A deduction cannot be processed unless it is activated online by a user. Activating a deduction instructs the system to create a financial schedule for the deduction amount that was entered by the user when the deduction was created.
Provided the person is still entitled to the benefit, the system creates the appropriate deduction financial component to deduct from the payment. An activated deduction is processed from its start date and subsequently deducted from the participant's benefit.
Deductions can be activated as part of the deduction creation process or else activated at a later time. This provides flexibility in deciding when to create the financial schedule for the deduction which is especially useful when a deduction is due to start from a future date.