Determine Balance Details Algorithm

The dynamic credit allocation is performed by an algorithm plugged into the Determine Balance Details plug-in spot on the obligation type. The determine balance details algorithm is used throughout the base P&I calculation algorithm but may also be called by other processes to get a balance broken out by assessment / debt category.

The following information highlights the logic in the base algorithm C1-PS-DB-STD.

The algorithm may receive specific FTs in which case it will only use those FTs. Otherwise, it retrieves the FTs for the obligation.

A special plug-in spot Retrieve FT List on obligation type is called to retrieve the FTs for an obligation.

Note:

Base plug-in. Click here to see the algorithm types available for this system event and for more information about the behavior of this plug-in spot.

Note:

Debt Category / Assessment on Credits. This algorithm assumes that if a credit financial transaction references an assessment and/or a debt category that this information is used to prioritize the application of the credit, not restrict its application. This ensures that the results do not include one assessment (or debt category) with an overall debit balance and another assessment (or debt category) with an overall credit balance.

The algorithm processes credits in order from oldest to newest. For each credit found,

If it references a debt category or assessment (group FT ID) or both, the credit is allocated first to debits with a matching debt category and / or assessment whose effective date is on or before the credit's effective date.
If credit is still remaining, the credit is allocated to debits whose effective date is on or before the credit's effective date using the credit allocation rules for the appropriate debt category priority for this credit.
If credit is still remaining, the credit is allocated to debits with a matching debt category and/or assessment whose effective date is after the credit's effective date.
If credit is still remaining, the credit is allocated to debits whose effective date is after the credit's effective date using the credit allocation rules for the appropriate debt category priority for this credit.

The algorithm returns a detailed list of FTs including which credits were applied to which debits.

Note:

FT Details. The details of the FTs for the obligation and how the credits are allocated to the debits is not hard-coded but rather is defined in a data area supplied to the Determine Detailed Balance plug-in spot. The base algorithm uses the data area C1-PI-MainFtInfo. However, if your implementation requires different information to be supplied for each FT, you may introduce your own data area and an appropriate determine detailed balance algorithm to populate the details accordingly.