Reconcile a Company Statement - Direct Bill

Use this option to view items due from the company, mark those items that have been paid by the company, and view payments and returns entered from the company commission statement.

TAM also provides a partial payment mode. When a customer makes a partial payment to the company and the company lists either the premium or the commission earned on the statement, you may enter either figure; TAM calculates the one not given. For example, suppose you received a statement that included a partial commission payment for a customer. A $50 commission was paid on a $300 policy and the agency's commission percentage is 20%. If you were to enter the $50 commission payment in partial payment mode, the program would calculate that only $250 dollars of the total premium has been paid and will adjust the policy DBAL field to a new balance of $50 and the commission due amount to $10. To use this option, follow the steps below.

1. From Home Base, click the Accounting button.
2. Click Reconciliations.
3. Click Direct Bill.
4. Click Reconcile a Company Statement.
5. TAM displays the selection criteria in a series of windows. These parameters determine which transactions are reconciled with the company statement. Enter the desired selection for each of the following criteria:
   • Accounting Month: Enter the accounting month for which to run the reconciliation. All direct bill items transacted prior to and during the chosen accounting month are included. Enter the same accounting month as shown on the company commission statement.
   • Select a Company: Choose the company or companies for which to reconcile direct-billed activity. If you select one company, click the desired company from the list.
   • Select an Agency: Choose to reconcile the direct bill transactions of one or all agencies. To run the procedure for a specific agency, click the appropriate agency code.
   • Sort: Select how to sort the transactions. You should sort the data the same way as the company direct bill commission statement. Sort the transactions based on the policy number, item number, customer number, transaction type, policy type, producer code, month, or effective date.
   • Zero Commission Items: Choose whether to suppress or include transactions that have a zero commission percentage. Click the desired radio button.
6. Click OK to run the reconciliation.
7. A Commission Record Defaults screen displays that includes the effective date, month, and description.
   
   Each time you mark a direct bill transacted item as paid, TAM generates a COM transaction and uses this default line information when filing the transaction.
   
   Revise the information (if necessary) and click OK.
8. Click the desired button. The options are discussed as follows:
   • Items Due From Company Report: This option is used to print a list of all direct bill items transacted on or before the chosen accounting month for the selected agency(s) and company(s).
   • Flag Individual Items: This option is used to display all direct bill items that meet the selected criteria.
   • • 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.

Click one of the following buttons to perform the desired function.

1. • • Full Payment: Click this button if the commission paid by the company on the full or remaining transaction amount as shown on the company statement matches the commission amount displayed on the screen. If they match, you were paid full premium on this item and received full commission. 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. TAM updates the customer's direct bill balance and the agency's commission due for that item. An "F" appears in the left column to denote the payment.
     • Partial Payment: Click this button if the company has paid you only part of the commission due on a transaction. TAM displays a Create Partial Payment screen.
       
       Click the desired radio button and enter the Premium paid or the Commission received in the fields provided, and then click OK. TAM calculates the second of the two figures if you only enter one of the two, and updates the customer's balance and the agency's commission due for that item.
       
       Note: If an asterisk (*) is displayed next to a transaction, partial payments have previously been entered for it (on the current statement or a previous 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.
     • Adjust Com %: If the commission percentage information shown on the company statement is different than displayed, click this button to adjust it. TAM displays the Commission Adjustment screen.
       
       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.
       
       Note: TAM also allows you to update this commission percentage information on the customer policy 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.
       
       If you click this button, TAM displays a warning. Click Yes to verify that you want to remove the selected item, or click No to leave the item as displayed. If you choose to remove the transaction balance, the item is not displayed when you list unpaid items and the customer's direct bill balance is updated, but no COM transaction is generated for the commission on the item. This option generates a DBW internal transaction. The DBW is non-commissionable and reduces the invoice balance to 0.
     • Unflag Payment: Click this button to unflag a selected item that has already been flagged to be paid. The flag is removed and the item's Commission Due 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.
     • Exit: Click Exit to return to the Company Statement Reconciliation screen.

9. Payments/Returns Entered Report: This option is used to print a list of all direct bill transacted items flagged as paid through the Flag Individual Items option. The items on this report should match the items shown on the company commission statement. This feature ensures that you entered all information correctly from the company statement.
10. Cancel: Click this button to return to the Direct Bill Menu screen. Before you leave the program, confirm that you have completed the reconciliation process for this statement.
    
    If you click Yes, TAM creates and files COM transactions to record the commission received by the agency for the direct bill transactions flagged as paid by the company. If you click No, TAM saves the statement, and you can reopen it later.