Add a Direct Bill Commissions Reconciliation

When reconciling direct bill commissions received, you have two options:

• Record commissions: Add the items directly from the company statement (rather than transacting the items in the system and then comparing to the company statement). You can verify as you record commissions that the correct rate was received. When you use this method, you add and reconcile the items in a single process.
• Reconcile commissions: Reconcile direct bill transactions entered in your system against a company statement to ensure the correct commissions were received.

Applied Epic gives you the flexibility to vary your method from carrier to carrier. You might record commissions for one and reconcile commissions for another.

Direct bill transactions can also be added to the system via import if the carrier sends commission in a Microsoft Excel spreadsheet (see Import - Direct Bill Transactions) or via download, if the carrier supports Direct Bill Commission Download (see Company/Broker Interface Configuration).

To save time, you can set defaults for many of the fields on the reconciliation in Field Default Configuration if your selections will be the same for most reconciliations.

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 Direct Bill Commissions under Reconciliations on the navigation panel.
   
   Click here for an explanation of reconciliation statuses.
   
   Click here for information regarding Master Statement Numbers.

   If you are reconciling multiple agencies using the same criteria, a single suspended reconciliation statement is created for which a master statement number is generated. When the statement is finalized, a separate statement is created for each agency. These statements have unique statement numbers but share the same master statement number. This enables you to work on items for different agencies together while the statement is suspended, but to pay the agency statements separately once it is finalized, so that the correct General Ledger payable accounts per agency are affected.

   When you reopen a finalized direct bill commission statement, all other statements associated to the same master statement number are automatically reopened as well.

   • Processing/Suspended/Finalized/Approved
   • • Processing: Flagging all items submits the job to the central server. Once all items have been flagged, the statement’s status is updated to Suspended.
     • Suspended: Work in progress.
     • Finalized: The statement is complete.
     • Approved: The statement has been approved for payment. The statement's status is updated to Approved via the Approve for Payment action.
   • Paid/Unpaid/Closed
   • • Paid: Paid via the General Ledger.
     • Unpaid: Not yet paid via the General Ledger.
     • Closed: This status removes the selected reconciliation from the Unpaid reconciliation statement list. The Close Without Paying action allows you to close a statement that will not be paid. Use this action only if the organization is cleaning up old payables or if the statement’s amount is 0.00. Using this action on a basic statement might result in an out-of-balance situation.

   • Re-Opened: When a statement has been re-opened, this indicator is always set, because once a statement is re-opened, it cannot be deleted. The Delete Statement option is allowed only for suspended statements that have not be re-opened.

3. Do one of the following:
    
   • Click the Add button to the left of the list.
   • Click New > Reconciliation > Direct Bill Commissions on the options bar.
   • Click File > New > Reconciliation > Direct Bill Commissions on the menubar.
   • With focus on the list, press [Insert] on your keyboard.
   • Press Ctrl + [N].

The Add Direct Bill Statements screen displays.

4. Select the Company or Broker radio button.
5. Select the appropriate radio button:
    
   • Record Commissions
     1. The Entity is selected by default in the list. Pick an entity in the dropdown menu and then click Add. To add another entity, choose the entity in the dropdown menu and click Add again.

     Selected entities display in the list. To remove an entity from the list, highlight it and click the Delete button to the left of the list or press [Delete] on your keyboard.

     2. Repeat step a to make your Agency, Branch, Department, Profit Center, Line of Business, and Issuing Company selections.
     3. In the Statement section, enter a Description of the statement.
     4. The Create separate statements per company and agency combination checkbox is deselected by default. Select this checkbox if necessary.
        
        If the checkbox is not selected, Applied Epic creates a single suspended statement per company/broker. This allows you to record the commissions without knowing the exact agency associated. Individual statements are created per entity/agency combination when the master statement is finalized.
     5. Change the Accounting month if applicable. This is the month in which the commission check was or will be received. You cannot select a locked, posted, or finalized month.
     6. Change the Direct Bill Commission Received Description if necessary. This description files on the DCOM reconciliation process row created and will display in transaction detail and in reports when you view earned commissions.
     7. Optionally select the Default as transaction description checkbox. Selecting the checkbox defaults the description entered in step f onto all transaction items filed during the reconciliation process (in place of a generic description such as New Business).
     8. Click the Detail button to continue, or click Cancel to exit the workflow without adding the reconciliation.
     9. The Record Direct Bill Commissions screen displays a list of policies within 90 days of expiration based on your selected criteria (up to 10,000). To narrow this list further, use the Search where options to specify the policies that you want to see. To record commissions on a policy, highlight it in the filtered policies list and then click the Add button in the Recorded Commissions list.

     To collapse either list to view more entries in the other list, click the chevron in the header.

     10. A smaller Record Direct Bill Commissions window displays information from the selected policy. Use the search options and click Locate to locate a different policy if necessary.

     11. Select a radio button in the Record Transaction section if it does not default. If you select Both, you can enter two of the following three data elements: transaction Amount, Agency Commission %, or Agency Commission Amount. The system automatically calculates the third data element based on the first two entries. You can revise the automatically calculated entry if necessary.
         
         You can record direct bill transactions with a $0.00 premium amount at either the Commission or Both level.
     12. You can specify whether to add the transaction for a Policy or a Line.
     13. Choose a Transaction from the dropdown menu.
     14. The policy/line/service summary row effective date defaults in the Effective date field but can be changed if necessary.
     15. The Description defaults but can be changed if necessary.
     16. The Amount defaults, based on the transaction code configuration, but can be changed if necessary.
         
         If you are entering a direct bill transaction with a $0.00 premium, you can enter a flat amount for producer/broker commissions, or the system can calculate them from the agency commission (as long as the agency commission is a flat amount). They cannot be calculated from a $0.00 premium amount. The system does not allow $0.00 direct bill transactions with $0.00 values for both agency and producer/broker commissions.
     17. Select an agency commission Type.
     18. Enter the agency commission amount or percentage.
         
         Note: The remaining fields vary, depending on whether this is a commission, premium, or both.
     19. Enter an Agency Commission % or an Agency Commission Amount, depending on the Type you chose.
         
         Note: If there is a discrepancy between the Agency Commission Percent entered and the value of the Amount divided by the Agency Commission Amount, the system recalculates the agency commission percentage to accurately reflect the agency commission amount. The recalculated percentage displays below the Agcy Com % field and does not actually affect the percentage entered. It is for reference only and is not available in reports.

     20. The producer/broker information defaults from the policy/line that received the direct bill commission, but it can be modified if necessary.

         If you add a producer or broker, select a Contract if applicable, select a commission Type, enter the Percent or Amount (depending on the Type you chose), and enter the Production Credit % and Order #.
         
         Note: The Order # is the order in which producers and brokers receive credit for the selected policy.
         
         The Payable Due date defaults but can be changed if necessary.

     21. Optionally enter additional producers and/or brokers.
     22. Select the Clear policy on add checkbox if you have additional transactions to add for different policies. This option clears the information entered for the currently selected policy when you click the Add button, so you can locate the next policy more efficiently. If you have additional transactions to add for the same policy, leave the checkbox deselected.
     23. Click Finish to record the transaction and complete the workflow.
         
         

         Click Add to record the transaction and add another one.

         Click Cancel or press [Esc] to close the window without recording the transaction.

     24. After creating the statement, you have access to the following actions:
          
         • Associate GL Item
         • Modify Payment Month
         • Remove Associated GL Item
   • Reconcile Commissions
     1. 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 and then click Add. To add another entity, choose the account in the dropdown menu and click Add.
        
        Selected entities display in the list. To remove an entity from the list, highlight it and click the Delete button to the left of the list or press [Delete] on your keyboard.
     2. Repeat step a to make your Agency, Branch, Department, Profit Center, and Line of Business selections.
     3. In the Statement section, enter a Description of the statement.
     4. Select the Create separate statements per company and agency combination checkbox if applicable. If the checkbox is not selected, Applied Epic creates a single suspended statement per company/broker. This allows you to record the commissions without knowing the exact agency associated. Individual statements are created per entity/agency combination when the master statement is finalized.
     5. Change the Accounting month if applicable. This is the month in which the commission check was or will be received. You cannot select a locked, posted, or finalized month.
     6. Change the Direct Bill Commission Received Description if necessary. This description files on the DCOM reconciliation process row created and will display in transaction detail and in reports when you view earned commissions.
     7. Optionally select the Default as transaction description checkbox. Selecting the checkbox defaults the description entered in step f onto all transaction items filed during the reconciliation process (in place of a generic description such as New Business).
     8. Click the Detail button to continue, or click Cancel to exit the workflow without adding the reconciliation.
        
        Click here for information regarding Master Statement Numbers.

        If you are reconciling multiple agencies using the same criteria, a single suspended reconciliation statement is created for which a master statement number is generated. When the statement is finalized, a separate statement is created for each agency. These statements have unique statement numbers but share the same master statement number. This enables you to work on items for different agencies together while the statement is suspended, but to pay the agency statements separately once it is finalized so that the correct General Ledger payable accounts per agency are affected.

        When you reopen a finalized direct bill commission statement, all other statements associated to the same master statement number are automatically reopened as well.

