Amortization for financial processing in a relational database management system
View Patent ↗A financial processing system that accesses account, event and organization attributes from a relational database management database, wherein: (1) the account attributes comprise data about accounts being measured, (2) the event attributes comprise data about account-related transactions, and (3) the organization attributes comprise data about the organization's financial status. Profitability calculations are performed in the computer using the account, event and organization attributes accessed from the relational database management system, as well as one or more profit factors and one or more rules. The profitability calculations comprise the following: Profit (a i ) = Net Interest Revenue (NIR) (a i ) + Other Revenue (OR) (a i ) − Direct Expense (DE) (a i ) − Indirect Expense (IE) (a i ) − Risk Provision (RP) (a i ) for an account a i . The profitability calculations include one or more amortization calculations in the computer using the account, event and organization attributes accessed from the database, and the amortization calculations amortize the Other Revenue, Direct Expense, Indirect Expense, or Risk Provision over a plurality of periods within a term for the account a i . In alternative embodiments, the amortization calculations are selected from a group comprising cash basis, straight-line, declining balance and interest methods.
1. A method of performing financial processing in a computer, comprising:
(a) accessing account, event and organization attributes from a database accessible by the computer, wherein: (1) the account attributes comprise data about accounts being measured, (2) the event attributes comprise data about account-related transactions, and (3) the organization attributes comprise data about the organization's financial status; and
(b) performing one or more profitability calculations in the computer using the account, event and organization attributes accessed from the database, results from the amortization calculations, as well as one or more profit factors and one or more rules, wherein the profitability calculations comprise:
Profit
(
a
i
)
=
Net
Interest
Revenue
(
NIR
)
(
a
i
)
+
Other
Revenue
(
OR
)
(
a
i
)
-
Direct
Expense
(
DE
)
(
a
i
)
-
Indirect
Expense
(
IE
)
(
a
i
)
-
Risk
Provision
(
RP
)
(
a
i
)
,
for an account a i , wherein the profitability calculations include one or more amortization calculations in the computer using the account, event and organization attributes accessed from the database, the amortization calculations comprise a straight-line method that amortizes the Other Revenue, Direct Expense, Indirect Expense, or Risk Provision over a plurality of periods within a term for the account a i , and the straight-line method comprises calculating an Unamortized Amount and an Amortized Amount, such that:
if k<n, then:
Amortized
Amount
=
Adj
.
Amt
1
+
(
k
-
1
)
*
(
Amt
/
n
)
Unamortized
amount
=
(
n
-
k
)
*
(
Amt
/
n
)
+
(
Amt
1
-
Adj
.
Amt
1
)
if k=n, then:
Amortized
Amount
=
Amt
Unamortized
amount
=
0
wherein:
n
=
number
of
terms
in
amortization
period
,
k
=
number
of
terms
elapsed
since
amortization
began
,
such
that
k
=
1
,
…
,
n
,
Amt
=
an
inital
amount
to
be
amortized
,
Adj
.
Amt
1
=
actual
amount
amortized
in
first
period
,
Life
(
Amt
)
=
number
of
amortization
terms
,
AM
k
(
Amt
)
=
amortization
amount
for
term
k
,
such
that
∷
=
Amt
if
k
-
0
=
Amt
Life
if
life
≥
k
≥
1
=
0
if
k
>
life
.
2. A method of performing financial processing in a computer, comprising:
(a) accessing account, event and organization attributes from a database accessible by the computer, wherein: (1) the account attributes comprise data about accounts being measured, (2) the event attributes comprise data about account-related transactions, and (3) the organization attributes comprise data about the organization's financial status; and
(b) performing one or more profitability calculations in the computer using the account, event and organization attributes accessed from the database, results from the amortization calculations, as well as one or more profit factors and one or more rules, wherein the profitability calculations comprise:
Profit
(
a
j
)
=
Net
Interest
Revenue
(
NIR
)
(
a
j
)
+
Other
Revenue
(
OR
)
(
a
j
)
-
Direct
Expense
(
DE
)
(
a
j
)
-
Indirect
Expense
(
IE
)
(
a
j
)
-
Risk
Provision
(
RP
)
(
a
j
)
,
for an account a i , wherein the profitability calculations include one or more amortization calculations in the computer using the account, event and organization attributes accessed from the database, the amortization calculations comprise a declining balance method that amortizes the Other Revenue, Direct Expense, Indirect Expense, or Risk Provision over a plurality of periods within a term for the account a i , and the declining balance method comprises calculating an Unamortized Amount and an Amortized Amount, such that:
Amortized
Amount
=
k
*
(
Amt
1
+
Amt
k
)
/
2
Unamortized
Amount
=
Amt
-
[
k
*
(
Amt
1
+
Amt
k
)
/
2
]
wherein:
n=number of terms in amortization period,
k=number of terms elapsed since amortization began, such that k=1, . . . , n,
Amt 1 =amount amortized in a first amortization period, and
Amt k =amount amortized in period k.
