only their own data. In addition, the processor40is programmed such that unauthorized parties are denied access.

The central processor40receives informational requests from the user. The central processor40accesses the data storage unit42and extracts the requested information and transmits the information to the user's station. The advantage of such an information service is clear. Users will be able to obtain current information regarding a shipment transaction.

In a particular application, once a user has access to the system, the central processor40will prompt the user for a range of dates of interest including the current day, the previous day, monthly total, yearly total, or a specified date range. The central processor40displays the transaction information, freight amounts, shipment costs, total weight, and cost per pound for various types of transactions including: transactions added to the data storage unit, transactions with proof of delivery, transactions that have expired, transactions in the suspense file, transactions paid to carrier, transactions in transit, transactions declined, and transactions approved.

The central processor40allows user's to request a particular transaction by entering any one of a multitude of transaction elements. The central processor40identifies a particular transaction with reference to the BOL number, the shipper's customer number for the receiver22, the payment ID, the carrier's customer number for the shipper20, the merchant number, the account ID, the receiver's order number for the shipper20, the shipper's order number for the BOL number, or the shipping date. This ensures compatibility between the user reference numbers such that the user can access information using their unique reference number assigned to the transaction.

The example application has additional advantages. The central processor40provides to all authorized users the ability to generate custom analysis of their own data. This has the advantage of giving the carrier22the ability to extract payment data needed to automatically post his accounts receivable system. This is an advantage over existing systems that rely on manual distribution of payment against the account receivable system. Similarly, the shipper can extract payment data and automatically post his accounts payable which closes out the individual accounts payable due to each carrier. An advantage stemming from this automated system is that the shipper20does not need a paper invoice in order to have proof of delivery. The shipper20accesses the central processor40and verifies which shipments have been delivered by a particular carrier22. Similarly, the carrier22accesses the central processor40to find out which transactions have been paid out by the shipper20. This informational system removes much uncertainty from the shipment process that promotes more efficient use of available resources such as working capital, transportation, and personnel.

In a particular application, the central processor40generates standard shipment transaction summary reports and provides appropriate access to the reports by various users. These reports include a transaction inventory control report, an open aging summary report, a suspense inventory control by source report, and a suspense inventory aging summary report. The central processor40uses the security profiles to determine which subset of transaction records will be summarized for each user. For example, the shipper20has access only to that shipper's reports.

The inventory control report provides control totals of BOL numbers, merchandise value, and freight value. There are key control points including: starting inventory position, new BOL's from shippers, BOL's closed since the last report by the different methods discussed for closing BOL numbers, BOL's re-opened since the last report by manual proof of delivery override via customer service, BOL's canceled since the last report, and the ending inventory position.

The open aging summary report contains those BOL numbers that have not been delivered. In addition, the freight value and merchandise value for each shipper ID and Dock ID are supplied for distinct age groups. The age groups include groupings by consecutive days since the shipping date and one group for 10 days past the shipping date. The suspense inventory control by source report includes merchandise and freight value amounts of transactions in the suspense file. Several control points for the suspense inventory control include: starting inventory position, new inventory added since last report, inventory cleared since last report, inventory deleted since last report, inventory undeleted since last report, and ending inventory position. The suspense inventory aging summary report provides an aged summary of suspense files including the merchandise and freight value of items that are in the suspense file by original receipt date.

The central processor40generates detailed reports including: the inventory aging detail report, the suspense inventory aging detail report, and the declined item aging detail report. The detail reports are viewed by either the shipper ID/Dock ID/account ID combination or by the carrier ID/merchant number combination. The inventory aging detail report lists the open BOL numbers sorted by the days in inventory, the shipper ID combination, and the BOL number. The inventory detail report lists the merchandise and freight value associated with each open BOL number. The suspense inventory aging detail report lists open BOL numbers by source and receipt date. Several fields are displayed including: shipper ID, dock ID, account ID, BOL number, carrier ID, freight value, and the merchandise value. The declined item aging detail report allows users to research the cause of exception items and lists the shipper ID combination, ship date, authorization time, BOL number, shipper invoice number, merchant number, and freight value. The declined item aging detail report is viewed by either shipper ID/dock ID/account ID combination, or by carrier ID/merchant number combination.

