Patent Publication Number: US-8112355-B1

Title: Method and system for buyer centric dispute resolution in electronic payment system

Description:
CROSS-REFERENCE TO RELATED APPLICATIONS 
     This application is a divisional application of U.S. patent application Ser. No. 10/155,866, filed May 24, 2002, which is related to the following United States patent applications filed on even date therewith:
     Method and System for Collaborative Vendor Reconciliation, application Ser. No. 10/155,797;   System and Method for Electronic Authorization of Batch Checks, application Ser. No. 10/155,800;   System and Method for Varying Electronic Settlements between Buyers and Suppliers with Dynamic Discount Terms, application Ser. No. 10/155,806;   System and Method for Electronic Payer (Buyer) Defined Invoice Exchange, application Ser. No. 10/155,840; and   Method and System for invoice Routing and Approval in Electronic Payment System, application Ser. No. 10/155,853.   

     All of the foregoing applications are incorporated herein by reference in their entirety. 
     BACKGROUND OF THE INVENTION 
     1. Field of the Invention 
     This invention relates to the field of software and computer network systems. In particular, the invention relates to electronic systems associated with financial transactions. 
     2. Description of the Related Art 
     In traditional paper payment systems, an organization or an individual initiates payment by sending a physical check to the party to whom a debt is owed. The check may be sent in response to an invoice from the party to whom the debt is owed. A newer approach is electronic payment. For example, in the consumer context, individuals may be able to make payment by way of electronic banking. Payment instructions are sent electronically from the individual&#39;s computer system to the individual&#39;s bank. Payment is then effected by the bank. 
     Numerous systems now exist relating to accounting and bill payment. For example, computer software is used to track invoices and print payment checks. Payments may be made by wire transfer, with instructions requesting funds of the payer in one financial institution to be transferred to an account of the party to whom payment is to be effected. 
     Enterprise resource planning (ERP) systems are used for managing the purchases of goods and services. Such systems may have databases of complex and extensive sets of information, such as addresses of various suppliers and similar information related to purchasing. Sellers also use electronic accounting and record keeping systems which may assist in the receipt and tracking receipt of payment for goods and services. Prior systems require considerable amounts of effort to update and maintain, and may lack compatibility with the systems used by parties with whom an organization wishes to engage in transactions. There is thus a need for improved systems to facilitate transactions between buyers and sellers. 
     SUMMARY OF THE INVENTION 
     An embodiment of the invention is directed to a method of facilitating resolution of a dispute between a buyer and a seller in an electronic payment system. An invoice is received from the seller and is electronically routed to individuals in the buyer&#39;s organization. Indications that the invoice is disputed, corrections to the invoice, comments for the seller regarding the invoice and comments for other individuals in the buyer&#39;s organization are received from a set of two or more individuals in the buyer&#39;s organization. An indication that the invoice is disputed, corrections to the invoice and comments for the seller are forwarded to the seller without forwarding the comments for other individuals in the buyer&#39;s organization. Response to the buyer&#39;s indication that the invoice is disputed is received from the seller. The response includes an acceptance of changes suggested by the buyer or an indication that the seller disputes the changes suggested by the buyer. Payment is withheld for the invoice until an indication from the buyer has been received that the buyer has determined that the invoice has been paid. The indication, corrections and comments to the seller may be forwarded to the seller in an electronic mail message. 
     According to one implementation, the indication from the buyer that the buyer has determined that invoice may be paid includes information indicating that payment shall be different from that requested by the seller in the seller&#39;s response. According to another implementation, the indication from the buyer that the buyer has determined that the invoice may be paid includes an indication indicating that payment shall be that payment which is requested by the seller in the seller&#39;s response. Additionally, according to another implementation, instructions are received from the buyer to make payment for a portion of the invoice that is not disputed by the buyer and, in response, payment is made for the portion of the invoice and not for at least one other portion of the invoice that is not disputed. 
     According to another embodiment of the invention, a correction memo is generated automatically in response to an instruction from the buyer to end the dispute. An approval of the invoice may be received by at least one individual in the buyer&#39;s organization before receiving the indications form individuals in the buyer&#39;s organization that the invoice is disputed. Forwarding to the seller does not include informing the seller of the particular individuals that provided indications that the invoice is disputed, according to one embodiment of the invention. 
     According to another embodiment of the invention, a code identifying the reason for the dispute is forwarded to the seller. The code may include, according to different implementations, the following or sub or super-combinations of the following: 
     that the price exceeds the order; 
     that the quantity exceeds the order; 
     that the tax is not applicable; 
     that a respective item was not ordered; 
     or that the goods ordered are unsatisfactory. 
     According to one implementation, a history of the dispute is displayed to individuals in the respective organizations. According to one embodiment a history of the dispute is shown to individuals of the buyer&#39;s organization and, according to another embodiment, a history of the dispute is displayed to individuals in the seller&#39;s organization. According to another implementation, a history of the dispute is shown to individuals in both organizations. In such displays to the individuals in the respective organizations, different portions of the history of the dispute may be shown. For example, internal comments may be shown only to individuals in the respective organization for whom they are intended. Additionally, information regarding which particular individuals made comments or have disputed particular items may be hidden from the other respective organization. The history may include items such as an indication of users who entered dispute data, the date or time that the dispute data was entered and the date or time the dispute was sent or received. 
     According to one embodiment of the invention, information or aspects of the dispute are automatically forwarded to other individuals in the respective organization depending on particular conditions. According to one implementation, information regarding the dispute is forwarded to another individual if the individual responsible for responding to a notice regarding the dispute has not responded within a particular time. For example, if an individual has not responded within a certain number of days, such as one day, two days, three days or a week, in different implementations of the invention, the information regarding the dispute is forwarded to another individual in that individual&#39;s organization. Such individual may be selected as a manager of the respective individual who is responsible for responding to the notice. The manager of the individual may be determined by an organizational hierarchy of the respective organization. Such organizational hierarchy may be available according to one implementation of the invention by uploading a human resource management systems (HRMS) database and automatically forwarding to the respective manager of the respective individual based on such HRMS data. 
