The case deduction item information on a case is used to create the deduction financial schedules. Only active case deduction items are considered. Deductions can either be for a fixed amount or for a percentage of the payment amount, with the specific amount being calculated during payment generation.
For a fixed deduction, the value of the deduction financial component is taken directly from the case deduction item. A fixed deduction is applied to the total payment amount of all the deductible components that the specified nominee has received.
For a variable deduction, a rate is used instead. The rate indicates the percentage of the payment amount that should be deducted. A variable deduction is applied to the total payment amount of a specific component if one is selected, otherwise it is applied to the total payment amount of all the deductible components on the case. Since a variable deduction represents a percentage of the total payment, the same percentage is deducted from each nominee receiving one of the applicable components.
Each active case deduction item defined for a case will result in the generation of one or more financial components depending upon the number of nominees affected. One or more deduction instruction line items will then be generated for each financial component.
For more information on configuring deductions, see the Cúram Deductions Guide.