60/078,401, filed March 18, 1998.

FIELD OF THE INVENTION This invention relates to the method of automating the creation of expense reports, and to a method of automating the expense report reconciliation process.

BACKGROUND OF THE INVENTION Currently, people who are required to purchase goods and/or services incidental to business travel or business expenses must complete expense reports to be reimbursed for those expenditures on behalf of an employer. For the most part, this process is a manual one. Typically, one must manually enter the transaction data into an expense report form and submit the completed form to an employer for reimbursement.

These transactions are typically made on a credit, charge or debit type cards.

Once a month, the card company sends a bill or statement of charges to the user for payment or review. The user is then faced with the manual task of reconciling the transactions on the card statement with previously submitted expense reports.

Research has shown that both of these processes are time consuming and laborious. Further research has shown that the process can be automated by the use of electronic methods, thus reducing the time and cost associated with expense report generation and reconciliation.

SUMMARY OF THE INVENTION Briefly, the present invention is directed to a system and method for automated expense report generation and reconciliation. Transaction data for card users is downloaded to a centralized expense report server. The expense report server sorts through the transaction data and generates expense report data for card users. The expense report server communicates with card users to tailor expense reports to user preferences, such as frequency, content, etc. The expense report data may consist of a predetermined expense report form populated with transaction data, or may consist of a data file in a format readable by conventional spreadsheet software applications resident on personal computers of users.

The above and other objects and advantages of the present invention will become more readily apparent when reference is made to the following description taken in conjunction with the accompanying drawings.

BRIEF DESCRIPTION OF THE DRAWINGS FIG. 1 is a block diagram showing the basis components of the system according to the present invention.

FIG. 2 is a flow chart showing the process steps of the automated expense report method according to the present invention.

FIG. 3 is a flow chart showing the process steps of an automated reconciliation method according to the present invention.

FIG. 4 is a flow chart showing the steps of an automated expense report generation method according to an alternative embodiment of the present invention.

DETAILED DESCRIPTION OF THE INVENTION The present invention is directed to a system and method to expedite the process of expense reimbursement. The present invention automates conventional manual expense reimbursement processes.

Referring first to FIG. 1, the hardware components of the system will be described. The system, shown generally at reference numeral 10, comprises a user site consisting of a user personal computer (PC) 20 that is connected to a shared network 30 (intranet, internet, etc.) through a user communication device 22, such as a modem.

The user site (s) may be an individual located at a single location of a small business, or at multiple locations of a larger businesses. An employee of the business has access to a user PC 20 in order to enable the automatic expense report methods described herein.

Each user has an assigned and unique card account and may receive expense reports associated with the usage of the card at unique user PC 20, or any user PC 20 where the user has access.

The expense report server 40 is connected to the shared network 30 by a suitable communication device (not shown for simplicity). A database 42 is also provided for storing expense report data, as will be explained further hereinafter. The expense report server 40 is a computer that executes a software application program that performs the unique automatic expense report processes according to the present invention. This

software application program is resident on the expense report server 40. The expense report server 40 may reside at a location remote from the physical site of the user PCs 20, or at the same location. That is, the functions of the expense report server 40 may be provided as an unaffiliated third party service to a business or corporation without having a physical presence at the business or corporation.

The expense report server 40 communicates via the shared network 30 with a card company in order to access transaction data. The card company typically has a card company database 50 that stores records of transactions initiated by its card account holders, a card company computer processor 52 which manages information in the database 50, and a communication device 54 such as a modem to receive and transmit information incidental to the management of transaction data. It is possible that the expense report server 40 will manage the expense services for card accounts whose data resides at several different card company and card company processors. It is also possible that the functions of the expense report server 40 be executed by a card company processor.

Generally, the automated expense report system and method of the present invention involves receiving transaction data for a plurality of card users from their respective card processor databases; sorting through the transaction data for each of the plurality of card users to identify those transactions that have not been included in prior expense reports sent to a card user; automatically generating expense report data comprising data for new transactions for a card user; and transmitting the expense report data to a card user.

