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Bank calculate the balance

teera asked
when bank calculate the balance  it calculate by sum of  all transaction or it have a balance before transaction then they just add or subtract only one row
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Data Architect
There is no "single" answer for this question, it largely depends on the way applications are designed and implemented.

From a few systems that I have seen;
-- There are transaction tables holds the daily transaction details. Deposits/Withdrawals.
-- There is a master table that keeps track of the daily balances of accounts. This master tables are updated by "End of Day" processing from the transaction tables.
-- Generally these master tables are not updated directly by the transaction records.
-- Queries to find the latest balances, subtracts/adds the transaction table data to the master table to get a latest figure.
-- "ENd of Day" processing updates the master tables and purges the processed transaction records.
Mark GeerlingsDatabase Administrator
I agree with sujith80, there is no single answer to this question.  Many bank systems record the running balance, so they only have to add or subtract the latest transaction for an account, and update the balance.  But there are certainly many different ways of getting this job done.
awking00Information Technology Specialist
Not meaning to be cute, but the answer is yes. I was in the banking business for nearly 20 years and it depends on the processing method of each individual institution. Most banks today operate on an "on-line" processing mechanism where running balances are maintained in real time. A number of banks, however, still use "batch processing" in which balances are reconciled on a periodic (generally daily) basis through an update based on transaction processing. There are also some banks that use a hybrid processing methodology that processes some transactions in real-time and some in batch. Ask the bank and they'll tell you what processing method they use.

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