     Another embodiment of the invention is directed to an electronic payment system. The electronic payment system includes a server associated with the buyer, a server associated with the seller and logic that withholds payment for the invoice until an indication from the buyer has been received that the buyer has determined that the invoice may be paid. The server associated with the buyer includes logic that receives an electronic invoice from the seller and logic that electronically routes the invoice to individuals in the buyer&#39;s organization. The server associated with the buyer also includes logic that receives from a set of two or more individuals in the buyer&#39;s organization indications that the invoice is disputed, corrections to disputed portions of the invoice, comments for the seller regarding the disputed portions of the invoice and comments for other individuals in the buyer&#39;s organization regarding the invoice. The server associated with the seller also includes logic that forwards to a server associated with the seller an indication that the invoice is disputed, the corrections to the disputed portions of the invoice and the comments for the seller, without forwarding the comments for the other individuals in the buyer&#39;s organization. 
     The server associated with the seller includes logic that receives the indication, the corrections and comments from the server associated with the buyer. The server associated with the seller also includes logic that receives a response from the seller. The response includes an acceptance of the changes suggested by the buyer or an indication that the seller disputes the changes suggested by the buyer. The server associated with the seller also includes logic that forwards a response from the server associated with the seller to the server associated with the buyer. 
    
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
         FIG. 1  is a block diagram of an electronic payment system with dispute resolution logic according to an embodiment of the invention. 
         FIG. 2  is a flow diagram of a method to facilitate dispute resolution in electronic payment system according to an embodiment of the invention. 
         FIG. 3  is a user interface with inputs to facilitate dispute resolution according to an embodiment of the invention. 
         FIG. 4  is a user interface in an electronic payment system for entering a dispute-related information according to an embodiment of the invention. 
         FIG. 5  is a block diagram of a data structure related to a transaction and dispute resolution to an embodiment of the invention. 
         FIG. 6  is an electronic payment system according to an embodiment of the invention. 
     
    
    
     DETAILED DESCRIPTION 
     An embodiment of the invention is directed to an electronic payment system with the capability to facilitate resolution disputes between a buyer and a seller. The buyer receives an electronic invoice from the seller and can electronically indicate that the invoice or portions of the invoice are disputed. The invoice is routed to various individuals in the buyer&#39;s organization, and these individuals can separately enter information regarding the invoice and the dispute of the invoice. Information from these individuals regarding the dispute is forwarded to the seller. The seller can then respond. The buyer is in control of payment and makes payment when the buyer has decided the outcome of the dispute. 
       FIG. 1  is a block diagram of an electronic payment system with dispute resolution logic according to an embodiment of the invention.  FIG. 1  includes a payer system  101 , and payee system  102 , HR directory  108  and notifications  140 . Payer system  101  includes display  103 , invoice  150 , routing logic  104 , dispute logic  105 , approval logic  106 , settlement/payment logic  107 , employee communication logic  111 - 113 , escalation data  109  and transaction data structure  110 . Display includes summary  114 , lines  115  and history  116 . Routing logic  104  includes invoice routing logic  117  and dispute routing logic  118 . Dispute logic  105  includes edit logic  119 , chat logic  120 , reject logic  121 , cancel logic  122 , finalize logic  123  and partial pay  124 . Transaction data structure  110  includes purchase order  128 , invoice  129 , routing information  130 , dispute history  131 , memo  130  and other documents  133 . Escalation data  109  includes invoice  125 , dispute  126  and payment  127 . Notifications  140  include digital signature  141 . Payee system  102  includes invoice  150 , dispute logic  151  and supplement/payment logic  152 . 
     The following is a description of certain relationships between the items in  FIG. 1 . Invoice  150  in payer system  101  is received from payee system  102 . Routing logic  104  is configured to receive invoice  150  and is coupled with escalation data  109 , employee logic  111 - 113 , transaction data structure  110 , dispute logic  105 , approval logic  106  and settlement/payment logic  107 . Transaction data structure  110  is available to dispute logic  105 . Employee logic  111 - 113  is coupled with display  103 . Escalation data  109  is coupled with HR directory  108 . Invoice  150  of payee system  102  is coupled with dispute logic  151 . Dispute logic  105  and payer system  101  and dispute logic  151  of payee system  102  communicate via notifications  140 . Settlement/payment logic  107  of payer system  101  communicates with settlement/payment logic  152  of payee system  102 . 
     The following is a description of certain aspects of a transaction flow between payee system  102  and payer system  101  including the facilitation of the resolution of a dispute. An invoice  150  is sent from payee system  102  to payer system  101 . The invoice is routed by routing logic  104  to various employees through employee logic  111 - 113 . Such routing is carried out by invoice routing logic  117 . In the event that an employee does not respond within a particular time or otherwise provide the appropriate response, the invoice is routed to another employee according to an escalation scheme stored in invoice scheme  125  of escalation data  109 . Approval logic  106  facilitates approval and confirmation by employees of the invoice. In the event that an employee disputes an invoice, such dispute is handled by dispute logic  105 . 
     Dispute logic  105  handles a variety of actions related to the dispute including editing the disputed portion of the invoice, chatting with the appropriate personnel at the seller regarding the disputed invoice, rejecting the invoice, canceling the invoice, finalizing the invoice and making a partial payment of the invoice. These functions are handled by edit logic  119 , chat logic  120 , reject logic  121 , cancel logic  122 , finalize logic  123  and partial pay logic  124  respectively. In editing the invoice, the user is able to make changes to the summary level information or to details in a line item where there is an error. For example, the user may change the quantity of a line item to reflect the correct quantity. In finalizing an invoice, the user causes the dispute regarding the invoice to end. The amounts and other details of the invoice are finalized according to the values determined by the buyer. After finalizing, the invoice, which may now have different values than the originally submitted invoice, is subject to approval and may be paid by the buyer. Additional approval is handled by approval logic  106 . The invoice may be again disputed provided that it has not been subject to final approval. Approval may involve additional routing of the invoice by invoice routing  117  for appropriate approval by the respective employees (or other users) of the buyer. After final approval, the invoice is paid, and such payment is facilitated by settlement/payment logic  107 . 
