TAM Month-End Generated Journal Entries

Product: The Agency Manager, Series 6 and above

There are nineteen possible journal entries (not including user-defined journal entries) that Month-End may generate. The entries created depend on the transactions an agency creates and the GL's setup. The tables below indicate which accounts receive credits and debits. These tables provide a general rule; the actual entries may be reversed, depending on the month's activity.

Contents

 

 

View/Print the GL Setup Report

TAM Series 6

  1. Access Options.
  2. Select The Agency Manager for DOS.
  3. Select Utilities.
  4. Select System Setup.
  5. Select Accounting Setup.
  6. Select (8) Check GL Setup Options.

TAM Series 7 and above

  1. Access Utilities.
  2. Select Accounting.
  3. Select Setup.
  4. Select GL Setup Report.

Back to Top

Month -End Journal Entries

MJE1: A/R FROM A/C

J/E #

Description

Debit

Credit

MJE 1

Accounts Receivable

 

 

Company Payables

 

 

A/C Binder Bill

   

 

P & C Agency Bill Commission

 

 

Unearned (only if installed as CASH)

 

This J/E summarizes the total of the agency-billed transactions, such as NEW, REN, REN, NIS, RIS, CFE, CFN, +EN, -EN, AUD, CAN, and User-Defined J/Es defined as agency bill.

To verify the amount that posts to Accounts Receivable, run the Account Current report. The total premium should equal the MJE1 Accounts Receivable figure:

Use the same report to verify commission. The total commission posts to Unearned Income if the agency recognizes income on a cash basis. The total commission posts to P&C Income if the agency recognizes income on an accrual basis.

To verify the Company Payables figures, run the Account Current report. Use the same criteria as above, except choose to exclude Binder Bill. The Net Premium total per company should equal the MJE1 individual Company Payable entries.

To verify the Binder Bill posting, run the Account Current report. Run it for only Binder Bill items, include Brokered items, and exclude adjustments.

Back to Top

MJE2: COMM FROM A/C

J/E #

Description

Debit

Credit

MJE 2

Unearned Income (cash only)

 

 

Earned / P&C Income

 

 

Service Charge Income

 

 

 

AFE Income

 

 

 

Deferred Producer Commissions

 

 

Producer Expense

 

This first half of this journal entry occurs only if an agency is installed as a cash basis. To verify the Unearned/Earned figures, run the Earned Commissions report. The Earned Commissions report includes earned commission on P&C items and AFE transactions:

The Deferred Commissions entry displays only if the agency defers commissions for producers. To verify the Deferred Commission entry, run the Producer report with a mode of Deferred Commission Payable - J/E:

Back to Top

MJE3: DBILL A/R COMM EARNED

J/E #

Description

Debit

Credit

MJE 3

Direct Bill Accounts Receivables

  

  

Direct Bill Commission

  

  

Unearned Income

  

  

Agency Fee Income

  

The Direct Bill part of this J/E occurs only if the agency uses an accrual mode for direct-billed items.

To verify the amount, run either the Production report, using a Bill Mode of Direct Bill Production Items, or the Direct Bill report for the date selection items due in a month. The MJE should equal total commission.

The income portion of this J/E displays if the agency uses a modified cash basis for agency-billed items. This records the earned commission from AFEs where the bill mode is direct bill. To verify the amount of the journal entry, run the Earned Commissions report. This entry and the entry to P&C income should balance to the Earned Commissions report total.

Back to Top

MJE4: PRODUCER PAYABLE

J/E #

Description

Debit

Credit

MJE 4

Producer Payable

 

 

Producer Expense

 

 

Deferred Producer Commissions

 

This J/E summarizes the total producer commission expense incurred within the current accounting month. This J/E generates according to the payment method under which you installed the producers, based on the agency's GL Setup.

To verify these totals, run the Producer report using the Commissions Due Producers report mode. The criteria defaults based on the Producer Payment option in GL Setup. This report includes adjustments, and it helps verify MJEs 15, 16, and 17.

Back to Top

MJE5: BROKER COMMISSIONS

J/E #

Description

Debit

Credit

MJE 5

Accounts Receivables

  

  

Broker Commission Expense

  

This J/E totals commission generated on all broker-billed transactions done during the month. To verify this J/E, run the Broker report. The amount of the MJE should balance to the commission total.

Back to Top

MJE6: SERVICE CHARGES

J/E #

Description

Debit

Credit

MJE 6

Accounts Receivable

  

  

Service Charge Income

  

 

Unearned Commissions
(only if cash)

 

This J/E totals the income earned from applying service charges to past due accounts. To verify this J/E, run the Miscellaneous Production report. Run this report sorted by transaction type to help verify other Month-End J/Es.

