Processing Over Payments: Refunding payments back to clients and consumers

When a payment transaction is entered that results in an overpayment or credit balance on an account the system will maintain that overpayment at the account level and it will appear as a credit balance to the debtor.

NOTE: If you are not sure how the overpayment occurred, check the Posting Report (Was the payment forced to a balance type, etc?) and have it ready to send to support if you still need help. 

•  Entering an overpayment is not handled any differently than entering a regular payment
•  Overpayments can be reviewed using the payment transaction edit report before posting the transaction
•  Overpayments can also be reviewed using the credit balance report (payment transaction menu - credit balance report) after the transactions have been posted
•  RMEx will differentiate between overpayments paid to the agency (payment transaction code 03) and overpayments paid to the client (payment transaction code 13). As a result of this, these two transactions will need to also be processed differently
•  You can leave overpayments on the account indefinitely
•  RMEx will separate the total payment entered into the amount with the same payment transaction code as the one originally entered and a different payment transaction code which will be the amount of the overpayment
•  The overpayment is not reported on the client remittance statement and does not go into client or collector statistics
•  The creation of the overpayment payment transaction code takes place at the time of posting the payment, and not at the time of entry
•  Accounts with overpayments are closed with a “1” paid in full close code
•  Commission is not calculated on overpayments

 Processing an overpayment made to the agency

•  The system will create a payment transaction code 03 for the overpayment
•  The overpayment will become a part of the bank deposit for the day and will be included in the "cash" total
•  The Paid agency component will not include the overpayment
•  To refund the overpayment to the debtor and remove it from the account you must reverse the overpayment amount with a payment transaction code 72
•  To refund the overpayment to the client and remove it from the account you must reverse the overpayment amount with a payment transaction code 71. This transaction will appear on the client’s remittance statement as an amount due to them
•  To keep the overpayment and remove it from the account you must reverse the overpayment amount with a payment transaction code 73
•  To transfer the overpayment to another account and remove it from this account you must reverse the overpayment amount with a payment transaction code of 03 and post the amount to the new account with a payment transaction code of 01
•  To correct (posted in error) the overpayment and remove it from the account you must reverse the overpayment amount with a payment transaction code 03

Processing an overpayment made to the client

•  The system will create a payment transaction code 13 for the overpayment
•  The payment transaction code 13 is not a cash transaction
•  To correct (posted in error) the overpayment and remove it from the account you must reverse the overpayment amount with a payment transaction code 13

Note: Never correct an overpayment with any transaction other than what is referenced in this document. never use an adjustment code 41-49.

Example of refunding an over payment back to the client. 

In order to refund and overpayment to your client, you will need to do the following:

•  Use payment code 71 to refund a debtor over payment to the client
•  Enter the amount as a negative transaction
•  The debtor's balance will be increased
•  The transaction will appear on the client statement as an amount due