TAM Month-End Generated Journal Entries

There are 19 possible journal entries (not including user-defined journal entries) that may be generated by the Month-End system-generated journal entries program. The entries that are created depend upon the transactions an agency creates and their GL Setup (to view GL Setup Options, see General Ledger Setup Report). The indications of debits or credits is a general rule, but may be opposite depending on the activity during the month.

MJE1

J/E #	Description	Debit	Credit
MJE 1	Accounts Receivable	XXXXX
	Company Payables		XXXXX
	A/C Binder Bill		XXXXX
	P & C Agency Bill Commission		XXXXX
	Unearned (only if installed as CASH)		XXXXX

This J/E summarizes the total of the agency-billed transactions, such as NEW, REN, REW, NIS, RIS, CFE, CFN, +EN, -EN, AUD, CAN, and User-Defined J/Es defined as agency bill.

To verify the amount that posts to the Accounts Receivable account, run the Account Current report.

On the Criteria tab, select All Companies, Include Broker Items, Include Binder Bill Items, and Exclude Adjustments.

Use the same report to verify commission. The total commission posts to Unearned Income if the agency recognizes income on a cash basis. The total commission posts to P&C Income if the agency recognizes income on an accrual basis.
To verify the Company Payables figures, run the Account Current report.

On the Criteria tab, select Include Broker Items, Exclude Binder Bill Items, and Exclude Adjustments.
To verify the Binder Bill posting, run the Account Current report.

On the Criteria tab, select Include Binder Bill Items, Include Broker Items, and Exclude Adjustments.

MJE2

J/E #	Description	Debit	Credit
MJE 2	Unearned Income (cash only)	XXXXX
	Earned / P&C Income		XXXXX
	Service Charge Income
	AFE Income
	Deferred Producer Commissions		XXXXX
	Producer Expense	XXXXX

This first half of the journal entry appears only if an agency is set up to use cash basis accounting. To verify the Unearned/Earned figures, run the Earned Commissions report.

The Deferred Commissions entry displays only if the agency is set up to defer commissions for producers. To verify the Deferred Commission entry (if the agency is set up to defer commissions for producers), run the Producer report with a mode of Deferred Commission Payable - J/E.

MJE3

J/E #	Description	Debit	Credit
MJE 3	Direct Bill Accounts Receivables	XXXXX
	Direct Bill Commission		XXXXX
	Direct Bill Commission Earned (only if cash)

This J/E appears only if the agency is installed on an accrual mode for direct-billed items.

To verify the amount, do one of the following:

Run the Production Report with a Bill Mode of Direct Bill – Production items.
Run the Direct Bill Report with the Date Selection set to Items Due in a Month.

The J/E commission amount should equal the total commission in the report.

The income portion of this J/E only displays if your agency is installed on a modified cash basis for agency-billed items. It records the earned commission from agency fees (AFEs) for which the bill mode is direct bill. To verify the amount for this portion of the J/E:

Run the Earned Commissions Report.
The total on the Earned Commissions Report should equal the sum of the income displayed on this J/E and the entry to P&C Income.

MJE4

J/E #	Description	Debit	Credit
MJE 4	Producer Payable		XXXXX
	Producer Expense	XXXXX
	Deferred Producer Commissions	XXXXX

This J/E summarizes the total producer commission expense incurred within the current accounting month. This J/E is generated in accordance with the installed producer payment method. (To view GL Setup Options, see General Ledger Setup Report.)

If TAM is set up to pay producers on invoiced items, the Month-End J/E includes the commission earned on invoiced items.
If TAM is set up to pay producers on paid items, the Month-End J/E reflects commission due on paid items (full or partial).

To verify these totals, run the Producer report. The Producer report parameters default to the installed Producer Payment Option. If TAM is set up to defer commissions, run this report for the mode Commissions Due Producers to compare to this journal entry. This report includes adjustments, which can be used to verify MJEs 15, 16, and 17.

MJE5

J/E #	Description	Debit	Credit
MJE 5	Accounts Receivables		XXXXX
	Broker Commission Expense	XXXXX

This J/E totals commission generated on all broker-billed transactions done during the month. To verify this J/E, run the Broker report.

MJE6

J/E #	Description	Debit	Credit
MJE 6	Accounts Receivable	XXXXX
	Service Charge Income		XXXXX
	Unearned Commissions (only if cash)

This J/E totals the income earned from applying service charges to past due accounts. To verify this J/E, run the Miscellaneous Production report. Run this report sorted by transaction type so it can be used to verify other Month-End J/Es.

MJE7

J/E #	Description	Debit	Credit
MJE 7	Accounts Receivable	XXXXX
	Agency Fee Income		XXXXX
	Unearned Commissions (only if cash)

This J/E totals the income earned from agency fees (AFEs). To verify this J/E, run the Miscellaneous Production report.

