This chapter describes the three types of deduction categories that are supported: applied, un-applied, and third party. Each deduction category addresses a unique way in which the organization deducts an amount from a benefit payment and uses the amount for another purpose. Applied and un-applied deductions are used to clear outstanding debts owed to the organization. Third party deductions are used to make third party payments to other participants.
The following sections contain additional information about these categories.