Financial calculation

Financial calculation

Computers core ability is numerical calculation. Whilst in the business world we are often exploiting secondary abilities such as ability to remember, display, search and communicate there is immense commercial opportunity in getting computers to do more of what they are best at – calculating.

In Productive Technology’s applications common uses of calculation are:

  • Pricing algorithms
  • Tax and commission calculations

Other examples, in cases to a considerable level of sophistication, include modelling mobile phone usage and modelling insurance risk.

Pricing algorithms can have any level of sophistication. Is flat rate pricing leaving your company uncompetitive in some areas whilst failing to maximise profits elsewhere?


It is common practice to download transactions to Excel in order to calculate tax or commission. However when such calculations are performed in the core application there will be

  • Speed
  • Accuracy
  • Consistency
  • Traceability

and Management reports are more likely to match financial accounts


Rounding errors

There is no need to accept rounding errors. Whilst we cannot break the laws of arithmetic,we can identify when discrepancies due to rounding occur then suggest, agree and implement a policy to handle them.

Productive Technology’s approach

Implementing a defined algorithm is a trivial programming matter. As stated elsewhere calculation is a computer’s core ability. However defining that algorithm requires a combination of skills applied in harmony.

The requirement is to define the relevant aspects of the business as mathematical formulae. For tax and commission the facts are known absolutely and a Productive Technology analyst can usually gain an accurate understanding during a phone call to the client.

More involved algorithms can require the establishment of a multi-disciplinary team. Productive Technology can advise on both the membership of such a team and how the process is conducted. A robust result is expected, with effective but minimum time contribution from team members.