Deductions allow the organization to allot part of a person's benefit payments to a specific purpose. This purpose is dependent on the category of deduction. There are three deduction categories within the application: applied deductions, un-applied deductions, and third party deductions.
For applied deductions, the amount is deducted from the benefit and applied toward any participant's outstanding liability.
For un-applied deductions, the amount is also deducted from the benefit. It is then saved on the system as an unprocessed instruction line item payable to the organization. Un-applied deductions are used to recoup monies previously paid out by the organization.
Third party deductions allow a portion of a person's benefit to be directed toward bills, charges, or debts owed to a third party. Third party payments can be made to any other participant registered on the system. For more information on deductions, please see the Cúram Deductions Guide.
In an integrated financial environment, the application is responsible for generating the deduction instruction line items and transferring them to the ERP system for further processing.