COM123040 - Repayments / reallocations: repayment cancellation: cancelled payable orders - responsible CT office

When a payable order is cancelled, HMRC Finance sends one of the following forms to the responsible CT office

• FAO1913
• FAO1913B
• FAO2601

The forms give the reason for the cancellation.

When a payable order has been fraudulently cashed by a third party HMRC Finance send one of the following forms to the responsible CT office

• RF1449A
• RF1960

Do not make a fresh repayment or arrange reallocation until you receive one of the above mentioned forms from HMRC Finance.

When you receive one of these forms, the Repayment Security Authoriser will record on the COTAX record the cancellation of the payable order, using Function CNPO (Cancel Payable Order).

Note: Only use Function CNPO in the circumstances described above. All the function does is to note on the computer record a cancellation that has already taken place. It does not itself cancel a payable order.

When you cancel a repayment on the COTAX record the computer

• Reverses the postings and recreates the overpayment (Word 35KB) 
• Places the case on the LCRP (Cancelled / Rejected Repayments List) work list
• Automatically sets the Cancelled Repayment Inhibit (Word 33KB) signal at AP level

The overpayment should be

• Reallocated against unpaid liabilities according to the company’s wishes

• Reallocated against any unpaid liability where no specific reallocation has been requested

• Repaid again

For more information about the work list see 'Repayment / Reallocation Work Lists' in this business area.

The ‘Cancelled Repayment Inhibit’ signal is unset automatically if the AP becomes balanced or if the charge is increased and the AP becomes underpaid.

You can view the ‘’Cancelled Repayment Inhibit’ signal by using Function DAPD (Display Accounting Period Details). You can unset the signal using Function MAPS (Maintain AP Signals).

Do not unset the signal manually unless you are sure that it is in order for COTAX to issue a fresh payable order with the same details as the original. (Check the payee / nominee details together with the address.)

If the correct destination of the payable order is in doubt, you will need to establish the correct one before making a fresh repayment. Alternatively, suggest repayment by BACS.

For a list of forms relevant to this subject, see COM123021.

For a list of functions to use in particular situations, see COM123041.

For legislation applying to this subject, see COM123032.