Category:Agency Bill
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Agency Bill processing is the process of entering Agency Bill invoices, entering client payments, and then reconciling the policies against the company accounts agency bill statement. The receivable, payable, income and expense values all come from creating the invoice.
Creating the invoice means you will do 3 later transactions:
- Receipt money from the client.
- Issue a check to the company less your commission.
- Issue a check to the producer if commission is included.
Contents
Agency Bill Invoice Accounting Entries
An Agency Bill invoice for $1000, with 12% agency commission and 40% producer commission would result in the following balances:
GL Account | Name | Debit | Credit | Action |
---|---|---|---|---|
1120 | Accounts Receivable | $ 1000.00 | The client owes you $1000.00 | |
5108 | Producer Expense | $ 48.00 | You have incurred an expense of $48.00, with a net income of $72.00 ($120.00 - $48.00) | |
2110 | Company Payable | $ 880.00 | You owe the company $880.00 | |
4110 | Agency Bill Income | $ 120.00 | You have earned $120.00 | |
2120 | Producer Payable | $ 48.00 | You owe the producer $48.00 |
In most offices, the money owed to the company or producer isn't considered "due" until the agency itself has been paid. Agency Systems can track that for you.
Receipt Money (Cash) from the Client Accounting Entries
When you enter cash from a client, the client balance is credited (reduced) and the bank balance is debited (increased). In our example, the client balance is currently $1000. When we get the money, it will alter these accounts:
GL Account | Name | Debit | Credit |
---|---|---|---|
1100 | Cash in Bank | $ 1000.00 | |
1120 | Client Receivable | $ 1000.00 |
This sets the balance in the bank to $1000, and zeros the receivable from the client.
Company Check Accounting Entries
When its time to pay the company, you will create a check transaction in the system. You may be handwriting checks, but they still need to be created in the system to update your bank account and relieve the payable The check will credit (reduce) the bank account and zero out the company payable.
GL Account | Name | Debit | Credit |
---|---|---|---|
2110 | Company Payable | $ 880.00 | |
1100 | Cash in Bank | $ 880.00 |
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.
GL Account | Name | Debit | Credit |
---|---|---|---|
2120 | Producer Payable | $ 48.00 | |
1100 | Cash in Bank | $ 48.00 |
Agency Bill Processing - Final Accounting Entries
At the end of all of these transactions, the account balances are:
GL Account | Name | Debit | Credit |
---|---|---|---|
1100 | Cash in Bank | $ 72.00 | |
5108 | Producer Expense | $ 48.00 | |
1120 | Accounts Receivable | $ 0.00 | |
4110 | Agency Bill Income | $ 120.00 | |
2110 | Company Payable | $ 0.00 | |
2120 | Producer Payable | $ 0.00 |
Pages in category "Agency Bill"
The following 39 pages are in this category, out of 39 total.
A
- Add Agency Logo to Custom Invoice and Statement
- Agency Bill
- Agency Bill (Broker Billed)
- Agency Bill: Adjust Client Receivable - Write Off Small Balance or Bad Debt
- Agency Bill: Adjust Company Payables for Direct Bill Commission
- Agency Fee Wizard
- Apply Client Cash Balance to an Invoice
- Apply or Unapply a Journal Transaction to or from an Invoice
C
I
- Invoice Summary
- Invoice: Adjust Premium and Commission on Existing Invoices in Closed GL Periods
- Invoice: Adjust Producer Payable Commission for Expenses or Deductions
- Invoice: Create An Invoice
- Invoice: Create An Invoice - Installment Billing
- Invoice: Create An Invoice - Premium Finance
- Invoice: Create An Invoice - Premium Finance: Return Premium To Finance Company
- Invoice: Delete An Invoice
- Invoice: Edit An Invoice
- Invoice: Find An Invoice
- Invoice: Override Payee On Invoice (Mortgagee Invoices)
- Invoice: Print An Invoice