COM122001 - Repayments / reallocations: non automatic reallocations: introduction

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

It automatically

• Calculates and adds any repayment interest (Word 80KB) (RPI) due, for APs ending on or after 01/10/93
• Calculates and adds any credit interest (Word 34KB) due, for APs ending on or after 01/07/99
• Calculates any debit interest (Word 31KB) in Quarterly Instalment Payment (Word 42KB) (QIP) cases
• Recalculates any late payment interest (Word 27KB) (LPI)
• Reallocates all or part of the total amount calculated against any outstanding (Word 27KB) liabilities within COTAX
• Reallocates the appropriate amount if the company has

• • Asked for an Inhibit Small Repayments (Word 34KB) standard value to apply

• • Or
    

• • Specified an inclusive amount up to which repayment is to be reallocated

• Repays any balance
• Notifies the company of any reallocation exceeding £10.00 made between APs

COTAX does not make automatic reallocations when

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

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

COTAX inhibits repayment 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 days.

COTAX enters other overpayments that it cannot handle automatically on the following work lists

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

For more information about the work lists see

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

Exceptionally, COTAX repayments can be made from OAS (Word 28KB). This will be after money has been moved to OAS following the

• Owing office using Function REOD (Direct Reallocation Out Of COTAX)

• Debt Management and Banking office using Function REAO (Direct Reallocation Out Of COTAX)