Reassessment of John Smith's payments shows an overpayment of 170; reassessment of Linda Smith's payments shows an underpayment of 165. The system processes the under and overpayments according the settings for the benefit product (see Over or Underpayment Processing for a Benefit Case).
If automatic over or underpayment processing has been set up at the product level, then the system will create a new case for each over or underpayment. Where there are multiple nominees, the system ensures the appropriate nominee is billed or paid, while also linking the primary client of the original benefit case to the related over or underpayment case(s).
Using the example of James Smith, the eligibility and entitlement engine will create an overpayment case. There is a once-off financial component in the amount of 170 and a cover period spanning James Smith's reassessment period (March 12th - April 16th). Since James Smith is the primary client of the original benefit case and the nominee assigned to the overpayment, the system sets John Smith to be both the primary client of the overpayment case and the single nominee in receipt of the overpayment.
Using the example of Linda Smith, the eligibility and entitlement engine will create an underpayment case. There is a once-off financial component in the amount 165 and a cover period spanning Linda Smith's reassessment period (April 12th - May 3rd). Since James Smith is the primary client of the original benefit case, he will also be the primary client of the underpayment case. Note, however, Linda Smith will be the nominee assigned to the once-off financial component. James Smith will be a secondary nominee on the underpayment case.