Expense report data may be transmitted to a user through several types of electronic means. One transmission technique well known in the art is e-mail whereby messages with or without attached data files are transmitted to the internet address of individuals through an intranet or internet. Another technique is to establish a World Wide Web (hereinafter"web") site from which the expense report server conducts communication with users. A user would log on to the web site with a unique password and select to download a pre-populated expense report form without the use of e-mail.

The expense report form could be in a variety of spreadsheet formats, such as Microsoft

Excel or Lotus. Likewise, a user can easily complete forms that are provided on a web site in order to enroll with the expense report server, without the use of e-mail.

Turning to FIG. 2, one embodiment of the automated expense report method is shown. Initially, a card user wishing to participate in the automated expense report program enrolls in step 100. Enrollment involves contacting card users, such as by e- mail or other marketing means common in the industry (web site advertising, printed materials, etc.), and inviting them to participate in the program, together with an explanation of how the program works, its benefits and the process to get started. Also included in the e-mail is a company reference number (CRN) identifying the employer of that particular card user. The employee completes an attached enrollment form with the employee's credit card number. This completed form is entered into the expense report server 40 by any of the electronic transmission techniques described above. The expense report server 40 also captures the employee's e-mail address, web site address or other means of communication with the employee and provides a CRN for future delivery of expense reports. The employee's e-mail message may be encrypted using well known e-mail encryption technologies.

Alternatively, enrollment may be achieved in another manner. If the company, or the employee does not want to send their credit card number via e-mail or over the internet, the employee can use a printed form and send it by facsimile or mail to have the information entered thereon into the expense report server 40, or call by telephone the expense report server 40 and enroll using voice response unit or a customer service representative, etc., to enroll with information such as, employee name, employee e- mail address, credit card number, expiration date, CRN or web site address.

Once the employee has completed the enrollment, automatic expense report processing can begin processing any charges that occur on the employees charge card.

Next, in step 105, the expense report server 40 contacts the card company database for the newly enrolled card users to establish a periodic download for transaction data corresponding to enrolled card users. This step need be performed only once for each newly enrolled card user. Typically, the transaction data is downloaded in batch form every evening from the card company database 50 to the expense report server 40.

In step 110, transaction data for enrolled card users is downloaded from the card company database (s) to the expense report server 40 for all enrolled card users. Again, this may occur on a daily batch basis, or alternatively, on demand by a card user.

In step 115, the expense report server 40 sorts through the transaction data for each enrolled card user to select certain transactions based on various criteria. For example, the transaction data may be sorted to identify only those transactions that were not processed in a prior session to incorporate into an expense report, to identify only those transactions that involved the purchase of certain goods or services based on one or more standard industry classification codes (SICs), etc.

Next, in step 120, the expense report server automatically generates an expense report data for enrolled users based on new transactions or other criteria, such as expiration of a predetermined time period since the last expense report. Several types of expense report data may be generated and will be described hereinafter.

The step of automatically generating the expense report data may include many optional processing features to expedite review and processing of the expense report.

For example, the type of transaction can be recognized based on, for example, the SIC code, in order to automatically place data for a transaction in a designated field of an expense report form. As an example, a"lodging"SIC code can be recognized to put the data for that transaction into the"lodging"or"hotel"column or field of an expense report. Similarly, the time of day of a transaction coupled with a SIC code can automatically be recognized to place data for that transaction in the"lunch," "breakfast,"or"dinner"meal column of an expense report. Further, the date of a transaction can automatically be recognized to place the data for the transaction on the proper day and date of an expense report. These data elements are captured by the credit card company which are then sent to the expense report server. The data elements are then processed by the software at the expense report and entered into an expense report.

Next, in step 125, the expense report data is transmitted (preferably by the internet by downloading from a web site or by e-mail) to the card users where the card users can read and, if necessary, edit the expense report data. The data file may be

protected with well known encryption techniques provided in third party spreadsheet software applications or additional dedicated encryption software.

