7.3.6.1.2 Average Balance Computation Logic

For each processing day:

  • The selected input balance value is added to the running Month-to-Date aggregate.
  • The Month-to-Date average is calculated as:

Average Balance = Aggregate Balance / Number of elapsed days in the month

Where:

Aggregate Balance = Sum of daily input balances from the first day of the month to the current processing date

Example:
Day of Month End-of-Period (EOP) Balance Aggregated Balance Average Balance
Day 1 100 100 100/1 = 100
Day 2 120 220 220/2 = 110
Day 3 140 360 360/3 = 120
The aggregate and average values are recalculated independently for every configured attribute.

New Account Handling

When an account appears for the first time during a reporting month:
  • The input balance for the account is included starting from the first available processing date.
  • The average balance is computed using the elapsed calendar days in the month since first of the month.
Example
Day of Month Input Balance Month-to-Date Aggregate Average Balance
Day 15 150 150 150 / 15 = 10
Day 16 170 320 320 / 16 = 20

Closed Account Handling

The average balance computation process now evaluates a Closed Account indicator during balance processing.

During processing, the system evaluates the Closed Account indicator:

  • Closed status is derived from account summary data.
  • If the Closed Account indicator is unavailable, the account is treated as open by default.
  • Closed accounts are excluded from carry-forward logic.
  • Closed accounts do not contribute to aggregated or average balances beyond the closure date.

This ensures inactive accounts do not affect period-to-date calculations.

First-Day Handling

On the first processing day of a month:

  • Missing balances are copied from the prior month only if the account is not closed.
  • Closed accounts are excluded from this carry-forward logic.

Configurable Average Balance Computation Input Balance Fields

When an account has “Y” for value for “Account Or Contract Closed Flag” attribute, it is considered to be closed.
  • Closed accounts are excluded from carry-forward processing.
  • Closed accounts do not contribute to aggregate or average balances after the closure date, i.e., input balance, if present, is ignored from average balance computation.
  • If the Closed Account indicator is unavailable, the account is treated as open.
    Day of Month Account Or Contract Closed Flag Input Balance Month-to-Date Aggregate Average Balance
    Day 13 N 150 1300 1300 / 13 = 100
    Day 14 Y 0 1300 1300 / 14 = 92.85
    Day 15 Y 0 1300 1300 / 15 = 86.66
    Day 16 Y 0 1300 1300 / 16 = 81.25

Validation Rules

The following validations are performed during execution:

  • Product Processor validation
  • Data Source validation
  • Source Business Term validation
  • Target Business Term validation
  • Execution mode validation
  • Input mapping validation

Supported execution modes:

  • SINGLE_DAY
  • FULL_MONTH

Any other execution mode value results in validation failure.

Error Codes
Error Code Description
ABC_ERR_001 Average Balance Computation execution failed
ABC_ERR_002 Average Balance Computation execution not started
ABC_ERR_003 Invalid input for Average Balance Computation

Execution Steps

  1. Navigate to Data Foundation for Banking.
  2. Open Data Operations.
  3. Search for Average Balance Computation.
  4. Select the required Process ID.
  5. Enter execution parameters.
  6. Submit the process execution.
  7. Monitor execution from Process Monitor or Process Dashboard.