Understanding Limit Processing

Occasionally, you may need to define a deduction that is limited to an annual or monthly goal or is subject to other limit testing.

If you need to define a limit for one of the delivered general deductions or a deduction that you create yourself, follow these steps:

  1. Modify or create the deduction.

  2. Create a monetary variable to store the limit amount.

    This limit can apply to the deduction itself or to specific payees (if defined at the payee level).

    Define the limit as a supporting element override.

  3. Create an accumulator to store the amount that has been deducted to date.

    This deduction can be for any time period.

    The deduction defined in step 1 should be the only member of this accumulator.

  4. Create a formula to perform limit processing.

    Use the post-process formula LNS FM PYMTS as a model:

    If LNS FM TERMINATION = 1 Then
    1   >>  SET CURR AMT VAL
    LNS VR GOAL AMT - LOAN PAYMENT - LOAN_ARR   >>  OVRD CURR AMT VAL
    Exit
Else
    If LOAN PAYMENT + LOAN_ARR + CURR AMT VAL > LNS VR GOAL AMT Then
        1   >>  SET CURR AMT VAL
        LNS VR GOAL AMT - LOAN PAYMENT - LOAN_ARR   >>  OVRD CURR AMT VAL
        Exit
    Endif
Endif

    This formula, which is associated with the LOAN deduction:

    1. Determines the termination status of the loan recipient.

      If the loan recipient has a termination status of 1 (YES), the formula calculates the LOAN deduction as the total loan amount (LNS VR GOAL AMT) minus the amount repaid (LOAN PAYMENT) minus the arrears amount (LOAN ARR).

      If the loan recipient's termination status is 0 (NO), the formula sums the amount repaid to date (LOAN PAYMENT), the current amount to be deducted (CURR AMT VAL), and the arrears amount (LOAN ARR).

    2. Compares the sum of the preceding elements to the original amount of the loan (LNS VR GOAL AMT). If the sum exceeds the original loan amount, the formula calculates the deduction (loan repayment) as in the following way:

      Original amount of loan (LNS VR GOAL AMT) minus amount repaid to date (LOAN PAYMENT) minus amount in arrears (LOAN ARR).

  5. Enter the formula in the Post Process Formula field on the Calculation page of the Deduction Definition component.

Additional Considerations

When you create a limit testing formula, note that:

  • You must replace the variable LNS VR GOAL AMT in the delivered formula LNS FM PYMTS with the variable that you create in step 2.

  • You must replace the accumulator LOAN PAYMENT in the formula LNS FM PYMTS with the accumulator that you create in step 3.

  • If you allow the deduction you create to go into arrears, the arrears accumulator for your deduction should replace LOAN ARR.

  • If termination processing is not required for the deduction you create, you should eliminate the termination check included in the formula LNS FM PYMTS.