Waived means the charge for this bank service is not charged to the account holder so although the charge may be sent on the account analysis file, the charge is not part of the account's final billing invoice.
Waived Charges are sent on an account analysis statement as Service Charges - Line Item Waived. All waived charges for one account during a particular time frame should be shown in this balance.
Service Charges - Line Item Waived is a memo balance.
It serves only to display the total of all waived service charges for the period.
But, there is also another balance called Service Charges Waived. While this is a memo balance, a sent value for this balance will be included in the calculation of bank services to compute the final total service charges due this statement.
It creates a clean audit format where the account holder can track the calculations from beginning to end.
Most financial institutions do not send or know how to send waived charges.
One of the common complaints I get from customers is that their paper statement does not match the data captured from their EDI 822 file. Once I check the raw data for sent service charges (which ones are analyzed, which ones are hard, etc) against the balances sent by the bank, it solves the mystery. Although there are specific AFP balances for each service charge type, financial institutions usually don't know they exist. This results in showing the bank how the charges are formatted on the file versus how they should be formatted on the file according to the AFP implementation standard for the EDI 822.
Note: one clue that a service charge may be waived is if the bank sends the charge as $0.00. There may be both a sent price and a sent volume but the sent charge is $0.00.
Happy Analyzing!
No comments:
Post a Comment