Blockchain based Invoice reconciliation and dispute resolution
When there are disagreements over financial settlements, productivity suffers in every industry. When an invoice and the corresponding products received paperwork don’t line up in the supply chain, for example, procedures that may even be part of an automated procure-to-pay workstream come to a halt. Hundreds of mobile carriers must reconcile billions of records for mobile roaming charges and associated fees, affecting even data-driven businesses like telecommunications.
When records from different parties conflict, transactions are sent to an analyst for manual processing. After then, both parties must devote a significant amount of time and effort to reaching an agreement. This diverts resources away from activities that offer genuine value to a company, such as data analysis and process improvement.
Furthermore, the impact on working capital is enormous. Even while disagreements account for a small percentage of total transactions, even a minor improvement in the dispute resolution process can yield significant benefits.
The following are some of the proven advantages of a blockchain-based invoice reconciliation and dispute resolution solution:
- Disputes are resolved faster.
- Manually resolving conflicts saves time and money.
- There’s a lower chance of disagreements not being resolved effectively.
- There are fewer monetary reserves held up while waiting for a disagreement to be resolved.
- Better relationships with partners, suppliers, and customers throughout the value chain
There is a better approach to settling disagreements. What is the mechanism behind it?
This is how it goes. Participants send process data directly to the blockchain from their systems of record, allowing selected participants to see it (and to no one else, preserving privacy in an environment where multiple parties are participating). This method also eliminates errors associated with manual data entry.
In order to establish the core cause of any dispute, business logic looks for conflicts between data pieces and documents. Is the mismatch in the supply chain attributable to a unit of measurement error, a delivery location error, or the quantity supplied, for example? In order to settle roaming charges in the telecom industry, everyone must agree on the amount of data, text, and voice that will be consumed, as well as the rates that will be paid. As fresh data becomes available, all comparisons are performed in near real-time. As a result, problems are discovered and addressed as they arise, drastically lowering the time it takes to resolve a dispute.
In order to reach a consensus, automated dispute resolution rules synthesize the discrepancy data. This decision, as well as the regulations that govern it, is made public to all needed participants. The system of record is then updated with the final consensus decisions. All data, inconsistencies, and subsequent conclusions are saved on the blockchain distributed ledger to generate a thorough, unchangeable audit history.
Establishing a foundation for stronger supplier relationships through blockchain-based invoice reconciliation and dispute resolution in retail.
Home Depot is one of the companies that has used our adaptable dispute resolution system. The company and its partner providers can access the same data simultaneously, allowing for speedy resolutions. The actual value to a store in the development of stronger supplier connections.
The organization is currently experiencing a 65 percent drop in disputes and dispute resolution timeframes of days rather than weeks or months, resulting in stronger supplier relationships built on collaboration and trust. Building on its success, the company is now expanding to hundreds more partners and adding new use cases that will continue to improve supplier relations.
Automating and streamlining mobile roaming costs clearing and settlement.
Syniverse, a worldwide mobile network and technology solutions company, uses Blockchain to provide the world’s largest international roaming transaction clearing and settlement service. The service provides cell operators with a comprehensive set of cloud apps for managing to roam, from data collecting to clearing and settlement to cash, with 263 billion records and 3.4 million invoices processed annually.
Applications that use blockchain and smart contracts to automate workflows, apply business rules to the settlement process, and, in many cases, settle differences in the network are included. When human intervention is required, blockchain provides immutable storage of contractual terms and agreements and other transaction documents, making all necessary reconciliation data immediately available to both parties.
Blockchain-based invoice reconciliation and dispute resolution
This dispute settlement solution is reproducible, as I mentioned previously. That is, we have already constructed it for existing clients and can easily duplicate it for other firms and their partners. Business rules and logic, user interface templates, APIs for record systems, and other assets can be customized for organizations in any industry based on how they want to do business together.
Companies can get from concept to operating pilot in as little as three months by leveraging an existing customizable solution and Blockchain Services’ expertise. You can start scaling by adding new participants to the network after using what you learned from the pilot to harden the infrastructure.
The system is based on Blockchain Platform, which is a commercialized version of The Linux Foundation’s open-source Hyperledger Fabric project. The Blockchain Platform is cloud-agnostic, meaning it may run on-premises or in any cloud. Each stakeholder in the blockchain network can store their data on their own IT infrastructure or with a third-party cloud provider. Because the platform complies with GDPR, it is able to facilitate international business connections.
This solution provides a platform for extending into additional functions in the procure-to-pay arena and beyond in supply chain applications. Founders can utilize rules-based automation to synchronize upstream purchase orders, sales orders, and shipment alerts. Vendors, for example, can exchange real-time inventory levels with the network, and carriers can join to speed freight claims and update the delivery status.