Finally, in step 130, the card users can submit the expense report for approval and payment. Submission of the expense report may involve transmitting it to a supervisor for approval. In addition, the user may store an expense report in the user PC 20 for later reference. Submission may also involve transmission to the expense report server to be used for record retention or comparison of submitted expenses which are described hereinafter.

FIG. 2 illustrates the basic flow of the automatic expense report method of the present invention. There are several variations that will be described in detail hereinafter.

Once enrolled, a card user may initiate the generation and transmission of expense report data. For example, a user may generate a request including information specifying selections of transaction data corresponding to transactions to be reported together with an identifier that identifies him/her. The information specifying the selection of transaction data may consist of a time period (e. g., January 1,1999 through January 30,1999), one or more types of transactions (based on SIC code), etc.

A request may be transmitted to the expense report server 40 by the internet (web site), e-mail or other electronic means. In response to the request, the expense report server contacts the card company to obtain transaction data corresponding to the request. The expense report server then generates expense report data based on the received transaction data, and the expense report data can then be transmitted to the card user that initiated the request.

Automatic generation of expense report data can occur in many ways. For example, the expense report data can store one or more expense report templates, and a particular one of the templates is populated with transaction data. A company can make a simple customization to the expense report by adding its company name.

Alternatively, a company representative can send to the expense report server 40 a copy of the expense report used by that company. The expense report server 40 can then take the expense report, map it against the credit card schema for that company, and store the completed form. When employees of that company are enrolled in the program, the

expense report server uses the completed form that has been mapped with the data components. If an expense report template stored at the expense report server 40 is to be used for a particular group of card user (s), the company's CRN (employee ID number or similar identifier of the employee) will be used to trigger the selection of the proper expense report template.

Alternatively, the expense report server 40 may process the expense report data into a format suitable to automatically populate an electronic spreadsheet in a spreadsheet software application program resident on a user PC 20. For example, the expense report data is put into a file format for a Microsoft Excel program, or a Lotus 123 program. A data file comprising the expense report data in one of these formats is created and transmitted to a user PC 20. When the user at the user PC 20 opens the data file containing the expense report data (as an attachment to an e-mail message or downloaded from a web site), the spreadsheet application will be automatically launched and populated the expense report data.

Turning to FIG. 3, a method for automatically reconciling card transactions with expense reports will be described. In step 200, transaction data from card companies for enrolled card users is downloaded to the expense report server 40. Next, in step 205, the expense report server 40 accesses its database 42 to retrieve one or more expense reports previously generated for that card user. In step 210, the expense report server 40 compares the transaction data with the previously generated expense reports to identify matches and non-matches. That is, the expense report server 40 will identify those transactions that did not appear on a previous expense report. A comparison report reflecting the comparison results is then generated in step 215, which then is transmitted to the user. Furthermore, an existing expense report may be edited to include the new transactions, or a new expense report data may be generated by the expense report server 40 to include transactions that were not included in an existing expense report.

As explained above in conjunction with FIG. 2, the process of FIG. 3 may be initiated by a user generating and transmitting to the expense report server a request including information specifying selections of transaction data to be reported together with an identifier of the user. The information specifying selections of transaction data

may specify that transaction data is to be transmitted to the expense report server on a predetermined periodic basis. Alternatively, selection could have been made at enrollment and the data sent on a periodic basis. For example, a user may desire that all transaction data be sent once per week, and this selection would be made during enrollment. Each week, the user would receive expense report data automatically.

Turning to FIG. 4, an automated expense report method according to another embodiment of the present invention is shown. In step 300, a card user enrolls with the automated expense report service, in much the same manner described above in conjunction with FIG. 2. Transactions of enrolled card users are accumulated by their respective card company processor databases. In step 310, the expense report server 40 downloads transaction data for enrolled users from their respective card company processor databases. This transaction data is sent or downloaded to the expense report server 40 in a daily batch mode.

In step 320, the expense report server 40 searches through the transaction data to identify transactions for each enrolled card user that have not been included in previously generated expense reports, or that have not otherwise been notified to the card user by the expense report server. In step 330, the expense report server 40 may send each card user a message (such as an e-mail message) notifying the card user of the new card activity.

