Binder Bill Transactions in TAM

Product: WinTAM Series 6

Binder bills are used to generate an invoice prior to the policy being issued by insurance company. Usually a binder bill is issued when the agency needs to collect the premium but they don't want it to appear on their Account Current because the company hasn't actually issued the policy yet or billed the agency for it.

Add a Binder Bill Transaction

In WinTAM, click Invoices, Add, Add a Transaction, and select (click to put an "X" in) the binder bill box. Complete the transaction as usual and it will file in Binder Bill mode. 

In DOSTAM, from a billing screen, (T)ransact and type in BIN as the transaction type. Select the binder bill transaction type and complete the transaction as usual.

Three Ways to Close a Binder Bill Transaction

There are three options when closing binder bills:

Close Binder, Create Adjustment - Summary Invoice

After you select the first option of Close Binder, Create Adjustment - Summary Invoice, the system will create the reversing item and the item that will appear on the account current and in turns applies these invoices to each other. This option is controlled by the SYSTEM as to what gets applied to what.

Close Binder, Create Adjustment - Detail Invoice

When you select the second option of Close Binder, Create Adjustment - Detail Invoice, the system will create the reversing item and the item that will appear on the account current but does not do any applying whatsoever. YOU control what invoices will be applied to what by manually selecting J/E between Invoices and applying them together. This option keeps applying payments and items to each other in the hands of the user and not TAM.

Reverse Binder - Reinvoice Manually

When you select the third option of Reverse Binder - Reinvoice Manually, the system will create a reversing entry only taking the item out of the binder bill payable. An invoice to the account current is not created. These items also are not applied to each other.

Example of a Binder Bill Transaction

Enter the Binder Bill for $1000.00

General Ledger:

TRANSACT.DBF:

Close the Binder Bill for 1200.00 (MEM gets created for $200)

Close Binder, Create Adjustment - Summary Invoice

General Ledger

TRANSACT.DBF

Binder Bill Installment Transactions

Binder billed installment basically work just like regular installments. They are entered the same as a regular installments, you can enter them individually or as an installment plan.

Binder Bill Installments have NO affect on the General Ledger while they are still pending (filed in INVOICE.DBF).

Closing a Binder Bill if it Is a Pending Installment

In WinTAM, select Invoices, Pending, highlight the binder bill transaction you need to close, click Detail, and find the binder bill status box in the upper right. Click on the box and REMOVE the "X" from this box to undo the binder bill status. Then update the remaining installments as necessary.

In DOSTAM, when you go into Update pending installments there will be a (C)lose option.

Process Pending Binder Bill Installments

Binder Billed Installments get processed like any other installments, through the Close-Day procedure. On the transaction date they are moved from "Pending" (INVOICE.DBF) to "General" (TRANSACT.DBF) and will appear with a "b" next to them when viewing transaction history.

This debits Accounts Receivable, credits Binder Bill Payable, and credits Commission.

Close a Binder Bill Installment that has been Processed

In WinTAM, select Invoices, Options, Update, and click the "Open Binders" radio button. Highlight the binder you need to close, click Options, Close Binder and the three closing options will appear. 

In DOSTAM, a binder bill that has already been processed will be closed just like any other standard binder bill. (U)tility, Update Transactions, Open Binder Bills and select (C)lose.

This debits Binder Bill Payable, and credits Company Payable (Commission not affected at this time).

Balancing Binder Bill Payables

The Binder Bill Payables account can be balanced using the Binder Bill Payables Balancing report found under the General Ledger section in WinReports.

Last Revised: February 19, 2008 02:24 PM

SWE2497