We use the term overpayment to refer to an obligation that has a credit balance as a result of payments exceeding the liability. In this section we describe how to manage the overpayment process.
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Maintaining Overpayment Processes
The topics in this section provide background information about overpayment processing functionality.
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Approving an Overpayment Process
Each overpayment process has an associated overpayment process type. The overpayment process type defines the configuration information that is common to overpayment processes of a given type. Refer to The Big Picture of Overpayments for a description of the business rules that you control when you set up your overpayment process types.
An overpayment process occurs when the obligation has a credit balance as a result of the payment amount exceeding the liability from the assessment. Another common reason for overpayment is the recalculation of tax, penalty, interest or fee that results in a reduced liability.
An overpayment process can be created in various ways:
· As a result of posting a return. This is the most common scenario. The tax form is processed and results in a creation of an assessment. The calculated tax due is evaluated against the total payments made to determine if there is an overpayment.
· As a result of the balance of the obligation being reviewed by the account monitor.
· Some exceptional cases make it necessary to manually create an overpayment process. For example, if the taxpayer believes he/she is owed tax in multiple jurisdictions and makes a first quarter estimated payments where no tax is actually due. The taxpayer may ask for the payment to be refunded prior to filing a zero tax due return after the fourth quarter.
Regardless of how the overpayment is created, the overpayment process is always associated with a specific obligation.
The overpayment log contains an entry for every recorded event during the lifecycle of the overpayment process. There are two types of log entries:
· Automatic entries. The system automatically creates an entry in the log when the overpayment process is created or there is a status change. Users cannot modify or delete these log entries.
· Implementation specific entries. In addition to entries created when an overpayment process is created and changes status, your implementation can choose to add specific log entries to highlight specific activities that occur as a result of the overpayment. For example, a log entry can be created when a refund is issued.
· Manual entries. Users can add manual entries to record significant events at their discretion.
Some overpayment processes will require approval by one or more users. You can configure the system to inform users of overpayment process that require approval by creating a to do. Refer to creating to do entries for approval for the details.
From the to do the user can navigate to the overpayment process portal and use the actions on the actions zone to either approve or reject the overpayment process.
An overpayment process will typically go through a number of automated checks or validations before it is processed. If any of the validations fail, the overpayment process will transition to an issues detected or error state.
An issues list will appear at the top of the overpayment process zone. The user can edit the overpayment process and correct any errors. If the issue is related to a specific field, a ‘go to’ button will appear next to the issue. After saving the changes, the user can then use the Validate action for the system to apply the validation rules on the updated overpayment process.
Use the Overpayment Process transaction to view and maintain pending or historic overpayment processes. Navigate using Main Menu, Financial, Overpayment Process.
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Use the query portal to search for an overpayment process. Once a request is selected, you are brought to the maintenance portal to view and maintain the selected record.
This portal appears when an overpayment process has been selected from the Overpayment Process Query portal.
The topics in this section describe the base-package zones that appear on this portal.
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This is a standard actions zone.
If the overpayment process is in a state that has valid next states, buttons to transition to each appropriate next state are displayed.
In addition to possible next states, an overpayment process would typically include special action buttons to handle additional processing. For example, if the overpayment process is in a state that requires approval, then the Approve and Reject action buttons would appear.
If the overpayment process is in a final state, the state transition and action buttons are not displayed.
The Overpayment Approval zone contains display-only information about the current approver of the selected Overpayment Process.
Please see the zone's help text for information about this zone's fields.
The Overpayment Process zone contains display-only information about the selected Overpayment Process.
Please see the zone's help text for information about this zone's fields.
This is a standard log zone.