Browse Prior Art Database

Algorithm for Identifying Out of Balance Suspect Item

IP.com Disclosure Number: IPCOM000243590D
Publication Date: 2015-Oct-04
Document File: 4 page(s) / 127K

Publishing Venue

The IP.com Prior Art Database

Abstract

Disclosed is a system to programmatically locate a bad item in an out-of- balance banking transaction when the transaction contains a single item with an incorrectly keyed/entered amount.

This text was extracted from a PDF file.
This is the abbreviated version, containing approximately 45% of the total text.

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Algorithm for Identifying Out of Balance Suspect Item

Payment transactions are digitally transmitted through standard formats such as those defined by the American National Standards Institute (ANSI). The standards support the sending of balanced transactions and non-balanced transactions. Transactional

work is usually used when a financial institution is sending data internally (e.g., when

sending data from a branch or automated teller machine (ATM) to the main processing center). The main processing center must ensure that all transactions balance (i.e. credit amounts are equal to debit amounts).

When a transaction is identified as out of balance, the current method to resolve the issue is to present the entire transaction to a balancing operator who then inspects all items in the transaction. This is a time consuming process. A more efficient system

and method is needed to reconcile out-of-balance transactions.

The novel contribution is a system to programmatically locate a bad item in an out-of- balance banking transaction when the transaction contains a single item with an incorrectly keyed/entered amount. The system identifies the bad item by iterating through the items in the transaction and comparing the out-of-balance amount with the amount of each item, and then performing mathematical operations to determine if the item under review the most likely cause of the out-of-balance transaction. The candidate item can then be presented to an operator for manual inspection and repair.

In a basic embodiment of the disclosed system, a transaction consists of one or more credit records (e.g., deposit slip) followed by one or more debit records (e.g., check data). If the amount of the credit records is not equal to the amount of all subsequent debit records, then an out-of-balance condition is present. Using the absolute value of the out-of-balance amount, the debit items in the transaction are iterated through. If the out-of-balance amount is greater than the amount of the debit item, then the method is to add the out-of-balance amount and the debit item amount to produce the new amount. If this new amount, when multiplied by 10 or 100 equals the debit amount, then this is the most likely suspect item. If the out-of-balance is less than or equal to the debit amount, then the method is to subtract the out-of-balance amount from the debit item amount to produce the new amount. If this new amount, when divided by 10 or 100, equals the debit amount, then this is the most likely suspect item.

Figure 1: Illustration of the above logic

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Example Embodiment #1: Out-of-balance amount is greater than the check amount

Consider the following example data:

In this example, for Debit 3, the user keyed 325 instead of 32500 (325.00) resulting in an out-of-balance amount of 321.75 (325.00 - 3.25). The process determines that the transaction is out of balance (i.e. the out-of-balance amount is not zero) and iterates

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