The present disclosure relates generally to a data entry management in an accounting system. In particularly, the present invention relates to an improved method, system and application wherein any user can maintain accounts and make data entries of his accounting / financial transactions accessible for entries by other users in a database which is shared in common by each user. More particularly, this invention relates to a method, system and application which permit the manipulation of central database by any user which is simultaneously active between other users. The data by any of the user can be entered, updated, verified, modified and synchronized by any of them in the central database.

BACKGROUND OF THE INVENTION

One of the biggest concerns for any business entity today is reconciliations, whether it be with its supplier or its customers. With individual accounts, reconciliations are often tedious, time consuming and thus lead to unsettled accounts, delays and often a bad relationship between parties due to mis-understandings.

Traditional accounting systems allow for each transaction to be recorded by each party involved in the transaction individually. These transactions are later reconciled, over tele-communications, emails, personal meetings or over a cup of coffee across the table. In order to get a correct reconciliation, difference in each transaction, if any, has to be found and extracted.

The known approach is that the users generally make entry into their respective database and maintain separate database for the same set of transactions between them. This requires regular reconciliation after uncertain gaps of time, depending on when both parties are free at the same time and are able to access their respective database at that particular time. Also, the rectification involves checking all the entries whether they are same in both the database or are at variance, leading to a lot of time and effort wastage.

When the same set of data is entered in two different entities for accounting purpose, there is also an enormous duplication of data input efforts accompanied by data verification and cost of managing data entry errors.

If the accounting systems are capable of sharing data then the need for data input at the second location which responds to the originating transaction is grossly reduced. The second enterprise can import the shared data already in the system and hence avoid the cost of reentry, verification and error management.

These problems get multiplied when a transaction simultaneously affect multiple parties since the current accounting system duplicates entries in each of these entities rather than sharing a common data base of information. In the current accounting systems, it often becomes necessary for the audit of one enterprise to depend on certain data from the other enterprise such as the “Confirmation of Balances”. Non-receipt of such information or delay may cause hold up of finalization of accounting at the enterprise.

In the contemporary system, when a transaction takes place between two different business entities, the accounting records are generated at each of the entities. As a result, when goods are sold from one party A to another party B, the physical event of dispatch of goods gets recorded in a series of transaction sets each of which has the two elements of debit and credit.

For example, when A sells goods to B worth Rs. 100, in the books of A, B's account is debited and Sales account is credited with an amount of Rs. 100. When this transaction comes to the knowledge of B, he records it as a debit of Rs. 100 to his Purchase account and credits to A's account in his books. Thus, the one event of a dispatch of goods worth Rs. 100 is recorded at both ends of the transaction separately.

Subsequently when B makes a payment to A in the form of a cheque on Bank C, the originating party of this transaction namely B debits A's account in his books and credits his Bank account. When the cheque comes to the hands of A, he will debit his Bank account and credit B's account in his book.

It may be observed that in such transactions the same event has to be recorded at two places with a lot of overlapping of information. As a result of this system, one single business transaction of sending goods creates several sets of transactions to be accounted at different places.

Moreover, during such multi party transactions, there will be a time lag as well for the information to reach from one end to the other. In such cases, one party would have taken into account the effect of the event while the other would not have. This may result in an apparent discrepancy between the two parties which is explained through a record referred to popularly as the “Reconciliation Statement”.

In an actual business environment consisting of a multiplicity of parties and transactions, at any point of time, the account books between two entities always keep showing a discrepancy which needs to be reconciled. Hence “Reconciliation Statements” are important documents of the current accounting system along with documents such as “Profit and Loss” Accounts and Balance sheets.

Thus, duplicity of recording and need for continuous reconciliation are the two features of the contemporary accounting system that results in wastage of resources on a massive scale.

Additionally, in the existing system of accounting, every transaction generated at one enterprise will remain in float for a long time until it is suitably acknowledged at the destination enterprise. These records in float cause a need for “reconciliation” of account from time to time. If the accounting system could record transactions as and when they occur and match it with the destination response, the reconciliation would be achieved in real time. The subject invention is designed to achieve this objective.