The central processor40generates two reports that reference declined authorizations. These reports include the declined item summary report and the declined item aging report. The declined item summary report summarizes information regarding the declined authorization. The declined item aging report summarizes the information regarding the declined authorization by the shipping date.

Referring now toFIGS. 10A-10C, according to the present invention, example transactional processes for implementing ship transactions are shown in the form of flow diagrams.FIG. 10Aillustrates a manner in which accounts for shippers and carriers can be set up in a database for processing shipment transactions by the main CPU system running the operations.

The approach shown inFIG. 10Aincludes five levels, with each level applicable to both the shipper and the carrier. At level1010, an account is merely established for the shipper/carrier. Setting up the account and defining the company profile is administered by the central operators. For instance, if a credit institution, such as a bank with a credit division, owns and/or is operating the main CPU and defining communication access to the system, an agent of the credit institution administers these tasks. At level1014, a company profile is established on the main CPU for the shipper/carrier. A typical company profile includes, among other particulars, contact information, facility locations, invoicing/debit/credit agreements for system use, and security information. Defining a company profile permits the shipper/carrier to be a user of the system with access to information processed by the main CPU for the shipper/carrier. At level1016, a profile for the system administration is established to refine the shipper/carrier's access to the information associated within its company (the shipper or carrier) and organizational unit. At levels1020and1024, the shipper/carrier's administrator defines operational profiles to define how the company will use the shipment transaction system.

According to a more specific implementation, there are specific operational profiles and specific user profiles used by the main CPU to execute operations. These specific operational profiles fall into five categories: approval policies to define the monetary limits for each particular approver of bills; floor limits to define any rule for automatic approval of bills; G/L charts of accounts that are used in the process of allocating freight expenses to particular accounts within the company's general ledger system; operational filters to define characteristics of the rights of each user of the system within the company; and data filters that define business rules that are used to limit the transactions such a user can see.

The specific user profiles, which are issued and managed by the company using the system, are used by the system to enforce business rules with the company. These rules may include, for example, that every user ID: be unique, associated with only one organizational unit within only one company, and have only one operational filter and only one data filter associated with it. Examples of other such business rules include establishing that actions performed by the company are binding and that updates to the company's profiles be made regularly.

At levels1026and1028, the main CPU uses the previously defined information to establish the user relationships (depicted at level1026) and to define carrier vendors or shipper customers, respectively, for the shipper-type company or the carrier-type company.

Using the above information, the main CPU then begins to define trading partners and trading parameter data for each shipper and for each carrier. This is depicted at level1034ofFIG. 10A.

For additional examples of ways to implement the above-characterized levels, as well as other aspects and examples of the various example embodiments, reference may be made to the attached Appendix A (Training Guide) and to the attached Appendix B (Users Guide). For example, for information relating to the example setup information ofFIG. 10A, reference may be made to Chapter 1 of attached Appendix B (Users Guide).

FIG. 10Billustrates an example relationship that may be used in the shipment transaction system for processing freight payments. As discussed above in connection withFIGS. 1,2and2A, upon receipt of the BOL (block1040), the main CPU receives notification of delivery (block1042) and the creditor (e.g., financial institution or bank) approves transaction1044and authorizes payment (block1046). Payment is then made to the carrier as indicated in block1048.

FIG. 10Cillustrates example processes for transactional flow, between a carrier and a shipper, in an example shipment transaction system referred to as “PowerTrack”.® As illustrated inFIG. 10C, work transactions1050occur in response to activity input to the system from equipment, such as computers or other data input/output devices, operated by the shipper and the carrier. Such equipment is depicted as shipper items1052a,1052band carrier items1054a,1054b. The main CPU1056processes the data via Internet communication links, and interfaces with a payment-center CPU1058operated by the creditor/bank. As illustrated, the main CPU1056and the payment-center CPU1058exchange data with each other and the items1052a,1052b,1054a,1054bto effect proper payment in response to cleared shipment transactions.

