Every time the Generate Instruments batch process is run, the system searches for all existing instruction line items with outstanding amounts greater than zero. It then determines whether or not surcharge adjustment processing is required for each instruction line item and whether the instruction line item is due for surcharge processing. If these three factors are met, the system applies the surcharge rate to the unprocessed liability amount in order to determine the surcharge amount. An instruction line item is then created for the surcharge adjustment.
When the Generate Instructions batch process is run, the system searches for all surcharge instruction line items for the same client and rolls these instruction line items up with any additional liability instruction line items that the client holds. For example, if a surcharge instruction line item is created for an employer, this will be rolled up with any other liability line items existing for the employer when the Generate Instructions batch process is run.
A setting at the product level indicates whether adjustments are required for a product. If the setting is turned on for a liability product, surcharges will be applied to bills if they remain outstanding for one month. If a bill is not cleared within one month, it is surcharged at the adjustment frequency configured at the product level. The adjustment rate for surcharges is set at a fixed rate. For example, the organization may specify that liabilities left unpaid for one month will be surcharged at five percent.