Difference between revisions of "Category:Direct Bill"

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<ul>
 
<ul>
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<li>[[Direct Bill]]</li>
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<li>[[Invoice: Create An Invoice]]</li>
 +
<li>[[Invoice: Edit An Invoice]]</li>
 
<li>[[Training 6: Accounting]]</li>
 
<li>[[Training 6: Accounting]]</li>
 
</ul>
 
</ul>
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Direct Bill invoices and payments are typically created by [[Direct Bill: Commission Statement Processing|commission download or commission builder]].
 
Direct Bill invoices and payments are typically created by [[Direct Bill: Commission Statement Processing|commission download or commission builder]].
−
=== Direct Bill Invoice Accounting Entries ===
 
  
−
A Direct Bill invoice for $1000, with 12% agency commission and 40% producer commission would result in the following balances:
+
[[File:Ic_info_black_24dp.png]] See [[Direct Bill]] for additional details.
  
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{| class ="wikitable"
+
[[File:Ic_info_black_24dp.png]] See [[Direct Bill (Broker Billed)]] for Broker Billed invoices.
−
![[General Ledger Profile|GL Account]]
 
−
!Name
 
−
!Debit
 
−
!Credit
 
−
|-
 
−
|1120
 
−
|Client Receivable
 
−
|style="text-align:right;"|$ 1000.00
 
−
|
 
−
|-
 
−
|1130
 
−
|Company Receivable
 
−
|style="text-align:right;"|$ 120.00
 
−
|
 
−
|-
 
−
|5108
 
−
|Producer Expense
 
−
|style="text-align:right;"|$ 48.00
 
−
|
 
−
|-
 
−
|1120
 
−
|Client Receivable
 
−
|
 
−
|style="text-align:right;"|$ 1000.00
 
−
|-
 
−
|-
 
−
|4120
 
−
|Direct Bill Income
 
−
|
 
−
|style="text-align:right;"|$ 120.00
 
−
|-
 
−
|2120
 
−
|Producer Payable
 
−
|
 
−
|style="text-align:right;"|$ 48.00
 
−
|}
 
−
 
 
−
In most offices, the money owed to the producer isn't considered "due" until the agency itself has been paid. Agency Systems can track that for you.
 
−
 
 
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=== Receipt Money (Cash) from the Client Accounting Entries ===
 
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If you receive a payment from the client on a direct bill transaction, that is called a transmittal. A transmittal consists of two transactions; cash in, and a check out.
 
−
 
 
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In our example, you can see that there is no balance on client; they owe the money to the company, not you. The transmittal will not change the balance either; the monies will be passed through your office, but will not permanently change the balances.
 
−
 
 
−
When the money is received, a cash receipt is created. If this were for $100.00, it would affect these accounts:
 
−
 
 
−
{| class ="wikitable"
 
−
![[General Ledger Profile|GL Account]]
 
−
!Name
 
−
!Debit
 
−
!Credit
 
−
|-
 
−
|1100
 
−
|Cash in Bank
 
−
|style="text-align:right;"|$ 100.00
 
−
|
 
−
|-
 
−
|1120
 
−
|Client Receivable
 
−
|
 
−
|style="text-align:right;"|$ 100.00
 
−
|}
 
−
 
 
−
A check is then issued to reset these balances. The check must charge the Accounts Receivable for this client to reset his balance. The payee on the check is overridden to the company.
 
−
 
 
−
{| class ="wikitable"
 
−
![[General Ledger Profile|GL Account]]
 
−
!Name
 
−
!Debit
 
−
!Credit
 
−
|-
 
−
|1120
 
−
|Client Receivable
 
−
|style="text-align:right;"|$ 100.00
 
−
|
 
−
|-
 
−
|1100
 
−
|Cash in Bank
 
−
|
 
−
|style="text-align:right;"|$ 100.00
 
−
|}
 
−
=== Receipt Money (Cash) from the Company Accounting Entries ===
 
−
Direct Bill commission payments are typically created by [[Direct Bill: Commission Statement Processing|commission download or commission builder]].
 
−
 
 
−
When you receive payment from the company, you will create a cash transaction crediting the company receivable. 
 
−
{| class ="wikitable"
 
−
![[General Ledger Profile|GL Account]]
 
−
!Name
 
−
!Debit
 
−
!Credit
 
−
|-
 
−
|1100
 
−
|Cash in Bank
 
−
|style="text-align:right;"|$ 120.00
 
−
|
 
−
|-
 
−
|1130
 
−
|Company Receivable
 
−
|
 
−
|style="text-align:right;"|$ 120.00
 
−
|}
 
−
=== Producer Check Accounting Entries ===
 
−
The check to the producer is similar; it will reduce your bank account and zero the producer payable. The system can tell which invoices your agency has been paid on so that you only pay the producer for the correct items.
 
−
 
 
−
{| class ="wikitable"
 
−
![[General Ledger Profile|GL Account]]
 
−
!Name
 
−
!Debit
 
−
!Credit
 
−
|-
 
−
|2120
 
−
|Producer Payable
 
−
|style="text-align:right;"|$ 48.00
 
−
|
 
−
|-
 
−
|1100
 
−
|Cash in Bank
 
−
|
 
−
|style="text-align:right;"|$ 48.00
 
−
|}
 
−
=== Direct Bill Processing - Final Accounting Entries ===
 
−
At the end of all of these transactions, the account balances are:
 
−
{| class ="wikitable"
 
−
![[General Ledger Profile|GL Account]]
 
−
!Name
 
−
!Debit
 
−
!Credit
 
−
|-
 
−
|1100
 
−
|Cash in Bank
 
−
|style="text-align:right;"|$ 72.00
 
−
|
 
−
|-
 
−
|5108
 
−
|Producer Expense
 
−
|style="text-align:right;"|$ 48.00
 
−
|
 
−
|-
 
−
|1120
 
−
|Accounts Receivable
 
−
|style="text-align:right;"|$ 0.00
 
−
|
 
−
|-
 
−
|1130
 
−
|Company Receivable
 
−
|style="text-align:right;"|$ 0.00
 
−
|
 
−
|-
 
−
|4110
 
−
|Direct Bill Income
 
−
|
 
−
|style="text-align:right;"|$ 120.00
 
−
|-
 
−
|2120
 
−
|Producer Payable
 
−
|
 
−
|style="text-align:right;"|$ 0.00
 
−
|}
 

Latest revision as of 18:54, 3 November 2016

Related Pages
Related Categories

Direct bill refers to an invoice where the client pays the insurance company direct. The agency commission is sent to the agency by the insurance company and recorded with GL 1130 - Company Receivable. In a retail agency, there is no receivable balance from the client (GL 1120 - Client Receivable).

Direct Bill invoices and payments are typically created by commission download or commission builder.

Ic info black 24dp.png See Direct Bill for additional details.

Ic info black 24dp.png See Direct Bill (Broker Billed) for Broker Billed invoices.

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