The Payment Cancellation Management module in Interact SSAS enables the cancellation of already processed and posted payments, typically due to failed payment instruments such as bounced checks or mistaken entries. Once cancelled, the payment is reversed, the receivable is reactivated, and the associated records are updated accordingly.

Figure 1: Payment cancellation framework

Payer Options

A Payer refers to any entity making payments to the Social Security Administration and can include:

• Employer
• Self-Employed
• Voluntary Contributor

Payments may be made against contribution filings, invoices, penalties, or other obligations.

Policy Configuration
Payment cancellation policies allow the administration to define rules governing how cancellations are managed.

General Setup
Configuration is managed through the Payment Cancellation General Setup.  Key setup options include:

• Auto-incrementing Payment Cancellation Number
• Option to prefix cancellation number with year
• Option to recycle numbering annually
• Enabling review and approval workflows with optional or mandatory parameters
• Assignment of responsible officers (Financial, Compliance, Delinquency, Manager)

Payment Cancellation Reasons
Admins can define cancellation and rejection reasons as required.

Each reason includes:

• Type: Cancellation or Rejection
• Reason Code
• Reason Description

Cancellation Activity
Users can create and manage cancellation requests as needed.

Defining a New Cancellation
A new request includes the following:

Figure 2: Payment cancellation request form

• Auto-generated Cancellation Number
• Cancellation Date
• Linked Payment Number
• Payer ID, Name, and Type (Employer, Self-Employed, Voluntary Contributor, Employee)
• Payment Details: Amount, Modality, Reference
• Cancellation Amount and Reason
• Status: Pending, Reviewed, Approved, Rejected, or Posted

Workflow Management
Depending on setup, requests can follow a review and approval process:

• Reviewed By and Review Date
• Approved By and Approval Date
• Rejected By, Date, and Reason
• Posted By and Posting Date

Once approved, the request can be posted, triggering a series of financial updates.

System Impact After Posting
When a payment cancellation is posted:

• The payment is reversed, and the receivable becomes active again
• The liability of the payee is increased
• The cashier receipt is updated as cancelled
• The receivable GL account increases by the cancelled amount
• The cash GL account decreases by the cancelled amount
• The cancellation status is set to “Posted”