Average NEGATIVE Collected Balance (4/14)

Account Analysis consists of balances and fees which comprise a basic math calculation. There are 14 balances that I refer to as "Remember the Math". I will discuss all 14 in 14 different posts.

Average NEGATIVE Collected Balance

This balance is sometimes referred to as Collected Overdraft (OD) Balance.  To compute this balance, the sum of the daily end-of-day uncollected balances (negative collected) in the analysis period is divided by the number of days of the analysis period.  Taking the sum divided by the days in period is what computes the average value for this balance.  Obviously, this balance will equal zero if there were no collected balance overdraws during the analysis period.

This balance should always be sent as a positive value (no negative sign).

Since this balance directly corresponds to any account ODs which occurred during the analysis period, you can expect to see corresponding service line items on the account statement.  Some example OD-related service descriptions are:

• Negative Collected Balance Fee
• Daily Overdraft Occurrence Fee
• Overdraft Interest
• Drafts Handling Charge
• Daily Ledger Overdraft
• NSF Items Paid/Returned

Happy Analyzing!