On February 1st, another liability instruction line item is created with a cover period of February 1st to February 28th. The financial component is expired as this is the last processing date.
The system reads that no payments have been made toward the liability instruction line item for the month of January. Since it has been one month since the instruction line item has been issued, surcharges must be applied to the unprocessed liability instruction line item. As stated previously, the surcharge rate is set to 10%. A surcharge instruction line item is therefore created with the following details:
The surcharge instruction line item and the liability instruction line item for February will be rolled up into a single liability instruction. A liability instrument and a payslip (optional) will then be created.