Back to Top

MJE7: AGENCY FEES

J/E #

Description

Debit

Credit

MJE 7

Accounts Receivable

  

  

Agency Fee Income

  

  

Unearned Commissions (only if cash)

  

  

This J/E totals the income earned from agency fees (AFEs). To verify this J/E, run the Miscellaneous Production report.

Back to Top

MJE8: BAD DEBTS

J/E #

Description

Debit

Credit

MJE 8

Accounts Receivable

  

  

Bad Debt Expense

  

  

Deferred Commissions
(If deferring producer commission and writing off a portion of non-paid)

  

  

  

Producer Expense
(If deferring producer commission and writing off a portion of non-paid)

  

  

  

Unearned Commissions (only if cash)

  

   

This J/E represents the amount of premium written off as bad debts throughout the month. To verify this J/E, run the Miscellaneous Production report for JE1s.

Back to Top

MJE9: WAIVE SMALL BALANCE

J/E #

Description

Debit

Credit

MJE 9

Accounts Receivable

  

  

Waive Small Balance

  

  

Deferred Commissions
(If deferring producer commission and writing off a portion of non-paid)

  

 

  

Producer Expense
(If deferring producer commission and writing off a portion of non-paid)

  

  

  

Unearned Commissions (only if cash)

  

  

This J/E represents the amount of premium written off as small balances throughout the month. To verify this J/E, run the Miscellaneous Production report for JE2s.

Back to Top

MJE10: REVERSED LATE CHARGES

J/E #

Description

Debit

Credit

MJE 10

Accounts Receivable

 

 

Reverse Late Charge

 

 

Unearned Commissions
(only if on cash)

 

This J/E represents the amount of service charges written off throughout the month. To verify this J/E, run the Miscellaneous Production report for JE3s.

Back to Top

MJE11: SALES TAX

J/E #

Description

Debit

Credit

MJE 11

Accounts Receivable

  

  

Canadian Tax

  

This J/E represents the amount of TAX transactions a Canadian user transacted. To verify this J/E, run the Provincial Tax report.

Back to Top

MJE12: ACCOUNTS PAYABLE

J/E #

Description

Debit

Credit

MJE 12

Accounts Payable (Vouchers)

  

  

Accounts Payable Offsets

  

This J/E summarizes all activity accrued in the Accounts Payable program (Vouchers). To verify this J/E, run the GL Payables Balancing report with the Month-End criteria selected, not Payables Ending Balance.

Back to Top

MJE13: COMM ADJUSTMENTS (agency bill)

J/E #

Description

Debit

Credit

MJE 13

Adjustments to Agency P&C Income

  

  

  

Adjustments to Company Payables

  

  

  

Adjustment to Unearned Income
(only if cash)

  

  

This J/E does not have a standard for posting debits or credits. The posts depend on whether the adjustment was in the agency's favor. To verify this J/E, run the Company Adjustments report.

Back to Top

MJE14: COMM ADJUSTMENTS (direct bill)

J/E #

Description

Debit

Credit

MJE 14

Adjustments to Direct Bill Income

  

  

  

Adjustments to Direct Bill Receivables

  

  

Much like MJE 13, this J/E does not have a standard posting rule. The amounts that post depend upon the adjustments done to direct-billed items, and only if the agency accrues direct-billed income. To verify this J/E, run the Company Adjustments report.

Back to Top

MJE15: PROD COMM ADJUSTMENTS (1st producer)

J/E #

Description

Debit

Credit

MJE 15

Adjustments to Producer 1 Commission Expense

  

  

  

Adjustments to Producer 1 Payables

  

  

  

Adjustments to Deferred Producer 1 Commissions
(see explanation under MJE 2)

  

  

As with the Company Commission adjustments, this J/E does not have a standard posting rule. This J/E represents the total commission adjustments made to the first producer through the (A)djust option in Update Transactions or through the Reconciliation program, based on how TAM pays producers. To verify this J/E, run the Producer Adjustments report. The Producer report also includes these totals.

Back to Top

MJE16: PROD COMM ADJUSTMENTS (2nd producer)

J/E #

Description

Debit

Credit

MJE 16

Adjustments to Producer 2 Commission Expense

  

  

  

Adjustments to Producer 2 Payables

  

  

  

Adjustments to Deferred Producer 2 Commissions
(see explanation under MJE 2)

  

  

This J/E is the same as MJE 15, except it totals the second producer's adjustments.

