Servicing costs are the costs associated with servicing individual accounts such as checking accounts or loans.
You can include an account's servicing cost in the Economic Value of Equity (EVE)/Net Economic Value (NEV) calculations. Express the cost of maintaining the account as a percentage of the account's balance in the Servicing Cost field. The field is on the Risk panel on the Chart of Accounts Setup page.
When EVE/NEV is calculated, an account's servicing cost is added to the forecasted cost of a liability or deducted from the forecasted yield of an asset. The net effect on the balance sheet is negative because a servicing cost is a liability. The higher the servicing costs, then the lower the EVE/NEV of the institution.