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

This J/E summarises 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 client bill.

• To verify the amount that posts to the Accounts Receivable account, run the Account Current report.
  
  On the Criteria tab, select All Insurers, Include Agent 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 Insurer Payables figures, run the Account Current report.
  
  On the Criteria tab, select Include Agent 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 Agent Items, and Exclude Adjustments.

MJE2

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 introducers. To verify the Deferred Commission entry (if the agency is set up to defer commissions for introducers), run the Introducer report with a mode of Deferred Commission Payable - J/E.

MJE3

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

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

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

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

MJE5

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

MJE6

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

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

MJE8

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

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

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

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

MJE12

This J/E summarises 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

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 Adjustments - Insurer report.

MJE14

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 Adjustments - Insurer report.

MJE15

As with Insurer 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 introducer through the Adjust option in Update Transactions or through the Reconciliation program, based on how TAM is set up to pay introducers. To verify this J/E, run the Introducer Adjustments report. Totals are also included on the Introducer report.  

MJE16

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

MJE17

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

MJE18

This J/E summarises 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.

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

MJE20+

This J/E summarises 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+

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.