Patent Publication Number: US-2006009999-A1

Title: Contract term updates

Description:
BACKGROUND  
      The present invention relates generally to the area of software and more specifically to the maintenance of contracts having valid contract terms.  
      Currently, problems arise in maintaining electronic documentation of sales contracts. In a typical approach, purchase contracts include multiple contract terms relating to varying aspects of the sales agreement between a purchaser and a supplier. In these negotiated contracts, contract terms are applicable for a defined period of time.  
      A current approach is to manually note expiration dates for contract terms in the physical paper contract. This approach is problematic when dealing with a large number of contracts having multiple contract terms. Furthermore, unless the parties to the contract record the expiration dates on a calendar or in an electronic calendar software application, problems can arise from parties letting contract terms expire. Furthermore, this approach requires not only the negotiation of the contract, but then the further manual step of recording the expiration date(s) for the contract terms. As noted above, in a typical purchase agreement, the number of contracts can make this process extremely time-consuming for the purchaser and the supplier and also susceptible to human input errors.  
      Furthermore, with the growth of computing systems and automated processes, the current approach fails to take advantage of benefits offered by computing operations. While many contracts are negotiated in-person between a supplier and purchaser, a growing trend includes paperless negotiations. As electronic contracts include numerous contract terms, it can become even more difficult to maintain an accurate and proper record of expiration dates of contract terms when the contract is negotiated using electronic only forms.  
      Another problem arises regarding software integration requirements for electronic systems. An individual supplier works with many purchasers and vice versa. These different parties engage in many different contracts. Often times, different suppliers and vendors use different software applications. Therefore, problems arise in congruency of electronic documentation across multiple vendor-specific systems. Parties are also reluctant to acquire new software products outside of their own due to costs, maintenance, training and compatibility issues.  
      A current contract database system utilizes a host application granting user access to a central database. The purchaser hosts this system and a supplier may be allowed to access the database using a designated portal. This database system stores the contract information in a standard EDI format. This system does not allow for offline usability, as the system requires the supplier to physically access the database through the dedicated portal. This system also does not allow offline usability based on data formatting, as the data is not in a human readable format, but rather is configured solely for internal software data processing.  
      Therefore, with the existing systems using paper reminders or electronic database structures, there is not an automatic reminder system. The current systems also do not allow for efficient user access, including offline access and/or readable access from the database. As such, there exists a need for maintaining the validity of contract terms and updating contract terms prior to or upon the expiration of the contract terms.  
    
    
     BRIEF DESCIRPTION OF THE DRAWINGS  
       FIG. 1  illustrates a block diagram of one embodiment of an apparatus for maintaining and updating contract terms;  
       FIG. 2  illustrates a graphical representation of an exemplary embodiment of a contract having multiple contract terms;  
       FIG. 3  illustrates a flow diagram of one embodiment of the operation a system for updating contract terms;  
       FIG. 4  illustrates a block diagram of a system providing for the maintenance and update of contract terms between a purchaser and a supplier; and  
       FIG. 5  illustrates a flowchart of one embodiment of a method for updating contract terms. 
    
    
     DETAILED DESCRIPTION  
      A contract term updating system allows for the automatic notification of the pending expiration of contract terms. Through the use of a processing device in conjunction with a contract database, the contract terms to be updated are generated into a human readable form. The human readable form also allows for a greater degree of flexibility, such as being attachable to an electronic message and formatted for subsequent printing. Moreover, the contract term updating system, through the generation of an update form allows for contract terms to be updated from an offline connection. Therefore, a high degree of mobility is allowed through reading and usage of the update form outside of a direct connection to the contract database.  
      The contract term updating system also provides an internal data input accuracy check through defined ranges for input terms. Data fields in the update form can have ranges to prevent accidental data entry of incorrect contract terms, thereby not only increasing the accuracy of data input but also providing a high degree of error reduction. Furthermore, using the update form reduces software requirements for parties to the contract. Through a defined platform structure, such as a commercially available browser or viewer application, extraneous and/or new software requirements for integration of the contract term updating system are eliminated.  
