8241 OVERPAYMENTS AND UNDERPAYMENTS
(Revised 12/99)
In agencies where the receipt of cash requires that a liability account (e.g., uncleared collections or revenue collected in advance) be credited pending the earning of a remittance, the credit will be for the amount of cash received.
Overpayments
In accordance with applicable provisions of law, overpayments may be: (1) applied against other amounts due the State from the payers, (2) refunded automatically, or (3) held pending receipt of refund requests.
GC Section 16302.1 permits state agencies to remit overpayments of $10.00 or less to the Treasury as miscellaneous revenue or operating revenue, subject to the right of the payer to make a claim for refund if otherwise authorized by law.
Unless the overpayment is being applied to other amounts due the State from the payers, agencies using GC Section 16302.1 will credit revenue or operating revenue for the amount received. The appropriate revenue or operating revenue subsidiary account will be credited for the applicable amount. The overpayment will be credited to miscellaneous revenue in the revenue or operating revenue subsidiary account.
Underpayments
Agencies will credit revenue or operating revenue for the amount received. The appropriate revenue or operating revenue subsidiary account will also be credited for the amount received except if the payment is for a press-numbered document of fixed value. For this situation, the appropriate revenue or operating revenue subsidiary account will be credited for the fixed value. The underpayment will be debited to miscellaneous revenue in the revenue or operating revenue subsidiary account. Any remittance advice showing a debit to miscellaneous revenue or operating revenue for this reason will state that it is due to net underpayments.
GC Section 13943.2 authorizes the State Board of Control to approve agency requests to refrain from collecting amounts due the State, if those amounts are $250 or less. See SAM Section 8776.6 for information on approval and instructions regarding discharge from accountability.