3. A method of performing financial processing in a computer, comprising:
(a) accessing account, event and organization attributes from a database accessible by the computer, wherein: (1) the account attributes comprise data about accounts being measured, (2) the event attributes comprise data about account-related transactions, and (3) the organization attributes comprise data about the organization's financial status; and
(b) performing one or more profitability calculations in the computer using the account, event and organization attributes accessed from the database, results from the amortization calculations, as well as one or more profit factors and one or more rules, wherein the profitability calculations comprise:
Profit
(
a
i
)
=
Net
Interest
Revenue
(
NIR
)
(
a
i
)
+
Other
Revenue
(
OR
)
(
a
i
)
-
Direct
Expense
(
DE
)
(
a
i
)
-
Indirect
Expense
(
IE
)
(
a
i
)
-
Risk
Provision
(
RP
)
(
a
i
)
,
for an account a i , wherein the profitability calculations include one or more amortization calculations in the computer using the account, event and organization attributes accessed from the database, the amortization calculations comprise a straight-line method that amortizes the Other Revenue, Direct Expense, Indirect Expense, or Risk Provision over a plurality of periods within a term for the account a i , and the declining balance method comprises calculating an Unamortized Amount and an Amortized Amount, such that:
Amortized
Amount
=
k
*
(
Amt
1
+
Amt
k
)
/
2
-
(
Amt
1
-
Adj
.
Amt
1
)
Unamortized
Amount
=
Amt
-
[
k
*
(
Amt
1
+
Amt
k
)
/
2
]
+
(
Amt
1
-
Adj
.
Amt
)
wherein:
n=number of terms in amortization period,
k=number of terms elapsed since amortization began, such that k=1, . . . , n,
Amt 1 =amount amortized in a first amortization period, and
Amt k =amount amortized in period k, and
Adj.Amt 1 =actual amount amortized in a first period.
4. A method of performing financial processing in a computer, comprising:
(a) accessing account, event and organization attributes from a database accessible by the computer, wherein: (1) the account attributes comprise data about accounts being measured, (2) the event attributes comprise data about account-related transactions, and (3) the organization attributes comprise data about the organization's financial status; and
(b) performing one or more profitability calculations in the computer using the account, event and organization attributes accessed from the database, results from the amortization calculations, as well as one or more profit factors and one or more rules, wherein the profitability calculations comprise:
Profit
(
a
i
)
=
Net
Interest
Revenue
(
NIR
)
(
a
i
)
+
Other
Revenue
(
OR
)
(
a
i
)
-
Direct
Expense
(
DE
)
(
a
i
)
-
Indirect
Expense
(
IE
)
(
a
i
)
-
Risk
Provision
(
RP
)
(
a
i
)
,
for an account a i , wherein the profitability calculations include one or more amortization calculations in the computer using the account, event and organization attributes accessed from the database, the amortization calculations comprise an interest method that amortizes the Other Revenue, Direct Expense, Indirect Expense, or Risk Provision over a plurality of periods within a term for the account a i , and the interest method comprises calculating an Unamortized Amount and an Amortized Amount, such that:
Amortized
Amount
=
[
Amt
*
r
(
1
+
r
)
n
-
1
*
(
1
+
r
)
k
-
1
r
]
+
(
Amt
1
-
Adj
.
Amt
1
)
Unamortized
Amount
=
Amt
-
[
Amt
*
r
(
1
+
r
)
n
-
1
*
(
1
+
r
)
k
-
1
r
]
+
(
Amt
1
-
Adj
.