      As described below, a contract term updating system automatically notifies a user of the expiration of contract terms. Through the storage of contract terms in a contract database, the contract terms may be easily and readily monitored based on expiration dates. Therefore, purchasers and suppliers do not need to utilize secondary tracking systems to monitor expiration dates, such as hand-written notes on calendars or notes within electronic calendars. Moreover, purchasers and suppliers do not need to then regenerate contracts with the contract terms to be updated. Furthermore, purchasers and suppliers do not need to spend time attending to these matters, which may include numerous contracts, each having a large number of contract terms. The system can access the database to retrieve contract terms based on search terms including expiration dates and the parties to the contract.  
       FIG. 1  illustrates a block diagram of one embodiment of an apparatus  100  for contract term updates. The apparatus  100  includes an input device  102 , a processing device  104 , a contract database  106  and an output device  108 . The input device  102  may be any suitable device capable of receiving user input or an input signal, such as, but not limited to, a physical device like a keyboard, keypad, a touchscreen and a scanner with original content recognition software or a processing device like an electronic mail delivery system including a receiving device.  
      The processing device  104  may be, but not limited to, a single processor, a plurality of processors, a DSP, a microprocessor, an ASIC, a state machine, or any other implementation capable of processing and executing software. The term processing device should not be construed to refer exclusively to hardware capable of executing software and may implicitly include DSP hardware, ROM for storing software, RAM, and any other volatile or non-volatile storage medium.  
      The contract database  106  may be any suitable memory or storage location operative to store sales information or any other suitable information therein including, but not limited to, a single memory, a plurality of memory locations, shared memory, CD, DVD, ROM, RAM, EEPROM, optical storage, microcode, or any other non-volatile storage capable of storing information. The output device  108  may be any suitable device capable providing an output, such as but not limited to a display  110 , a printer  112  and/or an electronic mail delivery system  114 .  
      In one embodiment, the processing device  104  provides a data retrieval signal  116  to the contract database  106 . The data retrieval signal  116  may be an operative command to retrieve contract terms where the command may include a date or range of dates corresponding to potential expiration dates for contract terms stored in the contract database. As discussed in further detail below, the contract database  106  stores data representing terms of a plurality of contracts which include one or more contract terms that define the conditions of a contract between a purchaser and a supplier. In another embodiment, the contract database  106  may automatically generate the search based on date terms received from any suitable source, such as the processing device  104 .  
      The contract database  106  thereupon searches the contracts terms data associated with the contracts stored therein. The contract terms data may occur in business objects having parameters allowing for searching, wherein each contract term is a specific business object recorded and stored in the contract database. After searching various contract terms data, the processing device  104  receives the contract terms  118  within a time period of expiration.  
      The processing device  104  thereupon generates an update form  120  which is provided to the output device  108 . The update form  120  may be any electronic formation of data fields including the contract terms  118  from the contract database  106 . The update form  120  may also include contract terms not nearing expiration, to provide a greater degree of clarity for parties seeking to update the contract terms.  
      In one embodiment, the update form  120  may be provided to the display  110 . Upon the display  110 , the update form  120  is capable of being viewed. Based upon technologies within the display  110 , the display  110  may also provide functionality of the input device  102  if the display  110  is a touchscreen allowing for direct user input. In another embodiment, the display  110  may work in conjunction with the input device  102 , wherein the display  110  provides visual queues for data entry using the input device  102 , in response to operations performed by the processing device  104 . In this embodiment, data input operations using the update form  120  visible on the display  110  with input from the input device  102  would be in accordance with known interactive data retrieval operations.  
      In another embodiment, the processing device  104  provides the update form  120  to the printer  112 . Using proper printer driver technology, the processing device  104  formats the update form  120  to be printable using the printer  112 , thereupon generating a hard-copy of the update form. In one embodiment, hand notes and revisions may be entered onto the paper form and the input device  102  may be a keyboard or keypad accepting input keystroke commands or may be a scanner using original content recognition (OCR) software to receive the contract updates.  
      In another embodiment, the processing device  104  provides the update form  120  to the electronic mail delivery system  114 . The electronic mail delivery system may be any suitable system allowing for electronic communication, such as but not limited to electronic mail (email), paging, messaging systems, e.g. SMS, EMS, MMS, transmissions using wired and/or wireless transmission systems.  
