If an underpayment is discovered during reassessment, a new case for the underpayment can be created in order to resolve the underpayment amount. This case can either be an underpayment case or a payment correction case. The Automatic Underpayment Case Creation setting is used to indicate whether an underpayment case is automatically created when an underpayment is discovered by the system on reassessment. This setting works in conjunction with the Use Rolled Up Reassessments setting described in Using Rolled Up Reassessment . For information on payment corrections, see Configuring Payment Corrections.
If underpayment or payment correction case creation is not set to be automatic, an underpayment financial component is created on the original benefit or liability case. For benefits, both the original benefit case and underpayment or payment correction case can be used. For liabilities, only the underpayment case type can be used to pay a case recipient. Underpayments for liabilities are used to pay case recipients when they have been over charged. This financial component is once-off in the amount of the underpayment.
Note that additional functionality is provided for benefit underpayment processing. Benefit underpayment processing can be configured so that underpayment cases will only be created for a case recipient with outstanding liabilities. To achieve this, an application property is available within system administration. The application property curam.miscapp.checkforliveliabilities is used to support the allocation of an underpayment toward an outstanding liability. This property determines whether a check is performed by the system to establish the existence of live liabilities for a client before an underpayment case is created for that client. The default value of this property is YES.