This section provides an overview on deduction financial component processing. The first part of this section describes how the eligibility and entitlement engine searches for deduction items on a case. The second part of this section describes how the eligibility and entitlement engine creates a deduction financial component.
FC Processing for Deductions: Financial component processing is the same for applied, unapplied and third party deductions. Applied deductions are scheduled to be paid toward outstanding liabilities. Unapplied deductions are scheduled deductions where the deduction is not applied toward a liability. Third Party deductions are scheduled to be paid toward another participant. For all types of deductions, the eligibility and entitlement engine creates the secondary financial component linked to the primary financial component on the case. The eligibility and entitlement engine does not process the financial transactions for all types of deductions. Processing the actual financial transactions is handled by the GenerateInstructionLineItems business process. When this business process is run, it creates two ILIs from the deduction financial component, one ILI is a bill against the benefit and the other ILI is a payment. For applied deductions, this payment is applied toward a selected outstanding liability. For unapplied deductions, the ILI is credited to the organization to be processed at a later stage. For third party deductions, the payment is applied toward a selected third party participant.