FIG. 11illustrates an example communication path from an architectural perspective in which an array of computers and data routers are used in an example implementation of a system and method, according another aspect of the present invention. The computers include gateway-implemented firewalls1064,1066and1068, and data routers in the form of hubs H1-H6(available from 3Com). Each of the firewalls1064,1066and1068, and data routers H1-H6, along with other accessible stations inFIG. 11, have unique Internet addresses. The operators controllers1076of the main CPU1078access tier II, which is used to maintain databases for the system, via a path through the firewall1066and directly back through hub H3, or via a path out toward hub H2and back through hub H3. The financial institutional (not shown) accesses the system, along with access by the shippers and carriers, via the Internet at block1080. An outside entity, for example, an auditor can also be setup and authorized by the system to access information, and this typically occurs via a path through the Internet or the firewall1064.

Within tier II, database/servers are maintained in a dual manner to permit for execution of programs for actual system use and for user acceptance testing. Business logic database/servers1081and1083store an object oriented program that is used to execute the processing in the actual system (1081) and for user acceptance testing (1082). Also for the actual system (1082) and for user acceptance testing (1084), database/servers1082and1084provide web server functions for the Internet access at block1080. Database/server1085is used as a background tool and is useful, for example, for sending and receiving information between tier II components and the main CPU1078. Database/servers1089and1090store shipment transaction information for processing in the actual system (1089) and for processing the same data for analytical purposes, for example, in response to inquiries made by the shipper, the carrier, the bank, or an outside entity (e.g., an auditor).

Database/servers1088,1089and1090can be used to duplicate the functionality of database/servers1085,1086and1087for testing purposes.

Database/servers1091and1092can be used as interactive voice response units adapted to be used by carriers to receive information such as delivery notification, as discussed previously.

As mentioned above, for additional details concerning example implementations and aspects, and alternative embodiments of the present invention, reference may be made to the attached Appendix A (Training Guide) and to the attached Appendix B (Users Guide), each of which forms part of the instant patent application.

This invention need not be limited to scenarios involving shipment of product and the use of physical carriers for transportation of the product or equipment, since an important advantage of the invention is to provide the parties involved a mechanism for auditing transaction information to validate that a transaction occurred properly and as agreed upon by the parties involved. The present invention also provides for application of the validation system in other areas, by way of example only, but should not be limited to these transaction scenarios. Telecommunications service vendors or telephone operating companies (TELCOs) are interested in providing their services to third party customers but do not wish to add additional infrastructure (more personnel and equipment) in order to engage more customers for their services. The TELCO can engage the services of an independent system manager that installs the necessary hardware and software at the location of the third party customer and is then responsible for ongoing service and maintenance of the equipment and software. In return, the system manager is paid a fee by the TELCO for the initial set up and ongoing service calls that may be made by the third party customer. These transactions are validated to ensure that they were properly completed and then payment is sent to the system manager for services rendered.

In the area of services, vendors that provide a particular service usually secure customers through a network of agents or service providers that work directly with the customers to sign them up for the service. As shown inFIG. 12, a vendor1220through his vendor processor1224initiates the service transaction by acting in conjunction with a Service Quotation or Bidding engine (such as a computer-run programmed task)1230to generate a quote for the cost of the service. Vendor processor1224sends the quote to a data processing device1234of a vendor access terminal1232. Similar to the shipping scenario, the data processing device1234generates transaction information and sends the transaction information to a central processor1240. The central processor1240identifies and centrally tracks the transaction information. A service provider processing device1246receives proof of delivery or confirmation that the customer has received the service or is now subscribed to the service and this information is sent back to the central processor1240. The central processor1240processes and stores all pertinent service subscription information in a data storage unit1242and allows immediate access to this information by the vendor1220, the service provider1222, and other authorized users. The central processor1240interfaces with an improved payment system including an issuing institution1244and a paying institution1252. An issuing processor1245of the issuing institution1244maintains a credit account for the vendor1220and debits the vendor's account for the service provider's fee (cost of setting up the customer to be able to deal directly with the vendor; or cost of getting the customer subscribed to the service, etc. . . . ) when authorized to do so. A paying processor1254of the paying institution1252tenders payment to the service provider1222.

