How are negative adjustments generated?
Negative Adjustments can be manually created, such as when a child's hours need to be reduced after the deadline to change Actuals, or they can be system-generated.
System-generated negative adjustments are created when payment production for Estimates or Actuals is run, and the overall amount to be paid is negative.
System-generated adjustments are also created by the Carry Forward process when there are outstanding negative adjustments on the term being carried forward from.
Examples:
A provider has been paid Estimates and Actuals, and still has some outstanding Adjustments, a negative adjustment for £400, and a positive adjustment for £300.
The Child Details Carry Forward process is run.
A new negative adjustment for £100 is created on the new term.
A provider has claimed £4000 for their Estimates, the Interim percentage is 50%, so £2000 was paid.
The provider then only claims £1500 on Actuals, meaning they have been overpaid for the term.
Payment production is run with Actuals and includes Negative/Zero Values selected.
The Actuals are ticked as paid, and a negative adjustment of £500 is created.
If Include Negative/Zero Values is not ticked, then Actuals would not be marked as paid, and the negative adjustment wouldn't be created.
A provider is due to be paid £700 for Estimates, and also has an outstanding negative adjustment of £1000.
Estimates and the Adjustment are ticked as Ready to Pay, and payment production is run with Estimate and Include Negative/Zero Values selected.
Estimates and the Adjustment are ticked as Paid, and a new negative adjustment is created for £300.
📌Note: Unlike other payment types, Adjustments and Include Negative/Zero Values are selected; this will not create a new adjustment for the outstanding negative amount.
Paying negative adjustments
If you have dealt with the outstanding negative outside of the FIS system, e.g., by invoicing the provider, you can mark the adjustment as paid, and it won't be carried forward or subtracted from any other payments. To mark the adjustment as paid.
Make sure Ready To Pay is ticked on the adjustment.
In FIS, go to Admin, Payments, Payment Production.
Select Adjustments and tick Include Negative/Zero Values.
Click the Produce Payments Report to preview what will be marked as paid.
Click Start Payment Transfer to complete the payment.
📌 Note: This will not produce a payment file, as a payment file can't include negative values. You should only use the options Adjustments and Include Negative/Zero Values in cases where the negative amount has been dealt with outside of the system.
Carry forward
If you do not want negative adjustments to be carried forward, follow the instructions above to mark the adjustments as paid before running the Carry Forward.
If you do want negative amounts to be carried forward, make sure Estimates and Actuals have been marked as paid, and negative adjustments have been created.
For example, if the provider has been overpaid on estimates and has a negative amount due for their actuals. This negative amount won't be carried forward unless the Actuals are marked as paid and a negative adjustment has been created.
The Carry Forward will only pick up negative amounts that are in the Adjustments tab and are not marked as paid.
Cancelling a system-generated adjustment
A System Generated Adjustment can't be deleted.
If the adjustment was created by payment production, you can remove it by undoing payment production. To do this, go to Admin, Payments, Undo Payment Production, select the Year/Term and Payment Type, select the provider from the list, and click Undo Selected Payments.
⚠️ Warning: If the adjustment was created by a Carry Forward, it cannot be removed. The recommended approach in this case would be to create a positive adjustment for the same amount so the two will cancel each other out.
Tick both as Ready to Pay so they will both be included in the next payment production run.