Add a Premium Payable Reconciliation

1. Access the Reconciliations area.
   1. To access the General Ledger from the Home screen, do one of the following:

   1. • Click General Ledger on the navigation panel.
      • Click Areas > General Ledger on the menubar.
      • Click the down arrow next to Home on the options bar and select General Ledger.

   To access the General Ledger from another area of the program, do one of the following:

   • Click Home > General Ledger on the menubar.
   • Click the down arrow next to Home on the options bar and select General Ledger.

   2. Click Reconciliations on the navigation panel or Areas > Reconciliations on the menubar.
2. Click Premium Payable under Reconciliations on the navigation panel.
3. The Premium Payable Reconciliations screen displays. Do one of the following:
   • Click the Add button to the left of the list.
   • Click New on the options bar and select Premium Payable.
   • Click New on the options bar and select Reconciliation > Premium Payable.
   • Click File > New > Premium Payable on the menubar.
   • Click File > New > Reconciliation > Premium Payable on the menubar.
   • With focus on the list, press [Insert] on your keyboard.
   • Press Ctrl + [N].

The Add Premium Payable Reconciliation screen displays.

4. Click the Company or Broker radio button.
5. Specify whether to include All, Account Current, or Company Statement items in this reconciliation. If you select Account Current, the system excludes future adjustments and automatically flags items. You can override this default if necessary.
6. Payable Entity is selected by default in the list. Select the All radio button to choose all entities, or click the Selected radio button to choose specific accounts.
   
   If you choose the Selected radio button, select an entity in the dropdown menu. If there is no "pay on" date, the current system date defaults in the Due date field. You can change it if necessary. Click Add. To add another company, repeat these steps.
   
   Selected entities display in the list at the bottom of the screen. To remove an item from the list, highlight it and click the Delete button to the left of the list or press [Delete] on your keyboard.
7. If you want to specify which payable contracts to include, click the All Contracts link.
   
   In the Available Payable Contracts pop-up window, optionally select the Include Expired checkbox.
   
   Select the checkbox for each contract you want to include, and then click Finish or press [Enter].
8. Make your Month/Date, Agency, Branch, Department, Profit Center, Line of Business,and Issuing Company selections.
9. Under Month/Date, you can sort by either Accounting month or Company payables due date. Select the appropriate radio button to choose how to select items to reconcile.
10. Click the Future Adjustments line. In the area to the right of the list, select the appropriate radio button:
    
    • Exclude
    • Include
    • Based on Contract
11. Click the Receivable line. In the area to the right of the list, select the appropriate radio button:
    
    • All
    • Partially Paid
    • Fully Paid
12. Click the Method line. In the area to the right of the list, select the appropriate radio button.
    
    Note: It is recommended that you leave the default of Based on contract type (if you are reconciling carriers) or Both (if you are reconciling brokers). This means that items are flagged for payment and reconciled on the same statement (except for Account Current items, which are only flagged for payment, as these items typically are not reconciled by the agency). You should only modify this criterion if you want to pay and then reconcile items as a two-step process.
    
    • Select items for payment: Use this option when the transaction has been entered and the brokerage is in the process of paying it, but it has not yet been received on a statement from the carrier. This method allows the reconciliation statement to show the transaction as paid to the carrier but not reconcile it yet, so you do not send a duplicate payment to the carrier. For example, you might use this method when the carrier requires you to remit payment in order to bind coverage before the payment from the insured is actually due.
    • Reconcile against statement: Use this option when you have the carrier’s statement in hand and are reconciling the transactions in Epic to it.
    • Both: This option allows you to select items to pay and reconcile them at the same time.
    • Based on contract type: Defaults to Select items for payment for Account Current items and Both for Company Statement items. If the reconciliation contains both types of contracts, two separate statements are created.
13. If you are adding a broker statement, click the Broker External/Internal line. In the area to the right of the list, select the appropriate radio button:
    
    • External
    • Internal
    • Both
14. If binder bill transactions are enabled in System Settings, select the Binder Transactions criterion and choose to Include open binder transactions or Exclude open binder transactions.
15. In the Statement section, enter a Description of the statement.
16. Click the appropriate radio button:
    • Flag all items
    • Do not flag items
    • Flag items based on contract type
17. Optionally select the Create separate statements per contract checkbox.
    