In a specific example, a communications services provider assumes the role of the vendor for services ranging from telephone to cable (this includes wireless, satellite, video conferencing, interne services, video of demand, etc.) and an authorized agent assumes the role of the service provider that helps the vendor sign up customers for a fee. The rest of the transaction is similar to the transaction characterized in connection withFIG. 12for auditing and payout purposes. Finally, tables comparable to Tables 1-7 (see also Table 1A and Tables 11-15) can be developed for the service provider locations and identifying information, as well as authorized users profiles, so that the auditing and payment operations pursuant to the transactions can be conducted as described in earlier embodiments.

FIG. 13illustrates an example in which the service provider1320initiates the transaction, pursuant to customer1321A request for quote, and generates the transaction information that commences the entire transaction. With this system, vendor1322can verify that the transaction entered into by the service provider has indeed taken place and that the customer is satisfied before payment is authorized to the service provider. Specifically, the purchase order is processed through processor1324that acts in conjunction with quotation generating engine1330(such as a computer-run programmed task). Processor1324can simultaneously conduct a credit check of customer1321A as per instructions of vendor before any transaction is formally entered in the system. Quotation generating engine1330generates a quote for the customer with the parameters of the service (which may also include a product purchase as part of the package) that he is subscribing to. By way of example, if the transaction is for cellular phone service, engine1330generates a quote for the cost of the monthly service, rate per minute, cost of the initial phone purchase, any weekend discounts, etc. Typically, the quotation engine may be a combination of application software and hardware (local PC or server; or a server that is remotely accessed) that contains the quotation algorithm and database that the user (service provider or vendor/subvendor) needs to generate a formal quote for the customer while initiating part of the transaction in the system. The engine1320accepts data like: name of prospect customer, address, phone number, # of users, type of service desired, billing particulars, credit history evaluation, social security numbers, etc. The next step can include the generation of a customer profile (which can include information on the service provider and his location) and identification/customer number that can be used for tracking purposes by the vendor (or subvendor). This customer I.D. number can be used later to track payment to service provider. The quotation algorithm and database within engine1330(usable by service provider1320) can remain static for a fixed period of time, can be changed at regular or agreed upon intervals or can be coupled real-time to the vendor's database to allow for up to the minute rate changes, special discounts or promotional programs that may be applicable. Line1331indicates the coupling that can exist between engine1330and vendor1322, that may be hardwired, wireless, through a network, internet, satellite or any other mechanism or system that will allow for one or two way coupling and communication between the vendor and the service provider.

Assuming that all details of the initial transaction are in order, processor1324sends the complete purchase information to data processing device1334of access terminal1332; processing device1334then sends the transaction information to central processor1340. Vendor processing device1346receives proof of delivery of service provided, or confirmation that the subscriber of the service has met all of the acceptance criteria, and that he is now ready to be connected to the system (e.g. cellular phone system). Central processor1340processes and stores all pertinent transaction information in data storage unit1342, which allows for immediate access to the information by the vendor1322, the service provider1320and any other authorized users for verification of data integrity and tracking purposes. The remainder of the transaction is similar to embodiments already described, wherein the paying institution1352and the issuing institution1344are involved in processing the payment to the service provider once it has been authorized by vendor. Further, the paying and issuing institution may be one and the same and can charge its fees to the vendor and service provider in the system as it is receiving payments from vendor1322and tendering payments to service provider1320.

