Workflow: Adjusting Customer Center Billed Transactions in a Direct Bill Statement

When you bill direct bill policies from the Customer Center and create a Direct Bill Commission Statement for reconciliation, a journal entry adjustment is created when an invoice transaction is marked Reconciliation Complete, and a commission balance exists. The following workflow creates the adjusting journal entry.

  1. From the Direct Bill Commission Statement, Customer Center Billed Transactions section, click Edit to change a transaction.
  2. Change the Comm Received amount to an amount other than the commission balance (CommBal) and tab out of the field. The Reconciliation Complete flag remains selected and available for edit.
  3. If you leave this flag checked and update the transaction, an automatic adjusting journal entry is created for the remaining commission balance due. You can see the amount to be adjusted in the JEAdjustAmt field by scrolling to the right in the grid after the transaction is updated. This is the difference between the Comm Received amount and the CommBal amount.
  4. When the statement is posted, the adjustment posts to the appropriate general ledger accounts for Direct Bill Commissions Receivable and Commission Income, depending on the type of business involved.

Important Information About Journal Entries

  • Journal entry adjustments should only be used for small adjustment amounts. If there is a discrepancy between what was billed vs. what is on the company statement, these adjustments should be made with Invoice Corrections rather than journal entry adjustments.
  • Journal entry adjustments do not update employee commission, do not provide a billing audit trail and should only be used for small balance rounding adjustments.
  • If you want to change the commission received amount and have the invoice pull to the subsequent Direct Bill Commission Statement, be sure to clear the Reconciliation Complete flag prior to updating the record.

If you need to correct the commission to the amount shown on the company statement, do not change the Comm Received amount. Instead, correct the invoice.

  1. Select the appropriate invoice in the grid and click Correct Invoices. This opens the Change Commission form.
  2. Click Edit on the Invoice Transactions section bar.
  3. Correct the commission in the Commissions sub-section and click Update.
  4. Click Post, type in a Correction Note and Continue Posting. This opens the Select Invoice Transactions form.
  5. Select the Include check box to add the correcting entries to the statement.
  6. Click Save & Close.

If you have a small rounding discrepancy and want to adjust it, change the Comm Received amount, leave the Reconciliation Complete flag selected and Update the transaction. An adjusting journal entry will be created to offset direct bill income against direct bill commission receivable.

 

If your accounting method is set to Cash, no adjusting journal entry is posted.