Transaction Code Configuration

In this area, you can determine the types of transactions available from the Code dropdown menu when you pay a bill or an account. Before installing transaction codes, note the following:

• Transaction codes with a class of A/R Write-Off are not available when you add a transaction. These codes are available only when you perform an A/R write-off on an agency bill transaction.
• When you add a transaction at the account level, you may select codes belonging to the following classes: Miscellaneous User Defined, Taxes, Fees, Service Charges, Payment - Create Transmission File, Payment - No Transmission File, and Account Opening Balances.
• When you enter an Invoice transaction at the policy or line level, you may select codes belonging to any class other than A/R Write-Off, Payment - Create Transmission File, or Payment - No Transmission File.
• When you enter a Payment transaction at the policy or line level, you may select only from codes belonging to the Payment - Create Transmission File and Payment - No Transmission File classes.

1. From the Home screen, do one of the following:
   • Click Configure on the navigation panel.
   • Click Areas > Configure on the menubar.
   • Click the down arrow next to Home on the options bar and select Configure.

From any other area of the program, do one of the following:

2. • Click the down arrow to the right of the Home options bar button and select Configure.
   • Click Home > Configure on the menubar. The Configure screen displays

2. Click Accounting on the navigation panel or Areas > Accounting on the menubar.
3. Click Transaction Codes on the navigation panel.
4. A list of the transaction codes in your system displays. To change the sort order, click the column heading.

You can do the following from here:

2. • Add a Transaction Code
     1. Do one of the following:
        • Click the Add button to the left of the list.
        • Press [Insert] on your keyboard.
        • Press [Ctrl] + N.
     2. Enter a four-character Code in the Detail frame. The code can include numbers, spaces, or special characters, but it cannot begin or end with a space.
        Note: Once you have entered a Code, it cannot be revised. To change your entry, you must delete the transaction code and enter a new one. You may only delete transaction codes that have not been used in the system.
     3. Select the transaction code Class. The Class determines which General Ledger accounts are affected by this transaction at Month-End. See table below for more information.
     4. Select the Service Fee (Defer Revenue) checkbox if the code is for a service fee.
        • Service fee revenue cannot be recognized immediately; it must be recognized when services have been rendered. This makes service fees different from policy fees, for which revenue can be recognized based on the effective date of coverage or as one-time agency fees
        • If the Service Fee (Defer Revenue) checkbox is selected, you can define a revenue deferral schedule based on when the services are rendered. The entire amount of service fee revenue is deferred and recognized based on the revenue deferral schedule.
        • When adding a new “Service Fee” transaction code at the Account level, you can define the service fee revenue recognition schedule on the Commissions tab. Service fee revenue should be not earned until the services have been rendered. If you are entering an installment plan, the receivable and revenue are deferred. The revenue is then earned based on the accounting month associated to the service fee revenue deferral schedule item. The receivable is earned based on the accounting month associated to the receivable.
        • When you view the earned revenue for a service fee within Transaction Detail, the program displays only the scheduled items that have been earned based on the accounting month’s status (i.e., posted or finalized).
        • The A/R Write-Off action verifies that all service fee deferred revenue has matured (i.e., the accounting month is closed or finalized). If the accounting month is neither closed nor finalized, you cannot perform an accounts receivable write-off. This program check was implemented to allow Month-End to affect only current income; deferred income is not affected. If an accounts receivable write-off were allowed before all of the revenue had been moved to current, the program would have to determine what portion of the income should affect deferred and current income, based on the revenue deferral schedule
     5. Enter information about the code on the following tabs:
        • Descriptions
          1. The active Language (based on the Primary Language you have set up in Regional Settings Configuration) displays in the Language dropdown menu.
          2. Enter a Description of the transaction code for the selected Language. You have the option of using description variables (for example, if you would like the policy number or policy type to always display on the invoice as part of the transaction description).
             
             To add an existing description variable, click the lookup button  to the right of the field, select the desired variable, and then do one of the following:

          1. • Click Finish.
             • Press [Enter].
             • Double click the variable.

          If you have more than one language available, the description entered will populate for every language.

          1. • To change the Description that will display in a different language, select the Language from the list or the dropdown menu and enter a Description.
             • The Update matching descriptions in other languages option defaults checked or unchecked based on your previous selection for it. This option cannot be changed during the Add workflow.
        • Default Characteristics  
          1. In the Policy Bill dropdown menu, select Agency, Direct, or Both. This determines whether the transaction can be entered on agency bill policies, direct bill policies, or both. Certain transaction code classes always file as agency bill, even when entered on direct bill policies (see table below).
          2. Depending on your selection in the Class field, the GL account # field might be enabled. This is because certain transaction classes require you to define which General Ledger account this transaction should post to at Month-End, while this information is hard-coded for other transaction classes. Before entering transaction codes in the Fee, Tax, Miscellaneous User Defined, Service Charge, or Account Opening Balance classes, you should have an offsetting account selected. Make sure the account is entered in your Chart of Accounts.
             If the field is enabled, enter the correct GL account #, or click the lookup button to the right of the field, enter at least the first digit of the GL Account #, and then click Locate or press [Enter].
             
