When a transaction is added to a policy that contains revenue sharing (see Share Revenue- Policies), the revenue sharing information for each producer is carried over into the transaction. Additionally, when adding/editing producers on the transaction's Commissions tab, you can enter or revise revenue sharing information.
Note: Revenue sharing only applies when the transaction code is agency commissionable. Additionally, if the transaction code has a type of Fee, Service Charge, or Miscellaneous User Defined, the offsetting GL account must be an Income account in order for revenue sharing to be enabled.
To the left of the Producer/Broker list, click the Add icon, or select a producer or broker and click the Edit icon. If your system is installed to share revenue (see System Settings), the Share Revenue frame displays at the bottom of the Pr/Br Commission popup. For brokers, this frame is disabled, as revenue sharing is available only for producers. When adding a producer, note the following:
Because the revenue shares are based on gross agency commission, any external broker expense is allocated accordingly. Expense for brokers defined as Internal - Not Defined in System is also allocated. The broker expense allocation follows the revenue allocation (click here for an example). This allows the Income Statement to reflect the net agency revenue accurately based on the revenue as well as the expense shares.
The lists on the Agency Commission and Pr/Br Commission tabs include available columns (accessed by clicking the Select Columns link label) and views (accessed by clicking the view filters in the list headers) that display revenue sharing information.
In transaction detail, click the Agency Commission link on the navigation panel to view accrued and earned agency revenue.
You may use the Accrued - Expense and Earned - Expense views to see agency revenue share allocation. To access either of these lists, click on the Accrued or Earned view filter and select the desired view. Click on any of the headings below to see the default and available columns in these lists (which are available only if the system is installed to share revenue).
In transaction detail, click the Pr/Br Commission link on the navigation panel to view accrued and earned producer/broker commission information.
For both the Accrued and Earned lists, you may add the following columns to view the data entered in the Share Revenue frame.
You may also add the following columns to either list to view the structures where the producer commission payables will be posted. If the system is set up to post producer payables based on the producer's primary receiving agency (see System Settings), the data in these columns refers to the producer's primary office, regardless of the structure of this particular transaction.
On the Accrued list, you may add the Rev Receiving Inv Amt column to view the share revenue amount invoiced per producer.
On the Earned list, you may add the Rev Receiving Part Amt column or Rev Receiving Full Amt column to view the share revenue amount partially or fully earned per producer based on receivable payments. You may also add the Rev Receiving Unearned Amt column to view the unearned share revenue amount per producer based on A/R write-offs.
You may also use the Accrued - Expense, Earned - Expense, and Reconciled - Expense views to see shared broker expense information. To access any of these lists, click on the Accrued, Earned, or Reconciled view filter and select the desired view. (The Reconciled lists are available from the Earned view filter.) Click on any of the headings below to see the default and available columns in these lists (which are available only if the system is installed to share revenue).
To modify revenue sharing information on a transaction already entered
in the system, you will need to use the Adjust
Commissions action. If the month is open for all agencies on the
transaction and no additional processes were performed on the transaction,
you are able to add producers or brokers, modify commission information,
and modify share revenue percentage and structure. If the month is not
open for all agencies or if additional processes have been performed on
the transaction, you are able to modify commission information for the
agency and for existing producers/brokers as well as the share revenue
percentage for existing producers.
Note: If a
producer was not originally sharing revenue and the month is locked, posted,
or finalized, you are unable to edit the Revenue
% for that producer, as that producer's payable may have already
posted to the main transaction structure. In this situation, you would
need to reverse the transaction and re-enter it to add the revenue sharing
information.
If the producer whose commission you are adjusting is a House producer (revenue shared with the structure as a whole rather than an individual producer receiving commission), you cannot edit any of the following fields:
The Share Revenue frame displays
at the bottom of the Adjust Commissions
screen. The fields in the frame are enabled (based on the program checks
described above) if you click the Add
button to add a producer, or if you highlight a producer
in the list to view/edit information.
Note: The Share Revenue frame is disabled if a broker is selected; revenue sharing is available only for producers.
Note: If you are set up to default a producer's production credit % as the share revenue % in System Settings, updating a producer's production credit will automatically update the producer's revenue share accordingly.
The same logic used when initially adding producers to a transaction using revenue sharing (e.g. when revenue sharing can be used, and which fields are editable in the Share Revenue tab under what circumstances) also applies here. See Add a Transaction - Commissions Tab for more information.