Patent ID: 7308427

Claim:
A method of performing financial processing in a computer, comprising: (a) accessing account, event and organization attributes from a database accessible by the computer, wherein: (1) the account attributes comprise data about accounts being measured, (2) the event attributes comprise data about account-related transactions, and (3) the organization attributes comprise data about the organization's financial status; and (b) performing one or more profitability calculations in the computer using the account, event and organization attributes accessed from the database, results from the amortization calculations, as well as one or more profit factors and one or more rules, wherein the profitability calculations comprise: Profit ⁢ ⁢ ( a i ) = Net ⁢ ⁢ Interest ⁢ ⁢ Revenue ⁢ ⁢ ( NIR ) ⁢ ( a i ) + Other ⁢ ⁢ Revenue ⁢ ⁢ ( OR ) ⁢ ( a i ) - Direct ⁢ ⁢ Expense ⁢ ⁢ ( DE ) ⁢ ( a i ) - Indirect ⁢ ⁢ Expense ⁢ ⁢ ( IE ) ⁢ ( a i ) - Risk ⁢ ⁢ Provision ⁢ ⁢ ( RP ) ⁢ ( a i ) , for an account a i , wherein the profitability calculations include one or more amortization calculations in the computer using the account, event and organization attributes accessed from the database, the amortization calculations comprise a straight-line method that amortizes the Other Revenue, Direct Expense, Indirect Expense, or Risk Provision over a plurality of periods within a term for the account a i , and the straight-line method comprises calculating an Unamortized Amount and an Amortized Amount, such that: if k<n, then: Amortized ⁢ ⁢ Amount = Adj . Amt 1 + ( k - 1 ) * ( Amt / n ) Unamortized ⁢ ⁢ amount = ( n - k ) * ( Amt / n ) + ( Amt 1 - Adj . Amt 1 ) if k=n, then: Amortized ⁢ ⁢ Amount = Amt Unamortized ⁢ ⁢ amount = 0 wherein: n = ⁢ number ⁢ ⁢ of ⁢ ⁢ terms ⁢ ⁢ in ⁢ ⁢ amortization ⁢ ⁢ period , ⁢ k = ⁢ number ⁢ ⁢ of ⁢ ⁢ terms ⁢ ⁢ elapsed ⁢ ⁢ since ⁢ ⁢ amortization ⁢ ⁢ began , ⁢ such ⁢ ⁢ that ⁢ ⁢ k = ⁢ 1 , … , n , ⁢ Amt = ⁢ an ⁢ ⁢ inital ⁢ ⁢ amount ⁢ ⁢ to ⁢ ⁢ be ⁢ ⁢ amortized , ⁢ Adj . ⁢ Amt 1 = ⁢ actual ⁢ ⁢ amount ⁢ ⁢ amortized ⁢ ⁢ in ⁢ ⁢ first ⁢ ⁢ period , ⁢ Life ⁡ ( Amt ) = ⁢ number ⁢ ⁢ of ⁢ ⁢ amortization ⁢ ⁢ terms , ⁢ AM k ⁡ ( Amt ) = amortization ⁢ ⁢ amount ⁢ ⁢ for ⁢ ⁢ term ⁢ ⁢ k , such ⁢ ⁢ that ⁢ ∷ = Amt ⁢ ⁢ ⁢ ⁢ ⁢ if ⁢ ⁢ k - 0 = Amt Life ⁢ ⁢ if ⁢ ⁢ life ≥ k ≥ 1 = 0 ⁢ ⁢ if ⁢ ⁢ k > life .