Premium Trust Reconciliation

Product : TAM Series 6 and 7

The purpose of the Premium Trust Reconciliation is to provide detail of the total that should be in the premium trust bank account. The report totals all payments applied to account current items by the customer, minus the earned commission, minus the amount paid to the company, plus payments, and minus advances and returns left on account. This report reflects the current status of the items in TAM. It cannot be run for a specific timeframe.

The following criteria must be met for an item to appear on the Premium Trust Reconciliation.

  1. An account current item, or a PAY, FIN, ADV, RET with a balance.
  2. Either partially or fully paid by the client or partially or fully paid to the company

For an item to drop off the Premium Trust Report, it must be considered a "Closed" item. To be a closed item, the item must meet the following criteria:

  1. Fully paid by the customer (item has a zero balance)
  2. Fully paid to the company (company paid field has a capital Y)
  3. In a posted accounting month
  4. If a binder bill item, must be a closed binder

Once an item meets all of these criteria, the next time the Close Item/Calculate Last Item utility is run (this will run automatically if you pack the TRANSACT database on a regular basis) and the item is marked as CLOSED.

Some things to consider

  1. Keeping the company payables balanced has a direct effect on the Premium Trust Reconciliation. The more accurate the company payables report is, the more accurate the Premium Trust Reconciliation will be. Please refer to the Company Payables Balancing to the GL document.
  2. Making sure that all cash is applied in a timely manner not only reflects the aged receivables correctly, it also keeps payments from being considered fully owed to the company. Running an unapplied cash report prior to Month-End will assist in this process.

If you have items that appear on the Premium Trust Report that you do not feel should be on the report, those items do not meet one of the above criteria. Look at the items through Update Transactions to see the detail. Then you can see if the items need to be reconciled, or if you need to record a journal entry between items to zero the balance, or if the items are in an open accounting month.

Last Revised: February 19, 2008 02:24 PM