Service Credits for Capital Credit Memberships

For a capital credit membership, capital credit allocations are calculated once a year based on billing history and the cost of service. To accomplish this, a background process calculates the amount and creates the service credits. Refer to allocating capital credits for a sample process provided with the base package.

Credits are redeemed via the retirement process. The company determines when to retire capital credits based on analysis of their financial situation. This retirement process is also handled by a background process. Refer to capital credit retirement for a process provided with the base package.

For capital credits memberships, special functionality is required when a member dies. The capital credits are considered part of the person's estate and may need to be retired and applied to a beneficiary's account. This process depends on the company's business practice. However, typically, the membership status would change to inactive so that new capital credit allocations are not created for the membership. The system provides a sample inactivation algorithm called SCMI-RB that transfers part or all of the outstanding credit balance to the member's service agreements. From there, a user can cut a check to the beneficiary.