Commission Payable Statement

The Commission Payable Statement allows you to identify the items that you want to pay to commissioned employees and/or brokers. It also provides payment option links to complete the transaction.

First you must create the statement using the Pay Commissions - Statement Modifiers form. You may then reconcile the statement by reviewing the correctness of commissions and whether or not they are suitable for payment. Finally, when you are ready to pay the employee or broker, use the Pay Statement link options to create a check, journal entry, or receipt - depending on your transaction requirements.

 

A Commission Payable Statement can have a maximum of 10,000 items. If a statement contains more than 10,000 items, then multiple statements are created. Each statement Description includes a number (1, 2, 3...) indicating its order within the batch.

To access a new (blank) Pay Commission Statement:

From the Employee Center, Financial Center, or Broker Center, select Pay Commissions from the Actions menu.

 

Commission statements are generated in the Broker Center only for brokers defined as Gross Brokers.
  1. Open the applicable center: Employee or Broker or Financial Center.
  2. To view that center's existing Commission Payable Statements, click the appropriate tab:
    • Employee Center > Register tab
    • Broker Center > Register tab
    • Financial Center > Commission Payable tab
  3. To open the form, click the Type link for the statement you want to view. (Link text includes the date and a partial description, including the words Comm. Stmt.)

Information that pertains to the statement as a whole, includes the following:

Field/Group Name Options/Considerations

Statement Description

This description defaults from the Statement Modifiers form when you created the statement, but can be changed.

Statement Date

The Statement Date defaults from the Statement Modifiers form when you created the statement, but can be changed.

Through Date

The Through Date defaults from the Statement Modifiers form, and cannot be changed.

 

If this date is incorrect, delete the statement and create it again with the desired date.

Status
Group/Field What is this?

In Progress

This status indicates you have not completed the reconciliation process.

Ready to Pay

This status indicates the statement has been fully reconciled and is ready for payment by creating a check to the employee.

You can also pay (close) a statement with a journal entry (zero balance statement, or an outside payroll service) or a cash receipt (credit balance statement).

Paid and Posted

This status indicates the statement has already been closed by a check, journal entry, or cash receipt.

Voided

This status indicates the check, journal entry or receipt used to close the statement was voided. In this case, this is the original commission statement and cannot be modified.

Post Date

The date the statement posted to the general ledger.

Void Date

If the check, journal entry or receipt used to close the statement is voided, this field fills with the date the void transaction posted.

Voiding a check, receipt, or journal entry transaction attached to a statement sets the status on that statement to voided.

As part of the void process, you are given an opportunity to create a new statement, with the same statement items, set Ready to Pay.

Type

This is the method used to close the statement.

  • Check
  • Receipt
  • Journal Entry

Ref #

The source reference number assigned to the check, receipt, or journal entry when the statement was paid (closed).

(Statement Totals)

These fields show accumulated totals for several columns of the Reconcile Statement grid. The numbers change throughout the reconciliation process when editing and deleting grid lines, adding additional invoices, and/or correcting commissions.

Group/Field What is this?

Agency Gross

Total of all transaction amounts in the Agcy Gross column of the grid.

This represents gross premium plus any fees for all invoices included on the statement.

Agency Comm

Total of all transaction amounts in the Agcy Comm column of the grid. This is the agency commission for all invoices on the statement.

Commission

Total of all transaction amounts in the Comm column of the grid. This is the commission amount owed to the employee/broker for all invoices on the statement.

This total does not take into consideration any previous partial payments applied to the invoices.

Payable Balance

Total of all transaction amounts in the Pay Bal column of the grid.

This is the remaining balance due the employee/broker after the application of previous payments and adjustments.

Pay Amount

Total of all transaction amounts in the Pay Amt column of the grid.

This is the amount you have decided to pay the employee/broker on this statement.
  • If the statement status is Ready to Pay, then the section is titled Statement and the selections and buttons are disabled. The Pay Statements section of the form is automatically enabled and expanded.
  • If the statement status is In Progress, then the section is titled Reconcile Statement, and the selection fields and buttons are enabled. To reconcile the statement:

  1. Review the transactions in the grid list for accuracy.

  2. Click Filter Offsetting to refresh the grid, hiding invoices that offset one another.

  3. Delete any invoices you choose not to pay.

  4. Make a determination on payment. You have the option to fully pay, or partially pay the invoices, as desired.

Field/Group Name What is this?

Statement Status

During the reconciliation process, your status options are In Progress or Ready to Pay.

If Ready to Pay is selected, the editing selections in this section are disabled.

When creating the statement using the modifiers form, if you selected the Set pay amounts to payable balance and statement status to Ready to Pay option, then the statement opens with editing options disabled. To make changes to the statement items, click the In Progress status.