      The processing device  104  may format the update form to be associated with the electronic mail delivery system  114 . For example, the processing device  104  may format the update form to be in a third-party application for attachment to an electronic mail message, such as a browser or viewer application. In another example, the processing device  104  may format the update form in any format consistent with protocols of the electronic mail delivery system  114  such that the update form is contained within an electronic message.  
       FIG. 1  illustrates the generation of the update form and delivery of the update form to the output device  108 .  FIG. 2  illustrates an exemplary embodiment of an update form  130  including a header  132  displaying general contract information. The general contract information may be any suitable information, such as invoice or contract reference numbers and/or the names and address of parties to the contract. In one exemplary embodiment, the form  130  includes data assimilated in tabular form including designated columns with rows of corresponding information. For example, columns may include item numbers  134 , material or service descriptions  136 , price terms  138 , price per unit terms  140 , units of measurement terms  142 , minimum order terms  144  and validity period terms  146 .  
      In the exemplary update form, items numbered  1 ,  2  and  3  have validity periods  146  terminating on the date Jan. 1, 2005. Assuming that present date is within a predefined time interval of the date Jan. 1, 2005, such as within 30 days, 60 days or 90 days for example, the update form  130  includes update fields  150  for the input of new terms. In this embodiment, the presence of the update fields  150  indicate the contract term is to be updated, wherein excluding the update field, such as illustrated with item number  112 , may indicate the validity period is not near expiration. In another embodiment, the update form may contain update fields  150  for all terms and the users can ignore update fields  150  for non-expiration terms.  
       FIG. 3  illustrates a representative diagram of one embodiment of the process of updating contract terms using the system described above. A procurement system  160  provides to a purchaser  162  a contract alert using the electronic messaging system. In one embodiment, this alert may include an update form embedded or attached thereto. In another embodiment, the alert may include an active link, such as a hyperlink, or a directory listing for the retrieval of the update form. In another embodiment, the alert may simply include a notice that a contract includes term(s) having expired or nearing expiration and requesting the purchaser to retrieve an update form.  
      The purchaser  162  opens the electronic form  164 ; similar to the exemplary form  130  of  FIG. 2 . The purchaser  162  may then save the form  164  for offline usage, print the form  164  or forward the form  164  to a supplier, in three exemplary embodiments. Thereupon, the purchaser  162  negotiates with a supplier  166  regarding the contract terms. This negotiation may be conducted in-person, via telephone, via exchanged messages, via exchanged version of the update form or any other suitable negotiation and resolution technique.  
      Upon resolution of the updated contract terms, the new positions, updated contract terms, are typed into the electronic form  168 . In another embodiment, the positions may be handwritten and using OCR software, the form may be scanned with the terms being electronically recognized. The purchaser  162  uploads data to the procurement system  160 .  
      The procurement system  160  may use these contract terms for billing and other transactional activities in an overall business processing system and customer service management environment. In one embodiment, verification of input information may be verified using electronic signatures, encryption techniques or any other suitable means to authenticate the purchaser  162  and supplier  166 .  
       FIG. 4  illustrates a block diagram of a system allowing for contract term updates between a purchasing device  100 , as described above in  FIG. 1  and a supplier device  200 . The purchasing device  100  includes the input device  102 , the processing device  104 , the database  106 , the display  110  and the electronic mail delivery system  114 .  
      The supplier device  200  includes an electronic mail delivery system  202 , a supplier processing device  204 , a display  206  and an input device  208 . The electronic mail delivery system  202  may be any suitable system similar to the system  114  of the purchasing device  100  capable of receiving and transmitting electronic communications, including but not limited to a processing device executing operating instructions to performed the functions of electronic communication.  
      The purchasing device  100  is in operative communication with the supplier device  200  using any suitable communication technique, including but not limited to wired or wireless connections across public and/or proprietary networks. In one embodiment, the electronic mail delivery system  202  is operative to receive the update form in an electronic transmission  203  from the electronic delivery system  114  of the purchasing device  100 .  
      The supplier processing device  204  is operative to receive an input signal  205  which includes either the update form from the electronic mail delivery system  202  or the signal  203  such that the processing device  204  is operative to extract the update form therefrom. The supplier processing device  204  provides an output  210  to the display  206  so that an operator using the supplier device  200 , typically the supplier or the supplier and purchaser in a negotiation environment, may visually review the update form.  