As the reconciliation of such database generally wastes even more time as it is done manually and may involve for example verbal consultation between two parties for rectifications, verification and correction of entries before finalizing the corrected final database. Further the agreed corrections will have to be entered separately in each database by the respective parties and this again leaves a margin of error if any party neglects to correct his database. Reconciliation of accounts also requires too much effort in understanding and removing differences in accounts which could be time consuming activity spread over large time length and multiple transactions. Even after reconciliation for a given set of transactions it is only achieved at one point of time and relevant for the targeted set of transactions only. The whole exercise of data entry, consultation and reconciliation is to be repeated for every new or fresh data. Thus, reconciliation is a complex and time consuming process and is often a cause of disputes as entries could be missed or misinterpreted.

It is known that multiple users can work on a common shared database in the contemporary system. However, all such multiple users are of the same side of party in a transaction, for example an accountant, senior accountant and junior accountant of a party in a transaction work on same database concurrently shared between them. Such system has the limitation in that it does not allow a shared common database to be worked upon simultaneously by the opposing party to a transaction.

As such, the known approach for data entry in an accounting system in the prior art includes several shortfalls from the user's point of view. For example, simultaneous interactive access of multiple entries in a common database by other users is not allowed with known systems. Additionally, users may not access and modify multiple entries of the same type concurrently. Known systems also do not permit users to perform a single set of operations concurrently and in tandem on multiple entries of the same type which are displayed and accessible to different users in a plurality of interface.

A need exists, therefore, for a method, system and application whereby data may be entered by a user in a central database which is simultaneously active and accessible by other users. Additionally, there exists a need for a technique whereby data entered by any user in a central shared database may be manipulated by other users such that the central shared database is simultaneously active and accessible by all the users of the central shared database.

SUMMARY AND OBJECTS OF THE INVENTION:

The subject invention overcomes the deficiencies of the prior art by providing a method, system and application for accounting entries of intra-enterprise and inter-enterprise transactions in a central shared database on a real-time basis, wherein any user, for example user A can maintain accounts and make data entries of his accounting / financial transactions which is accessible by other users, for example user B in a database which is shared in common by each user.

A primary object and advantage of the present invention is to provide an improved method, system and application whereby data may be entered by user A in a central database which is simultaneously active and accessible by other users for example user B once shared.

Yet other object and advantage of the present invention is to provide a new system of “Concurrent Accounting of multiple entities” which substitutes the current methods of accounting.

Another object and advantage of the present invention to provide an improved method, system and application whereby data may be manipulated by any of the users within central database which is simultaneously active and accessible by other users.

Another object and advantage of the present invention is to provide an improved method, system and application which allows users to work on the same data at the same point of time, allowing them to make data entry and verify each others entry thus removing the need for reconciliation at different times.

Another object and advantage of the present invention is to provide an improved method, system and application wherein multiple database is created for user so that they can independently be working on database shared between them.

Another object and advantage of the present invention to provide an improved method, system and application wherein consistency in data entry is maintained as they are entered by users till the time a reconciled data is not agreed upon by maintaining, for example, a method, not being limited, to identify the entry by a color attribute controlling system wherein different colors are allotted to the entries of different users. For example, the entries of user A can be identified by red color and entries of user B can be identified by blue color.

Yet another object and advantage of the present invention to provide an improved method, system and application for accounting wherein multiple database can be created for each set of users which can be synchronized and shared between users.

A further object and advantage of the present invention to provide an improved method, system and application wherein a user can create and share a link to a central database with other users. The sharing of central database includes permission control to one user by another user without which the database cannot be available and accessible to another user.

Yet other object and advantage of the present invention is to provide an improved method, system and application for accounting whereby the information of the event that generates the accounting entry could be shared by both users i.e. user A and user B, such that the data stored would be reduced by as much as 50% or more.

Yet other object and advantage of the present invention is to provide an improved method, system and application for accounting which could record transactions as and when they occur and match it with the destination response in real time, thereby removing the need of reconciliation.

In one aspect of the present invention, there is provided an improved method for data entry and manipulation by any user in a central database which is simultaneously active and accessible by other users.

In another aspect, the present invention relaters to an improved system for data entry and manipulation by any user in a central database which is simultaneously active and accessible by other users.

Yet another aspect of the present invention relates to an application for data entry and manipulation by any user in a central database which is simultaneously active and accessible by other users.

Accordingly, the present invention relates to a method for maintaining and processing accounting entries in real time by users in a central shared database, the method comprising the steps of: making an entry in a central database shared by users in pre-defined fields; monitoring the entry in real-time; verifying and confirming the entry in real-time.

Other aspects of the present invention relate to a system and apparatus for maintaining and processing accounting entries in real time by users in a central shared database.