     If an employee does not respond regarding the dispute in a specified period of time, then the dispute may be escalated to another employee in the buyer&#39;s organization, such as the employee&#39;s manager, which can be the department manager of the original contract at the buyer, according to an established hierarchy. Such escalation is based on respective hierarchical data retained in an escalation level management scheme set forth in dispute scheme  126  of escalation data  109 . The information and escalation data  109  is received from HR directory  108  according to an embodiment of the invention. Such information from HR directory  108  may be obtained from a human resource management system (HRMS) in one implementation. In some embodiments, an HR database located in a separate HRMS is employed. Such data is periodically updated from the HRMS of the organization. Such updates may occur periodically such as on a nightly basis. The respective invoice, dispute or payment is then escalated and routed to a manager of the employee who has not appropriately responded to the invoice, dispute or payment, according to the information regarding the manager of the employee in the FIRMS system. Similar routing and escalation may be performed based on other employee directory information, such as an employee directory. 
     Information regarding the transaction is stored in transaction data structure  110 . Transaction data structure  110  makes information regarding the respective transaction available for use in approval, dispute resolution and payment. For example, the purchase order data  128  is available to be consulted during a dispute of the invoice through transaction data structure  110 . Dispute history  131  is available for viewing by users in payer system  101 . 
     Dispute logic  151  of payee system  102  includes accept logic  153  which receives notifications  140  from dispute logic  105  of payer system  101 . Counter logic  154  allows the seller to enter a counter dispute. In the counter dispute, the seller provides indications as to aspects of the buyer&#39;s dispute that the seller disputes. For example, the seller may disagree with the exact correction made by the buyer but provide another figure different from the original figure provided by the seller. For example, if the original invoice was $200 for a line item, and the buyer made a correction to $100, the seller may provide a counter dispute in which the seller states that the correct amount is $150. The seller may also provide comments with the counter dispute explaining the reasons for the counter dispute. 
     According to the system described, the buyer can dispute an invoice at the summary or detail level, reject the invoice, cancel the invoice, modify the dispute, finalize the dispute and respond to a counter dispute from the seller. The buyer can take these actions through various employees or other users to whom the invoice and/or the dispute has been routed. The seller can respond to the buyer&#39;s indications regarding the dispute. The seller can accept the dispute or propose a counter dispute. According to one embodiment of the invention, the dispute is not finalized, and the buyer does not pay the invoice until the appropriate individuals at the buyer&#39;s organization have indicated that the dispute is finalized. According to an implementation, the buyer decides which corrections are made to the invoice when the invoice is finalized. The buyer can decide to accept the counter dispute of the seller, which may include corrections to the buyer&#39;s corrections, or the buyer can choose to finalize the invoice with other corrections. The seller may not agree with the buyer&#39;s finalization of the dispute. However, according to such an implementation, the invoice is finalized according to the values of the corrections accepted by the buyer. 
     The buyer can then pay the invoice after the dispute is finalized. After the dispute is finalized, the payer system routes the invoice for additional approval in the buyer&#39;s organization. The invoice may again be disputed if it has not been finally approved. After final approval, the invoice is paid. If the seller is still does not agree with the buyer&#39;s finalized invoice, the seller may re-invoice the buyer for the unpaid amount. 
       FIG. 2  shows a flow diagram of a method to facilitate dispute resolution in electronic payment system according to an embodiment of the invention. First an invoice is received (block  201 ). The invoice is routed to the appropriate personnel in the buyer&#39;s organization for approval (block  202 ). If the invoice has not been finally approved (block  203 ), then the invoice may be disputed. If the invoice is not disputed (block  204 ), it may be continued to be routed (block  202 ) until final approval. 
     If the invoice is disputed (block  204 ), then a notification is sent to the seller indicating that the invoice is disputed (block  205 ). The seller receives the indication that the invoice is disputed (block  215 ). Along with such indication may be transmitted corrections to the invoice and comments regarding the reasons for the dispute. If the seller does not accept the dispute (block  216 ), the seller may offer a counter dispute (block  217 ). If the seller accepts the dispute, the seller may then issue a new invoice or credit memo (block  218 ). The response, which includes the acceptance of the dispute or counter dispute, is then sent to the buyer system (block  219 ). 
     The buyer system receives the response from the seller (block  206 ). This response and any other information regarding the dispute is routed to the appropriate personnel in the buyer&#39;s organization (block  207 ). In the event that the appropriate personnel in the buyer&#39;s organization do not respond within a particular period of time (block  208 ), then the dispute is escalated to an appropriate other person in the buyer&#39;s organization (block  209 ). Such other individual in the buyer&#39;s organization may be a manager as determined by a database of managers or other structure, or may be an appropriate person in another department, such as the accounts payable (AP) department. After such escalation, the invoice continues to be routed to the appropriate person determined through the escalation (block  207 ). 
