Company Payables Balancing to the GL

Product: The Agency Manager - Series 6, 7, 8 and 9

The company payables report brings in the agency-billed transactions on the client level that have not been flagged as being paid to the company. For this report to be accurate, you must reconcile agency bill business.

You can run the Company Payables for prior months to determine if this report matches the Balance Sheet or a GL Status of accounts report.

Company Payables Report

Follow the steps below to run the Company Payables report:

  1. Access Reports.
  2. Select Reports, Accounting.
  3. Select Company Payables.
  4. Click the Criteria Tab and select the following criteria.

Report Mode

Balance to Last Month-End

Agency

All Agencies

Branch

All Branches

Department

All Departments

Billing Companies

All Billing Companies

Date Selection

Before DEC 07 (defaults based on the last month posted and can be changed to balance to prior months. In this instance, Before Dec 07 defaulted, indicating Nov 07 as the last month posted)

Company Paid/Unpaid

Unpaid to Company

Customer Paid/Unpaid

All Items

Personal/Commercial

Both Lines

Binder Bill

Exclude Binder Bill Items

Major Sort

Billing Company

Minor Sort

Customer

Sub Total by Customer

No

Output

Complete- Do Not Page Break

Extra Criteria

None

This report looks at each transaction and determines the total amount of net premium still owed to the insurance company as of the month selected. It also includes the GL account balance (which pulls from the balance sheet). Finally, there is column that shows differences between the two figures. In the above example, the balances will reflect as of month-end for NOV07. The report only shows the General Ledger data and the column reflecting the difference between the transaction side and the General Ledger side when run for a posted month.

What to Look for if Company Payables is out of Balance

  1. This report depends on timely reconciliations. If a cash transaction was recorded for an item in a month but the item was not reconciled until the following month, the item continues to appear on the report until the report is run to include both the transaction month and the reconciliation month. For example, if an Oct. 2007 item was paid in Nov. 2007 (check to the company or deposit from the company) but was not reconciled until Dec. 2007, the item is considered open as of the end of Nov. 2007 and will appear on the report unless run for items due before Jan 2008 or later.
  2. Verify that "Unpaid" statements exist by checking under List Statements. Check the Status of Accounts to see if a check was written for the unpaid statement.

    Note: Even if a check has been issued in the GL for an agency bill statement, the only way items will drop from the Company Payables report is if they are flagged in the Reconciliation program and the statement has been closed. The company paid (CPAID) field must have a "Y" (meaning fully flagged and paid to the company) and not a "y" (meaning fully flagged but unpaid to the company) to drop from the Company Payables report. If any unpaid statements are found and a check has been issued, run the Statement Closing Utility for those statements.

  3. Look for old items appearing on this report. Record any old items that have been paid to the company that appear as unpaid. Do these items display in the reconciliation program?

    If these old items appear in the reconciliation program, create a statement that consists of only previously paid items. Close the statement with the Statement Closing Utility.

    1. Access Accounting.
    2. Select Reconciliations.
    3. Select Agency Bill.
    4. Select Statement Utilities.
      • Select Statement Closing-Check/Deposit/Misc. No. Assigned if you know the GL transaction that closed the Statement.
      • Select Statement Closing-No Checks/Deposit/Misc. No. Assigned if you do not know the GL transaction that closed the Statement.

    Note: Remember that the Statement Closing Utility and Statement Repair will not affect the General Ledger in any way. These programs simply flag client items as paid to the company.

    If the items are not appearing in the Reconciliation Program but appear as "unpaid" on the Company Payable Report; determine why there is a conflict in the data. For each questionable item on the Company Payable Report, do the following:

    1. At the client level access the customer and select Transactions. Highlight the item in question and select Detail.
    2. Record the following:
      • Customer Code
      • Item Number
      • Accounting Month
      • Billing Company (BCO)
      • Company Paid?
      • Check #
    3. After producing a complete list of the incorrect items, contact Support at 1-800-999-6512. Please give Support adequate time to investigate and correct the entries. All operators may have to exit TAM while corrections are made.
  4. Run a Status of Accounts for the company payable account that is out of balance. Run one for the month that it first went out of balance and another one for the month prior. Look for any manual entries.
  5. Make sure that the ending balance for the prior month matched the opening balance for the month you are out.
  6. In List Statements, Print Screen the list of closed statements for the company in question (for the same range as the Status of Accounts in Step 3).
  7. Look at the Status for the month that was in balance. Look at the last Check that appears. The description should tell you what statement number it was paying. Mark this statement on the closed statement printout. (Refer to step 5.)
  8. For every statement below the one you marked, look to the status for the month out of balance and match it with a check. If there is a closed statement with no check on the status, a check on the status with no statement, or the amounts differ, this could be the cause of the out of balance. See step 10 if you have this problem.
  9. If they all match up, go into List Closed Statements and view the detail of each statement that was paid in the month that went out of balance. Make sure that the total when viewing the detail matches the total when just viewing the list of closed statements. If any of these differ, this could be where the problems lie.
  10. If these all match, verify that the Month-End journal entries are correct. Run an account current report for the month selecting to exclude binders, include adjustments. Does the Net Premium on the account current report match the Month-End journal entry? If not, regenerate Month-End journal entries and make a journal entry (or backpost) for the difference.
  11. If you find a check on the Status of Accounts but cannot find a matching Closed/Paid or Unpaid Statement, one of two things has occurred. Either the check was written without reconciling any of the items, or the items were flagged, but the statement was never closed. Determine what transactions the check was written for, and then find out what is in the Company Paid (CPAID) field on each of those transactions. You can check this by going into Update Transactions on each item.
  12. If the Company Paid field is blank on these items, flag them in the reconciliation program and then run Statement Closing Utilities.

    If these items have a "y" in the Company Paid field, that means they have already been flagged. At this point, you should have already determined that these items were not appearing on an Unpaid Statement, so that would mean that the "S" record is gone. Note the statement number in the Check Number/REFER field, and then run Statement Repair for that statement number. After Statement Repair is run, the items will be considered closed and will no longer appear as "due" to the company on the Company Payables report.

  13. If you find that the amount of the check on the Status of Accounts is different than the amount showing under List Closed Statements, this could be the problem. First, disregard the amount shown on the List Closed/Paid Statements print screen. This figure is not causing the out-of-balance situation. To see the actual amount flagged on the statement, you must view the detail of the closed statement. This figure should be compared to check amount on the Status of Accounts. If these figures differ, investigate why the check was written for a different amount.
  14. If this is the first time reconciling and all the old items are cleared from the report, and all that is on the report are items that are truly unpaid, a journal entry may be entered to force balance the company payable account to the detail of the company payable account. 

Status of Accounts Report

Follow the steps below to run the Status of Accounts report:

  1. Access Reports.
  2. Select Reports-General Ledger.
  3. Select Status of Accounts.

List Statements

Follow the steps below to access the List Statements function in TAM.

  1. Access Accounting.
  2. Select Reconciliations.
  3. Select Agency Bill.
  4. Select List Statements.

Last Revised: November 18, 2008 09:56 AM

SWE1968