             Click on the desired account, and then do one of the following:
             • Click Finish.
             • Press [Enter].
             • Double click the account.
               

             Note: If you selected a class of Payment - Create Transmission File or Payment - No Transmission File, all fields other than Description and Policy estimated premium are disabled in code detail.

          3. Make an Amount selection:
             • Credit: Transaction amount defaults as a credit.
             • Debit: Transaction amount defaults as a debit.
             • Production Item Debit/Credit: Available for government taxes and government fees only. The tax/fee amount defaults as a debit or credit based on the amount of the production item to which it is associated.
        • Update Policy
          1. Optionally select the Policy estimated premium checkbox. If you select this option, the estimated premium amount for the Policy or Line (depending on which radio button is selected when the transaction is added) defaults into the Amount field for the transaction. You may wish to select this option for new or renewal transaction codes.
          2. Make the appropriate selection in the in the Billed dropdown menu:
             • Add To
             • • Transaction amount is added to the policy/line's billed premium and commission amounts
               • Typically selected if the transaction code will be added to the policy/line
             • No Effect
             • • Transaction amount does not affect the policy/line's billed premium and commission amounts
               • Typically selected if the transaction code will be added to the account rather than the policy/line

          3. Make a selection in the Annualized dropdown menu:

             • Add To - Actual
             • • Transaction amount is added to policy/line's premium and commission amounts
             • Add To - Term
             • Transaction amount is added to policy/line's annualized premium and commission amounts
             • Add To - Yearly
             • Transaction amount is annualized for the most recent anniversary year and added to the policy/line's annualized premium and commission amounts
             • No Effect
             • • Transaction amount does not affect policy/line's annualized premium and commission amounts
             • Replace - Actual
             • • Transaction amount replaces the policy/line's premium and commission amounts
               • Typically selected for renewal transaction codes
             • Replace - Term
             • • Transaction amount replaces the policy/line's annualized premium and commission
               • Typically selected for renewal transaction codes
             • Replace - Yearly
             • • Transaction amount is annualized for the most recent anniversary year and replaces the current amount
               • Typically selected for renewal transaction codes
             • Zero Out
             • • Transaction amount zeroes out the policy/line's annualized premium and commission
               • Typically selected for cancellation transaction codes
     6. Click Finish or press [Enter] to complete the record.
        
        Click Add to add this record and create another one.
        
        Click Cancel or press [Esc] to exit the workflow without saving changes. You are prompted, "Do you wish to discard changes?" Click Yes.
   • Edit a Transaction Code
     1. Click to highlight the transaction code that you wish to revise in the list and do one of the following:
        • Click the Edit button to the left of the list.
        • Click File > Open on the menubar.
        • Double click the transaction code.
        • Press [Enter].
        • Press [Ctrl] + O.
     2. Revise the information in the fields on the right.
     3. Click Finish or press [Enter] to complete the record.
        
        Click Cancel or press [Esc] to exit the workflow without saving changes.
   • Delete a Transaction Code

     Note: You may only delete a transaction code that has not been used in the system. If the transaction code has been used, you must inactivate it instead. However, transaction codes can be deleted if all transactions on which they are used have been archived.

     1. Click to highlight the transaction code that you wish to delete in the list.
     2. Do one of the following:
        • Click the Delete button to the left of the list.
        • Press [Delete] on your keyboard.
        • Press [Ctrl] + D.
     3. You are prompted, "Do you wish to delete this record?" Click Yes.
   • Inactivate/Reactivate a Transaction Code

     1. Click the transaction code you wish to inactivate or reactivate.

     2. Do one of the following:
         

        • Click Actions > Inactivate/Reactivate on the options bar.

        • Click Actions > Inactivate/Reactivate on the menubar.
        • Right click the transaction code and select Inactivate/Reactivate.

     3. You are prompted to verify the change. Click Yes.
        
        Note: If Direct Bill Commission Download or Automated Download Invoicing uses this code, remove the code from Company Interface Configuration.
   • Print a List of Transaction Codes
     1. To print the transaction codes that are in the list, do one of the following:
        • Click the Print button to the left of the list.
        • Click Print > Listview on the options bar.
        • Click File > Print > Listview on the menubar.

     Note: If you want to include inactive codes in the printed list, click the Include Inactive link label on the Transaction Codes header bar before printing.

     2. The Print window displays. Print this list as you would any other document.

Transaction Code Classes

The following transaction code classes are programmed into the system. These classes are hard-coded to allow Month-End to generate the necessary General Ledger entries based on the type of transaction entered. For example, an agency billed transaction with a class of Account Current/Direct Bill that includes agency commission will do the following:

• Debit Accounts Receivable
• Credit Premium Payables
• Credit Agency Bill Income