Financing a Broker Billed Policy

Product: TAM V7.0 and above

To Finance a Broker Bill policy, use the following steps:

  1. Set up a Miscellaneous User Defined Transaction offset to the Transfer Account. See User-Defined Transactions for additional info.

    Note:   Offsetting the User Defined Transaction to the cash transfer account allows TAM to find any one-sided entries during the stay in balance checks done during Night Utilities or by running the Month-End in Balance Checks.

  1. Enter a General Transaction for the broker bill premium (e.g., Premium of $1000.00 - Company Commission @ 20% and Broker @ 10%). (The billing type will be set up as Broker on the Policy Detail screen.)
  2. Description

    Debit

    Credit

    Broker Accounts Receivable 900.00  
    Broker Commission Expense 100.00  
    Company Payable   800.00
    Commission Income   200.00
  1. Enter a General Transaction for the amount being financed using the User-Defined Transaction set up in step one (e.g., Amount being financed is $-600.00).  Enter as a credit amount.
  2. Description Debit Credit
    Broker Accounts Receivable   600.00
    Cash Transfer Account 600.00  
  1. Go back to the Policy Detail screen and change the Billing field to Agency.

  1. Enter a General Transaction for the amount being financed using the User-Defined transaction set up in step one (e.g., $600.00).  Enter as a debit amount.
  2. Description Debit Credit
    Accounts Receivable, Customer 600.00  
    Cash Transfer Account   600.00
  1. Enter a Finance Company (FIN) transaction.
  2. Description Debit Credit
    Accounts Receivable, Customer   600.00
    Accounts Receivable, Finance Company 600.00  
  1. Change Billing field back to Broker on the Policy Detail. Be sure to enter the broker code and commission on the Policy Detail screen.

Last Revised: February 19, 2008 02:00 PM

TRE18694