     If the dispute is not finalized or cancelled (block  210 ), then the dispute continues and notification of such continuation is sent to the seller (block  205 ) and is routed (block  207 ). If the dispute is finalized or canceled (block  210 ), then an appropriate notification is sent to the seller (block  211 ). The seller receives this notification (block  220 ), and the dispute process ends with respect to the seller&#39;s ability to respond (block  221 ) to notifications regarding the dispute, or according to another embodiment, to further process the dispute. After such finalization or cancellation, an adjustment is made to the invoice. Such adjustment may be made via an adjustment voucher (block  212 ) according to one implementation. Such adjustment may also be made in other ways, such as through other forms of correction to the invoice or the issuance of a new invoice. After the adjustment or correction to the invoice, if further routing is appropriate, the invoice is further routed until final approval occurs (blocks  202  and  203 ). An additional dispute may be started until final approval (block  204 ). After final approval without additional dispute, the invoice is posted to the ERP system for payment (block  213 ) and paid (block  214 ). 
     According to one embodiment of the invention, the system provides the buyer the option to partially pay the invoice. For example, where the buyer disputes one portion of the invoice but not another portion of the invoice, the system allows the buyer to pay the undisputed portion and continue to dispute the disputed portion of the invoice. For example, the buyer may dispute one line item in an invoice of four line items. The buyer in such situation may pay the portion of the invoice associated with the three undisputed line items and continue to dispute the disputed line item. 
     Different implementations of the communication between the buyer and seller regarding the invoice are possible. For example, the communication may be made through electronic notifications that are sent between the buyer and seller systems. Such notifications may be made in the form of electronic mail messages. According to one embodiment of the invention, certain notifications between the buyer and seller regarding the dispute are digitally signed. Such digital signatures help in preventing repudiation by the respected party that is signing the document. According to one implementation of the invention, the notification from the seller indicating that the seller accepts the buyer&#39;s dispute is signed by the seller. The seller system provides for such a digital signature by the seller and forwards the digitally signed notification to the buyer&#39;s system. According to another embodiment of the invention, the finalization of the dispute by the buyer is digitally signed by the buyer. The buyer&#39;s system accepts such digital signature from the appropriate personnel at the buyer organization and forwards the appropriate notification with the digital signature to the seller&#39;s system. 
     The digital signature may be implemented in various ways. For example, according to one implementation, the digital signature is accomplished through a public key/private key scheme. In one implementation of this, the respective party assigns the notification using its private key, and the other party authenticates the digital signature using the corresponding public key. 
       FIG. 3  shows information regarding an invoice including summary information and details. The user interface allows the user to dispute various items in the invoice at both the summary level as well as the specific details in the invoice. The user interface includes menu bar  301 , invoice header  302 , summary data  303 , detail data  304  and totals  349 ,  350  and  351 . Also included are selections  346  and  347  and distribution items status selection  317 . Menus  301  include task list  305 , invoices  306 , disbursements  307 , analysis  308 , suppliers  309  and preferences  310 . Sub-portion invoices  306  includes pending approval  311 , exceptions  312 , disputed  313 , approved  314 , purchase order status  315  and reports  316 . 
     Invoice header  302  includes the invoice number and audit selections  353 . The summary data includes suppliers  318 , purchase order number  319 , invoice date  320 , due date  321 , amount  322 , cost center  323 , owner  324 , actions  325  and status  326 . Details  304  include selection  330 , line number  331 , purchase order line number  332 , distribution number  333 , parts number  334 , description number  335 , unit price  336 , line tax  337 , distribution quantity  338 , distribution amount  339 , actions  340  and status  341 . Along with tax  349  and freight  350  are buttons allowing for dispute of these items  352 . 
     The user interface allows for a user, for example, as an employee of the buyer, to dispute various aspects of the invoice. The user can dispute the entire invoice through the buttons under actions  325  at the summary level  303 . The user can either approve (button  327 ), reject in its entirety (block  328 ) or forward to another user (block  329 ) the invoice by selecting the appropriate buttons at summary level  303 . According to one implementation of the invention, the user has the ability to reject the invoice in its entirety by selecting the appropriate button or, in another implementation, to dispute the invoice in its entirety. When the user disputes the invoice at the summary level, an appropriate notification is sent to the seller and the invoice is in a disputed state. 
     The user can also dispute the particular details of the invoice. For example, in detailed display  304  the user can dispute a line item by taking the appropriate action available in column  340 . The check box allows for approval of the item, and the ‘X’ allows for the user to dispute the particular line item. The arrow in column  340  allows the user to forward the line item to another user. By selecting particular items using selection in column  330 , the user can then take an action such as accepting, disputing or forwarding respective selected items as a group through choosing the appropriate check, ‘X’ or arrow button among buttons  348 . Detailed items in  304  include lines  342 ,  343 ,  344  and  345 . These items may be individually disputed, approved or forwarded. 
       FIG. 4  shows a user interface in an electronic payment system for entering a dispute-related information according to an embodiment of the invention. The user interface shown in  FIG. 4  includes menus  401 , header  402 , summary  403  and details  404 . Menu  401  includes task list  408 , invoices  406 , disbursements  407 , analysis  408 , suppliers  409  and preferences  410 . Invoices  406  include pending approval  411 , exceptions  412 , disputed  413 , approved  414 , purchase order status  415  and reports  416 . Summary  403  includes distribution quantity  418 , party number  419 , description  420 , unit price  421  and distribution amount  422 . Details  404  include rows  430 ,  431 ,  432  and  433  and the following columns: distribution quantity  434 , part number  435 , description  436 , unit price  437 , distribution amount  438 , comments  439 , type  440 , action  441 , status  442 , user  443 , time sent  444 , time received  445  and buyer/supplier unit  446 . 
     The user interface allows for the buyer user to add detailed corrections to the disputed invoice. These corrections are made in line  430 . The corrections include corrections to specific items such as number for distribution quantity  434  as well as comments regarding the dispute  439 . Included in the other rows of the details  404  are other entries which form the history of the dispute. These other entries include entries made by other users as shown by user column  443 . 
     According to one embodiment of the invention, the user can dispute various items of invoice data. For example, the user can dispute and provide updated, corrected information for the total invoice amount, the total tax and the total freight charges for the invoice. At the more detailed level, the user can dispute and enter corrected amounts for the quantity, unit price, amount, SKU and tax for respective line items in the invoice. A line item typically represents the charge in the invoice for a product. 
