Beginning September 2002 the system will, in most cases, automatically compute the net amount for all periods where there are excess payments and additional amounts due for the period(s) under review. If the net result is an overpayment, the system will create an overpayment sequence for the period under review. The system will, in most cases, notify the individual of the net result either by sending a post eligibility notice and issuing an underpayment or by sending an initial overpayment notice. If the system can not perform automated netting and/or can not send an automated notice, it will set a B3 diary. See SM 01311.633 for instructions on resolving B3 diaries.
If the system can not perform automated netting and/or can not send an automated notice, the Field Office (FO) is required to manually net the period under review and/or issue the appropriate initial overpayment (or underpayment) notice.
See SM 01311.160B for cases that are excluded from automated netting.