COM50103 - Claims / reliefs: loss and non-trading deficits carry-back: order of loss processing (Action Guide)
To alter the order in which COTAX processes ‘LOS’ postings, consider steps 1 - 10 below. The guide is presented as follows.
| Action | Steps |
|---|---|
| Initial action | Steps 1 - 5 |
| Reallocating to OAS | Steps 6 - 10 |
Initial action
1. Use function DAPD (Display AP Details) to check if the clerical interest indicator (CII (Word 32KB)) is set on the AP for which the overpayment will arise.
2. If CII is not set, use function MAPS (Maintain AP Signals) to set the ‘inhibit reallocation and repayment (manual)’ signal to ‘Y’.
3. Create the overpayment.
4. Use function VPPD (View Payment and Posting Details) to check the amount of repayment available for reallocation.
5. Determine exactly how much you want to reallocate from the COTAX record.
Reallocating to OAS
6. Use function REOD (Direct Reallocation Out Of COTAX) and choose the option ‘reallocate a specific amount’.
7. Make the reallocation. COTAX cannot calculate repayment interest (RPI) when you use this function, as it does not know when the effective date of the reallocation will be. The RPI added field on screen COT170CP is therefore always set to nil.
8. Confirm the reallocation and make a note of the OAS reference number.
9. Use function MAPS (Maintain AP Signals) to set the ‘inhibit reallocation and repayment (manual’)’ signal to ‘N’.
10. On the same day, complete the Intelligent Payment Processing (IPP) Single Form, this will be picked up by the Corporate Treasury Unit. Please leave a note on COTAX advising them of the amounts on which and the dates to which repayment interest (RPI) is to be calculated.
COM120100 has guidance on completing a Intelligent Payment Processing (IPP) Single Form.
The Corporate Treasury Unit calculates RPI and sets it off against any outstanding liabilities then repays any balance unless you specify a different treatment.