Example 3: Clearing of down payments against provisional premium requests and subsequent clearing against premium

In this example, the first clearing run takes place after two estimates for the respective settlement periods (a prior estimate of 100 and a recent one of 110) and a down payment of 80 have been made.

After this the actual premium comes in and a second clearing run is started.

Clearing run

The system determines whether the imported posting data, such as that for clearing groups, can be aggregated. In this step, the system groups the data as follows: in each clearing group it identifies the provisional premium request as the open item that is to be cleared, and writes-off all the older provisional premium requests.

In our example, the following items remain uncleared:

In this first run example, the down payments of 80 can partially clear the provisional premium requests so that an amount of 30 remains open in each settlement period

Clearing run

The second clearing run now takes place. It takes its own premiums into consideration. The system determines how the incoming posting data can be grouped.

In this example, the system groups the data as follows: it identifies the new premium as the open item that is to be cleared, and clears all the provisional premium requests that are still open. No provisional premium requests are left open.

In our example, the following items remain uncleared:

Since the system has identified only premiums as relevant for clearing, the postings are not cleared in groups, but only for all the posting data. In this process, the clearing algorithm clears older documents first. In our example posting data, the premium in clearing group January 2008 is cleared completely with the down payments from January (80) and February (40). The premium in clearing group February 2008 is cleared partly with the remaining 40. This means that in clearing group February 2006 an amount of 80 remains open for payment

This example proves that if you replace a provisional premium request that has been cleared against a down payment with a new provisional premium request or with a new premium, the old provisional premium request is written off and the new provisional premium request is cleared against the down payment