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During the program year, a sponsor may lose allocated product quantities left in the servicing warehouse past the allocation close date. Your state agency reclaims these unordered products and makes them available to other sponsors. Because the original sponsor used its entitlement for the product cost, the state agency offers these product quantities as entitlement no-charge commodities.
Your organization may acquire entitlement no-charge commodities from your servicing warehouse through allocations and unassigned requests. There is no entitlement cost associated with these products, but the CNPweb reports the no-charge entitlement value for your organization. You must also cover the related product fees.
Each time the state agency allocates products to your organization in the entitlement no-charge commodity type, the CNPweb creates the invoice for the related product fees.
The following table identifies the product expenses and payment options for entitlement no-charge commodities:
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Payment Options |
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|---|---|---|---|
Product Expense |
Entitlement |
Invoice |
Reimburse |
Product cost |
N/A |
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Service fee |
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Y |
Y |
Processing fee (when appropriate) |
|
Y |
Y |
Excess storage fee (when appropriate) |
|
Y |
Y |
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Note: