If an overpayment is discovered during reassessment, an overpayment case or payment correction case can be created in order to resolve the overpayment amount. For benefits, both an overpayment case and payment correction case can be used to bill a case recipient for the amount he or she has been overpaid. For liabilities, only the overpayment case type can be used to bill a case recipient. Overpayments for liabilities are to bill case recipients when they have not been billed sufficiently. For information on payment corrections, see Configuring Payment Corrections.
The Overpayment Case Processing setting is used to dictate how the system manages the discovery of an overpayment during reassessment. For benefits, the setting works in conjunction with the Use Rolled Up Reassessments setting described in Using Rolled Up Reassessment and can be configured in one of three ways. The first option allows an administrator to specify that a case be created automatically when an overpayment is discovered during case reassessment in order to resolve the overpayment. The case can be an overpayment case or a payment correction case depending on the value that is specified for the Use Rolled Up Reassessments setting. Once the case is created, users must manually approve, activate, and generate the liability financials required to correct the overpayment.
The second option allows an administrator to specify that a case be automatically created and approved, activated, and liability financials generated without the intervention of a caseworker. Note that this option is only available for benefit products for which the Use Rolled Up Reassessments setting is set to 'No'.
The third option instructs the system not to automatically create a case to correct the overpayment. Instead, a task is generated to alert the caseworker of the overpayment. The caseworker can then manually create and manage an overpayment case to correct the overpayment.
When a benefit product is initially created the value for this setting is defaulted to 'Create Overpayment Case'. This value can be changed by an administrator. For liability products, the Overpayment Case Processing setting can only be set to 'Yes' or 'No'. Yes indicates that an overpayment case will be created automatically when an overpayment is discovered during case reassessment in order to resolve the overpayment. Once the case is created, users must manually approve, activate, and generate the liability financials required to correct the overpayment. A setting of 'No' instructs the system not to automatically create a case to correct the overpayment. Instead, a task is generated to alert the case worker to the overpayment. The case worker can then manually create and manage an overpayment case to correct the overpayment. When a liability product is initially created the value for this setting is defaulted to 'No'. This value can be changed by an administrator.