Workflow: Billing a Multiple Entity Policy and Track Receivables

Multiple Entity customers and policies provide a means of grouping and billing customers who are insured by one policy. Examples of these types of customers are condominium associations where owners are covered by one policy and each shares a cost of that policy. Another example is a franchise where one policy covers multiple locations and each location is responsible for a portion of the premium and is billed separately.

This topic outlines how to bill multiple entities and track receivables. Before reading this topic you may want to review Workflow: Enter a Multiple Entity Customer and Policy for information on setting up the Customer and Policy form to allow for multiple entity billing.

The information presented when you expand the Transaction Premiums / Billing section > Invoicing sub-section of the Policy form and click the Create Invoice link depends on the Track Receivables option set for the policy. Receivables can be tracked at the Master customer or Sub-customer level. This option is set on the Policy form, Basic Policy Information section, Multiple Entity sub-section.

The purpose of multiple-entity billing is to allow split billings for the receivable portion of an invoice transaction. Company and employee commissions payable on multiple-entity billings are always controlled at the Master level. One row appears per invoice under the Master Customer for both net premiums due the company and commissions due employee/brokers.

When receivables are tracked at the Master/Multiple Entities level, only one invoice is created, billing the Master Customer for the entire invoiced amount. Create and post the invoice as you would for a Standard Customer.

The Invoice form for Multiple Entity billings, when the Track Receivables option is set to At Sub-Customer Level, includes additional fields and options not available when billing a non-multiple entity policy:

Invoice Form Section Differences in Multiple Entity Billing

Policy Transaction
Group/Field What is this?

Customer

Create Invoice can be initiated from the Policy form in either the Master or a Sub-Customer account. The Customer field in the Policy Transaction section reflects the Master Customer name and cannot be changed,

Multiple Entity List

An additional drop-down list, not available in a standard invoice, appears below the Installment list. The default selection for this field is (Consolidated Commission View). Editing of commissions is only available in the consolidated view.

 

Use the forward and backward arrow buttons on the Installments and Multiple Entity lists to cycle through either all sub-customers for an installment date (Multiple Entity buttons) or all installments for a single master/sub account (Installment buttons).

Multi Entity View link

Click this link to open the Multi Entity Transaction Detail form where you can view a consolidated version of the invoice as well as viewing details of the invoicing from both the Master and Sub-customer's perspective.

 

This form is a visual reference only. Close the form and return to the Invoice form to make necessary changes.

Bill To

Displays the address for the customer selected in the Multiple Entity list. You can also select a different Bill To by selecting from the Select list. If you select No Lookup you can type in the desired name and billing address.

The Bill To section is only available when:

  • You are tracking receivables at the Master Customer level, and Consolidated Commission View is selected from the Multiple Entity List.
  • You are tracking receivables at the Sub-Customer level, and one of the Sub-Customers is selected from the Multiple Entity List.

Invoice Transactions

Edit and Delete are available section menu options in the Consolidated Commission View only. The following table information pertains to this view.

Sub-section What is this?

Commissions

The following fields are available for editing and operate the same as a standard invoice. See Creating an Invoice for more information about these fields:

  • Premium
  • Percent
  • Comm Amt
  • Method
  • Status
  • Add To All

Premiums

Use this section to make adjustments to the premium allocations by sub-customer without leaving the Invoice form. Type the desired amounts into the Amount column of the grid.

The total of premiums displayed in the Amount column must equal the total of all sub-customer allocations for the invoice to post.

Changes made to the invoice form do not flow back to the Policy form. Once the invoice is posted, you are returned to the Policy form, where you can correct the sub-customer allocation by clicking on the Split Premium link in the Transaction Premiums / Billing section > Transaction Premiums sub-section.

 

Carefully using the Split Premium form to make the primary premium allocations by Master/Sub-customer should default the correct premiums to the Invoicing form, eliminating the extra steps.

Message

The Message section is only available when:

  • You are tracking receivables at the Master Customer level, and Consolidated Commission View is selected from the Multiple Entity List.
  • You are tracking receivables at the Sub-Customer level, and one of the Sub-Customers is selected from the Multiple Entity List.
Track Receivable Method What is this?

Master Customer Level

When receivables are being tracked at the Master Customer level, type in the message and then check the box next to the feature you wish to enable:

  • Print on Statement
  • Copy to All Installments

Sub-Customer Level

When receivables are being tracked at the Sub-Customer level, type in the message and then check the box next to the feature you wish to enable:

  • Print on Statement
  • Copy to All Installments for all sub-customers
  • Copy to All Installments for this sub-customer only

Invoice Installment Summary

This section displays a summarized view of all the installments for all customers. This display is the same as for a standard invoice with the exception that a column is added to display the master or sub-customer name.

To be billed as a Multiple Entity policy, a customer must be flagged as either a Master/Multiple Entities customer or a Sub-customer/Multiple Entities customer in the Multiple Entity Account Information in the Customer Setup section of the Customer form.

A Sub-Customer can only belong to one Master Customer.

On Master customers only, you must make a Track Receivables selection indicating whether the receivables for the entity grouping are to be controlled at the Master level or are to be broken down at the Sub-Customer level. The default is to Track Receivables at the Sub-Customer level. See the Enter the Master and Sub-Customers section of Workflow: Enter a Multiple Entity Customer and Policy topic for more information.

To be billed as a multiple entity policy, the Multiple Entity Policy check box in the Billing/Payment Information group in the Create New Policy form must be selected.

Only Agency Bill policies are eligible for Multiple Entity billing.

The Track Receivables option in the Multiple Entity section of the Policy form pre-fills from the selection made at the Customer level. This option can be changed at the policy level, only until the first policy billing is posted.

Invoice posting of Multiple Entity billings is the same as for a Standard invoice with the exception that invoice numbers for master and sub-customers are appended with a suffix (e.g. "699-1") for tracking purposes.

Initiating an Invoice Correction from the Customer Register or the View Invoice Detail forms, displays the entire set of invoices with focus on the installment from which the correction was initiated.

All installments for the Consolidated Commission View are available for correction. When posted, only the installment(s) that are changed reflect a correction.

 

The Correct Invoice button is available on both the Master and all Sub-Customer registers. The View Invoice Detail form is only available from within a policy at the Master Customer level.

Voiding an Invoice on a Multi Entity policy voids the invoice for all sub-customers.

  • Void this invoice only: Voids the selected installment, including the sub-customer invoices with suffixes, for that installment.
  • Void all invoices listed: Voids the entire billing, all installments for all sub customers