      Concurrent with viewing the form, the supplier device  200  is operative to receive input commands in the input device  208  and provide input signals  212  to the supplier processing device  204 . In one embodiment, the input device  208  may be a keyboard or keypad operative to receive keystrokes and the input signal  212  represents these inputs. In another embodiment, the input device  208  may be a touchscreen associated with the display  206 . The supplier processing device  204  receives the input signal  212 , wherein the input information relates to negotiated contract terms in the update form.  
      Upon completion of negotiating or re-negotiating the contract terms, the supplier processing device  204  is operative to provide the updated contract terms back to the electronic mail delivery system  202 . Thereupon, the contract terms are provided to the purchasing device  100  through the electronic mail delivery system  114 . These updated contract terms may then be provided back to the processing device  104  and updated within the database  106 .  
       FIG. 5  illustrates a flowchart of the steps one embodiment of a method for determining contract terms needing to be updated. The method begins by receiving a contract term search parameter including an expiration date, step  300 . The contract term search parameter may include a request for search and retrieval of contract information or may include limited parameter information, such as date information or purchaser/supplier information.  
      The next step is searching a contract term database to determine expired contract terms using the expiration date, step  302 . This step may be performed by examining specific business objects having associated information relating to the contract and contract term expiration dates. As illustrated above in  FIG. 2 , the terms may have specific expiration dates, but an expiration date may further be applicable to the contract itself, thereby searching multiple contracts and/or specific contract terms in the database.  
      The next step is receiving the expired contract terms from the contract term database, step  304 . In one embodiment, the contract term database may provide the full contract including all contract terms to the processing device. The data structure of the contract and contract terms may be consistent with a business object readable by the processing device. Therefore, the next step, step  306 , is generating an update form including the contract terms. The update form, such as illustrated in  FIG. 2 , converts the contract terms into a human readable format by creating a tabular display of information.  
      In this embodiment, the next step, step  308 , is providing the update form to an output device. This step may be performed by the processing device  104  converting the update form into a transmittable format. In one embodiment, the output device may be an electronic mail messaging system such that the update form is attached to or embedded within an electronic mail message. The output device may also be a printer allowing for printing of the human readable update form. As such, in this embodiment, the method is complete.  
      In other embodiments, the method described above in  FIG. 5  may further include determining the expired contract terms by examining the expiration dates of the contract terms. As noted, the expired contract terms does not exclusively refer to contract terms currently expired but may also include terms nearing expiration, such as within an upcoming period of time. The determination may be performed using any suitable technique including comparing expiration dates of the contract terms with an expiration date or range of expiration dates.  
      Moreover, prior to providing the update form using the electronic mail message, the update form may be converted to be included within or attachable to the electronic mail message. This step may be performed using data manipulation operations to convert the update form into a software application format usable with the electronic mail delivery system, such as a commercially available third party software application.  
      In other embodiment, updated contract terms may be received via the electronic mail delivery system. The updated contract terms may be examined for errors, such as determining if the values are within a prescribed value range. The updated contract terms may then replace the expired terms in the contract database, thereby providing current contracts with current contract terms.  
      As such, contract term updates may be achieved through the automatic receipt of an update form. The update form includes expired contract terms and the update form is in a human readable form associated with an electronic message. The update form is interactive, allowing direct user input of updated terms and through the interactivity, allowing seamless integration of the updated contract terms into the contract database.  
      Although the preceding text sets forth a detailed description of various embodiments, it should be understood that the legal scope of the invention is defined by the words of the claims set forth below. The detailed description is to be construed as exemplary only and does not describe every possible embodiment of the invention since describing every possible embodiment would be impractical, if not impossible. Numerous alternative embodiments could be implemented, using either current technology or technology developed after the filing date of this patent, which would still fall within the scope of the claims defining the invention.  
      It should be understood that there exists implementations of other variations and modifications of the invention and its various aspects, as may be readily apparent to those of ordinary skill in the art, and that the invention is not limited by specific embodiments described herein. It is therefore contemplated to cover any and all modifications, variations or equivalents that fall within the scope of the basic underlying principals disclosed and claimed herein.