The Ready to Pay option is not available unless at least one statement item has an amount in the Pay Amount (PayAmt) column.

1099

This section defaults from 1099 Category and Type entries in Employee or Broker setup. If nothing defaults, and the commission statement should be included in 1099 reporting for the individual, select a category and type from the list of available choices.

Additional Invoices

Click this link to open the Pay Commissions - Additional Invoices form.

Correct Invoices

Use this link if the commission payable balance is incorrect due to one or more of the following types of errors:

  • Commission Amount
  • Commission Percent
  • Commission Method
  • Broker Status from Gross to Net
  • Employee Commissions from Regular to Memo

To correct the invoice:

  1. Make sure the item to be corrected is highlighted in the reconciliation grid.
  2. Click the Correct Invoices link, and make necessary changes to the invoice.
  3. Close the link to return to the Reconcile Statement section.

Filter Offsetting

Click Filter Offsetting to refresh the grid, hiding hide rows for backed out invoices and their corresponding offsetting rows.

Enabling Filter Offsetting does not prevent the rows from posting to the statement, it merely hides them in the grid to make processing a large number of grid rows easier. Uncheck the option to re-display all rows.
Button What is this?

Pay

The Pay button sets the Pay Amount (PayAmt) equal to the Payable Balance (PayBal) for the highlighted row.

If the highlighted row is part of an invoice series, clicking Pay does not pay all rows in the series. Consequently, you can edit any row in the grid regardless if it is part of a series.

Previous Row

Clicking this button moves the focus to the previous row in the grid. If the first row in the grid is currently highlighted, this button is not available.

Next Row

Clicking this button moves the focus to the next row in the grid below the row currently highlighted. If the last row in the grid is currently highlighted, this button is grayed out.

Pay & Next

This button sets the Pay Amount (PayAmt) equal to the Payable Balance (PayBal) for the highlighted row and moves the highlight focus to the next row in the grid.

 

This button reduces mouse clicks if you are reviewing one grid row at a time by combining the Pay and Next Row actions.

Pay All

In most workflows, selecting this button sets the Pay Amounts equal to the Payable Balance amounts for every row in the grid.

If, on the Pay Commissions - Statement Modifiers form, you selected the option Invoices Partially Paid to Agency, AND you did not select the Set Pay Amounts to Payable Balance with Partially Paid Invoices option, then you will receive a system option message when you click Pay All:

Should the PayAmt for partially paid Agency Bill invoices be calculated based on the % of AR Recv? If 'No' the PayAmt fills with the PayBal value for the row.

  • If you select Yes, then the system sets the Pay Amounts based on the employee/broker's commission percentage of the (partial) amount paid on the invoice so far.
  • If you select No, then the system sets the Pay Amounts equal to the Payable Balance amounts for every row in the grid.
 

Rather than selecting each row individually and clicking Pay, click Pay All and then go back and delete items you choose not to pay or adjust the Pay Amounts on select invoices, as needed.

The items displayed in the reconciliation grid include invoices:

  • That are not already included on another pending commission statement. A pending statement is one that is already created but has not been paid with a check, receipt or journal entry.
  • That have a payable balance (PayBal).
  • That meet the selection criteria on the Pay Commission Modifiers form.

  • That the user has access to the business unit on the policy.

The only column available to be changed directly in the grid is the PayAmt (Pay Amount) column. Click the Additional Invoices or Correct Invoices links to make additions or corrections in the reconciliation grid. (See the Reconcile Statement selections for more information.)

 

Keyboarding Tip: Use the up- and down-arrow keys on your keyboard to move up and down in the PayAmt column without using the mouse.
Column Heading Meaning

Name

Customer name.

Pol #

Policy number from Basic Policy.

EffDate

Invoice effective date.

Tran

Policy Transaction Code.

LOB/Chg

Line of Business short name for premium rows.

Charge code for taxes/fees rows.

Method

Commission Method for the invoice.

  • % of Agency
  • % of Premium/Fees
  • Flat Rate

Rate

Employee/broker commission rate.

When the agency commission rate is split, this field is blank.

Comm

Employee/broker commission dollar amount.

PayBal

The amount you owe the employee/broker.

PayAmt

The amount to be paid on this statement. This is a type-in-grid column.

AdjPayAmt

Direct Bill Invoices: The suggested pay amount to the executive or broker based on the agency commission received to date. This suggested pay amount takes into consideration any previous payments made to the executive or broker on this invoice.

Technical Calculation: (% of DB agency commission receivable) x [(employee or broker commission payable) - (the commission paid to date)].

Agency Bill Invoices (applicable if you selected the Statement to Include option Invoices Partially Paid to the Agency on the modifiers form):

The suggested pay amount to the broker or employee, based on his or her commission percentage, in proportion to the actual amount paid on the invoice compared to the invoice total. This suggested pay amount takes into consideration any previous payments made to the employee or broker on this invoice.

