The deduction priority dictates the order in which the deduction is processed when payments are generated for the case. The deduction priority is inherited from the deduction type that was associated with the product during system administration.
A user can change the priority on a case-by-case basis. Changing the priority may impact the priorities of any other deductions created on the case. For example, if a deduction has a priority of 3 and a user changes this priority to 1, the new priority will be stored and a sequencing function will automatically increase or decrease the priorities of any other deductions associated with the case. The system automatically updates duplicate priorities to prevent the user from having to manually update each priority.
It is important that a user understands the effect that changing a priority has on other deductions. The more a priority decreases in order of importance, the more likely it is that there may not be a sufficient amount left on the benefit payment to process the full deduction amount once all other deductions are subtracted. A user can also automatically assign a priority to a deduction. The system will automatically assign the deduction the next available priority i.e., a priority that is not already in use by another deduction. Two deduction cannot have the same priority when assigning deductions to a nominee from the primary client's case.
Note that if a tax adjustment is set for the product governing the case, the tax adjustment is applied to the payments before any deductions are applied.