COM120001 - Repayments / reallocations: overpayments: automatic process: introduction

The computer handles most overpayments (Word 35KB) for an AP automatically providing certain conditions (Word 40KB) exist on that AP.

It automatically

• Calculates and adds any repayment interest (Word 80KB) (RPI) due
• Recalculates any late payment interest (Word 27KB) (LPI)
• Calculates and adds any credit interest (Word 34KB) due for CTSA APs
• Reallocates all or part of the total amount calculated against any outstanding (Word 27KB) liabilities within COTAX
• Repays any balance unless the company has

• • Asked for the Inhibit Small Repayments (Word 34KB) standard value of £20 or less to apply

• • Or
    

• • Specified a different limit

• Notifies the company of any reallocation or repayment made

In Quarterly Instalment Payment (Word 42KB) cases COTAX will also

• Calculate any debit interest (Word 31KB) chargeable

COTAX does not make automatic reallocations or repayments when

• Certain conditions exist on the overpaid AP
• The operator has set signals inhibiting automatic processing

In addition, COTAX will not make automatic reallocations when certain conditions exist on the potentially receiving AP.

For more information about the conditions that prevent COTAX from making an automatic reallocation or repayment, see subject 'Overpayments That Cannot Be Handled Automatically' (COM121010).

COTAX inhibits repayments for 14 days for some repayments that have certain conditions present and enters the cases on the Work List ORUR (Overpayments Requiring Urgent Review List). These overpayments need to be reviewed urgently within the 14 day inhibit period.

COTAX enters all other overpayments that it cannot handle automatically on to one of the following Work Lists

• LOPD (Overpayments List)
• LOPU (Overpayments Review List)
• MRPL (Manual Repayments List)

For more information about all these Work Lists see

• Business area 'Work Lists'
• Section 'Repayment / Reallocation Work Lists' in this business area