Amt
1
)
wherein:
n=number of terms in amortization period,
k=number of terms elapsed since amortization began, such that k=1, . . . , n,
r a =annual interest rate,
p=periodicity of update,
r=period rate or r a /p,
Amt=amount to be amortized,
Amt 1 =amount amortized in a first amortization period, and
Adj.Amt 1 =actual amount amortized in a first period.
5. A system for financial processing, comprising:
a computer;
logic, performed by the computer, for:
(a) accessing account, event and organization attributes from a database accessible by the computer, wherein: (1) the account attributes comprise data about accounts being measured, (2) the event attributes comprise data about account-related transactions, and (3) the organization attributes comprise data about the organization's financial status; and
(b) performing one or more profitability calculations in the computer using the account, event and organization attributes accessed from the database, results from the amortization calculations, as well as one or more profit factors and one or more rules, wherein the profitability calculations comprise:
Profit
(
a
i
)
=
Net
Interest
Revenue
(
NIR
)
(
a
i
)
+
Other
Revenue
(
OR
)
(
a
i
)
-
Direct
Expense
(
DE
)
(
a
i
)
-
Indirect
Expense
(
IE
)
(
a
i
)
-
Risk
Provision
(
RP
)
(
a
i
)
,
for an account a i , wherein the profitability calculations include one or more amortization calculations in the computer using the account, event and organization attributes accessed from the database, the amortization calculations include a straight-line method that amortizes the Other Revenue, Direct Expense, Indirect Expense, or Risk Provision over a plurality of periods within a term for the account a i , and the straight-line method comprises logic for calculating an Unamortized Amount and an Amortized Amount, such that:
if k<n, then:
Amortized
Amount
=
Adj
.
Amt
1
+
(
k
-
1
)
*
(
Amt
/
n
)
Unamortized
amount
=
(
n
-
k
)
*
(
Amt
/
n
)
+
(
Amt
1
-
Adj
.
Amt
1
)
if k=n, then:
Amortized
Amount
=
Amt
Unamortized
amount
=
0
wherein:
n
=
number
of
terms
in
amortization
period
,
k
=
number
of
terms
elapsed
since
amortization
began
,
such
that
k
=
1
,
…
,
n
,
Amt
=
an
inital
amount
to
be
amortized
,
Adj
.
Amt
1
=
actual
amount
amortized
in
first
period
,
Life
(
Amt
)
=
number
of
amortization
terms
,
AM
k
(
Amt
)
=
amortization
amount
for
term
k
,
such
that
∷
=
Amt
if
k
-
0
=
Amt
Life
if
life
≥
k
≥
1
=
0
if
k
>
life
.
6. A system for financial processing, comprising:
a computer;
logic, performed by the computer, for:
(a) accessing account, event and organization attributes from a database accessible by the computer, wherein: (1) the account attributes comprise data about accounts being measured, (2) the event attributes comprise data about account-related transactions, and (3) the organization attributes comprise data about the organization's financial status; and
(b) performing one or more profitability calculations in the computer using the account, event and organization attributes accessed from the database, results from the amortization calculations, as well as one or more profit factors and one or more rules, wherein the profitability calculations comprise:
Profit
(
a
i
)
=
Net
Interest
Revenue
(
NIR
)
(
a
i
)
+
Other
Revenue
(
OR
)
(
a
i
)
-
Direct
Expense
(
DE
)
(
a
i
)
-
Indirect
Expense
(
IE
)
(
a
i
)
-
Risk
Provision
(
RP
)
(
a
i
)
,
for an account a i , wherein the profitability calculations include one or more amortization calculations in the computer using the account, event and organization attributes accessed from the database, the amortization calculations include a declining balance method that amortizes the Other Revenue, Direct Expense, Indirect Expense, or Risk Provision over a plurality of periods within a term for the account a i , and the declining balance method comprises logic for calculating an Unamortized Amount and an Amortized Amount, such that:
Amortized
Amount
=
k
*
(
Amt
1
+
Amt
k
)
/
2
Unamortized
Amount
=
Amt
-
[
k
*
(
Amt
1
+
Amt
k
)
/
2
]
wherein:
n=number of terms in amortization period,
k=number of terms elapsed since amortization began,
such that k=1, . . . , n,
Amt 1 =amount amortized in a first amortization period, and
Amt k =amount amortized in period k.
7. A system for financial processing, comprising:
a computer:
logic, performed by the computer, for:
(a) accessing account, event and organization attributes from a database accessible by the computer, wherein: (1) the account attributes comprise data about accounts being measured, (2) the event attributes comprise data about account-related transactions, and (3) the organization attributes comprise data about the organization's financial status; and
(b) performing one or more profitability calculations in the computer using the account, event and organization attributes accessed from the database, results from the amortization calculations, as well as one or more profit factors and one or more rules, wherein the profitability calculations comprise:
Profit
(
a
i
)
=
Net
Interest
Revenue
(
NIR
)
(
a
i
)
+
Other
Revenue
(
OR
)
(
a
i
)
-
Direct
Expense
(
DE
)
(
a
i
)
-
Indirect
Expense
(
IE
)
(
a
i
)
-
Risk
Provision
(
RP
)
(
a
i
)
,
for an account a i , wherein the profitability calculations include one or more amortization calculations in the computer using the account, event and organization attributes accessed from the database, the amortization calculations include a declining balance method that amortizes the Other Revenue, Direct Expense, Indirect Expense, or Risk Provision over a plurality of periods within a term for the account a i , and the declining balance method comprises logic for calculating an Unamortized Amount and an Amortized Amount, such that:
Amortized
Amount
=
k
*
(
Amt
1
+
Amt
k
)
/
2
-
(
Amt
1
-
Adj
.
Amt
1
)
Unamortized
Amount
=
Amt
-
[
k
*
(
Amt
1
+
Amt
k
)
/
2
]
+
(
Amt
1
-
Adj
.
Amt
)
wherein:
n=number of terms in amortization period,
k=number of terms elapsed since amortization began,
such that k=1, . . . , n,
Amt 1 =amount amortized in a first amortization period, and
Amt k =amount amortized in period k, and
Adj.Amt 1 =actual amount amortized in a first period.
8. A system for financial processing, comprising:
a computer:
logic, performed by the computer, for:
(a) accessing account, event and organization attributes from a database accessible by the computer, wherein: (1) the account attributes comprise data about accounts being measured, (2) the event attributes comprise data about account-related transactions, and (3) the organization attributes comprise data about the organization's financial status; and
(b) performing one or more profitability calculations in the computer using the account, event and organization attributes accessed from the database, results from the amortization calculations, as well as one or more profit factors and one or more rules, wherein the profitability calculations comprise:
Profit
(
a
i
)
=
Net
Interest
Revenue
(
NIR
)
(
a
i
)
+
Other
Revenue
(
OR
)
(
a
i
)
-
Direct
Expense
(
DE
)
(
a
i
)
-
Indirect
Expense
(
IE
)
(
a
i
)
-
Risk
Provision
(
RP
)
(
a
i
)
,
for an account a i , wherein the profitability calculations include one or more amortization calculations in the computer using the account, event and organization attributes accessed from the database, the amortization calculations include an interest method that amortizes the Other Revenue, Direct Expense, Indirect Expense, or Risk Provision over a plurality of periods within a term for the account a i , and the interest method comprises logic for calculating an Unamortized Amount and an Amortized Amount, such that:
Amortized
Amount
=
[
Amt
*
r
(
1
+
r
)
n
-
1
*
(
1
+
r
)
k
-
1
r
]
+
(
Amt
1
-
Adj
.
Amt
1
)
Unamortized
Amount
=
Amt
-
[
Amt
*
r
(
1
+
r
)
n
-
1
*
(
1
+
r
)
k
-
1
r
]
+
(
Amt
1
-
Adj
.
Amt
1
)
wherein:
n=number of terms in amortization period,
k=number of terms elapsed since amortization began,
such that k=1, . . . , n,
r a =annual interest rate,
p=periodicity of update,
r=period rate or r a /p,
Amt=amount to be amortized,
Amt 1 =amount amortized in a first amortization period, and
Adj.Amt 1 =actual amount amortized in a first period.