Invoice: Create An Invoice - Premium Finance: Return Premium To Finance Company

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Ic description black 24dp.png Newton User Guide: Accounting - Invoice/Billing
Ic info black 24dp.png Required Software Version: Spring 2017
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The instructions below are used when a credit invoice amount due to cancellation or an endorsement is owed to the premium finance company, instead of the client.

Ic info black 24dp.png See: Invoice: Create An Invoice - Premium Finance to create a regular premium finance invoice.

Contents

Step 1: Create the Cancellation or Endorsement Transaction

Prior to creating the invoice, the cancellation or endorsement policy transaction must exist.

  1. Load a Client on a client tab.
  2. On the Client Dashboard tab select the (+) next to Policies. (To expand the band by default, see: Preferences)
  3. Left-Click the desired policy number to open the Policy Dashboard.
  4. Select Policy Tasks -> Cancel Policy or Endorse Policy.
    Poldash-dashboard-toolbar-policytask.png

  5. Select Transaction -> Cancellation or Endorsement.
  6. Select the Date.
  7. Optionally enter a short description in the Transaction Details field.
  8. To optionally create a follow up Diary item, select the Create Diary option.
  9. Enter any additional activity details in the Policy Log field and select OK.
  10. Leave the Policy Dashboard open and proceed to step 2.

Ic info black 24dp.png See: Newton User Guide - Policy for more information.

Step 2: Create the Return Premium Invoice

An agency bill invoice will be created with two invoice lines. The invoice lines will offset each other to create a 0.00 client balance. The second invoice line creates the company payable balance to the premium finance company for the return amount.

Example: Return Premium Finance To Company
$-500.00 return policy premium.
$500.00 amount to return to finance company.
Invoice Query - Return Premium.pdf
Invoice-premfin-return-line1.png
Invoice-premfin-return-line2.png
  1. From the Policy Dashboard select Policy & Billing within the top toolbar. (See Find A Policy if the policy is not open.)
  2. Verify the Bill Method is Agency Bill. (The default bill method is specified in the Company Profile.)
  3. Verify the Invoice Date.
  4. Select Next to create the first invoice line. An invoice can have a maximum of seven lines.
  5. Enter the return premium in the Amount field as a negative and press <TAB>. (From example: $-500.00).
  6. Verify the invoice line values, pressing <TAB> to jump to the next field. Each value will default from the policy.
  7. Verify the commission details. (Broker Billed commissions are calculated differently.)
    • The Agency Commission defaults from the Company Profile. The commission can be entered as a percentage of the premium, or a dollar amount.
    • The Producer and Producer Commission default from the Producer Profile. The commission can be entered as a percentage of the agency commission, or a dollar amount.
    • The Sub Producer will default if it is saved to the client. Verify the commission which defaults from the Producer Profile.
  8. Optionally enter a short Description which will display for the line on the printed invoice.
  9. Verify Invoice Type -> Regular and select Next to add an additional invoice line.
  10. Enter the following premium finance line 2 values:
    • Enter the amount financed as a positive. (From example: $500.00)
    • Enter the Transaction Code for Premium Finance.
    • Enter the Class Code for Premium Finance.
    • Change the company code to the premium finance company.
    • Verify the Agency Commission is $0.00.
  11. Optionally enter a short Description which will display for the line on the printed invoice.
  12. Verify Invoice Type -> Regular and select Finish when done, then Save when prompted.
  13. Select Finish or Save to finalize the invoice.
  14. Newton will generate an invoice number and create all of the general ledger receivables and payables for the invoice. Select Print or Email.
    Invoice Query - Return Premium.pdf - explanation of the general ledger credits and debits.
    Invoice-premfin-return-invquerymarkup.png

  15. To enter the finance company payment, do not close Policy & Billing. See Step 3: Process the company payment below.

Ic info black 24dp.png See: Invoice: Create An Invoice for more information.

Step 3: Process the Company Payment

This step will create the return premium check to the premium finance company. The refund payment less the agency commission is processed separately from the policy company.

First, follow the steps above to create the transaction, and create the invoice leaving Policy & Billing open.

  1. From Policy & Billing, select Invoice -> Payment -> Reconcile Payables. (Otherwise select Company -> Reconcile Company Payables (Agency Bill).)
  2. Verify 2110 - Company Payables is selected.
  3. Enter the Premium Finance Company Code used on line 2. (From Example: APF)
  4. Verify the premium finance invoice is within the selected Start Date and End Date.
  5. Select OK.
  6. Right-Click on the invoice, and select Pay This Invoice In Full.
  7. Select Payment Details... at the bottom.
  8. Verify the default payment type as Create A New Check Transaction To Pay.
  9. Enter the check details for the premium finance company check.
    • Verify the Bank. (The code defaults from the agency profile.)
    • Verify the Check Number, Check Date, and Check Type.
    • Optionally enter a short description, such as the policy number or insured name.
    • The Amount is automatically calculated. Select OK to close the transaction details.
  10. Confirm the payment totals at the bottom of the reconcile window, and select Perform Reconciliation.
    Reconcile-cmp-premfin-returncheck.png

  11. Select Yes to print the check if prompted. Select OK to finish the process.
  12. Exit Policy & Billing.

Ic info black 24dp.png See: Reconcile Company Payables for more information.

Create Other Invoice Types

There are a number of different types of invoices, such as regular invoices, premium finance invoices, mortgagee invoices, and installment invoices.

Ic info black 24dp.png See: Accounting - Invoice/Billing for more information.

Edit an Invoice

There are a number of different methods available to edit or adjust an invoice depending on the type of adjustment, and the status of the invoice. Invoices with accounting entries such as client or company payments limit the fields of an existing invoice that can be modified. Invoices in closed accounting periods cannot be modified. Adjustments to invoice balances can be made using reconcile, new invoices, or with journal transactions.

Ic info black 24dp.png See: Invoice: Edit An Invoice or Accounting - Invoice/Billing for more information.