Back to Top

MJE17: PROD COMM ADJUSTMENTS (3rd producer)

J/E #

Description

Debit

Credit

MJE 17

Adjustments to Producer 3 Commission Expense

  

  

  

Adjustments to Producer 3 Payables

  

  

  

Adjustments to Deferred Producer 3 Commissions
(see explanation under MJE 2)

  

  

This J/E is the same as MJE 15, except it totals the third producer's adjustments.

Back to Top

MJE18: A/R TRANSFER TO GL

J/E #

Description

Debit

Credit

MJE 18

Accounts Receivable

  

  

JNL Transactions
(miscellaneous accounts)

  

This J/E summarizes all transaction activity done using the Offset to a Specific Account transaction at the customer level. To verify this J/E, run the Miscellaneous Production report for JNLs.

Back to Top

MJE19: PAYABLE WRITEOFF

J/E #

Description

Debit

Credit

MJE 19

Company Payables

  

  

Company Payables Write-off

  

This JE summarizes all Write-off functions done from within Reconciliations. To verify this J/E, run the Company Payables report for Only Writeoffs (under the Company Paid/Unpaid criteria).

Back to Top

MJE20+: (From User-Defines J/E's)

J/E #

Description

Debit

Credit

MJE 20+

User-Defined J/Es

  

  

User-Defined Transactions
(one entry for each user-defined J/E)

  

This J/E summarizes the total of user-defined J/Es installed as Miscellaneous. The offsetting accounts above are the accounts entered in the Accounting Setup. To verify these J/Es, run the Miscellaneous Production report.

Back to Top

MJE100+: (From Recurring J/E's)

J/E #

Description

Debit

Credit

MJE 100+

Recurring Month-End J/Es

  

  

These are the J/Es entered as Recurring Journal Entries. Each installed recurring entry has its own J/E number. To verify these J/Es, run the Journal Entry Defaults report. These entries have a "Y" in the M/E column. You can also print the default list under View Recurring J/Es.

Back to Top

Reports

Account Current

  1. Access Reports.
  2. Select Reports-Accounting.
  3. Select Account Current.
  4. Run the report with these criteria: all companies, include Binder bill, include Broker Bills, and exclude adjustments.

Broker Report

  1. Access Reports.
  2. Select Reports-Accounting.
  3. Select Broker Report.

Company Adjustments Report

  1. Access Reports.
  2. Select Reports-Accounting.
  3. Select Adjustments - Company.

Company Payables Report

  1. Access Reports.
  2. Select Reports-Accounting.
  3. Select Company Payables.
Default List
  1. Access Accounting.
  2. Select Journal Entries.
  3. Select View Recurring J/Es.
  4. Select Print Default List.

Deferred Commissions

  1. Access Reports.
  2. Select Reports-Accounting.
  3. Select Producer Report.
  4. Select Criteria Tab.
  5. Select Report Mode.

Direct Bill Report

  1. Access Reports.
  2. Select Reports-Accounting.
  3. Select Direct Bill.

Earned Commissions

  1. Access Reports.
  2. Select Reports-Accounting.
  3. Select Earned Commissions Report.

GL Payables Balancing Report

  1. Access Reports.
  2. Select Reports-General Ledger.
  3. Select GL Payables Balancing Report.
Journal Entry Defaults Report
  1. Access Reports.
  2. Select Reports-General Ledger.
  3. Select Journal Entry Defaults.

Miscellaneous Production Report

  1. Access Reports.
  2. Select Reports-Accounting.
  3. Select Misc. Production Report.

Producer Adjustments Report

  1. Access Reports.
  2. Select Reports-Accounting.
  3. Select Adjustments - Producer.

Production Report

  1. Access Reports.
  2. Select Reports-Management.
  3. Select Production Report.

Back to top

Last Revised: June 08, 2011 01:52 PM

SWE1935

     This file is for the designated recipient only and may contain confidential, proprietary, or otherwise private information. Any other use or distribution of this information is prohibited. The information contained in this file is provided for informational purposes only. It may not be construed as an offer, warranty, or contract, and it is not intended to enlarge, modify, or otherwise change the terms of Applied Systems's individual contracts with its customers. The information is current as of the date it was accessed. Readers should not rely on this information if it is not current. Applied Systems disclaims liability for any claims or damages resulting from reader's reliance on non-current information. The Agency Manager, TAM, The Agency Manager Vision Series, Vision, TAMOnline, VisionOnline, AppliedOnline, Applied Systems, fax@vantage, InScope, Applied ConneXion, The power to make you more profitable, Our software is just the beginning, DORIS, DORISOnline, Epic, and EpicOnline are trademarks or registered trademarks.