Overpayments

An overpayment, by definition, does not "match" to open items. However, the match type algorithms supplied with the base package will result in a balanced match event if an overpayment is made. The following points explain how this is achieved:

• The base package's match type algorithms will distribute the payment until the taxpayer's current debt is satisfied.

• The amount of the overpayment will be kept on a separate obligation (this only happens if you plug-in the appropriate Overpayment Distribution algorithm on your account types). Refer to Overpayment Obligations for more information.

• When the payment is frozen, the payment segments that satisfy current debt will be matched against their respective open-items. The payment segment used to book the overpayment (on the overpayment obligation) will not be matched.

• When future bills are completed, the credit balance on this "overpayment obligation" will be transferred to the "real obligation's" when future bills are completed (if you have plugged in the appropriate bill completion algorithm on the overpayment obligation's obligation type). If the overpayment satisfies all newly calculated charges, a match event is created that matches the new charges against the funds transferred from the overpayment obligation. Refer to When Are Match Events Created for information about how the system creates match events at bill completion time when the new charges on the bill are satisfied by other credits such as overpayments.

• At some point in the future, the overpayment will be exhausted (i.e., all funds will be transferred to "real obligations"). At that point in time, the overpayment obligation will close (assuming you set up the overpayment obligation's obligation type as a "one time"). At close time, the system creates a match event that matches the original overpayment payment segment with the adjustments that were used to transfer funds to the "real obligation's". Refer to When Are Match Events Created for information about how the system creates match events when an obligation closes.