DMBM121030 - Maintain charges (financial) by IT system: Maintain charge (financial) in SAFE: Reallocations across different SAFE customer records
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It may be necessary to reallocate payments between two separate customer records withinSAFE. These reallocations can be completed without transferring payments into theOverpayments & Accounting Summary (OAS) system. The reallocations have to beauthorised by a second officer. The arrangements for setting up the authorisation processare contained in the SAFE Security Guidelines.
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 2 – one or both the charges are interest bearing and the clerical interest signal is not set
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
When 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.
Once the payments are on the Unallocated Payment Worklist, the Manage Unallocated Paymentfunction is accessed and the Transfer function selected. Enter the Customer Accountreference for the record to which the payment is to be transferred. Once the details areconfirmed the reallocation is passed for authorisation. Workflow Administration willnotify the authorising officer that a reallocation requires approval.
The authorising officer will use the Workflow Administration function to display thosereallocations that require approval. If the reallocation is approved, it will be appliedto the receiving record. If it is rejected, the payment is returned to the sendingCustomer Account as an unallocated payment and will be reported on the Unallocated PaymentWorklist. Auto Clearing will return the payment to the original charge if the item on theUnallocated Payments Worklist is not actioned in the same on-line day. Additionally theuser who initiated the reallocation can check on the progress of the authorisation throughWorkflow Administration.
If necessary, reset Dunning on both the transferring and receiving charges. See DMBM131010 for information on Dunning.
Example 2 – one or both the charges are interest bearing and the clericalinterest signal is not set
When 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.
Once the payments are on the Unallocated Payment Worklist, the Manage Unallocated Paymentfunction is accessed and the Transfer function selected. Enter the Customer Accountreference for the record to which the payment is to be transferred. Once the details areconfirmed the reallocation is passed for authorisation. Workflow Administration willnotify the authorising officer that a reallocation requires approval.
The authorising officer will use the Workflow Administration function to display thosereallocations that require approval. If the reallocation is approved, it will be appliedto the receiving record. If it is rejected, the payment is returned to the sendingCustomer Account as an unallocated payment and will be reported on the Unallocated PaymentWorklist. Auto Clearing will return the payment to the original charge if the item on theUnallocated Payments Worklist is not actioned in the same on-line day. Additionally theuser who initiated the reallocation can check on the progress of the authorisation throughWorkflow Administration.
If interest has been charged on the payment being transferred, it will be automaticallyrecalculated once the payments have been reset and, at the same time, any excess interestpaid will be allocated automatically to the Unallocated Payments Worklist. If this excessinterest was also paid by a different customer it should be included in the amounts passedto the authorising officer. Exceptionally if the interest charge was paid by the correctcustomer, then the interest payment should be reallocated from the Unmatched PaymentWorklist as a payment on account of the charge.
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
When 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.
Once the payments are on the Unallocated Payment Worklist, the Manage Unallocated Paymentfunction is accessed and the Transfer function selected. Enter the Customer Accountreference for the record to which the payment is to be transferred. Once the details areconfirmed the reallocation is passed for authorisation. Workflow Administration willnotify the authorising officer that a reallocation requires approval.
The authorising officer will use the Workflow Administration function to display thosereallocations that require approval. If the reallocation is approved, it will be appliedto the receiving record. If it is rejected, the payment is returned to the sendingCustomer Account as an unallocated payment and will be reported on the Unallocated PaymentWorklist. Auto Clearing will return the payment to the original charge if the item on theUnallocated Payments Worklist is not actioned in the same on-line day. Additionally theuser who initiated the reallocation can check on the progress of the authorisation throughWorkflow Administration.
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. If this excess interest wasalso paid by a different customer, it should be included in the amounts passed to theauthorising officer. Exceptionally, if the interest charge was paid by the correctcustomer then the interest payment should be reallocated from the Unmatched PaymentWorklist as a payment on account of the 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
When 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.
Once the payments are on the Unallocated Payment Worklist, the Manage Unallocated Paymentfunction is accessed and the Transfer function selected. Enter the Customer Accountreference for the record to which the payment is to be transferred. Once the details areconfirmed the reallocation is passed for authorisation. Workflow Administration willnotify the authorising officer that a reallocation requires approval.
The authorising officer will use the Workflow Administration function to display thosereallocations that require approval. If the reallocation is approved, it will be appliedto the receiving record. If it is rejected, the payment is returned to the sendingCustomer Account as an unallocated payment and will be reported on the Unallocated PaymentWorklist. Auto Clearing will return the payment to the original charge if the item on theUnallocated Payments Worklist is not actioned in the same on-line day. Additionally theuser who initiated the reallocation can check on the progress of the authorisation throughWorkflow Administration.
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 thatcharge, as the reallocation will clear the charge and the interest due is £32 or more,then raise the interest charge.
Where the payments from the transferring charge/interest charge are greater than the dutyoutstanding on the receiving charge, the excess (part or all) is to be allocated againstthe newly raised interest charge.
If necessary, reset Dunning on both the transferring and receiving charges. See DMBM131010 for information on Dunning.