COM120050 - Repayments / reallocations: overpayments: automatic process: repayment and reallocation automatic output
Whenever the computer makes a reallocation, or a repayment by BACS or payable order, it produces output telling the company what has happened.
Reallocation
When the computer makes a reallocation within COTAX it automatically issues a notification setting out the relevant details unless any of the following apply
- Reallocations performed within the same AP
- An amount of less than £10 reallocated to another AP
- Automatic reallocations linked to a repayment
- Reallocations from Suspense record (Word 29KB)
The computer issues the notification to the company. It also issues a copy to the agent acting for the company where authority is held and the 64-8 signal is set to ‘Y’.
The ‘issuing office’ details shown on the notification are those of the relevant Banking Operations office. The text consists of a brief introduction and a computation including details of
- The ‘from’ AP and the amounts reallocated including any repayment interest (Word 80KB) included in the reallocation
- The ‘to’ AP(s)
- Any repayment interest created and not reallocated
BACS repayments
When the computer makes a BACS repayment separate notifications are sent to each of the following
- The payee (company or nominee)
- The company (if repayment made to a nominee)
- The company agent (if appropriate)
The notification provides a simple computation of the repayment, except for nominees. For an automatic repayment it includes details of any automatic reallocation made at the same time.
The computer issues the notifications at the same time as the BACS system accepts the BACS credit.
Payable order repayments
When the computer makes a repayment using a payable order, separate notifications are sent to each of the following
- The payee (company or a nominee)
- The company (if repayment made to a nominee)
- The company agent (if appropriate)
The notification provides computation details in the same way as a BACS repayment. The notification to the payee is attached to the payable order.
Repayment notifications carry the details of the company's owning office, and so appear to have been initiated in the owning office. This happens whether the repayment is created by the operator using an online function or automatically by the computer, and even if it was initiated by the Banking Operations office.
The notification will indicate that a repayment of a specific amount is provisional if you have set the relevant signal in Function DIRR (Direct Repayment).
For a list of functions to use in particular situations, see COM120011.
For legislation applying to this subject, see COM120021.
