Examples of overpayment

The Debtors module and the Rates Accounting module are used as examples of overpayment.

This table shows $100 payment applied to a Rates Accounting/Debtor account with no debt:

Account	Value
Overpayment Account	-100.00
Overpayment Bank Account	100.00
Overpayment Tax Collection Account	-11.00
Overpayment Tax Suspense Account	11.00

When the payment submission to the Tax Department covers tax on overpayment, include the Overpayment Tax Collection balance. The Tax Suspense holds the balance that indicates the amount paid or payable to the Tax Office has no debt raised.

This table shows $100 taxable debt raised against Debtor:

Account	Value	Description
Revenue Account	-89.00	Invoice Entry
Control Account	100.00	Invoice Entry
Accrual Suspense Tax Account	-11.00	Invoice Entry
Overpayment Account	100.00	Reverse of original Receipt allocation
Overpayment Bank Account	-100.00	Reverse of original Receipt allocation
Overpayment Tax Collection Account	11.00	Reverse of original Receipt allocation
Overpayment Tax Suspense Account	-11.00	Reverse of original Receipt allocation
Control Account	-100.00	Re-allocation of Receipt to Debt
Debt Bank Account	100.00	Re-allocation of Receipt to Debt
Accrual Suspense Tax Account	11.00	Re-allocation of Receipt to Debt
Cash Tax Collection Account	-11.00	Re-allocation of Receipt to Debt

Include the balance of the Overpayment Tax Account if payment to the Tax Department is required. In the table, a positive account balance reduces any other amount owing from this account. The Overpayments Tax Suspense now holds zero balance indicating that all overpayments are re-allocated.

This table shows $100 non-taxable debt raised against this Debtor:

Revenue Account	100.00	Invoice Entry
Control Account	100.00	Invoice Entry
Overpayment Account	100.00	Reverse of original Receipt allocation
Overpayment Bank Account	-100.00	Reverse of original Receipt allocation
Overpayment Tax Collection Account	11.00	Reverse of original Receipt allocation
Overpayment Tax Suspense Account	-11.00	Reverse of original Receipt allocation
Control Account	-100.00	Re-allocation of Receipt to Debt

Account	Value	Description
Revenue Account	100.00	Invoice Entry
Control Account	100.00	Invoice Entry
Overpayment Account	100.00	Reverse of original Receipt allocation
Overpayment Bank Account	-100.00	Reverse of original Receipt allocation
Overpayment Tax Collection Account	11.00	Reverse of original Receipt allocation
Overpayment Tax Suspense Account	-11.00	Reverse of original Receipt allocation
Control Account	-100.00	Re-allocation of Receipt to Debt

If the original Overpayment Tax amount has been to the Tax Department, then the positive balance in this account is reduced from any balance on the Tax Account.

The Overpayment Tax Account and the Cash Tax Account is used to determine the total payable amount to the Tax Department.

Overpayment Tax Suspense shows the amount of Tax that has been accounted for, where there is no debt raised.

Tax Accrual and Tax Accrual Reversal show the pending tax amount payable and are for reconciliation and cash flow forecasting.