Reconcile a Company Statement - Agency Bill

This option is used to reconcile agency bill invoiced items to company agency bill statements. If you run this program for the same accounting month as shown on the company statement, TAM does not present transactions that the company has not yet processed. If you do not have the time to complete a reconciliation in one sitting, you can save it. If you save a statement, you may exit the program and return later to reconcile the statement from where you left off.

1. From Home Base, click the Accounting button.
2. Click Reconciliations.
3. Click Agency Bill.
4. Click Reconcile a Company Statement in the Reconcile Company Payables screen.
5. Enter the desired selection for each of the following criteria. The selections you make determine which transactions are reconciled with the agency bill statement.
   • Accounting Month: Enter the accounting month to reconcile. The month should correspond to the month of the company statement.
   • Select a Company: Leave the default of All Companies selected, or deselect it and double click in the Company Code field to select the appropriate company.
     
     Note: If you have previously saved a Company Statement Reconciliation and select the same company parameter, TAM automatically recalls the saved reconciliation parameters. Choose whether to change any of the reconciliation parameters previously selected.
     
     If you previously ran the reconciliation for All Companies and have not yet closed the statement, you may not reconcile the statement of specific companies until you do so. The opposite is true if you previously ran the reconciliation for a selected company(ies).
   • Select an Agency: Leave the default of All Agencies selected, or deselect it and double click in the Agency field to select the appropriate agency.
   • Sort: Select the appropriate sort order for the transactions. If you are reconciling the company statements for all companies, the transactions are presented in groups by company. The Sort Order determines the order in which individual transactions are presented within each company group. If possible, choose a sort order that matches the order of the company statement to make reconciliation easier.
   • All Items, Fully Paid, or Partially Paid items: Choose whether to reconcile all items or items that are fully paid or partially paid by the customer.
   • Begin Now or Queue For Later: Choose whether to begin processing company statements now or queue them to process later as desired.
6. Click OK to run the reconciliation.
7. TAM displays the Company Statement Reconciliation window. Click Items Due to be Paid Report.
   1. If you are running the reconciliation for all companies, choose to run the report for one or all companies.
      • To run the report for one company, enter the code of that company in the space provided.
      • Press [ENTER] without entering a company code to run the report for all companies.
   2. Choose whether to preview the report, send it straight to a printer, or send the report straight to a disk file.
8. Click Flag Individual Items. TAM displays the agency-billed transactions that meet the reconciliation criteria on the Flag Individual Items screen.
   • The bottom half of the screen displays a detailed view of the highlighted transaction. Adjust the company or producer commission percentages on the item if desired. Refer to the Adjust Com % button later in this section for more information.
9. Click one of the following buttons to perform the desired function.
   • Full Payment: Click this button to flag the selected transaction as fully paid. Before choosing this option, make sure the information displayed for the item is correct and matches the company statement. If anything is incorrect, correct the discrepancies before marking the item as paid. Once you flag an item, TAM no longer includes it with the Items Due to be Paid or presents it for reconciliation. The net premium for the item is also added to the reconciliation total for the selected company. An "F" displays in the left column to denote the payment.
   • Partial Payment: Click this button to flag a selected transaction as partially paid to the company. TAM displays a Create Partial Payment screen.
     
     Enter the partial payment amount in the field provided and click OK. The payment amount is added to the reconciliation total for the selected company.
     
     Note: If a "P" is displayed next to a transaction, a partial payment has been entered on the current statement. All previous partial payments display when entering another partial payment. This feature ensures that you do not apply a partial payment to a transaction twice. An asterisk (*) displayed next to a transaction denotes a partial payment from a prior statement.
   • Adjust Com %: If the commission percentage information shown on the statement from the company is different than displayed, click this button to adjust it. TAM displays the Commission Adjustment window.
     
     Enter the adjusted commission information for the company and the producers as needed and click OK. Choose whether to reflect these adjustments on the billing screen.
     