As an example of the type of information that could be used in the vendor/service provider scenario, reference is made to the following Tables:

TABLE 12Vendor/Service Provider ProfileDATADATACOLUMN NAMEWIDTHTYPEDESCRIPTIONVendor ID10NService Provider ID4A/NMerchant Number10NAssigned by Paying processor1254. If blank, use defaultvalue from service providerprofile.Proof of Service1A“Y” for POD to be required,Delivery (POD)“N” for POD not requiredType of POD4AIdentifies in what mannerthe POD is to be received.Auto close days2NNumber of days after whichthe transaction willclose and be paid to theService Provider 1222regardless of whether or notPOD has been posted.Open Date8NAutomatically supplied byCP 1240 when record is built.YYYYMMDD formatDate of First8NAutomatically supplied byActivityCP 1240 when first quoterecord is received by system -YYYYMMDD formatDate of Last8NAutomatically updated byActivityCP 1240 everytime a quoterecord is processedCurrent Status4AValid values are OPEN,CLSD, HOLD. Automaticallyupdated on effective date ifeffective date was pre-enteredor as part of on-line transactionwhen effective date is setto today.Current Status Date8NAutomatically updated byCP 1240 when current statusfield is updated, YYYYMMDDformatPending Status4AUser will key statusEffective Date8NDefault to today's date withuser ability to override toa future date. YYYYMMDDformatLast update date8NAutomatically stamped byCP 1240Last update time4NAutomatically stamped byCP 1240 HHMM formatLast Update User8A/NAutomatically pulled fromuser profile lists

TABLE 13Service Provider ProfileDATADATACOLUMN NAMEWIDTHTYPEDESCRIPTIONSP4A/N4 character code that uniquelyidentifies a Service Provider(SP) 1222.Merchant Number10NPaying processor 1254assigns to each SP.SPp 22 Name32A/NDBA name of SP HQSP Address 132A/NSP Address 232A/NSP City28A/NSP State/Province3A/NSP Country3A/NSP Contact32A/NName of primary contactat SP HQSP Phone10NPhone number of primarycontact at SP HQOpen Date8NAutomatically supplied by CP1240 when record is built.YYYYMMDD formatDate of First8NAutomatically supplied byActivityCP 1240 when first quoterecord is received by systemon this SP 1222 -YYYYMMDD formatDate of Last Activity8NAutomatically updated bysystem every time aquote record is processedfor this SP 1222Current Status4AValid values are OPEN,CLSD, HOLD.Automaticallyupdated on effective dateif effective date was pre-enteredor as part of on-line transactionwhen effective date isset to today.Current Status Date8NAutomatically updated byCP 1240 when current statusfield is updated,YYYYMMDD formatPending Status4AUser will key statusEffective Date8NDefault to today's date withuser ability to overrideto a future date. YYYYMMDDformatLast update date8NAutomatically stampedby CP 1240Last update time4NAutomatically stamped byCP 1240 HHMM formatLast Update User8A/NAutomatically pulled fromuser profile lists by CP 1240

The above-described system can be used by authorized representatives (or agents) to help customers subscribe to other types of services for a fee. Travel agents are already commission-based when they assist customers in making reservations for lodging, air and land transportation; however, they can now be tied to this system for faster processing of payments back to them in return for a fee that can be charged by the banking institution for this service.

The system can also be used in the area of providing wireless communications services (or entertainment services such as satellite programming or satellite communications) to third party customers, via authorized or empowered representatives, to verify that customers have the correct equipment and software to receive the service from the communications vendor. The representative is involved in preliminary issues of credit checks and programming selection and is the normal contact for the customer if any service issues arise. The representative is paid a fee for the initial set up and ongoing support of the customer using the transaction validation system described to ensure that the work was properly done and that payment is issued to the authorized representative by an authorized user of the system. This system is also applicable in the area of video conferencing services, where a third party customer is interested in working with the communication services vendor through a communications consultant. The consultant helps to set up the equipment and software required to connect to the video conferencing network and is there to service the customer's needs on an ongoing basis. The consultant provides all of the services for a fee to be paid by the communications service vendor.

Software or information technology (IT) developers also benefit from this system when using IT consultants that work closely with third party customers, specifically when such customers need help in upgrading and maintaining their systems. The IT consultants are paid using the transaction validation system described for services rendered. Companies selling products through online (Internet) agents such as Buy.com, eBay.com or eToys.com or via a normal telephone (such as florists, catalog purchases, QVC, Home Shopping Network, etc.) also benefit from this system.