     According to one implementation, the user can enter a code that indicates the reason for the dispute. Such code may be selected from a pre-defined set of reason codes including: 
     the price exceeds the order; 
     the quantity exceeds the order; 
     tax is not applicable to this item; 
     the item was not ordered; 
     the goods are unsatisfactory. 
     Additionally, the user can enter a free form explanation as to why the item is disputed. Subsets and supersets of these reasons may be provided to the user at the buyer&#39;s organization for selection and submission to the seller according to different embodiments of the invention. 
     The user from both the buyer and the seller can view history of the invoice and history of the dispute regarding the invoice. Certain information regarding the history is available only to the users from one particular organization. For example, information regarding the particular users who dispute a data item and internal comments regarding the invoice may be available to only the buyer&#39;s organization. According to another implementation, other data is available to only individuals in the seller&#39;s organization. The historical information regarding the dispute includes: 
     the user who entered the dispute data; 
     the date the dispute was entered; 
     the date the dispute was sent or received; 
     the status of the dispute—open or closed; or 
     a sub or super-combination of the above items. 
     Multiple users can use the history of the dispute and participate in comments and actions on the dispute. Certain aspects of this information regarding the history of the dispute may be available to only the buyer or the seller&#39;s organization. 
       FIG. 5  shows a block diagram of a data structure related to a transaction and dispute resolution to an embodiment of the invention. The data structure includes a transaction structure  501 . Transaction structure  501  includes purchase order  506 , invoice  507 , routing history  508 , debit/credit memo  509 , advanced shipping notice  510 , receiving document  511 , payment history  512  and dispute  513 . These respective items may be implemented as pointers or links to the respective documents. For example, purchase order  506  is linked to purchase order document  502 . Similarly, invoice  501  is linked to invoice document  503 , and debit/credit memo  509  is linked to debit/credit memo  504 . Dispute information is contained in a dispute schema  505 , which is linked with dispute  513 . The dispute schema  505  includes dispute header structure  520 , dispute header detail structure  521 , line item structure  522 , line item entry structure  523  and reason code  524 . Dispute header structure  520  includes a link to the invoice, a document identification and a status. Dispute header detail structure  521  includes a link to the dispute header, a time created stamp, a time sent and received stamp, and actual tax value, an actual ship date value, an actual gross value, a comment, an internal note, a dispute reason code, a link to the user, a status and a dispute type. The item detail in structure  521  is information regarding the invoice general level dispute entered by a particular user. The line item structure  522  includes a link to the invoice, a document identification, an invoice line number, a distribution line number and a status. The individual line item detail structure  523  includes information a particular entry made by a particular user. This structure includes a time created, a time sent and received, an actual quantity, an actual unit price, an actual parts number, an actual net tax amount, a comment, an internal note, a reason code, an identification of the user, a status, and a dispute type. The reason code for the dispute  524  includes a dispute reason code and a description of the dispute. 
     The records in dispute structure  505  help to maintain the history of the dispute at the general level and line item level and keep track of actions on the dispute by different respective users. The items shown may be implemented in various in sub-combinations and super-combinations according to different implementations of the invention. The dispute structure  520  helps to organize the overall history of the dispute and the dispute summary detail structure  521  helps to keep track of entries in the dispute at a summary level made by a particular user. The dispute line item structure  522  helps keep track of entries in the dispute with respect to a particular line item, and the dispute line item details structure  523  helps keep track of entries with respect to the particular line item made by a particular user, and in one implementation, each entry made by the particular entry at a particular time. 
     The transaction structure  501  helps keep track of information related to the transaction for dispute, routing, payment and other purposes. For example, the system uses transaction record  501  to find the documents associated with a particular transaction, such as the invoice, purchase order and payment history. One example of an advantage of the transaction structure  501  is it helps the system to find the original purchase order information and compare such information with the invoice to determine if there are any discrepancies. According to one embodiment of the invention, this information is available in the dispute. 
       FIG. 6  is a block diagram of a system according to an embodiment of the invention. The system allows a paying entity to define the invoice format for invoices it wishes to receive. The system facilitates routing, editing, dispute resolution, and disbursement of payment. The system includes payer (buyer) shown as  601 , payee (vendor) shown as  602 , and financial institutions shown as  650 . The system has the following characteristics according to one implementation: collaborative network model, A/P (buyer) centric enterprise software, plugging into existing ERP systems, full cycle bill-to-pay functionality, web-based A/R (vendor) software, and co-existence with the customer existing bank relationships. 
     The collaborative network model supported by the unique collaborative vendor reconciliation engine between global directory shown as  628  and A/P centric master vendor list shown as  627 . The reconciliation engine provides methods of matching existing vendor name/address with self enrolled vendor information in the global directory. These methods include: fuzzy attributed weight based matching shown as  630 , previous vendor histories of matching in the knowledge based shown as  631 , third party outsourced recommended matching proposal shown as  632 , and manual interactive selection from buyers shown as  633 . Each vendor is represented by several critical attributes in the global directory: addresses shown as  638 , real and alias accounts shown as  639 , and keys shown as  640 . Vendor entries are pre-populated with information uploaded from the buyer ERP system. The vendor enrolls via the online self-service enrollments  635 . Vendor also provides additional rules to match  634 , A/R remittance format attributes  636 , and notification rules/addresses  637 . 