     9. Use the filter above the list to narrow the list of transactions if necessary.

        

         

        These are the choices in the first dropdown menu:

        • Client Name
        • Item #
        • Policy Number
        • Transaction Code

        The choices available in the second dropdown menu vary, depending on the selection you made in the first dropdown.

        • Equals: Enter the search criterion (e.g., the full description or folder name) in the field to the right, or select the correct date from the dropdown calendar (if applicable). Click Find.
        • Contains: Enter at least one letter of the search criterion (e.g., part of the description or folder name) in the field to the right. Click Find.

        You can apply multiple filters if necessary.

        1. To apply multiple filters to the list, do one of the following:
        • Click the Edit Filter button . 
        • Press [Ctrl] + E.
        2. The Edit Filter pop-up window displays.
           
           Note: You can also use the Edit Filter button, rather than the search bar, to apply a single filter to the list if you prefer.

        

        3. Select and/or enter your desired search criteria using the dropdown menus and fields, and then click the Add button. The Name, Compare Type, and Criteria for your filter display in the list. Click one of these column headings to sort the list by that column. To reverse the sort order, click the column heading again.
        4. To apply additional filters, enter additional search criteria and continue clicking Add. To remove a filter from the list, select it and click the Delete button.
        5. Click Finish when you have applied all of your desired filters.
           
           To exit the dialog without applying any filters, click Cancel.
     10. Select the checkbox in the Recv'd column for each commission that has been received. 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 label. The Com Rec'd amount defaults into the column for each selected item.

     Note: If a transaction has multiple splits, only the first item will be flagged. To flag additional splits on that transaction, you must either flag the transaction again or manually flag the other splits.

     11. Perform any of the following on the items that display in the list:  
         • Partial Pay
           1. Click to highlight the item, then click the Partial Pay button.
           2. The Partial Payment window displays. Basic information displays in the Transaction Detail section.
           3. In the Premium & Commission Received section, enter the Commission, Percent, and Premium amounts.
           4. Select the Final payment checkbox if applicable.
           5. To change the commission for an individual broker or producer, click the correct name in the list and then update the Percent and Amount for that producer or broker.
           6. Click Finish when the information is complete.
              
              Click Cancel or press [Esc] to close the window without entering a partial payment.
           7. To close the Transactions screen, click the X next to the open reconciliation in the navigation panel.

           

         • Adjust
           1. Click to highlight the item, then click the Adjust button.
           2. The Adjust Commissions window displays. Change the agency commission Type if desired.
           3. Adjust the agency commission Percent or Amount if applicable.
           4. Change the broker commission Type if desired.
           5. Adjust the broker commission Percent or Amount if applicable.
           6. Optionally change the broker's Production Credit.
           7. Change the producer commission Type for each affected producer.
           8. Adjust the broker commission Percent or Amount for each affected producer.
           9. Optionally change the producers' Production Credit.
           10. Click Finish when the information is complete.

           Click Cancel or press [Esc] to close the window without making any adjustments.
           
           Note: Supplemental Income transactions cannot be adjusted. 

           11. To close the Transactions screen, click the X next to the open reconciliation in the navigation panel.

           

         • Close
           1. Click to highlight the item, then click the Close button.
           2. You are prompted, "Do you wish to close this item without a commission payment?" Click Yes.
           3. To close the Transactions screen, click the X next to the open reconciliation in the navigation panel.

           

         • Write-Off

           The final commission your organization receives for each transaction may not match the estimated commission that you originally billed, resulting in a balance that needs to be removed.
           
           You can write off individual items or use the Multi-Flag view of the suspended statement to write off multiple items at once.

           Add the Write Off column to the list from the Select Columns link label.

           1. Click to highlight the item. If you want to write off multiple items at once, click the Enable Multi-Flag link label. Then press and hold the [Ctrl] or [Shift] key while selecting items in the list.
              
              If Applied Epic is installed locally on your computer, you can press [Ctrl] +A to select all items in the list.
           2. Click the Write Off button, or right click a selected item and select Write Off from the context menu (if Multi-Flag is enabled).
           3. The Direct Bill Commission Write-Off window displays. Confirm the Write off amount.
              
              If only some of the selected items are eligible for a write-off, the Write-off amount reflects only the eligible items. A count of eligible items out of the total number of selected items also displays.
           4. Click Finish to write off the items. Balances remain on any items ineligible for a write-off.
              
              Click Cancel to close the window without writing anything off.
           5. To close the Transactions screen, click the X next to the open reconciliation in the navigation panel.

           

         • Risks
           1. Click to highlight the item, then click the Risks button.
           2. The Adjust Risks window displays. Revise the number of Risks Insured and Total Eligible if applicable.
           3. Click Finish.

     12. You also have access to the following actions while reconciling:
         • Associate GL Item
         • Modify Payment Month
         • Remove Associated GL Item