BRIEF DESCRIPTION OF ACCOMANYING DRAWINGS:

The above, as well as additional objects, features and advantages of the present invention, will be better understood through the following illustrative and non-limiting description of preferred embodiments of the present invention, with reference to the appended drawings, wherein:

FIG. 1 illustrates a prior art system of accounting;

FIG. 2 illustrates a real time accounting system according to the present invention;

FIG. 3 illustrates an example embodiment of a process and parties typically involved for creating a link to a database of the present invention;

FIG. 4 illustrates and example embodiment of a process and parties typically involved for making a data entry in the central database shared by users according to the present invention.

DETAILED DESCRIPTION OF THE INVENTION:

FIG. 1 refers to a traditional accounting system or practice wherein user A and user B maintain separate books of accounts which are reconciled from time to time via several interactions, emails, telephonic conversations, courier or across the table or other suitable means.

The foregoing objects and advantages are achieved as is now described.

A novel method, system and application of accounting of intra-enterprise and inter-enterprise transactions in a central shared database on a real-time basis are provided. The present invention provides a unique system of recording of the transaction elements in a central shared database securely accessible by multiple users of the system. The system is designed to generate self-configured information extracts, or user oriented reports or reports to meet the accounting needs of the members/users.

As illustrated in FIG. 2, all users are connected to a central database 30 and maintain opposing ledgers. For example, user A is connected to user B. The transaction entries made by A or B can be seen by either of them in real time along with records, such as sale invoice, GR details, proof of payment such as cheques etc. This real-time attachment of supporting documents remove the need of mailing or sending couriers with proof/statements. Thus, in the improved system of the present invention, a transaction between two users A and B can be entered in a central database 30 by either of A and B. Once entered the other user can simply accept if the data entered is correct or challenge the entry if there is any dispute or the data entered is not correct.

The system is designed to generate concurrent accounting entries on a real-time basis. However, in the best embodiment version, the system would be capable of both real time and non-real time operation. In other words, if both the users A and B or accounting entities are online when a transaction event is reported to the system, the accounting happens in real time. If the users are not online when the event is first reported to the system, it will be temporarily stored in the user's computer where it is created and update the system at other computers whenever the user goes online and interacts with the application.

Further, this system is extremely suitable for stretched transactions. For example, if user A booked material to user B. User A makes sales entry in the database 30. User B is immediately notified of such entry. User B, gets material after three days. Once received, user B accepts the sales entry and confirms the transaction. Similar process can be adopted for payments.

The system uses a set of methods/process for taking into consideration how reconciliation of accounts between two parties can be done. In one of the embodiments, the central database 30 maintains ledgers for both users along with differences in entries. These differences can be settled through the system itself, for example a query with respect to any entry by user A can be raised and a satisfactory correction/response can be posted by other user B resolving the difference or by consultation over telephone or through personal meetings. Thus, in this improved system any issues or differences can be brought to the attention of the other party in real-time and can be easily resolved without wasting time in finding them and keeping a record of such issues or differences. Thus, the entire reconciliation becomes automatic in real-time.

The system is capable of being developed on any standard software platform running on a standard computer device connected to a network and/or Internet. It encompasses the traditional systems of financial accounting, inventory accounting, reconciliation of business transactions and other financial transactions.

A user can create and share a link to a central database 30 with other users. The sharing of central database 30 includes permission control to one user by other user without which the database cannot be available and accessible to other user. Provisions are also provided for creation of user centric database in the central database 30 for each set of opposing users so they can independently be working on database shared between them.

An exemplary process for creating a link to a central database 30 of the present invention for carrying out the described method is illustrated by the flowchart 200, of FIG. 3. The process begins at 202, and as a first step 204 in order to create a link, a user for example user A/user 1 is required to enter the mobile number or unique ID at 206 of another user for example user B/user 2. The system determines if the user B is a registered user or not at 208. If the user B is a registered user a request to create a link is sent to user B at step 212. User B accepts the request at 216 and the system creates a user centric database for user A vs user B at 220 for entries of transaction details in the central database 30. If user B does not accept the request a message notifying that the request has been cancelled by user B is sent to user A at 220. If the user B is not a registered user a link is sent to user B to download the app and to get him registered and the entire process discussed above is repeated and the process ends at 222.