     Accounts payable (ALP) buyer-centric enterprise software associated with payer system  601  includes several key unique functions. These functions include buyer defined electronic invoice exchange, routing/editing and approval, and dispute resolution. Payer system  601  includes invoice definition engine  603 , invoice  604 , HR organization data  608 , routing/editing logic  605 , dispute logic  609 , notifications logic  612 , disbursement logic  613 , dynamic terms logics/offers  660 , discount logic  616  and settlement logic  617 . Also included on payer system  601  are input output (I/O)  610 , processor  611 , entity key  615 , and payer central repository database  627 . The invoice definition engine  603  includes validation logic  653 , tolerance/replacement items  655 , interaction severity  654 , and several presentation forms  656 . This definition engine is controlled by payer helps provide clean invoice data from payees. The definition logics ( 653 ,  654 ,  655 , and  656 ) can be configured to specific payee or a specific group of payees. 
     Invoice definition engine  603  and its definition logics are exposed to payee via global directory and are operative with invoice definition/generation/validation  618  of payee system  602 . The routing/editing logic  605  includes business logic that governs how an invoice will be processed by AP clerks, and what data entry information will be required to complete the transaction. Routing/editing logic  605  can operate differently based on multiple attributes: document type, document value, discount value, etc. Routing/editing logic  605  acts on HR organization database  608  to define routing/editing/approval work flow based on employee information  607  and role values  606 . Invoice  604  is coupled into routing logic  605 . Routing logic  605  is coupled with employee logic  607  and role assignment  606 . Routing logic  605  is coupled with HR data  608  and with dispute logic  609 , notifications logic  612  and disbursement logic  613  of payer system  601 . Notification logic  612  is configured by the payer, and includes collaborative filtering, and mappings status and notification definitions between internal to external payees. These collaborative filtering and mappings can be designated to a payee or a group of payees. 
     Dispute logic  609  is set of payer defined centric collaboration rules and interactions between payer and payee to resolve issues related to invoice or other exchanged documents. Some disputes are simple (e.g., number of items is received, etc.) while others are more complex (e.g., replacement items do not meet part specification and price). The outcomes of a dispute are partial payments, partial invoices, new invoices, or other outcomes. According to one implementation, a dispute can only be finalized by payer and its members, and some finalized exchanges will require digital signature to ensure non-repudiation. The payer dispute logic  609  orchestrates with payee dispute logic  622 . Payer dispute logic, references, and history are stored in payer central repository  627 . 
     A/R web based centric software associated with payee system  702  helps provide an online self-service payee system. Payee system  702  includes a processor  652  and input/output (I/O)  651 . Such processor  652  and input/output  651  allow for communication with other entities such as payer system  601 , financial institutions  650  and global database  628 . Processor  652  and processor  611  of payee  602  and payer  601  respectively may run various software processes to implement the logic shown. The processes may be implemented as software objects, routines or other software processes, programs or implementations. Alternatively, portions of such logic may be implemented in hardware logic or other forms of logic. The functions shown may alternatively be implemented on a common server or in a distributed set of computer systems separated over a computer network, or other configuration that achieves the logical functions shown. Data and information such as for global database  628  may be stored in data structures or other data format and stored in computer memory, fixed storage or other data storage or archived in various implementations of the invention. 
     Payee system  602  includes invoice generation/validation logic  618 , invoice send logic  621 , dispute logic  622 , notifications logic  623 , receipt/validation logic  624 , discount logic  625  and settlement logic  626 . Invoices or other documents can be submitted to payer via multiple mechanisms. Three sample mechanisms are shown here: Web forms shown  657 , purchase order pre-populated invoice (PO flip)  658 , and electronic file submission via file mapping  619 . The Web forms  657  are a set of payer defined presentations that can be selected and/or authorized to be used by payee(s). Payee can also define additional payee private attributes and fields to be used during A/R matching as well as graphic materials (such as company logo, etc.). The PO flip  658  uses information from purchase orders which are transmitted to payee from payer to pre-populate the invoice data. The status of each purchase order is maintained within the payee central repository to support blanket purchase orders. File mapping  619  is used by the payee to automate the bulk invoice submission process. Normally, these file are exported from payee&#39;s A/R system. The mapping defines how payee&#39;s data will be mapped into payer, as well as default/validation/transformation rules. Upon submission of these invoices or other documents via multiple mechanisms ( 657 ,  658 ,  619 ). The documents are validated based on the payer definition engine  618 . This definition engine  618  includes payer definition engine  603  and its components: validation  653 , severity  654 , tolerance  655  and presentation  656 . 
     Invoice generation/validation logic  618  is coupled with mapping logic  619  in communication with file data  620 . Invoice generation/validation logic  618  is coupled into invoice send logic  621 . Dispute logic  622  is coupled with dispute logic  609  of payer system  601 . Notifications logic  623  is in communication with notifications logic  612  of payer system  601  and discount logic  625  of payee system  602 . Receipt/validation  624  of payee system  602  is in communication with disbursement module  613  of payer system  601 . Settlement logic  626  is operative with discount logic  625  of payee system  602  and receipt/validation logic  624 . 
     Global database  628  is available to notifications logic  612  and  623 , disbursement logic  613 , settlement logic  617  and  626 , invoice send logic  621 , receipt  621  and receipt/validation logic  624 . Global database  628  is in communication with payer database  627  through attribute match rules  630 , knowledge based history matching samples  631 , third party recommendation/proposal  632  and manual interactive matching by payers  633 . Global database  628  is in communication with payee database  629  through match rules  634 , enrollment logic  635 , remittance formats  636  and notification preferences  637 . Global database includes items such as address  638 , accounts  639  and public keys  640 . Payer database  627  is located with payer system  601  and payee database  629  is located with payee system  602 . Global database  628  is also available to financial institutions  650 . 
