COM120020 - Repayments / reallocations: overpayments: automatic process: automatic reallocation
After you have taken a relevant action (Word 31KB) that produces an overpayment on an AP the computer generates the overpayment immediately.
Overpaid AP
Providing certain conditions (Word 40KB) are satisfied and there are no inhibitions to prevent an automatic reallocation taking place it will
- Reallocate the overpayment from the overpaid AP to a receiving AP with an outstanding (Word 27KB) liability
- Where appropriate calculate and reallocate any repayment interest (Word 80KB) due
- From the overpaid AP to a receiving AP with an outstanding liability
Receiving AP
The computer will only reallocate automatically to a receiving AP if
- The normal due date (Word 49KB) for payment has already passed and a charge exists on the record
- The normal due date is no more than 14 days ahead whether or not a charge exists on the record
- The Inhibit Small Repayment (Word 34KB) standard limit of £20 is in operation, or the company have specified a different amount for which they do not wish to receive repayments
- There are no inhibitions present to prevent an automatic reallocation taking place
For details of the inhibitions that prevent automatic reallocations, see section 'Inhibit Automatic Process' in this business area.
If all the above conditions are satisfied, the computer automatically reallocates the overpayment (and where applicable any repayment interest) to other outstanding AP(s), starting with the oldest AP first.
The computer selects payment type postings (Word 41KB) in effective date of payment (EDP (Word 41KB)) order starting with the most recent however if credit interest and / or repayment interest is present, they will be the last postings to be reallocated.
(This text has been withheld because of exemptions in the Freedom of Information Act 2000)
Viewing reallocation details
Use Function VPPD (View Payment and Posting Details) to view details of reallocated amounts.
You can view additional details of the reallocation postings, for example authorisation details, by selecting the posting number from the Payments and Posting screen in Function VPPD and selecting the [OK] button.
If these details show that the payment was reallocated into OAS (Word 28KB), screen COT215H will show the OAS reference number. If you want to view information relating to a payment transferred to OAS use IRIS (Word 29KB) for the appropriate Banking Operations office.
For a list of functions to use in particular situations, see COM120011.
For legislation applying to this subject, see COM120021.
