Share Revenue - Interagency Commission

When running reports to support Month-End journal entry figures, you will need to use the following instructions to verify the Interagency Commission journal entry if your system is installed to share revenue. The reports described below support interagency commission figures generated by revenue-sharing producers. For instructions on how to verify interagency commission figures generated by internal brokers, see the Interagency Commission section of Supporting the Month-End Journal Entry.

"Sharing structure" refers to the main transaction agency structure. "Receiving structure" refers to another structure sharing a percentage of the revenue.

Debits: Sharing Expense + receiving agency subaccount (in sharing structure), Interagency Commission Receivable + main transaction agency subaccount (in receiving structure). Write-offs debit Interagency Commission Payable + receiving agency subaccount (in sharing structure), Interagency Commission Receivable + main transaction agency subaccount (in receiving structure).

Credits: Interagency Commission Payable + receiving agency subaccount (in sharing structure), Sharing Income + main transaction agency subaccount (in receiving structure). Write-offs credit Sharing Expense + receiving agency subaccount (in sharing structure), Sharing Income + main transaction agency subaccount (in receiving structure).

Accrual Basis Balancing

Criteria:
- Agency - Month-End agency sharing revenue with other agencies
- Month - Current Default Month
Select the Transaction Interagency Receivables default layout.
Sharing structure: To verify the debit entries to Sharing Expense + receiving agency subaccount and the credit entries to Interagency Commission Payable + receiving agency subaccount, use the major sort subtotals for Share Revenue/Expense - Revenue.
Receiving structure: To verify the debit entries to Interagency Commission Receivable + main transaction agency subaccount and the credit entries to Sharing Income + main transaction agency subaccount, use the major sort subtotals for Share Revenue/Expense - Revenue.

Note: Whether installed to recognize installment revenue immediately or not, the Month criteria on the Transaction Interagency Payables/Receivables Report will filter the items included in the interagency entries by Accounting month for basic transactions and Production month for installment transactions.

If intra-agency sharing also exists within your organization, you will need to run an additional report in order to balance the entry. You can use the Transaction Interagency Payables/Receivables Report as described above to verify the amounts posted to Interagency Commission Payable and Interagency Commission Receivable, but to verify the postings to Sharing Expense and Sharing Income, run the Production - Share Revenue Report.

Criteria:
- Agency - Month-End agency sharing revenue with other agencies (to balance Sharing Expense figure), Month-End agency receiving revenue from other agencies (to balance Sharing Income figure)
- Month- Ensure that the Accounting Month and Production Month criteria are set to All and the General Ledger Transaction Month criterion is set to the current accounting month.
Select the Complete Detail - Share Revenue/Expense default layout.
Sharing structure: To verify the debit entries to Sharing Expense + receiving agency subaccount, use the major sort subtotals for Share Revenue/Expense - Sharing.
Note: A new layout or report will need to be created to modify the major sort from Revenue Structure Code to Transaction Structure Code.
Receiving structure: To verify the credit entries to Sharing Income + main transaction agency subaccount, use the major sort subtotals for Share Revenue/Expense - Receiving.

Cash Basis Balancing

Balance the same as in the Accrual Balancing section, but also run the Write-Off - Share Revenue Report for the Write-Off portion of the entry.

Criteria:
- Agency - Month-End receiving agency
- Month - Current Default Month
Use the default layout.
Sharing structure: To verify the debit entries to Interagency Commission Payable + receiving agency subaccount and the credit entries to Sharing Expense + receiving agency subaccount, total the Unearned Agcy Com Amt column.
Receiving structure: To verify the debit entries to Interagency Commission Receivable + main transaction agency subaccount and credit entries to Sharing Income + main transaction agency subaccount, total the Unearned Agcy Com Amt column.