Repayments / reallocations: repayment cancellation: cancelled payable orders - responsible CT office
When a payable order is cancelled, HMRC Finance posts a spreadsheet within the PORT AUTHORITIES COTAX Controlled Access Folder (CAF). The spreadsheet is named with the date the payable order was cancelled and either:
- 1913 or
It is the responsibility of each office to check the CAF daily for any new entries.
The spreadsheet gives 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:
Do not make a fresh repayment or arrange reallocation until you receive one of the above forms from HMRC Finance.
When you receive one of these forms, the Repayment Security Authoriser records the cancellation of the payable order on the COTAX record, using Function CNPO (Cancel Payable Order).
Only use Function CNPO in the circumstances described above. All the function does is note on the COTAX record a cancellation that has already taken place. It does not itself cancel a payable order.
When you cancel a repayment on the record, COTAX:
- reverses the postings and recreates the overpayment
- places the case on the LCRP (Cancelled / Rejected Repayments List) work list
- automatically sets the cancelled repayment inhibit signal at AP level.
The overpayment should be:
- reallocated against unpaid liabilities according to the company’s wishes or
- reallocated against any unpaid liability where no specific reallocation has been requested or
- repaid again.
For more information about the work list see COM126000 onwards.
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 signal by using Function DAPD (Display Accounting Period Details) and unset it 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 or nominee details and the address.
If the correct destination of the payable order is in doubt, you need to establish the correct one before making a fresh repayment. Alternatively, suggest repayment by Bacs.