Method of Maximizing Accounts Payable Discounts

Abstract

A method and system for identifying discount opportunities relating to invoices on goods or services purchased by a buyer from a seller is described. Additionally, the invention is directed to a system for allowing third parties to bid on and utilize such discounts at a specified rate of return. The system allows the transaction between the buyer and supplier to be conducted in the normal course of business.

1 - 9 . (canceled)  
   
   
       10 . A method of exploiting discount opportunities relating to invoices billed from a supplier to a buyer, the invoices having invoice terms which state a discount price if the invoice is paid within a discount period and a full price of the invoice is not paid within the discount period, the method comprising the steps of: 
 inputting relevant data from all invoices received by a buyer into a computer data base;    searching the computer data base to determine which invoices have the discount price if the invoice is paid within the discount period;    generating a report with all invoices which have the discount price;    utilizing the report to pay the discount price to the supplier during the discount period.    
   
   
       11 . A method as recited in  claim 10  having the additions step of numerically coding all invoices which have a discount price.  
   
   
       12 . A method as recited in  claim 11  having the additions steps of: 
 providing information relating to the invoices on which discounts are available to prospective bidders;    receive bids from respective potential bidders which indicate the bidders terms upon which the respective potential bidders will pay the invoices during the discount period;    select a winning bidder from the respective potential bidders, the winning bidder is selected based upon select criteria, whereby if no respective potential bidders meet the select criteria, no winning bidder will be selected.    
   
   
       13 . The system as recited in  claim 12  wherein the potential bidders are pre-qualified and assigned a numerical code to indicate preferences on the type of invoices on which the respective potential bidder will bid.  
   
   
       14 . The system as recited in  claim 13  wherein the numerical coding of the potential bidders and the numerical coding of the invoice is compared, whereby only invoices which meet the respective bidders preferences will be sent to that respective bidder.  
   
   
       15 . The system as recited in  claim 14  wherein the winning bidder pays the discount price of the invoice before the end of a discount period, and the supplier receives payment of the discount price before the end of the discount period.  
   
   
       16 . The system as recited in  claim 15  wherein the buyer pays the full price of the invoice after the discount period has expired.  
   
   
       17 . The system as recited in  claim 16  wherein the winning bidder is paid the discount price plus a agreed upon return after the buyer has paid the full price of the invoice.  
   
   
       18 . The system as recited in  claim 17  wherein the buyer receives a rebate after the full price of the invoice has been paid.  
   
   
       19 - 23 . (canceled)