Once the case deduction items have been identified, the next step is to check the deduction type to determine how many nominees are affected. A fixed deduction will affect a single nominee while a variable deduction may affect multiple nominees depending on the components it is targeted at and the nominee component assignments. Any changes to the component assignments during the cover period of the deduction are identified and are used to split the initial deduction component into multiple, nominee specific parts. This is done for each component affected by the deduction.
In our example, the fixed deduction is assigned to Lisa, so it can be represented by a single deduction financial component. The variable deduction is against the Income Assistance component which is assigned to Lisa for the first two weeks and then to Paul for the remainder of the case, so the deduction financial component representing this must be split in two.
At the end of this processing we will have three deduction financial components as follows: