Share Revenue - Producer Commission

When running reports to support Month-End journal entry figures, you will need to ensure that the method you use to verify the Producer Commission journal entry amounts matches the selections made in Configure > Accounting > System Settings.

See the instructions below for verifying producer commission entries based on the following system configurations:

Sharing Revenue, Not Posting to Primary Receiving Agency

If Share revenue for producers is selected in System Settings but Post producer payable based on primary receiving agency is not, the producer's payable and expense are allocated according to the revenue sharing structure.

Producer Commission (Not Deferring Producer Commissions)

Debits: Producer Commission Expense (based on Share Revenue percentage and structure)

Criteria:
- Accounting Month - Current Default Month
- Pr/Br Agency Bill Commission - Accounting Method
- Pr/Br Direct Bill Commission - Accounting Method
- Revenue Receiving Agency - Agency or agencies receiving the revenue
- Producer - Only include producers set to automatically post to the GL
Select the Complete Detail - Share Expense layout.
To verify the debit entry to Producer Commission Expense, total the Sharing - Pr Com Amt and Receiving - Pr Com Amt based on the expense allocation per structure.
To verify the credit entries to Producer Commission Payable + producer subaccount, total the producer commission amount for each producer individually.

Producer Commission (Recognizing Producer Expense and Deferring Producer Payables)

Debits: Producer Commission Expense (based on Share Revenue percentage and structure)

Criteria:
Note: If recognizing installment revenue immediately, 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.
- Accounting Month - Current Default Month
- Pr/Br Agency Bill Commission - Invoiced
- Pr/Br Direct Bill Commission - Invoiced
- Revenue Receiving Agency - Agency or agencies receiving the revenue
- Producer - Only include producers set to automatically post to the GL
Select the Complete Detail - Share Expense layout.
To verify the debit entry to Producer Commission Expense, total the Sharing - Pr Com Amt and Receiving - Pr Com Amt based on the expense allocation per structure.
To verify the credit entries to Deferred Producer Commission + producer subaccount, total the producer commission amount for each producer individually.

Producer Commission (Deferring - Moving Deferred to Current Payables)

Debits: Deferred Producer Commission + producer subaccount (this includes write-offs)

Credits: Producer Commission Payable + producer subaccount (this includes write-offs)

Producer Commission Report
- Criteria
- - Accounting Month - Current Default Month
  - Pr/Br Agency Bill Commission - Accounting Method
  - Pr/Br Direct Bill Commission - Accounting Method
  - Producer - Only include producers set to automatically post to the GL
- Select the Complete Detail - Share Expense layout.
Write-Off - Share Revenue Report
- Criteria
- - Accounting Month - Current Default Month
  - Receivable Write-Offs - Include
  - Direct Bill Write-Offs - Include
- Layout
- - Add a major sort by Producer/Broker Type.
  - Add a major sort by Producer.
To verify the debit entries to Deferred Producer Commission + producer subaccount, sum the following:
- Total Sharing - Pr Com Amt and Receiving - Pr Com Amt based on expense allocation per structure (from the Producer Commission Report)
- Total Unearned Pr/Br Com Amt per producer per share revenue structure (from the Write-Off - Share Revenue Report)
To verify the credit entries to Producer Commission Expense + producer subaccount, sum the following:
- Total producer commission amount per producer (from the Producer Commission Report)
- Total Unearned Pr/Br Com Amt for all producers per share revenue structure (from the Write-Off - Share Revenue Report)

Interagency Payables/Receivables

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

Debits: Interagency Commission Receivable + main transaction agency subaccount (in sharing structure). This includes write-offs.

Credits: Sharing Income + main transaction agency subaccount (in receiving structure). This includes write-offs.

Criteria:
- Month - Current Default Month
- Interagency Entry Type - SHRVX
Use the Transaction Interagency Receivables default layout.
To verify the debit and credit entries, use the Share Revenue/Expense - Expense totals per structure.

Sharing Revenue, Posting to Primary Receiving Agency

If Share revenue for producers and Post producer payable based on primary receiving agency are both selected in System Settings, the producer's payable will always post to the primary office defined in that producer's employee detail. The Agency criteria option on the Producer Commission Report filters based on where the producer's payable is posting. The Complete Detail - Payable layout can be used to balance to the producer's payable.