The role of a “vendor” is becoming blurred as more companies start to shift their manufacturing of products to companies that specialize in the manufacture of that type of product in response to the customer's demand for lower cost, shorter lead times and better technology. This is especially true in the area of computers and consumer electronics. OEM companies like IBM and HP, in the computer area, and Ericsson and Qualcomm, in the mobile communications area, have shifted much of their manufacturing to contract manufacturers such as Solectron and Flextronics. Contract manufacturers have the capability of taking the engineered designs of these customers and manufacturing them at the lowest possible cost due to their purchasing strength and logistic capabilities. They in turn will ship the completed product to the end customer (e.g. Circuit City, Best Buy, and etc.) on behalf of the OEM and invoice that customer if the OEM chooses that method. Here the contract manufacturer has control of the carrier that will be shipping the product to the OEM's customer. In the eyes of the customer the vendor is still the OEM that is the party receiving the P.O. and whom they are holding responsible if the product has a problem or is not shipped on time. The emerging vendor/subvendor relationship, including the service provider (providing transportation services in this case) who is involved in this type of transaction, requires the banking institution to ultimately pay the service provider and subvendor when it is authorized by the vendor to do so. This is another opportunity for the banking institution to expedite auditing and financial negotiations due to the presence of the subvendor in this equation.

Referring now to the example process depicted in connection withFIG. 14, vendor/OEM1420receives a purchase order through vendor processor1424A from a customer for product/equipment with a requested shipping date. Processor1424A initiates a transaction by acting in conjunction with subvendor processor1424B and quotation generating engine1430to generate a quote for the equipment and shipping date for the customer. Subvendor processor1424B sends the quotation to vendor processor1424A and to a data processing device1434of the subvendor access terminal1432. Vendor can now add their markup before advising customer of equipment ship date but now knows what it owes the subvendor if the entire transaction occurs as planned. The data processing device1434generates the transaction information and sends the transaction information to the central processor1440, which in turn identifies and centrally tracks the transaction information. A service provider device1446receives proof of delivery information and sends this information to the central processor1440. Central processor1440processes and stores all pertinent information in a data storage unit1442and allows immediate access to their information by the vendor, subvendor and the service provider. When vendor processor1424A receives confirmation or proof of delivery then it, or its authorized agent/user, will authorize payment to subvendor. This is also a signal to subvendor that the subvendor controlled service provider1422can now be paid. Service provider's1422notice to central processor1440that delivery is confirmed reaches both vendor and subvendor simultaneously through central processor1440to ensure a closed loop system. The issuing processor1445, of the issuing institution1444, maintains a credit account for both the vendor1420and subvendor1421and debits the vendor's account for the cost of the entire project (which was calculated with a different algorithm initially to avoid disclosing cost information to the end customer) when payment to subvendor is authorized by vendor. Subvendor's account is debited by issuing processor1445for cost of service provider's1422service when authorized by subvendor. The remaining part of the auditing and payment system is substantially similar to embodiments described above.

Referring briefly to Tables 1-7, the content of these tables for the subvendor is similar to that of the shipper/carrier scenario described earlier since the service provider is acting like a manufacturer of goods that needs to ship product to a customer via a carrier. Additional profiles similar to Table 1B (Transaction Information-Vendor/Subvendor/Service Provider), Table 8 (Vendor Profile) and Table 9 (vendor/subvendor profile) would be developed for a particular transaction. The subvendor can provide part of the service package that the vendor has contracted him to do and have the package delivered to the end customer through another party that will act as a service provider. For instance, IBM contracts with a subvendor to install a software update for a global IBM customer with a presence in Costa Rica. The subvendor in turn contracts with a local Costa Rican software consultant (service provider) to perform the actual software update at the customer site. Once the tables have been established and put into the system (and the authorized users identified) the auditing and payment operations can be performed substantially the same as described in earlier embodiments.

