COM120030 - Repayments / reallocations: overpayments: automatic process: automatic calculation of RPI - repayments

When an overpayment (Word 35KB) arises and is to be repaid and all the following apply

• Certain conditions (Word 40KB) exist on the overpaid AP
• No conditions exist on the COTAX record to prevent an automatic repayment being made. (For more information see section 'Inhibit Automatic Process' in this business area)
• Any automatic reallocations to outstanding liabilities on other APs have been made

• Calculate any repayment interest (Word 80KB) (RPI) due to the expected date of issue of the repayment (not to the day when you created or authorised the repayment). The calculation will be on each individual payment making up the repayment that is entitled to repayment interest
• Automatically make immediate repayment or the RPI along with the repayment
• Issue a letter to the company explaining the situation. For more information see subject 'Repayment & Reallocation Automatic Output' (COM120050)

(This text has been withheld because of exemptions in the Freedom of Information Act 2000)

When an overpayment is repaid or reallocated within COTAX any RPI will appear on the overpaid AP record as posting type ‘RIN’.

To view a ‘RIN’ posting

• Use Function VPPD (View Payment and Posting Details) and access the Payments and Postings screen
• You can view the calculation of the ‘RIN’ posting from the Payments and Postings screen and then selecting the [OK] button

For a list of functions to use in particular situations, see COM120011.

For legislation applying to this subject, see COM120021.