The producer expense, however, is allocated to follow the revenue sharing structure. The Complete Detail - Expense layout can be used to balance to the producer expense allocation.

Finally, to balance to the interagency payable/receivable entries, you can use the Transaction Interagency Payables/Receivables report with the Interagency Entry Type criteria option set to PRPAY.

Producer Commission (Not Deferring Producer Commissions)

Debits: Producer Commission Expense (based on Share Revenue percentage and structure)

Criteria:
- Accounting Month - Current Default Month
- Pr/Br Agency Bill Commission - Accounting Method
- Pr/Br Direct Bill Commission - Accounting Method
- Producer - Only include producers set to automatically post to the GL
Select the Complete Detail - Share Expense layout.
To verify the debit entry to Producer Commission Expense, total the Sharing - Pr Com Amt and Receiving - Pr Com Amt based on the expense allocation per structure.

Criteria:
- Accounting Month - Current Default Month
- Pr/Br Agency Bill Commission - Accounting Method
- Pr/Br Direct Bill Commission - Accounting Method
- Producer - Only include producers set to automatically post to the GL
Select the Complete Detail - Payable layout.
To verify the credit entries to Producer Commission Payable + producer subaccount, total the producer commission amount for each producer individually.

Producer Commission (Recognizing Producer Expense and Deferring Producer Payables)

Debits: Producer Commission Expense (based on Share Revenue percentage and structure)

Criteria:
Note: If recognizing installment revenue immediately, 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.
- Accounting Month - Current Default Month
- Pr/Br Agency Bill Commission - Invoiced
- Pr/Br Direct Bill Commission - Invoiced
- Producer - Only include producers set to automatically post to the GL
Select the Complete Detail - Share Expense layout.
To verify the debit entry to Producer Commission Expense, total the Sharing - Pr Com Amt and Receiving - Pr Com Amt based on the expense allocation per structure.

Criteria:
Note: If recognizing installment revenue immediately, 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.
- Accounting Month - Current Default Month
- Pr/Br Agency Bill Commission - Invoiced
- Pr/Br Direct Bill Commission - Invoiced
- Producer - Only include producers set to automatically post to the GL
Select the Complete Detail - Payable layout.
To verify the credit entries to Deferred Producer Commission + producer subaccount, total the producer commission amount for each producer individually.

Producer Commission (Deferring - Moving Deferred to Current Payables)

Debits: Deferred Producer Commission + producer subaccount (this includes write-offs)

Credits: Producer Commission Payable + producer subaccount. Write-offs credit Producer Commission Expense.

Producer Commission Report
- Criteria
- - Accounting Month - Current Default Month
  - Pr/Br Agency Bill Commission - Accounting Method
  - Pr/Br Direct Bill Commission - Accounting Method
  - Producer - Only include producers set to automatically post to the GL
- Select the Complete Detail - Payable layout.
Write-Off - Share Revenue Report
- Criteria
- - Accounting Month - Current Default Month
  - Receivable Write-Offs - Include
  - Direct Bill Write-Offs - Include
- Layout
- - Add a major sort by Producer/Broker Type.
  - Add a major sort by Producer.
To verify the debit entries to Deferred Producer Commission + producer subaccount, sum the following:
- Total Pr Com Amt per producer (from the Producer Commission Report)
- Total Unearned Pr/Br Com Amt per producer per share revenue structure (from the Write-Off - Share Revenue Report)
To verify the credit entries to Producer Commission Payable + producer subaccount, use the Pr Com Amt per producer (from the Producer Commission Report).
To verify the credit entry to Producer Commission Expense, sum the Unearned Pr/Br Com Amt for all producers per share revenue structure (from the Write-Off - Share Revenue Report).

Interagency Payables/Receivables

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

Debits: Interagency Commission Receivable + main transaction agency subaccount (in sharing structure). This includes write-offs.

Credits: Sharing Income + main transaction agency subaccount (in receiving structure). This includes write-offs.

Criteria:
- Month - Current Default Month
- Interagency Entry Type - PRPAY
Use the Transaction Interagency Receivables default layout.
To verify the debit and credit entries, use the Share Revenue/Expense - Expense totals per structure.