COM91010 - Payments: payments returned by the bank - debt management office
Where Debt Management has recorded a payment on a company's COTAX record, the bank may subsequently recall the payment or return a cheque as unpaid.
All payments recalled or returned by the bank are dealt with by DMB Banking. They will
- Make a note of the returned payment in the COTAX Notes and IDMS
- Creates a minus payment in OAS (Word 28KB) using IVT INP201 (Word 28KB) equivalent to the recalled/returned payment
- Removes the payment from the COTAX record using function REAO (Direct Reallocation Out Of COTAX) to create a plus entry in OAS. The plus and minus entries in OAS are then cross referenced
- Ask the company to make a further payment explaining that it is mandatory from 1 April 2011 for all CT and CT- related liabilities to be paid electronically
Note: Although these payments are known as ‘Recalled Payments’ care should be taken when corresponding with the company as there are many different reasons why a payment could be returned. You should therefore refer to these payments as ‘Unpaid’ to avoid any complaints being made
Note: You must treat any payment re-presented or replaced by the company for any reason as if it were a fresh payment. The new payment will therefore have a later EDP (Word 41KB) than the original payment.
For a list of forms relevant to this subject, see COM91011.
For a list of functions to use in particular situations, see COM91012.