In step 340, the user opens the attachment to the notification message which launches a spreadsheet application on the user PC. When the spreadsheet application opens, a dialog menu will appear that informs the user that there are new transactions on the card, and asking the user to specify a selection (such as a time period) to cover for an expense report. Alternatively, the user may have elected to have the expense report data sent on a predetermined basis (e. g., weekly, the 15 and last day of each month, etc.) as described previously.

In step 350, the user makes a coverage selection for the expense report. This may be achieved by selecting from a pull down menu in the spreadsheet application to specify the date of the beginning and end of the expense reporting period desired, selecting only transactions involving one or more SIC codes, etc. Then, the user responds to the notification message with a selection. If the card user responds to the

notification message without the attachment or a specified expense report period, the expense report server will send out another notification message until the card user responds correctly.

In step 360, the expense report server receives the updated attachment from a card user and does a sort of the transaction data for that card user which fall within the specified expense report period. In addition, if there is a particular type of expense report form to be used for that card user, the expense report server recognizes this and puts the expense report data in the proper format. The expense report data is transmitted by internet, intranet, e-mail, etc., together with an expense report data file attachment, to the card user in step 360.

In step 370, the card user receives the message, opens the attachment which launches a spreadsheet application on the user PC. The card user reviews the populated expense report form for accuracy. The card user may edit the form by adding or deleting transactions. In addition, transaction (s) can be moved between different expense report (s), or added into a new expense report form. If charges appear in the expense report data that the card user believes are not authorized, the card user can flag those so that they can be reviewed by the card company. Ultimately, the card user will finalize the expense report form and submit it for approval and payment.

The automated expense report method of the present invention simplifies the process of accounting for business expenses so that employees can be reimbursed quickly, and so that employers can accurately account for these business expenses. The card user has the ability to request that expense reports be generated on a periodic basis that is more frequent than a typical billing cycle of a credit card company.

Additionally, the card user is not required to use paper receipts as the primary method of expense reporting. As a result, the card user can be reimbursed more promptly. In addition, card users will be notified of any unauthorized transactions generated from lost or stolen cards (or otherwise unknown charges) much faster. The card user can then promptly notify the card company of the unauthorized transaction activity.

In summary, the present invention is directed to a method for automatically creating an expense report comprising steps of:

at a user site, the steps of: generating a request including information specifying selections of transaction data corresponding to transactions to be reported for a particular user together with an identifier for a particular user; communicating the request to an expense report server; at an expense report server, the steps of: receiving a request from a user; communicating with a card processor database and electronically receiving transaction data from the card processor database; automatically generating expense report data representing transaction data received from the card processor database; and transmitting the expense report data to a user.

In addition, the present invention is directed to a method for automatically reconciling expense reports comprising steps of: receiving transaction data at an expense report server from a card processor database for a particular card user; accessing a database containing stored expense report data that have been processed for the particular card user; and electronically comparing expense report data with the transaction data to identify matches and non-matches of transactions.

Still further, the present invention is directed to a method for automatically creating expense report data comprising steps of: receiving transaction data for a plurality of card users from their respective card processor databases; sorting through the transaction data for each of the plurality of card users to identify those transactions that have not been included in prior expense report data sent to a card user; and automatically generating expense report data comprising data for new transactions for a card user.

Further, the present invention is directed to a method for automatically generating expense reports comprising steps of: enrolling a plurality of card users to receive expense report data based on transactions initiated with charge cards of the respective card users; downloading transaction data from card companies corresponding to the charge cards of the card users; sorting through the transaction data to determine when new transactions have occurred for a card user; transmitting a message notifying a card user when it is determined that new transactions have occurred. Additional steps include receiving a response from a card user including parameters for defining an expense period; generating expense report data based on the expense period parameters; and transmitting expense report data to a card user.

The above description is intended by way of example only and is not intended to limit the present invention in any way except as set forth in the following claims.