Over Payments

If a taxpayer overpays a tax amount (i.e., we receive more cash than receivables), we strongly recommend you set up the system to NOT keep the excess credit on the taxpayer's regular obligation. Rather, we recommend you segregate the receivable onto an "excess credit" obligation. If you do this, the system can transfer any excess credits to the regular obligations at bill completion time or at form posting time. When this transfer occurs, the same accounting described under Payments Segment Financial Transaction Algorithms Transfer Holding Amounts To Payable GL Accounts occurs as shown in the following example. Note: this example assumes an excess credit of $110 was transferred to a normal obligation and the normal obligation had $10 of held payables.

Fastpath:

Refer to Overpayment Obligations for how to set up the system to segregate overpayments on a separate obligation.

Note:

Why not keep excess credits on a taxpayer's regular obligation? Because the system can't differentiate between a credit that exists as a result of an overpayment and a credit that exists because of cancel/rebills, it would be impossible for the system to know if payables should be realized as a result of the reduced credit balance. However, if you keep overpayments on an excess credit obligation, the system knows to treat any transference of these credits as "payments" and therefore it can transfer holding balances to true payables.

*Event*	*Normal Obligation GL Accounting*	*Excess Credit Obligation GL Accounting*
Bill segment created	A/R 110 Revenue <100> County Holding <10>
Payment of $300 is received	Cash 110 A/R <110> County Holding 10 County Payable <10>	Cash 190 Overpay <190>
Bill segment created	A/R 110 Revenue <100> County Holding <10>
Transfer excess credit amount to normal obligation (when bill is completed).	Xfer 110 A/R <110>	Overpay 110 Xfer <110>
Because the transfer adjustment is the equivalent of a cash relief outstanding county holding is relieved in proportion to the amount of receivables that are reduced by the transfer	County Holding 10 County Payable <10>
*Net affect of the transfer*	Xfer 110 A/R <110> County Holding 10 County Payable <10>	Overpay 110 Xfer <110>