     Through invoice definition engine  603  a payer uses payer system  601  to define the invoice that the payer wishes to receive. Such definition helps to increase efficiency in the payer system because the resulting invoice from the payee, such as a seller, is more likely then in the proper data format when it is received. Payee system  602  generates an invoice based on the defined invoice in invoice generation/validation logic  618 . The input data for the invoice is validated based on the invoice definition rules defined in payer system  601 . If file data is used to automatically map into an invoice, such mapping is performed in one embodiment of the invention by mapping logic  619 . Mapping logic  619  receives the file data  620  with information to be populated into respective invoices. File data  620  may contain files with data for invoices for various payers who have purchased good or services from the payee. When an invoice is completed it is sent through invoice send logic  621  to payer system  601 . Additional information regarding definition of invoice by the buyer and use of related invoice rules is contained in United States patent application entitled System and Method for Electronic Payer (Buyer) Defined Invoice Exchange, application Ser. No. 10/155,840, which is incorporated herein by reference in its entirety. 
     More particularly, a set of rules for accepting information into a document is received from the buyer. An invoice definition engine presents a user of payer system with the opportunity to define the format of the invoice and create a corresponding set of rules. According to one embodiment of the invention, rules may include requirements for validation of information for respective fields of the invoice. For example, a buyer may create a definition for communication with the buyer that includes rules for data validation, extraction of information from the buyer&#39;s systems (such as the buyer&#39;s enterprise resource planning system), transformation of status information and other processing. 
     In one example of use of an embodiment of the invention, a buyer first defines the format by which it receives data, the presentation format provided to sellers and the addresses to which goods and billing are sent. A seller logs on to its system to send an invoice to the buyer and is presented with an interface formatted according to the buyer&#39;s presentation definition. The seller enters information into the invoice creation interface and receives responses based on the data definition defined by the buyer. 
     The invoice rules include the set of fields, as well as a set of validation rules which determine whether particular information input into respective fields is acceptable according to the invoice definition. Invoice rules include tolerance which determines whether particular information for a particular field is acceptable based on, in one implementation, a range of values. For example, a tolerance of a range of values around a purchase order value may be set such that a price is not acceptable if it is not within the range. According to one embodiment of the invention, the rules include whether the information is within a particular range of values from corresponding fields in a purchase order under which items associated with the invoice were ordered. Field rules include various field rules for the field. For example, according to one embodiment of the invention field rules include a field identification, validation type, visible flag, editable flag, required flag, version flag, format designation and severity flag. According to one embodiment, the ranges may include a price tolerance. 
     A severity rule determines, depending on the selected severity, how a violation of the rule is treated. For example, the severity may be set such that when a value for the field is not acceptable, the invoice is not allowed to be completed. Alternatively, severity may be set such that when the value for the expective field that is attempted to be input is not acceptable, a warning is provided to the user at the payee system but the data is nevertheless accepted. Presentation rules determine the format of presentation of the respective invoice. For example, certain information may be provided only to certain groups of sellers. 
     In some embodiments, a purchase order of the buyer may be converted into an invoice, according to an invoice definition defined by the buyer. 
     An invoice is received at payer system  601  as shown here with invoice  604 . The invoice is routed to the respective employees or other agents for its review and approval. Some approval may require additional signatures according to one embodiment of the invention. As shown here, employee logic  607  is in communication with routing logic  605  to allow an employee to authorize, audit or view respective invoice or check information. 
     Routing logic  605  is also used to route checks or other documents to various employees for signature or approval using HR data  608 . Routing logic  605  uses HR data  608  to determine the correct employees to whom to route the respective document, such as in an invoice or check. Routing may be made to the manager of a respective employee if the employee has not responded in a certain time to the document. Such the choice of such manager to whom to route is made based on the management hierarchy in the organization stored in HR database  608 . Such database is extracted from a human resource management system (HRMS), in one implementation of the invention. Additional information regarding routing of documents in the system is described in United States patent application entitled Method and System for Invoice Routing and Approval in Electronic Payment System, application Ser. No. 10/155,853, which is incorporated herein by reference in its entirety. 
     A user of payer system  601  may dispute an invoice or other payment request through dispute logic  609 . Dispute logic  609  is in communication with dispute logic  622  of payee system  602 . This allows for communication regarding a dispute between a payer and a payee. The dispute may be only initiated and finalized by a payer. According to one embodiment of the invention, the dispute may be finalized only by the buyer, or the payer system. The dispute includes the capability to indicate that particular items in an invoice are disputed, such as the tax. The dispute logic  609  and  622  include the capability for individuals using the payer system  601  using payee system  602  to engage in a chat dialog. 
     Notifications logic  612  communicates completion of various stages of approval or other issues of status regarding invoices and disbursement. For example, when an invoice is approved notifications logic  612  communicates a notification to notifications logic  623  of payee system  602 . Based on such notifications, a discount may be enabled through discount logic  616 , which is in communication with discount logic  625  of payee system  602 . For example, where an invoice is approved, a discount may be enabled based on an agreement or outstanding dynamic terms offers shown as  660  that the corresponding payment is made earlier than required under the original terms and conditions. Dynamic terms are additional real-time terms, a set of rules, and/or goal seeker that are established by payer  660  or payee  661 . These dynamic terms rules  660  and  661  are based on business event types (invoice approval, purchase order approval, etc.), a payee or group of payee and a set of new discrete or variable terms. These dynamic term goal seekers allow payer and payee to set desirable outcomes. These dynamic terms can be pre-negotiated up-front or in real-time based on business event types. The approval of these new terms may require digital signature of either payer or payee. Also, third party financial institutions could be involved to provide funding for payee in returns for early discounts. For additional information regarding discounts facilitated by the system, dynamic terms ( 660  and  661 ) and discount logic  616  and  625  please refer to US patent application entitled System and Method for Varying Electronic Settlements between Buyers and Suppliers with Dynamic Discount Terms, application Ser. No. 10/155,806, which is incorporated herein by reference in its entirety. 
