SolvedCOM123033 | Repayments/reallocations: repayment cancellation: failed repayments, HMRC Payments office (Action Guide)
From HM Revenue & Customs · COTAX Manual
To deal with a returned uncashed payable order, consider steps 1 - 10 below. The guide is presented as follows.
Initial action in all cases Steps 1 - 4
Initial action in all cases
1. Stamp the payable order ‘cancelled’ immediately.
2. Use function VPPD (View Payment and Posting Details), Screen COT215D to find the Pay Identity Number (PIN) of the operator who was responsible for the repayment.
3. If the PIN relates to an operator in Banking Operations, go to Step 5.
4. If the PIN does not relate to an operator in Banking Operations or if the repayment was made automatically, go to step 10.
Repayment made by HMRC Payments office using function DREP (Direct Repayment) and the company want the repayment reallocated
5. Use function DPUR (Display Pursuit Action) to check if the case is working with Government Banking and Payments. If it is, confirm that they have no objection to the company’s request to have the repayment reallocated.
6. Use function CNPO (Cancel Payable Order) to cancel the repayment.
7. If the company wants the repayment set against a liability for an Accounting Period (AP) on the COTAX record, use function REAW (Direct Reallocation Within COTAX) to reallocate the overpayment.
8. If the company wants the repayment set against a liability not held on the COTAX record, use function REAO (Direct Reallocation Out Of COTAX) to transfer the overpayment to Overpayment Accounting System (OAS).
9. Use OLDC to notify HMRC Finance that the payable order is to be cancelled. You must:
enter the reason for cancellation
indicate that authority to issue a fresh payable order is not required
Repayment not made by HMRC Payments office using function DREP
Pass the correspondence and payable order to the CT office responsible for the company, do not use function CNPO to notify the cancellation of the repayment.