     Click Yes to update the customer's policy screen with the changes, or click No to return to the Flag Individual Items screen.
   • Remove Bal: Click this button to mark the selected transaction as paid to the company without adding the net premium of that item to the company's reconciliation balance. TAM displays a warning message. Click Yes to verify that you want to remove the selected item, or click No to leave the item as displayed. Use this option with caution. If you choose to remove the transaction balance, the following occurs.
   • • The transaction is removed from statement but remains in the Company Payables General Ledger account.
     • The transaction is not displayed when you list unpaid items.
     • The transaction does not appear on the Items Flagged to be Paid Report.
     • The transaction is not added to the reconciliation balance that must be remitted to the company.
   • Write Off: Click this button to write off all or part of the payable balance for the selected transaction. This option is similar to the Remove Balance option with one exception. Both options remove an item from the list of unpaid items. However, the Write Off option creates a journal entry between the individual company payable accounts for each writeoff transaction and the writeoff payable account. The Remove option removes an item but does not charge it against an account. If your agency is installed on a cash basis, the writeoff correctly calculates the percentage of unearned commission that needs to be journal entried out of that account.
     
     When you select this option, TAM displays the Create Write Off screen. Enter the amount to write off in the Payment field, then click OK. Click Cancel to return to the Flag Individual Items screen.
     
     If you click Yes and choose to write off the transaction balance, the following will occur:
   • • Amount written off is NOT added to the statement total the program is storing.
     • Each writeoff CPY transaction will have the label WRTEOFF in the reference field so that you can identify it later on reports or when viewing the transaction in the Update Transaction view.
     • A writeoff CPY transaction is included in the Month-End journal entry generation. A journal entry is created between the individual company payable accounts for each writeoff CPY transaction and the writeoff payable account.
     • CPY transactions will appear on the Company Payables Report.
   • History: Click this button to view the selected client's transaction history. Use the arrow keys and scroll bar to view the transactions. Click Cancel to return to the Flag Individual Items screen.
   • Unflag Payment: Click this button to unflag a selected item that has already been flagged to be paid or written off on the current statement. The flag is removed and the item's Net Premium returns to the original amount.
   • Locate Item: Click this button to display the Locate Item screen. Click the desired radio button to locate the item by Item Number or Sort Key. If you select Locate by Item Number, enter the specific item number in the field provided. If you select Locate by Sort Key, enter the specific key information (e.g., Policy Number) in the field provided. Click OK to highlight the selected item number in the list.
10. Click Items Flagged to be Paid Report on the Company Statement Reconciliation screen. Choose whether to preview the report, send it straight to a printer, or send the report straight to a disk file.
    
    Note: The items on the report should match those on the company statement and the net premium displayed should equal the premium on the company statement. If not, check the premium amount and commission percentages for possible errors and make the necessary corrections.
11. If you made any adjustments to the commission percentages of invoices marked for payment, click Company Adjustments Report on the Company Statement Reconciliation screen to load the Reports/Marketing program.
    
    The Adjustments-Company report choice defaults. Modify the criteria as desired, and then click Run to run the report.
    
    If you have not made any adjustments, you do not need to run this report.
12. Click Cancel to exit the reconciliation. You are prompted, "Have you completed this statement?"
    • Click No to save the statement reconciliation in its current state. You may then return to this program later and complete that reconciliation from the point at which you stopped. Such a statement will be considered open and may be listed with other open statements through the List Statements option on the Reconcile Company Payables menu.
    • Click Yes if you have completed the statement. Continue to the next step.
13. Revise the Statement Completion Date if necessary and click Continue.
14. Enter a Company Statement Issue Date for the reconciliation and click Continue. TAM marks the flagged transactions as reconciled to the company. The total net premium of all paid items is calculated for each company. You are prompted, "Do you wish to issue the check immediately?"
    • Click No to return to the Reconcile Company Payables screen. Until you actually write the check, the statement is considered unpaid. To display these statements, select List Statements on the Reconcile Company Payables screen.
    • Click Yes to enter a disbursement and pay the statement.