P&I is Calculated for an Obligation's Assessments

The system creates, stores, and maintains tax liability assessments. These assessments may incur P&I over time. When more than one assessment exists for an obligation, the type of assessment may control P&I rates and rules. For example, if the taxpayer is being audited, harsher penalty rates and rules are used.

As described in Credit Allocation the base product determine detailed balance algorithm allocates credits for an obligation across assessments such that an obligation with multiple assessments would not incur P&I on one assessment while another assessment is in credit. As a result, the P&I calculation algorithm is invoked for an obligation and it always calculates penalty and interest for all assessments for the obligation.