Payments and bills are issued automatically to nominees during financial processing. For example, the organization may issue payments when a batch process is run at the start of every month. During financial processing, financial components are processed into a financial instruction line items. Each financial instruction line item is an instance of a payment or bill to be issued to a nominee. For example, a financial component specifies that a nominee is to be paid $25 every week, starting on May 1st. On May 1st, the financial component is actually processed into a financial instruction line item. The financial instruction line item is then created every week until the end date of the financial component's cover period.
Information carried over from the financial component to the instruction line item includes the name of the nominee, the delivery pattern, a credit or debit amount, and the period of time the payment or bill covers.
The credit or debit amount is applied to a nominee or case account during the specific cover period contained in the financial component. For example, an instruction line item might indicate that a nominee was paid $25 for the cover period from May 1st to May 31st.
Financial instruction line items are then rolled up into financial instructions. Financial instructions are generated into payments or bills for nominees. Rolling up consolidates a number of payments or bills for a nominee. For example, an instruction that represents four separate payments can be created and issued to a nominee as a single payment. If a participant is a nominee on more than one case, rolling up consolidates across all cases, all payments that are due to the nominee on the same date.
When a payment or bill is generated for a nominee, a financial instrument is automatically recorded by the system. Financial instruments are the records of actual payments or bills issued or received by the organization. Financial instruments are recorded for financial instructions. For example, a payment instrument is recorded when a payment is issued to a nominee.