Financial management system including an offset payment process

Abstract

The present invention is a system that includes a first financial management system handling receivables and a second financial management system handling payables. The receivables system sends debt offset information to an offset payment system and the payables system sends payment information to the offset payments system. The offset payment system either makes a payment or offsets the payment with the debt. Both of the financial management systems receive offset information from the offset payment system. The system designates, in the respective separate receivables and payables systems, debt and payments that are suitable for offset using threshold criteria such as age, amount, party, number of notices of delinquency, etc. The system allows administrative fees and other charges, such as interest and penalties, to be added to the debt as well as the limiting of the percentage applicable to the offset at the time of the referral. During the referral of the debt to the offset payments system, the debtor as well as other parties, such as credit bureaus, are informed or notified of the delinquent debt and the referral information can be stored in a data warehouse for later analysis. The documents associated with the debt can also be stored as images allowing those involved in the workflow associated with the debt and payments to view images of the documents as needed. When an offset occurs the system feeds the amount of the offset back to the receivables and payables systems to update the records therein to reflect the amount and that the amount was an offset. That is, an authorized payment is shown as fully or partially offset and a debt is shown as fully or partially satisfied via the offset. The records of financial management systems as well as the offset system are updated when a payment is made by the debtor after a referral has occurred, when a decision is made to write-off the debt as well as when the debtor is involved in bankruptcy. The invention also provides for reconciliation of the debts, payments and offsets. Online access to the records is also provided for the debtor as well as the personnel from the organizations of the payable, receivable and offset payment systems.

What is claimed is:  
     
         1 . A payment process interacting with an offset payment system, said process comprising: 
 determining, within a computer implemented accounts receivable system separate from the offset payment system, debt to be referred for offset responsive to debt selection criteria;    determining, within a computer implemented accounts payable system separate from the offset payment system, a payment to be referred for offset responsive to payment selection criteria; and    referring the debt and the payment to the offset payment system responsive to the determinations with the offset payment system performing an offset of the debt and the payment responsive to referral.    
     
     
         2 . A process as recited in  claim 1 , further comprising updating automatically debt records responsive to an offset by the offset payment system.  
     
     
         3 . A process as recited in  claim 2 , wherein debt records comprise general ledger records.  
     
     
         4 . A payment process, comprising: 
 determining, within a computer implemented accounts payable financial management system, a payment to be referred for offset of a debt responsive to payment selection criteria; and    referring the payment to an offset payment system responsive to the determination.    
     
     
         5 . A process as recited in  claim 4 , further comprising updating automatically payment records responsive to an offset by the offset payment system.  
     
     
         6 . A storage media storing a process interacting with an offset payment system, controlling a computer and determining, within a computer implemented accounts receivable financial management system separate from the offset payment system, debt to be referred for offset payment responsive to debt selection criteria, referring the debt to an offset payment system responsive to the determination, determining, within a computer implemented accounts receivable financial management system separate from the accounts receivable system, a payment to be referred for offset of a debt responsive to payment selection criteria, referring the payment to the offset payment system responsive to the determination, and updating debt records in the accounts system responsive to an offset by the offset payment system, and updating automatically payment records in the payable system responsive to the offset by the offset payment system.  
     
     
         7 . A payment system, comprising: 
 a financial management system determining debt to be referred for offset responsive to debt selection criteria; and    an offset payment system, separate from the financial management system, receiving authorization for a payment, offsetting the payment with the referred debt and notifying said management system of an offset, and said management system updating the debt record responsive to the offset.    
     
     
         8 . A payment system, comprising: 
 a financial management system determining a payment to be made and subject to an offset responsive to payment selection criteria; and    an offset payment system, separate from the financial management system, receiving the authorization for a debt offset, offsetting the payment with the debt and notifying said management system of an offset, and said management system updating the payment record responsive to the offset.    
     
     
         9 . A payment system, comprising: 
 a first financial management system providing accounts receivable functions determining debt to be referred for offset responsive to debt selection criteria, producing a debt offset authorization;    a second financial management system providing accounts payable functions, separate from the first system and determining a payment to be made and subject to offset responsive to payment selection criteria and producing a payment offset authorization; and    an offset payment system, separate from the first and second financial management systems, receiving the debt and payment authorizations, offsetting the payment with the referred debt and notifying said first and second management systems of an offset, the first and second management systems updating automatically the debt and payment records within the first and second financial management systems responsive to the offset.    
     
     
         10 . A payment process interacting with an offset payment system, comprising: 
 accessing debt selection criteria within a computer implemented financial management system separate from the offset payment system;    determining, within the computer implemented financial management system, debt to be referred for offset payment responsive to the debt selection criteria; and    referring of the debt, by the computer implemented financial management system, to the offset payment system responsive to the determination.    
     
     
         11 . An offset process, comprising: 
 determining, within a computer implemented accounts receivable management system, debt to be referred for offset;    determining, within a computer implemented accounts payable management system, a payment to be referred for offset; and    referring the debt and payment to an offset payment system for offset and receiving a confirmation of an offset.    
     
     
         12 . An offset process, comprising: 
 determining, within a computer implemented accounts receivable management system, debt to be referred for offset;    determining, within a computer implemented accounts payable management system, a payment to be referred for offset;    referring the debt and payment to an offset payment system for offset and receiving a confirmation of an offset; and    performing multiparty accounting functions within each of the accounts receivable and payable systems allocating the offset to multiple sources and destinations.    
     
     
         13 . An offset process as recited in  claim 12 , further comprising: 
 sending notification, by the accounts receivable management system, to the debtor of the offset.    
     
     
         14 . An offset process as recited in  claim 12 , further comprising: 
 sending notification, by the accounts payable management system, to the payee of the offset.    
     
     
         15 . An offset process as recited in  claim 12 , further comprising: 
 sending notification to a third party of the offset.    
     
     
         16 . An offset process as recited in  claim 12 , further comprising: 
 sending notification, by the accounts receivable management system, to the debtor of the offset;    sending notification, by the accounts payable management system, to the payee of the offset; and    sending notification to a third party of the offset.