MJE8

J/E #	Description	Debit	Credit
MJE 8	Accounts Receivable		XXXXX
	Bad Debt Expense	XXXXX
	Deferred Commissions (if deferring producer commission and writing off a portion of non-paid)
	Producer Expense (if deferring producer commission and writing off a portion of non-paid)
	Unearned Commissions (only if cash)

This J/E represents the amount of premium written off as bad debts throughout the month. To verify this J/E, run the Miscellaneous Production report for J/E 1s.

MJE9

J/E #	Description	Debit	Credit
MJE 9	Accounts Receivable		XXXXX
	Waive Small Balance	XXXXX
	Deferred Commissions (if deferring producer commission and writing off a portion of non-paid)
	Producer Expense (if deferring producer commission and writing off a portion of non-paid)
	Unearned Commissions (only if cash)

This J/E represents the amount of premium written off as small balances throughout the month. To verify this J/E, run the Miscellaneous Production report for J/E 2s.

MJE10

J/E #	Description	Debit	Credit
MJE 10	Accounts Receivable		XXXXX
	Reverse Late Charge	XXXXX
	Unearned Commissions (only if cash)

This J/E represents the amount of service charges written off throughout the month. To verify this J/E, run the Miscellaneous Production report for J/E 3s.

MJE11

J/E #	Description	Debit	Credit
MJE 11	Accounts Receivable	XXXXX
	Canadian Tax		XXXXX

This J/E represents the amount of TAX transactions a Canadian user has transacted. To verify this J/E, run the Provincial Tax report.

MJE12

J/E #	Description	Debit	Credit
MJE 12	Accounts Payable (Vouchers)		XXXXX
	Accounts Payable Offsets	XXXXX

This J/E summarizes all activity accrued in the Accounts Payable program off of the GL menu for the month. To verify this J/E, run the GL Payables Balancing report.

MJE13

J/E #	Description	Debit	Credit
MJE 13	Adjustments to Agency P&C Income
	Adjustments to Company Payables
	Adjustment to Unearned Income (only if cash)

There is no standard summary on this J/E as to whether it posts debits or credits. It depends on whether the adjustment were done in the agency's favor or not. To verify this J/E, run the Company Adjustments report.

MJE14

J/E #	Description	Debit	Credit
MJE 14	Adjustments to Direct Bill Income
	Adjustments to Direct Bill Receivables

As described in MJE 13, there is really no standard debit/credit rule for this J/E. The amounts that post depend upon the adjustments done to direct-billed items only if the agency is accruing direct-billed income. To verify this J/E, run the Company Adjustments report.

MJE15

J/E #	Description	Debit	Credit
MJE 15	Adjustments to Producer 1 Commission Expense
	Adjustments to Producer 1 Payables
	Adjustments to Deferred Producer 1 Commissions (see explanation under MJE 2)

As with Company Commission adjustments, there is really no standard debit/credit rule for this J/E. This J/E represents the total of commission adjustments made to the first producer through the Adjust option in Update Transactions or through the Reconciliation program, based on how TAM is set up to pay producers. To verify this J/E, run the Producer Adjustments report. Totals are also included on the Producer report.

MJE16

J/E #	Description	Debit	Credit
MJE 16	Adjustments to Producer 2 Commission Expense
	Adjustments to Producer 2 Payables
	Adjustments to Deferred Producer 2 Commissions (see explanation under MJE 2)

This J/E is the same as MJE 15, except this is the second producer's adjustments.

MJE17

J/E #	Description	Debit	Credit
MJE 17	Adjustments to Producer 3 Commission Expense
	Adjustments to Producer 3 Payables
	Adjustments to Deferred Producer 3 Commissions (see explanation under MJE 2)

This J/E is the same as MJE 15, except this is the third producer's adjustments.

MJE18

J/E #	Description	Debit	Credit
MJE 18	Accounts Receivable		XXXXX
	JNL Transactions (miscellaneous accounts)	XXXXX

This J/E summarizes all transaction activity done using the Offset to a Specific Account transaction at the customer level. To verify this J/E, run the Miscellaneous Production report for JNLs.

J/E #	Description	Debit	Credit
MJE 19	Company Payables		XXXXX
	Company Payables Write-off	XXXXX

This J/E summarizes all write-off functions performed from within the Reconciliation Programs. To verify this J/E, run the Company Payables report with the parameter for Only Written Off Items (under the Company Paid/Unpaid choice).

MJE20+

J/E #	Description	Debit	Credit
MJE 20+	User-Defined J/Es	XXXXX
	User-Defined Transactions (one entry for each user-defined J/E)		XXXXX

This J/E summarizes the total of the User-Defined J/Es, which were installed as Miscellaneous. The offsetting accounts above will be the account that was entered in the Accounting Setup. To verify these J/Es, run the Miscellaneous Production report.

MJE100+

J/E #	Description	Debit	Credit
MJE 100+	Recurring Month-End J/Es

These are J/Es that were entered as Recurring Journal Entries. There is one J/E number used for each installed recurring entry. To verify these J/Es, run the Journal Entry report with a mode of Monthly Recurring Entries.