Payment exclusion dates represent the days on which the organization will not be in a position to make payments using a particular delivery method. A prepayment requirement specifies that financial processing should occur on the nearest processing date prior to the exclusion date.
For example, if cash payments for benefit cases are normally made on a Monday and next Monday is a bank holiday then next Monday can be marked as an exclusion date on the cash payment financial calendar. Payment will then be made on the nearest valid processing date prior to the exclusion date.
A separate financial calendar is provided for each delivery method used by the organization. This is useful because different delivery methods may have different exclusion dates. For example, it may not be possible to issue checks on public holidays, but it may still be possible to process EFT transactions.
Prepayment works in addition to cover period offsets. For example, a Tuesday payment date is processed on the Friday in advance due to a two-day in advance cover pattern offset and payment exclusion date settings for the Saturday and Sunday.