Technical Calculation: [[(Agency Gross - ARBal) / Agency Gross] x (employee or broker commission percentage)] - (Commission PayBal)

If the invoice is a Net Broker invoice, AdjPayAmt does not calculate a partial payment to an employee if the only reduction is the amount of broker commission deducted from the invoice. The AR balance of a Net Broker invoice is automatically less the broker commission, so this adjustment does not represent any type of 'payment' on the invoice.

%ARBalRecv

The amount that has been paid to the agency on the invoice, expressed as a percentage of the total.

Technical Calculation: [(Agency Gross - ARBal) / Agency Gross] x 100

If Premium Financing is involved on an invoice, then the %ARBalRecv calculation is based on the percentage of the down payment the insured has paid. For example, if the insured pays 50% of the total down payment, the producer is paid 50% of their total commission for the statement. This is true even if total credits against the gross premium (payments + invoice credits) equal a larger percentage.

ARBal

The amount of the invoice owed (accounts receivable balance) to the agency as of the statement ending date selected for the Commission Payable Statement.

The current invoice balance may be different.

AgcyGross

Gross amount of invoice.

AgcyRate

Agency commission rate.

When the agency commission rate is split, this field is blank.

AgcyComm

Agency commission dollar amount.

APBal

Net amount due to the insurance or brokerage company on the invoice.

Inv #

Invoice number.

InvDate

Invoice date.

InvSeries

This is the Invoice Series number.

Void

Displays the word VOID if the invoice has been voided.

Binder

Displays "Binder" if this invoice is a binder billing.

Displays "Replace" if this invoice is a replace binder invoice.

Bill Type

ABI: Agency bill invoice.

DBI: Direct bill invoice.

CSI: Commission statement invoice.

Writing Company

Writing Company

Plan

Company plan.

DBCommRecv

 

Dollar amount of the direct bill commission receivable.

This field displays the commission receivable for Customer Center Direct Bill (DBI) transactions. Otherwise, this field is blank.

%DBCommRecv

Direct bill commission receivable expressed as a percentage.

After creating and reconciling the statement, you are ready to pay/clear the statement. Click Ready to Pay in the Statement Status box in the Reconcile Statement section. The section closes and the Pay Statement section expands.

If there are grid rows with a zero in the PayAmt (Pay Amount) column, a message asks if you would like to remove rows that have a zero pay amount.

  • If you click Yes, rows with a zero PayAmt are deleted from the current statement. If Yes is clicked in error any such invoices can be pulled back to the statement with the Additional Invoices link (as long as the Statement Status is reset to In Progress) or are available the next time you build a statement for this company.
  • Clicking No on the message sets the Ready to Pay flag but any zero PayAmt invoices remain on the statement. Once the current statement is posted, these invoices are again available for payment the next time you build a statement for this company.

To clear the statement, select one of the following links.

Selecting this link launches the Check form with the General Information and Pay Commission sections open.

  • Be sure to select the correct bank account from the Bank field.
  • The Amount field defaults to the total Pay Amount of the statement.
  • Additional commission statements can be added to this check via the Pay Commission section of the Check form.
  • If you need to deduct payroll taxes or include expense allocations or deductions in the check, you can do this via the other sections of the Check form.

This Check option does exactly the same thing as the Create a Check for the Amount of the Statement, Clearing Commission Payables and Crediting the Bank options, except it also makes available other voucher sections for you to record and deduct payroll taxes, expense allocations and other deductions for the employee or broker.

Select this option and access the section to apply salary adjustments directly to expense accounts rather than the Employee Expenses and Reimbursements liability account.

This link is most commonly used when the agency payroll is issued through an outside payroll service. Use the Journal Entry form to allocate your payroll to the appropriate asset, liability, and expense general ledger accounts.

Another use for this option would be to write off small commission payable balances to commission income and/or expense.

This link is most commonly used when the agency payroll is issued through an outside payroll service. Use the Journal Entry form to allocate your payroll to the appropriate asset, liability, and expense general ledger accounts.

This option does exactly the same thing as the Create a Journal Entry for the Amount of the Statement, Clearing Commission Payables and Crediting the Bank options, except it opens the other voucher section for you to record your payroll Journal Entry.

Selecting this link launches the Journal Entry form. This link is disabled unless the statement being marked Ready to Pay has a zero balance.

Even though the statement items total zero, you must create and post the journal entry in order to close the items so they do not appear when building future statements.

Once you are paid for a credit balance statement, select this link to launch the Receipts form where you can include this statement with a cash receipt.

This option is only available when the statement has a negative balance.

What's Next?

If the items you were expecting did not appear on the statement, review Workflow: Create a Pay Commission Statement. See also How To Pay a Commission Statement for a Single Invoice.

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