In a preferred embodiment, one unique ID for example based on PAN number or mobile number is provided to a specific user. The network operator provides to the subject user certain test transaction parameters, to include at least a PAN or mobile number on which to process the test transaction, and a predetermined transaction amount.

In one of the embodiments, just one transacting party i.e. user A records and make an entry of the transaction in the central database 30. The opposing party i.e. user B gets a real-time notification of the entry made by user A using an App on a mobile device for example, smart phone, laptop, tablets etc. Thus, if user A records a sale entry in the central database 30, user B gets a real-time notification and sees a purchase entry made by user A immediately. User B has the option of either accepting the same transaction (to achieve the real-time reconciliation), or challenge the same and make an entry/comment which is correct according to user B. The reasons for the correction is pointed out and supported with documents, if needed, which can be easily extracted in real time by user A. The corrected entry is verified by user A and confirmed by user A if correct to the satisfaction of user A.

To explain it further, reference is now made to the flowchart 100, of FIG. 4 which illustrate an exemplary process for making a data entry in the central database 30 shared by users according to the present invention. The process begins at 102, wherein a user, for example user A/user 1 being party to a transaction intends to make an entry in the central database 30 at step 104 and makes an entry at 106. At step 108 user A checks if any entry has been made by another user, for example user B/user 2. If an entry has been made by user B, it is checked by user A at 112. The correctness of the entry is determined at 114. If the entry is correct to the satisfaction of user A and B it is verified at step 116. If the entry is not correct then it is challenged at 118 and the correct or desired entry is made at 120 and the entire process of verification is repeated and the process ends 124. Likewise, the entry made by user A, if correct is verified at 116 by user B and record is reconciled to the satisfaction of both the users.

In one of the embodiments, the database 30 commence operation in a consistent state and the consistency is maintained to each database as they are entered by users including opposing parties/users to a transaction by maintaining, not being limited to a color attribute controlling system. For example, in the proposed accounting system, a central database 30 is maintained which is simultaneously active and accessible by user A and user B concurrently where user A and user B are opposite parties involved in the same transaction. When user A enters data in the central database, it is displayed in light blue color. Upon verification of this data entry by user B, the data entered by user A converts to, not being limited to, for example dark blue color.

Likewise, when user B enters data in the central database, it is displayed in light green color. Upon verification by user A, the data entered by user B converts to dark green color. Thus, the same data can be entered by either user A and B and be verified by the other user. Provisions are also provided to challenge the entries made. A user can challenge any data entry made by other user and can share his comments for not verifying the entry. The anomaly with respect to such data entry can be sorted out after sharing further information between the users and final data can be entered after resolving the anomaly. The provision is also provided to concurrently display the differences in the data entered by user A and user B which can be sorted out after sharing further information between the users and final data can be entered after resolving the differences. Once all the differences are removed and each of the data entry is verified and a synchronized data is finalized. Throughout the data entry, the data entered is stored in a common location.
From the foregoing description, it will be apparent to one ordinarily skilled in the art that many changes and modification can be made thereto without departing from the spirit or scope of the invention as set forth herein. Accordingly, it is not intended that the scope of the foregoing description be limited to the description set forth above, but rather that such description be construed as encompassing all of the features of patentable novelty that reside in the present invention, including all the features and embodiments that would be treated as equivalents thereof by those skilled in the relevant art.
Thus, it is intended that the scope of the present invention herein disclosed should not be limited by particular disclosed embodiments described above but should be determined only by a fair reading of the appended claims.

CLAIMS:I CLAIM:
1. A method for maintaining and processing accounting entries in real time by users in a central shared database, the method comprising the steps of: making an entry in a central database shared by users in pre-defined fields; monitoring the entry in real-time; verifying and confirming the entry in real-time.

2. The method as claimed in claim 1, comprising the step of challenging the entry in real-time if not correct.

3. The method as claimed in claim 2, wherein the correct entry is made by a user and notified to another user in real-time with documents supporting the correction.

4. The method as claimed in claim 1, comprising the step of sending a real-time notification of each entry made to the central database by one user to another user.

5. The method as claimed in claim 1, wherein the accounting records of each of the users is generated as per pre-configured reports.

6. The method as claimed in claim 1, wherein the central database is accessible by each of the registered users in real-time.

7. A system for maintaining and processing accounting entries in real time by users in a central shared database as claimed in claims 1 to 6.

8. An apparatus for maintaining and processing accounting entries in real time by users in a central shared database as claimed in claims 1 to 6.