Overpayment Of Taxes Due To Cancel/Rebills

Lets assume a cancel / rebill occurs after a payment is received and the net affect of the cancel / rebill is that the taxpayer has overpaid their taxes.

Note:

This is an example of a tax that is "billed" where one obligation is used for ongoing billing of the tax amount.

*Event*	*GL Accounting*	*County Payable Balance*	*County Holding Balance*
Bill segment created	A/R 110 Revenue - State <100> County Holding <10>	0	(10)
Payment received	Cash 110 A/R <110> County Holding 10 County Payable <10>	(10)	0
Cancel	A/R <110> Revenue 100 County Holding 10	(10)	10
Rebill	A/R 27.50 Revenue <25> County Holding <2.50>	(10)	7.50

You'll notice that the amount payable to the county still indicates $10 (the amount of amount that was paid by the taxpayer). However, you'll notice that the county holding balance is 7.50 (debit). This looks a bit odd, but it's correct. Remember that at this point, the taxpayer has a credit balance of $75 and this will be whittled down as successive bills are produced as shown below. Note: refer to Cash Refunds for an example of what happens if you refund the credit with a check rather than letting it whittle down.

*Event*	*GL Accounting*	*County Payable Balance*	*County Holding Balance*
		(10)	7.50
Bill segment created	A/R 55 Revenue <50> County Holding <5>	(10)	2.50
Bill segment created	A/R 110 Revenue <100> County Holding <10>	(10)	(7.50)

In the unlikely event of a payment being received while the county holding has a debit balance, nothing will be done in respect of transferring funds from holding to payable (there is nothing to transfer).