COM150070 - CT Pay and File: accounting periods: superseded AP - payment received

If a payment of tax has been posted to the record of a newly superseded CT Pay and File AP and there is no assessment for the AP, COTAX automatically transfers the postings

• From the superseded AP record
• To the earliest of the new APs you have created

COTAX does this whether or not you have related a new AP to the superseded one using Function MAPD (Maintain AP Dates).

That transfer may cause the receiving AP to become overpaid. In these circumstances COTAX cannot automatically reallocate or repay the overpayment. This is because the new AP cannot have a settled assessment although it may have a draft amendment stored. For further information see COM150060).

The business area ‘Repayments / Reallocations’ at COM120000 onwards gives full details of the circumstances when COTAX disposes of overpayments automatically.

If you create two or more consecutive new APs, consider inhibiting automatic reallocation and repayment until you are ready to issue an assessment or amended assessment for the earliest new AP. To do this use Function

• MAPS (Maintain AP Signals) for a specific AP

Or

• MRSC (Maintain Repay/Realloc Signals (Company)) for all the company’s APs

If you do not create any new APs when you supersede an AP containing a payment, COTAX warns you that it has ‘stranded payments’ that it cannot automatically repay or reallocate.

In these circumstances you must use Function

• REWD (Direct Reallocation Within COTAX) to reallocate the payments

Or

• DIRR (Direct Repayment) to repay them

Cases subsequently appear on Work List LOPU (Overpayments Review List) in the Accounts Office if no action to dispose of the payments is taken in the CT processing office.

For a list of functions to use in particular situations, see COM150010.