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:
- make a note of the returned payment in the COTAX Notes and IDMS
- create a minus payment in OAS using IVT INP201 equivalent to the recalled or returned payment
- remove 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 for all CT and CT related liabilities to be paid electronically .
Although these payments are known as ‘Recalled Payments’, you should take care 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.
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 therefore has a later EDP than the original payment.
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