Wachovia’s Account Analysis system calculates and reports your monthly commercial activity charges to help you easily manage your company's banking relationship. The reporting system summarizes your monthly account balance information in addition to your commercial checking, treasury management, and other monthly activity charges. Information is calculated as follows:
Average Ledger Balance is the daily ending balance in the checking account after all deposits and checks have been posted. The daily balances are totaled for the month and divided by the number of calendar days in the month.
Average Float is the average amount of each day's deposit that is in the process of collection.
Average Collected Balance is the Average Ledger Balance minus the Average Float.
Average Negative Collected Balance is the total of the balances on the days when the collected balance is negative, divided by the number of calendar days in the month. This figure represents money that was used while the funds were still in the process of collection. An Average Negative Collected Balance charge is accrued on a daily basis.
Average Positive Collected Balance is the total of the collected balances on the days when the balance is positive. The daily positive collected balances are totaled and then divided by the number of calendar days in the month to get an average.
Reserve Requirement represents non-earning balances maintained by the bank to comply with Federal Reserve policy. Reserves are computed by applying the reserve rate to the Average Positive Collected Balance.
Balance Available for Earnings Credit is calculated by subtracting the reserves and any compensating balances from the Average Positive Collected Balance.
Offset for Services is the dollar amount that must be maintained to offset commercial services provided during the month.
Balances maintained in your account are converted to an Earnings Credit Allowance, which can be used to offset bank activity charges that are calculated from the amount of services rendered for the billing period. Additional account analysis calculations are determined as follows:
Earnings on Available Balance is computed each month by multiplying the bank's monthly earnings credit rate by the Balance Available for Earnings Credit.
Current Analyzed Services is the sum of the Analyzed Services rendered, which can be offset with the earnings credit allowance. Analyzed Services are calculated by multiplying the volume by the price per unit.
Net Analyzed Position reflects the difference between Earnings on Available Balance and Current Analyzed Services.
Current Fee Based Services is the sum of service fees charged in full.
Total Fee Based Services is the sum of the Current Fee Based Services charged in full, plus Prior Fee Based Services (from prior billing periods, if applicable).
Services rendered are categorized in three different groups:
Analyzed Services are service fees that can be offset with the Earnings Credit Allowance.
Fee Based Services are service fees charged in full.
Direct Billed Services are service fees collected in advance from the customer.
Based on the results of the monthly analysis, you can choose to have the Analyzed or Fee Based Services charged to a designated commercial account or transferred to another commercial account.