A withholding receivable is created when the State receives information that a financial entity owes the State or another agency funds because of the following:
After the withholding/lien/levy is created, the system withholds the monies during subsequent claim payment cycle runs based upon the recoupment rules defined. The money will be disbursed to the designated entity through the payment cycle.
The State department sends an accounting transaction request providing the financial entity information.
Before adding the withholding/lien/levy receivable, verify that the financial information exists for the entity. If not, then add the financial accounting entity.
An account receivable (A/R) is created using the activity code and reason code contained in the accounting transaction request received from the State.
After the withholding/lien/levy receivable is created, the reason code and amount owed to the lien holder can be updated if the receivable has not been processed in a claims payment and reporting cycle.
The claims payment and reporting cycle applies the amount of the lien and withholds payment from the financial entity based upon the withholding codes and recoupment rules defined on the receivable. In addition, the lien holder is paid during the same payment cycle.
The withholding receivable recoupment type code determines how the monies are being recovered. The recoupment type code options are: default, no recoupment, percentage amount, dollar amount, and scheduled payments.
When the scheduled payments option is selected, payment details are added to the account receivable indicating the due date and amount.
Note: For scheduled payments, the recoupment is not part of the claims payment and reporting cycle. However, if the payment schedule agreement is not met, an indicator (called Default on Payment Schedule) is set and recoupment can be done through the claims payment and reporting cycle.
During claims processing, the withholdings from the financial entity's checks is reflected on the financial entity's 1099. A report containing the payment to a financial entity, the amount withheld, and reason codes, is generated.
When the financial entity chooses the option to send a check or return a ND MMIS-generated check to pay down the receivable, it is recorded as a financial receipt. The financial control number can be viewed on the withholding/lien/levy receivable using the North Dakota MMIS Web Portal.
How to Add or Edit a Withholding/Lien/Levy Receivable
How to Search for a Financial Accounting Entity
How to Add or Edit a Financial Accounting Entity
Version as of 5/16/14.
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