Payment Allocation, Overpayments and Repayments: Stranded Repayment Interest and Incorrect Credits: Background
Since the introduction of Handle Excess Payments (HEP), and automatic repayment facilities in the BROCS, CTPF/COTAX and SA Systems, problems can arise when a repayment or reallocation is cancelled and repayment interest is attached.
We can properly account for the duty part of a cancelled repayment, and in some circumstances cancel the repayment interest. But in other cases the repayment interest becomes stranded.
Repayment interest is a manufactured amount and, as such, is not ‘real money’. It has to be disposed of in such a way that it does not artificially inflate the Department’s receipts. For information about how to dispose of stranded repayment interest see DMBM210144.