DMBM121025 - Maintain charges (financial) by IT system: Maintain charge (financial) in SAFE: Reallocations within the same SAFE customer record
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There are several reasons why it may be necessary to reallocate payments between dutieswithin the same charge or from one charge to another within the same customer record.
Examples of the processes to be followed are set out below.
Example 1 – both to and from charges of the reallocation are non-interest bearing
Example 3 – the clerical interest signal is set on the charge holding the payment to be reallocated
Example 1 – both to and from charges of the reallocation are non-interestbearing
Once the payments to be reallocated have been identified the Reset Clearing transactionis used to release the payments from the charge to enable the reallocation to take place.The released payments will appear on the Unallocated Payments Worklist as soon as thetransaction is completed.
The Account Maintenance transaction is used to complete the reallocation. Once theCustomer Reference is entered all outstanding charges on the Customer Account aredisplayed. By selecting both the unallocated payment and the targeted charge, thereallocation is completed by saving the details.
If necessary, reset Dunning on both the transferring and receiving charges. See DMBM131010 for information on Dunning.
Example 2 – One or both of the charges are interest bearing and theclerical interest signal is not set
Once the payments to be reallocated have been identified the Reset Clearing transactionis used to release the payments from the charge to enable the reallocation to take place.The released payments will appear on the Unallocated Payments Worklist as soon as thetransaction is completed. Again the Account Maintenance transaction is used to completethe reallocation.
If interest has been charged on the transferring charge, it will be automaticallyrecalculated once the payments have been reset. At the same time, any excess interest paidwill be allocated automatically to the Unallocated Payments Worklist. The excess interestpayments should be taken into account in making the reallocation.
If the charge receiving the reallocated payment is interest bearing and the reallocatedpayment clears the charge, interest will be calculated automatically.
If necessary, reset Dunning on both the transferring and receiving charges. See DMBM131010 for information on Dunning.
Example 3 –the clerical interest signal is set on the charge holding thepayment to be reallocated
Once the payments to be reallocated have been identified the Reset Clearing transactionis used to release the payments from the charge to enable the reallocation to take place.The released payments will appear on the Unallocated Payments Worklist as soon as thetransaction is completed.
Check whether interest has been charged and consider if it is necessary to re-calculatethe interest due. Use the appropriate IRIS interest calculator. If interest has beencharged and paid, any excess interest payment should be considered as part of thereallocation. The Reset Clearing transaction should be used to release interest paymentsfrom the interest charge to the Unallocated Payments Worklist.
Again the Account Maintenance transaction is used to complete the reallocation taking intoaccount payments from both the original charge and the interest charge.
If necessary, reset Dunning on both the transferring and receiving charges. See DMBM131010 for information on Dunning.
Example 4 – the clerical interest signal is set on the charge to whichthe payment is being reallocated
Once the payments to be reallocated have been identified the Reset Clearing transactionis used to release the payments from the charge to enable the reallocation to take place.The released payments will appear on the Unallocated Payments Worklist as soon as thetransaction is completed.
If the transferring charge is non-interest or automatic interest the processes describedin examples 1 and 2 above will apply.
Where payments are to be reallocated to an interest bearing charge and the clericalinterest signal is set, check whether any interest will be due once the reallocation iscompleted. If interest is due on the receiving charge and it is appropriate to raise theinterest charge, as the reallocation will clear the charge and the interest due is £32 ormore, then raise the interest charge.
Again the Account Maintenance transaction is used to complete the reallocation taking intoaccount payments from both the original charge and any excess interest payments resultingfrom the reallocation. Where the payments from the transferring charge/interest charge aregreater than the duty outstanding on the receiving charge, the excess (part or all) is tobe allocated against the newly raised interest charge.
If necessary, reset Dunning on both the transferring and receiving charges. See DMBM131010 for information on Dunning.
Excess payments following the reallocations
If an excess payment remains following the reallocations described in examples 1-4above the normal payment clearing rules apply.