Beginning September 2002 the system, in most cases, automatically computes 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 creates
an overpayment sequence for the period under review. The system, in most cases, notifies
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 or can not send an automated notice, it sets a B3 diary.
For instructions on resolving B3 diaries, see SM 01311.633.
If the system can not perform automated netting or cannot send an automated notice,
the field office (FO) is required to manually net the period under review and issue the appropriate initial overpayment (or underpayment)
For cases that are excluded from automated netting, see SM 01311.160B.