Gunmaster has a similar system. If bullet penetration damage is reduced below a certain level due to body armour, that penetration damage is converted to blunt impact. This is important in Gunmaster because different types of damage (Blunt, Edge, Point (and the sub-set of Ballistic point), Fire/Frost, Squeeze and Tear) have different effects on the body (in terms of shock rolls, blood loss and healing).
All the different versions of Gunmaster can be downloaded for free at
http://www.warflail.com/harn/index.html
Heh, heh. It's been a while since I've mentioned Gunmaster so I thought I might get away with this post