Internal Intercept

Internal Intercept refers to the debts Intercepted during the Automated Disbursement (AD) Chain in CGI Advantage. These debts can be either internal or external debts. The Payment Intercept step in the AD Chain determines whether any outstanding debts on the Intercept Request page that have been identified for intercept are eligible for intercept against the records selected for payment and are currently not on a system, user, or disbursement management hold. The Payment Intercept flag on System Options must be selected and the Intercept Selection batch parameter must have at least one value defined in order for any disbursement to take a payment intercept.

The next step is to determine which Payment Request records stored on Disbursement Request (DISRQ) are eligible for intercept. This step only uses those DISRQ records that were selected in the record selection step (DISRQ records with User Hold = True (checked) are not selected). A payment request must have an amount available to intercept. In addition, a DISRQ record may be excluded based on user defined criteria. A Payment Request transaction may be excluded from intercept or any combination of the DISRQ record’s Department, Object, Appropriation, TIN, and TIN Type may be used to exclude records from intercept.

The DISRQ records that are NOT eligible for intercept are excluded as follows:

The DISRQ record has the Procurement Card Payment flag set to No.
The DISRQ record has a Vendor/Customer with the Miscellaneous flag selected on Vendor Customer (VCUST), and the Intercept Misc. Vendor Payments indication is not false on System Options (SOPT).
If the DISRQ Net Line Amount is less than or equal to Zero. then the DISRQ record is not eligible for intercept. Net Line Amount is calculated as follows:

Net Line Amount = (Line Amount + Penalty – Discount + Interest –Withholding Amount – Retainage Amount – Credit Memo Adjustment Amount)

If a record on DISRQ with values of Transaction Code, Transaction Department, Transaction ID, Department, Object, Appropriation, TIN, and TIN Type matches any combination of Transaction Code, Transaction Department, Transaction ID, Department, Object, Appropriation, TIN, and TIN Type on the Intercept Disbursement Exception (INTDBEX) table then the DISRQ record is not eligible for intercept. If any of the values on the INTDBEX table is blank, then that value is treated as a wildcard and will include all values for that field. Also, Transaction Code, Department, and ID can be entered independently (for example, you may choose to only enter Transaction Code = GAX and leave Transaction Department and Transaction ID blank). This logic replaces the existing logic in the AD Chain that is associated with the INTDBEX table.

DISRQ records that meet one of the above exclusion criteria are not considered for the subsequent intercept logic steps.

Records on DISRQ and INTR tables that are selected based on the intercept selection criteria defined above are matched based on TIN and TIN Type. All records on DISRQ that have a matching record on the INTR table are used in the subsequent payment intercept steps.

The selected DISRQ records are grouped based on the disbursement payment grouping criteria (defined later in this transaction). The INTR records are sorted by TIN, TIN Type, Priority and then Due Date. This allows the DISRQ records to be analyzed as a group that will eventually print on a single check. This also allows the INTR records with the highest priority and oldest due dates to be analyzed by the batch process first and against a group of DISRQ records rather than on an individual line-by-line basis.

Calculation of Intercept Fees

Once the Intercept amount is determined, the process tries to assess the fees on the intercept. Two sets of flat fees may be assessed to a DISRQ record that is matched with a debt record for an intercept. A Default Intercept Fee may be applied to charge an administrative fee for processing the intercept. A Supplementary Intercept Fee may be applied to charge an administrative fee required by an external entity for processing an intercept.

Intercept Fees will be calculated for those debt records that have the possibility of offsetting DISRQ records. This is determined by adding the debt record available amounts to intercept until they meet or exceed the grouped DISRQ amount that is available to be intercepted. For example, there are 4 debt records at $6 each and 1 grouped set of DISRQ records that equal $15. The first 3 debt records will be selected to calculate intercept fees as they have the potential to offset the grouped DISRQ records. The fourth one does not have the potential to intercept the grouped DISRQ records, as it would need the grouped DISRQ record to have at least $19 available to intercept.

First, the batch process determines if an intercept fee may be calculated more than once for a debt. This is driven by the Intercept Frequency CVL on IOPT. This allows the user to decide how often an intercept fee may be applied for a receivable eligible for intercept.

The batch process identifies all records on the Intercept Disbursement Request Line (INTRL) table and the Intercept Activity (INTA) table with a Transaction Code equal to debt record being processed to determine if the record is eligible for the Calculate Intercept Fee step. Records on the INTRL table

If the Intercept Frequency field is set to Once, then a receivable transaction may have an intercept fee applied to it once. Subsequent attempts to intercept any line on a receivable transaction will not result in applying an intercept fee. The batch process will retrieve all records from INTRL and INTA with the RE Transaction ID (Code, Department, and ID) equal to the debt record being processed and if any record has a Default or Supplementary Intercept Fee Amount greater than $0 then the INTRL record is not eligible for the intercept fee steps since it had previously been assessed an intercept fee.

If the Intercept Frequency field is set to Once Per Day, then a debt record may have an intercept fee applied to it once per processing day (day defined as system date). Subsequent attempts during the same processing day to intercept any line on a receivable transaction will not result in applying an intercept fee. However, if the Receivable transaction is intercepted on a different processing day, it may be eligible for the application of intercept fees. The batch process will retrieve all records from INTRL and INTA with the RE Transaction ID (Code, Department, and ID) equal to the debt record being processed and if any record has a Default or Supplementary Intercept Fee Amount greater than $0 and the Intercept Date equal to the system date then the INTRL record is not eligible for the intercept fee steps since it had previously been assessed an intercept fee during the processing day. Note: The batch process uses both INTRL and INTA to account for the situation where the AD Chain is executed multiple times within the same day.

If a record is eligible for the intercept fee calculation steps, then the batch process determines if a default intercept fee may be calculated. The following criteria must be met in order for a debt record to be eligible for a default intercept fee.

The current fiscal year record on the Intercept Options (IOPT) table determines whether a default intercept fee will be applied to an intercepted record. If the Apply Intercept Fee flag is selected, then a default intercept fee may be taken; otherwise, the process will skip to determine if a supplementary intercept fee may be taken.

The sum of the available amount to intercept {Outstanding Amount – Intercepted Amount} for all INTR records for the RE Transaction ID must be greater than or equal to the Minimum Debt Amount on the default Intercept Fee Setup (INTF) table record. The Default Entity, Default Debt Type, and Default Intercept Fee Code defined on the current fiscal year record on the IOPT table are used to retrieve the record from the INTF table that is used for this calculation.

If all the criteria for calculating a default intercept fee are met, then the batch process calculates the default intercept fee and retains it for future processing. It will eventually increment the Default Intercept Fee Amount for the DISRQ record and INTRL record. Please refer to the intercept fee calculation formula below for how the fee is calculated.

After the default intercept fee logic is complete for a record, the batch process determines if a supplementary intercept fee may be calculated. This is accomplished by taking the Entity and Debt Type of the INTRL record and performing a lookup to the INTF table. If a matching record on the INTF table is found and that record was not used for calculating the default intercept fee, then the record will have a supplementary fee calculated. If an INTF record is not found, then a supplementary fee will not be taken. Once calculated, the supplementary intercept fee amount will be retained for future processing. It will eventually increment the Supplementary Intercept Fee Amount for the DISRQ record and INTRL record. Please refer to the intercept fee calculation formula below for how the fee is calculated.

An Intercept Fee may be a flat fee and is defined based on an Intercept Fee Setup (INTF) table record. If the INTF record contains a value in the Flat Fee field, then the intercept fee will be set to the value in the Flat Fee field.

Disbursement Request records are offset by debt records in the order of the priority designated for the debt records.

After intercept fees are calculated, the batch process determines how much of the intercepted amount may offset the grouped DISRQ Net Line Amount (calculated earlier). The rule for determining whether the debt record plus the associated default and intercept fees may offset the DISRQ is as follows:

Grouped DISRQ Net Line Amount > ((Default Intercept Fee + Supplementary Intercept Fee) * (1 + IOPT Intercept Margin Percentage / 100))

If the above formula is true, then the Default and Supplementary Intercept fees may be taken against the grouped DISRQ records. This amount is reserved against the grouped DISRQ record’s available amount to intercept.

For example, there is a grouped DISRQ Net Line Amount of $100 made up of 10 accounting lines of $10 each, and an INTRL Line Amount of $100 with a Default Intercept Fee of $20. The Intercept Margin % is set to 50%. The intercept fee of $20 may be taken since the fee is less than 50% of the grouped DISRQ Net Line Amounts. This fee reduces the grouped DISRQ Net Line Amounts by $20 to $80, specifically reducing the first 2 accounting lines by $10 each for the fees. The new grouped DISRQ Net Line Amounts of $80 is then taken as the intercepted offset amount (INTRL Line Amount was not completely used since its value is greater than the new grouped DISRQ Net Line Amounts).

If the Default and Supplementary fees cannot be taken, the batch process, then determines if just the Default Intercept Fees can be taken. The rule for determining whether the DISRQ may be offset by the debt record plus the associated default intercept fee is as follows:

Grouped DISRQ Net Line Amount > ((Default Intercept Fee Amount) * (1 + IOPT Intercept Margin Percentage/100))

If the above formula is true, then the Default Intercept Fee may be taken against the grouped DISRQ records. This amount is reserved against the grouped DISRQ record’s available amount to intercept.

If the Default and Supplementary Intercept fees or just the Default Intercept Fee cannot be taken, the batch process, then determines if just the Supplementary Intercept Fees can be taken. The rule for determining whether the debt record plus the associated default intercept fee may offset the DISRQ is as follows:

Grouped DISRQ Net Line Amount > ((Supplementary Intercept Fee Amount) * (1 + IOPT Intercept Margin Percentage/100))

If the batch process determines that Default and Supplementary Fees cannot be taken against a grouped set of DISRQ records, it will calculate the intercept offset amount without the intercept fees (Fee Amounts set to $0). If a Default Intercept Fee and/or a Supplementary Intercept Fee are taken, then the fee amounts reduced the available amount to intercept on the DISRQ record. These amounts are reserved against the grouped DISRQ records before determining the intercept offset amount.

The intercept-offset amount is then calculated. The Intercept Amount on the grouped DISRQ records is set to the debt record’s available amount to intercept. If the debt record’s available amount to intercept is greater than the grouped DISRQ record’s Net Line Amount (minus intercept fees as well) then the Intercepted Amount is set to the DISRQ grouped Net Line Amount.

Once the Intercept Offset amount is determined, the batch process writes the record to the Intercept Disbursement Request Line (INTRL) intermediary table with the amount actually intercepted and charged as Default and Supplementary Intercept Fees.