Adjustments and Updating P&I

The base product does not provide a plug-in to bring P&I up to date when an adjustment is frozen or canceled.

• Certain adjustments are created / canceled from the P&I calculation, for example the penalty and interest charges and waiver charges. For these types of adjustments, penalty and interest recalculation should not be invoked.

• For other adjustments where P&I should be brought up to date, there are many business scenarios where several adjustments are created for various charges. For example, when a tax form is processed, adjustments may be created for the tax assessment due and for the withholding credit and for refundable tax credits. The system should wait until all the adjustments are created before bringing P&I up to date, otherwise a lot of unnecessary calculations will occur.

Rather than building "update penalty and interest" logic into a plug-in for the adjustment, the expectation is that a business process that creates adjustments that affect P&I should include a step to invoke P&I when the adjustments are created.

If your implementation has manually created/canceled adjustments that should affect penalty and interest, you should plug-in Adjustment Freeze and Adjustment Cancel plug-ins to bring P&I up to date.

Also note that when an assessment adjustment is canceled, all related penalty and interest adjustments should be canceled as well. The P&I calculation does not cater for cleaning up penalty and interest for canceled assessments.