     To facilitate complete bill-to-payment functionality, the system in  FIG. 6  includes disbursement logic  612  and settlement logic  617 . Disbursement logic  613  includes all payment routing, signing, and approval logic for respective invoices or other requirements for payment. Some payments will require multiple signatures to be signed based on payment amount and/or destination payee(s). Digital signatures and nondigital signatures may both be used. Also, payer can configure to control new settlement date for the payment by defined payee group and number of business/calendar days to be adjusted. The disbursement logic also includes auditing capability with multiple levels based on number of signatures and/or amount. In one implementation, disbursement logic  613  makes such disbursement in the form of electronic checks in one implementation. Such electronic checks are generated and signed with a digital signature. The digital signature may be obtained from respective users such as through a routing process using routing logic  605  to obtain a signature from employee logic  607  with role assignment digital key  606 . 
     Alternatively, a set of instructions may be received to send a set of checks that use a digital signature of the payer organization rather than the digital signature of an employee. Such check processing may be accomplished through batch processing logic  614  and disbursement logic  613 . Such batch processing logic  614  uses an entity key  615 , which is a private key of the payer&#39;s organization. Batch processing logic  614  requires particular authorization for the respective instruction. The authorization may require that the agent requesting the set of checks sign the instruction with the agent&#39;s private key. Receipt/validation logic of payee system  602  is in communication with disbursement logic  613 . Receipt/validation logic  624  receives payment, such as in the form of electronic checks. Such electronic checks are validated to assure that they are accurate. Receipt/validation logic decrypts any encrypted documents, for example if the electronic checks are encrypted with the public key of payee system  602 , such checks are decrypted. Additionally, the digital signature of the sender is authenticated in receipt/validation logic  624 . Such authentication is accomplished using the public key of the payer, which corresponds to the private key of the payer&#39;s organization (entity key  615 ) that was used in batch processing logic  614  (entity key  615 ). Additionally, verification may be made against a payment database generated by the payer system when the checks are created in order to assure that the checks were actually sent by the payer system. Additional information regarding disbursement  613  and batch processing  614  is contained in United States patent application entitled System and Method for Electronic Authorization of Batch Checks, application Ser. No. 10/155,800, which is incorporated herein by reference in its entirety. 
     Settlement logic  617  allows for settlement of payment between a payer system  601  and payee system  602 . Settlement mechanism includes exiting combination of paper based checks, standard domestic electronic payment network (Fed Wire, ACH, CHIPS, etc.), international electronic payment networks (SWIFT, Bolera, etc.), propriety private payment networks (VISA, MasterCard, and American Express, etc.), and internal account bank transfer (On-us, etc.) For example, settlement may be made through debits and credits in a database within the system. Alternatively, settlement may be performed through an external network such as the ACH network with financial institutions involved, such as financial institutions  650 . 
     Settlement logic  617  supports standard fund transfer model (buyer&#39;s account will be debited and supplier&#39;s account will be credited.) and good funds model (buyer&#39;s account will be debited and a temporary account will be credited. Upon receiving fund availability in temporary account, the supplier will be credited). Settlement logic  617  is implemented via issuing requests to the settlement network. Such request can be file-based requests such as ACH or transactional request such as VISA networks. For each request, there will be associated confirmation ID to ensure the trace ability of each transaction. 
     Global database  628  is available for use by elements that send payment, such as disbursement logic  613  and settlement logic  617 . Global database  628  is also available for elements that send other documents or information between payees and their respective financial institutions. For example, invoices may be sent based on the respective recipient address as stored in the global database  628 . Thus, invoice sends logic  621  is in communication with global database  628 . 
     Global database  628  includes addresses and account information for respective payers and payees who use the system. Links are created between items in the global database and other databases in order to allow for the global database to be updated and the corresponding linked information to continue to be used. Thus, for example, according to one embodiment of the invention, a payer has a separate database, payer databases  627 , and matches are created between items, such as addresses or payment entities and payer  627  and respective items in global database  628  through a match generation process  630 . Such matched generation process  630  may include providing a user of the payer system  601  with a series of candidate matches between addresses stored on payer database  627  and corresponding spellings of addresses or payment entities in global database  628 . The user of payer system  601  is then able to select the best match and create a link between the respective address or payment identification. 
     This link can then later be used to effect payment to the proper address as stored in the global database. Similarly, a match generation between items in payee database  629  and global database  628  can be performed so that payee system  602  can send items to the proper recipient using information in global database  628 . Enrollment logic  635  is available to enroll new entities as payees into the global database to make them available for use by payer system  601  or payee system  602 . 
     The links established are then available to allow for use of information in the respective payer database  627  and payee database  629  in order to find recipients to whom documents or payments are to be sent. In addition to address information  638  and account information  639 , according to one embodiment of the invention, public keys of various participants in the systems are stored in the global database  628 . Such keys are then available to for use in order to determine the accuracy of a digital signature sent by a particular entity. Additional information regarding global database  628  and related logic and communication is contained in the United States Patent Application entitled Method and System for Collaborative Vendor Reconciliation, application Ser. No. 10/155,797, which is incorporated herein by reference in its entirety. 
     In the  FIG. 6  system, invoices and other documents are exchanged between payers and payees over the public and internet networks  680 . To help provide security and privacy, before they are sent, invoices and other documents are signed with source private key, and encrypted with destination public key shown as  681 . Upon receiving invoice or other document, the document is decrypted with its own private key, and validated against source public key to ensure non-repudiation shown as  682 . 
     The system also can integrate with multiple enterprise resource planning (ERP) systems shown as  662 . Such ERP systems include: PeopleSoft, SAP, Oracle Financials, etc. The system will integrate with these ERP systems via native and/or standard interfaces. An example of native interface for PeopleSoft is Message Agent, etc. The interfaces include EDI gateway, etc. The system utilizes the ERP to extract documents (purchase orders, invoice status, unit of measurements, vendor list, etc.), to post documents (invoices, vendor information, status, etc.). 
     The foregoing description of various embodiments of the invention has been presented for purposes of illustration and description. It is not intended to limit the invention to the precise forms described.