COM123050 - Repayments / reallocations: repayment cancellation: cancelled payable orders - banking operations office

When a payable order is cancelled, HMRC Finance sends one of the following forms to Banking Operations if the repayment was created in Banking Operations using Function DREP (Direct Repayment)

• FAO1913
• FAO1913B
• FAO2601

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

The forms explain the reason for the cancellation and are the authority to make a fresh repayment.

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

When you receive one of these forms you must record on the COTAX record the cancellation of the payable order, where not already done.

It may have already been cancelled on the COTAX record because the company returned the uncashed payable order to you and asked you to

• Cancel it

• Reallocate the overpayment (Word 35KB) against other specific unpaid liabilities

For more information see subject 'Failed Repayments - Banking Operations Office' (COM123030).

When you cancel a repayment on the COTAX record the computer

• Reverses the postings and recreates the overpayments
• Places the case on the LCRT (Cancelled Repayment List)
• Automatically sets the Cancelled Repayment Inhibit (Word 33KB) signal

The overpayment should be

• Reallocated against any unpaid liability

• Repaid again

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

The ‘Cancelled Repayment Inhibit’ 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 using Function DAPD (Display Accounting Period Details). You can ask the responsible CT office to unset the signal using Function MAPS (Maintain AP Signals).

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 COM123051.

For legislation applying to this subject, see COM123032.