For pay plans, payments are distributed directly to the covered obligations using payment distribution rules. A tax authority's business processes will dictate the distribution of payments to the corresponding obligations. For example:
A tax authority wants payments to be applied to the oldest obligation first. It them moves to the next oldest obligation until all obligations are satisfied. The oldest obligation is given highest priority.
A tax authority wants payments to be applied to obligations attached to an active collections case. The obligations linked to a collections case are assigned highest priority.
The base-package provides an algorithm that will distribute payments to obligations covered by a pay plan based on age of debt, and priority indicated on the obligation type ( C1-DR-PAYPP).
Refer to Payment Event Distribution Rules for details.
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