    Note: If this box is checked, the program automatically creates an individual checkbox for each Premium Payable Entity + Agency + Contract Type + Payable Contract being reconciled. If this checkbox is not selected, the program automatically creates a single suspended statement for all items found within the result set for the selected criteria. When the statement is finalized, the program automatically breaks the statements out by Premium Payable Entity + Agency + Contract Type + Payable Contract - Payment Contact Address.
18. Change the Accounting month if applicable.
19. Change the Description if necessary.
20. Click Detail to continue the workflow.

Click here for an explanation of reconciliation statuses.

Click here for information regarding Master Statement Numbers.

21. The Transactions screen displays. Use the filter above the list to narrow the list of transactions if necessary.
22. Any transaction that includes both a premium and a tax transaction displays rolled up into a single line on the detail screen, indicated by an arrow in the first column. You can use the rolled-up view to flag and pay the transactions without having to pay its detail lines separately. Click the arrow to expand the transaction to view its detail lines.
23. Click the checkbox in the Client Code column for each commission that has been received. To select all of the checkboxes, click the Select All link label in the upper right corner of the screen.
24. To perform further actions on a transaction, highlight the desired item and then click the appropriate button. If you want to select multiple items at once, click the Enable Multi-Flag link. Then press and hold the [Ctrl] or [Shift] key while selecting the desired items in the list. To select items individually by selecting their checkboxes instead, click the Disable Multi-Flag link.
25. Click to highlight the desired item, and then click the appropriate button. If you need more information on a transaction, click the Transaction Detail link label.

1. • Adjust
     1. The Adjust Commissions window displays. Change the agency commission Type if desired.
     2. Adjust the agency commission Percent or Amount if applicable.
     3. Change the broker commission Type if desired.
     4. Adjust the broker commission Percent or Amount if applicable.
     5. Optionally change the broker's Production Credit.
     6. Change the producer commission Type for each affected producer.
     7. Adjust the producer commission Percent or Amount for each affected producer.
     8. Optionally change the producers' Production Credit.
     9. Adjust the Co Pay Due Date if necessary.
     10. Click Finish when the information is complete.
         
         Click Cancel to close the window without making any adjustments.
     11. To close the Transactions screen, click the X next to the open reconciliation in the navigation panel.
   • Write-Off
     1. The Write Off Payable window displays. Revise the default Description if desired (for example, to enter the reason for the write-off).
     2. Confirm that the Amount is correct.
     3. Click Finish to complete the workflow.
        
        Click Cancel to close the window without writing anything off.
     4. To close the Transactions screen, click the X next to the open reconciliation in the navigation panel.
   • Activity
     1. The Add Activity screen displays. Transaction defaults in the Add to dropdown menu. Select a different association if necessary:
         
        • Account
        • Bill
        • Claim
        • Line
        • Policy
        • Transaction

     If you opt to attach to the Account, Claim, Line, or Policy, click on the correct item in the list.

     2. The Item # of the selected transaction defaults.
     3. Click Continue.
     4. Add the activity as usual.
     5. To close the Transactions screen, click the X next to the open reconciliation in the navigation panel.
   • Discrepancy
     1. Clicking this button changes the discrepancy status of the transaction to Discrepancy. You may be prompted to enter an activity, which you should assign to the person responsible for making the correction.
     2. When the discrepancy has been resolved, highlight the transaction again and click Discrepancy to update its discrepancy status to Resolved. If an activity is associated to the discrepancy, you are prompted to close the activity.
   • Risks
     1. The Adjust Risks window displays. Revise the number of Risks Insured and Total Eligible if desired.
     2. Click Finish.
   • Close Binder
     1. Select a transaction with a Binder status of Open.
     2. Click the Close Binder button below the list.
     3. Select the Accounting month in which the binder should be closed and click Finish.

After creating the statement, you have access to the following actions:

1. • Associate GL Item
   • Modify Payment Month
   • Remove Associated GL Item

   Note: Your newly added statement will display in the Premium Payable Reconciliations list only if it matches the criteria for your current search filter. To change the statements that display in the list, edit your Search where options and click Find.