Income Posting Breakdown

Product: TAM Series 6 and 7

What is Income Posting Breakdown?

The Income Posting Breakdown option allows the agency to categorize their income in one of five ways:

This option will affect how the Month-End journal entry will be generated and posted to the Commission Income account.

No Breakdown; Single Account

All income goes to a single account. You would have to run reports and use their sort options to see different breakdowns of the agency’s income.

Policy Status

Income breaks down by the Status field of the policy on each transaction. The status field is pulled from the billing screen / policy when the transaction is entered.

Policy Type Class

Income breaks down by the policy type class field on each transaction. Policy Class is a user-defined field used to group certain policy types together based on the "class" of business. Automobile and motorcycle policies may be two different policy types but may both be installed as a class of "Personal Automobile." Since policy type class is not mandatory, when entering policy types, it is possible for there to be transactions filed without a class. If a transaction does not have a policy type class and there is commission associated with the transaction, a missing account error prints when Month-End journal entries are generated. The error will be on the commission account and the subaccount will show HSE. First, check all policy types in Utilities to verify that all have policy classification codes. Correct all those that do not. Then run Update Policy Type Classifications. After this is run, the error from Month-End journal entry generation will be corrected.

Producer Code

Income will break down by the producers and their commission per transaction with the remainder of the agency commission posting to the house or agency's account. Since it is not mandatory to have a producer on every transaction, a HSE subaccount must be installed for all those transactions filed without a producer. Furthermore, only the producer’s portion of the commission will hit his or her subaccount. Any commission left over for the agency will post to the HSE account.

For example, a transaction is created with 150.00 commission for the agency. There are two producers on the transaction. Producer 1 is JKR with 37.50 commission and producer 2 is GGO also with 37.50 in commission. Since the producer commissions add up to 75.00, the remaining 75.00 will post to the commission account with the subaccount of HSE. Normally, agencies that use this breakdown pay their producers 100% of the agency's commission.

Company Code

Income will break down by the billing company field on each transaction.

Note: If you are installed to ACCRUE Direct Bill Income, then you will have the same Income Posting Breakdown for both agency and direct bill items.

Change Income Posting Breakdown Method

It is easiest to change the method of income posting breakdown at the end of an agency’s fiscal year, when income accounts have a zero balance. If you change the income posting breakdown mid-year, please note that there will be a balance in the old income accounts as well as the new subaccounts.

Change to Income Posting Breakdown by Policy Status from No Breakdown

  1. Set up title and subaccounts for AFE Income and P&C Income. In Series 6, access DOSTAM UT-6-1-1 Enter/Revise Chart of Accounts, and add two new title accounts for AFE Income and P&C Income.

In Series 7, access Utilities, Accounting, Account Maintenance, Enter/Revise Chart of Accounts to add the accounts. Both accounts need to have a subaccount for each policy status that you have on the system.

  1. Switch your system to Income Posting Breakdown by Policy Status.

Change to Income Posting Breakdown by Policy Type Class from No Breakdown

Note: For Series 6, place a call to support for the code of the day. This is necessary to complete step 4.

Series 6

  1. Verify that every policy type has a policy type classification defined. Access DOSTAM UT-10 Install Policy Types, and List Policy Type Defaults. The PL column should be filled in for every policy type.
  2. Set up title and subaccounts for AFE Income and P&C Income. Access DOSTAM UT-6-1-1 Enter/Revise Chart of Accounts and add two new title accounts for AFE Income and P&C Income. 
  3. Switch your system to Income Posting Breakdown by Policy Type Class.
  4. Update your existing policy type classifications. Access DOSTAM UT-3-18 Update Policy Type Classifications.

Series 7

  1. Verify that every policy type has a policy type classification defined. Access Utilities, General, Policy Maintenance, Install Policy Types. Note all the policy type classifications you use, as you will need to add a subaccount for each of these classification codes.
  2. Set up title and subaccounts for AFE Income and P&C Income. Access Utilities, Accounting, Account Maintenance, Enter/Revise Chart of Account to add the accounts. Both accounts need to have a subaccount for each policy classification code that you have on the system.
  3. Switch your system to Income Posting Breakdown by Policy Type Class.
  4. Update your existing policy type classifications. Access Utility Manager, General, Policy Maintenance, Update Policy Type Classifications to run this utility. All users must remain off the system while you run this utility. This updates all existing transactions and billing screens with the policy type classifications you defined in step 1.

Change to Income Posting Breakdown by Producer from No Breakdown

  1. Set up title and subaccounts for AFE Income and P&C Income. In Series 6, access DOSTAM UT-6-1-1 Enter/Revise Chart of Accounts, and add two new title accounts for AFE Income and P&C Income.

On Series 7, access Utilities, Accounting, Account Maintenance, Enter/Revise Chart of Accounts to add the accounts. Both accounts need to have a subaccount for each producer that you have on the system. Also add a subaccount for HSE. This is a required account for income posting breakdown by producer.

  1. Switch your system to Income Posting Breakdown by Producer.

Change to Income Posting Breakdown by Company from No Breakdown

  1. Set up title and subaccounts for AFE Income and P&C Income. In Series 6, access DOSTAM UT-6-1-1 Enter/Revise Chart of Accounts and add two new title accounts for AFE Income and P&C Income.

On Series 7, access Utilities, Accounting, Account Maintenance, Enter/Revise Chart of Accounts to add the accounts. Both accounts need to have a subaccount for each billing company that you have on the system.

  1. Switch your system to Income Posting Breakdown by Company.

How to Change Income Posting Breakdown

Series 6

Note: All users must be logged out of TAM

  1. Access a DOS prompt and change to the drive where TAM resides.
  2. Type CD\TAM and press [Enter]. This will bring you to a \TAM> prompt.
  3. Type SYS_INST and press [Enter]. Answer Yes to proceed. Enter your executive usercode and password, and Quit out of the print box that appears.
  4. Select 2-Initial TAM Setup.
  5. Select 3-Install Month-End Options.
  6. Select 8-Income Posting Breakdown.
  7. Select appropriate breakdown option and press [Enter].
  8. End out of one menu.
  9. Select 5-Chart of Accounts Maintenance.
  10. Select 3-Enter/Revise Required Accounts.
  11. Update the AFE Income and P&C Income accounts to the new title accounts previously created.
  12. End out of all menus to return to the \TAM> prompt.

Series 7

Note: All users must be logged out of TAM

  1. Click Start.
  2. Select Programs.
  3. Select Applied Systems.
  4. Select System installation.
  5. Enter the usercode and password.
  6. Select Install Month-End Options.
  7. Select Income Posting Breakdown.
  8. Select the appropriate breakdown option.
  9. Click OK, Cancel, and end out of system installation.
  10. Click Start.
  11. Select Programs.
  12. Select Applied Systems.
  13. Select Utility Manager.
  14. Select Accounting.
  15. Select Account Maintenance.
  16. Click the arrow.
  17. Select Enter/Revise Required Accounts.
  18. Change the AFE Income and the P&C Income accounts to the new title accounts previously created. End out of Utility Manager.

Last Revised: February 19, 2008 02:24 PM

SWE890