C1-OFST-DIST

This algorithm is invoked when the status of the offset request is changed to Creating Adjustment. It creates offset adjustments using the adjustment type specified in the offset request and sets the status of the offset adjustments to Frozen. If the Transfer Adjustment option is selected in the respective offset request type, it creates transfer adjustments in the Frozen status.

This algorithm distributes the offset amount of a bill in the following manner:

  1. Internal Offsetting Within Each Bill - This happens when a bill contains both debit and credit line items. The internal offsetting happens either at the bill segment or contract level depending on the value specified in the Match Type Entity (Valid Values: BILL, BSEG, SA) parameter. If the Match Type Entity (Valid Values: BILL, BSEG, SA) parameter is set to BILL or SA, the internal offsetting happens at the contract level. However, if the Match Type Entity (Valid Values: BILL, BSEG, SA) parameter is set to BSEG, the internal offsetting happens at the bill segment level. In the bill, the internal offsetting is done starting from a credit contract with highest payment priority against a debit contract with highest payment priority by creating transfer adjustments. This continues until the sum of credit or debit amount within a bill is exhausted.

  2. Offsetting Across Debit and Credit Bills - This offsetting is always done from the credit bills to the debit bills with the objective to reduce the debit bill balance. This algorithm checks whether any match event is created for the bill. If so, it creates the offset adjustments against the bill using the existing match event. If there are no match events created for the bill, this algorithm creates match events using the value specified in the Match Type Entity (Valid Values: BILL, BSEG, SA) parameter. It distributes the amount from the credit bill starting with the oldest due date. This continues until the credit bill balance is exhausted.

It contains the following parameters:

  • Match Type - Used to specify the match type using which you want to distribute the offset amount. You must specify a match type where the payment distribution override algorithm is attached.

    Note: If a bill which is offset is partially paid using a match type, this algorithm uses the same match type for offset distribution. However, if no payment is received for a bill which is offset, this algorithm uses the match type which is specified in the Match Type parameter for offset distribution.
  • Match Type Entity (Valid Values: BILL, BSEG, SA) - Used to indicate the entity, such as bill, bill segment, or contract, against which you want to create match event. It is used to create match events for bills which are unpaid. The valid values are:

    • BILL - Used when you want to stamp same match event on all financial transactions of the bill.

    • BSEG - Used when you want to stamp unique match event on each bill segment or adjustment financial transaction.

    • SA - Used when you want to stamp same match event on all financial transactions which are created for the same contract.

  • Credit Bill Distribution Algorithm - Used to specify an algorithm which helps to create offset adjustments for a credit bill at the bill segment level. This parameter is required when the Transfer Adjustment option is not selected in the respective offset request type.

    Note: The C1-WTBS-CRBL algorithm type is shipped with the product. You can attach an algorithm created using the C1-WTBS-CRBL algorithm type to the Credit Bill Distribution Algorithm parameter. For more information, see C1-WTBS-CRBL.