TABLE 8Vendor ProfileDATA ELEMENTWIDTHTYPEDESCRIPTIONVendor ID10NUniquely identifies a legalentity using a single quotationsystem (e.g.engine 1430),assigned by the CP 1440.Account ID16NAccount # assigned to Vendor1420 by issuing processor 1445.Vendor Name32A/NVendor Address 132A/NHeadquarters AddressVendor City28A/NVDR. State/Province3A/NVDR. Country3A/NVDR. Contact32A/NVDR. Phone10NOpen Date8NSupplied by CP 1440 whenrecord is built. YYYYMMDDformatDate of First Activity8NAutomatically supplied byCP 1440 when first quoterecord is received by CP 1440 -YYYYMMDD formatDate of Last Activity8NAutomatically updated byCP 1440 every time a quoterecord is processedCurrent Status4AValid values are OPEN,CLSD, HOLD. Automaticallyupdated on effectivedate if effective date waspre-entered or as part of on-line transaction when effectivedate is set to today.Current Status Date8NAutomatically updated by systemwhen current status field isupdated, YYYYMMDD formatPending Status4AUser will key status, valid valuesare OPEN, CLSD, HOLDEffective Date8NDefault to today's date with userability to override to a future date.YYYYMMDD formatLast update date8NAutomatically stamped by CP 1440Last update time4NAutomatically stamped byCP 1440. HHMM formatLast Update User8A/NAutomatically pulled fromuser profile by CP 1440.

TABLE 9Vendor/Subvendor ProfileDATADATACOLUMN NAMEWIDTHTYPEDESCRIPTIONVendor ID10NSubvendor ID4A/NMerchant Number10NAssigned by Paying processor1454. If blank, use defaultvalue from subvendor profile.Proof of Delivery1A“Y” for POD to be required,(POD)“N for POD not requiredType of POD4AIdentifies in what manner thePOD is to be received.Auto close days2NNumber of days after which thetransaction will close and bepaid to the Subvendor 1422regardless of whether ornot POD has been posted.Open Date8NAutomatically supplied byCP 1440 when record is built.YYYYMMDD formatDate of First8NAutomatically supplied byCP 1440 when first quoteActivityrecord is received by system -YYYYMMDD formatDate of Last8NAutomatically updated byActivityCP 1440 every time aquote record is processedCurrent Status4AValid values are OPEN,CLSD, HOLD. Automaticallyupdated on effective date ifeffective date was pre-enteredor as part of on-line transactionwhen effective date is set to today.Current Status Date8NAutomatically updated byCP 1440 when current statusfield is updated, YYYYMMDDformatPending Status4AUser will key statusEffective Date8NDefault to today's date with userability to override to a future date.YYYYMMDD formatLast update date8NAutomatically stamped by CP 1440Last update time4NAutomatically stamped by CP 1440HHMM formatLast Update User8A/NAutomatically pulled fromuser profile lists

In another embodiment it is envisioned that the different users of the system may be located remotely from the transaction validation system and are accessing the system and its database through system processors or computer-like mechanism. For instance, the vendor, subvendor or service provider may be in a foreign country but accessing the transaction system and the central processor arrangement in the U.S. via a computer or a network that connects that user with the transaction system that may be in the U.S. The transaction system and its users need not be co-located. Specifically inFIGS. 12 and 13, vendor processor1224or service provider processors may be tapped into remotely, but to the system these users may appear to be local and using their processors locally to access and use the system.

Accordingly, the present invention provides, among other aspects, a computer processing system for a shipment transaction involving a shipper and a carrier. Further, the present invention provides a computer processing system and method for auditing a transaction between a vendor and a service provider in the area of services. Finally, the present invention provides a computer processing system and method for auditing a transaction between a vendor, subvendor and a service provider. Other aspects and embodiments of the present invention will be apparent to those skilled in the art for consideration of the specification and practice of the invention disclosed herein. It is intended that the specification and illustrated embodiments be considered as exemplary only, with a true scope and spirit of the invention being indicated by the following claims.