Payment Allocation, Overpayments and Repayments: Self Assessment: Manual Changes to Payment Allocation: Overview
As a first step and before attempting any correction, you should establish when the next statement issue cycle is due to start. Use of the CLERICAL REALLOCATION function immediately updates the customer’s record but if there is any risk that all the actions to correct the record may not be completed before the next statement is issued, consider either
- inhibiting statement issue, or
- advising the customer that you will be amending the payment record
If you do not take this action any statement issued may confuse the customer and prompt an unnecessary enquiry or a payment.
This is only likely to arise when you deal with very complicated reallocations and you cannot finish all the actions on the same day or if you are transferring a payment to another SA record and need to transfer the credit to OAS.
Clerical Reallocation Function
You should then examine the record and identify what credit(s) need to be reallocated.
There are 4 methods of reallocation and each of these works in a different way.
AUTOMATIC method of reallocation
The Automatic method of reallocation can be used to reallocate any credits that have not been allocated in a logical order by the system. This method uses the automatic allocation rules. Starting with the earliest allocation you can select up to a maximum of twenty allocations in one use of the function for subsequent reallocation. You should bear in mind that any sum held as unallocated is also utilised in the reallocation.
After using the function in this way, you can check the results using VIEW STATEMENT.
SWAP method of reallocation
The Swap method of reallocation enables you to swap two specific allocations. You have to input two amounts together with their destinations.
It is possible for you to swap unequal amounts providing there is a large enough outstanding balance at the destination of the larger amount.
Before you finally proceed to swap credits, you will see the direct results on a confirmation screen. This will show, for example, the addition or removal of interest charges. If you continue with the function then the full consequences can be checked using VIEW STATEMENT.
Please note that the potential results of some swaps may not be as you intended This may arise when the swap is reallocating amounts contrary to the effective date of payment (EDP) order If this arises then you may need to use the function again to achieve the reallocation that you want.
TARGET method of reallocation
You can select up to four allocations to be moved to one common destination if you choose TARGET as the method of reallocation.
A confirmation screen will show you the direct consequences of your reallocation before you finalise your action To see the full results you should then use VIEW STATEMENT.
REFRESH method of reallocation
The Refresh method of reallocation can be used to refresh a payment when the system has used the allocation date for calculation of late payment interest rather than the EDP. On selection of an amount, the system will de-allocate and then reallocate back to the same charge.
A confirmation screen will show you the direct consequences of your reallocation before you finalise your action. To see the full results you should then use VIEW STATEMENT.
An Action Note recording the manual re-allocation is to be made in SA Notes.
- It is not possible to move a credit from a charge that includes an Informal Discharge using CLERICAL REALLOCATION. You would need to remove the Informal Discharge before you proceed with any reallocation of funds.
- There is a system limit to the number of times that you can reallocate one credit. If this limit is reached then the input field will be suppressed. If this happens and the credit still needs to be reallocated, you should use function TRANSFER FROM TAXPAYER CREDIT to transfer the credit to OAS and use form SA331 to provide DMB Banking with full disposal instructions as explained in DMBM210205 and DMBM210210.
Repayment supplement (RPS)
The use of the Clerical Reallocation function will not result in the creation or disposal of repayment supplement. RPS arises when an amount that is overpaid is re-allocated or passed automatically for repayment. In general, a reallocation by the use of the function is not of overpaid funds and as such RPS is not appropriate. However, the consequence of a reallocation may result in an overpayment arising, for example, where an interest charge is removed with funds allocated. You should consider in these circumstances whether RPS is appropriate and if so calculate it manually.
Customer’s Statement of Account
The use of the CLERICAL REALLOCATION function will not in itself trigger the issue of a statement to the customer. However, many of the consequences of the reallocation may result in changes to charges, for example the creation or disposal of late payment interest charges. A statement would then be issued under the present rules.
If the customer has received a statement showing incomplete or incorrect information, the correct position should be explained to them and an apology given for any confusion. You may also wish to provide them with a screen print of ‘today’s’ statement.
The procedure explained here may not fit every situation you encounter on an SA customer record. If the case you come across has some unusual features or there are complications, refer to your line manager who can contact the SA Business Help Desk for more information.