Production Credit

Production Credit allows for an allocation of producer compensation that is separate from their producer commissions. New fields exist on the Client Multi and Policy Multi pages to support new producer types and Production Credit percentages. When an invoice is created using the Multi page, a Production Credit amount is calculated against the Agency Commission. The Production Credit amount is displayed on the Policy Invoice page and flows to an exported Production Report. These amounts do not affect Financials.

Personalization

Production Credit is optional and must be enabled if your agency wishes to use it. Follow these personalization steps to begin using Production Credit.

  1. Enable Production Credit in Accounting Flags.

  2. Create Producer Types in Generic Codes.

  3. Assign a Producer Type to Staff Codes.

1) Enable Production Credit in Accounting Flags

To enable Production Credit, go to Other > Maintenance > Accounting.

Select "Yes" for Enable Production Credit?

2) Create Producer Types in Generic Codes

The Producer Type determines the percentage split on the Client Multi or Policy Multi, as well as whether the staff is an outside or internal broker .

  • Go to Other > Maintenance > Policy > Generic Codes

  • Enter PRODUCER.TYPES in Generic Codes

  • Add the following mandatory fields:

    • Code: Maximum of five characters

    • Description: Type description that pre-fills to the Production Report

    • Broker Net Impact

      • Yes = Outside Broker. Answering "Yes" performs a different calculation as illustrated in the Invoicing Production Credit section.

      • No = Internal Staff

3) Assign a Producer Type in Staff Codes

The Producer Type indicates how percentages are split on the Client Multi and Policy Multi pages.

  • Go to Other > Maintenance > Accounting.

  • Assign a Producer Type to your staff in Staff Codes, which is located under the Security & Roles section.

Adding Production Credit to Client Multi or Policy Multi

The Multiple Producer section on Client Multi and Policy Multi has been renamed Split Information.

The Production Credit fields are as follows:

  • Prod Type (pre-fills from personalization but is editable)

  • Prod Credit New%

  • Prod Credit Ren%

  • Net Impact (not editable; pre-fills from Producer Type)

When you add Client Multi or Policy Multi details to a Client or Policy for the first time, Production Credit percentages will pre-fill, depending on the number of producers listed by Producer Type.

For example, there are three producers on the Policy Details page. One producer has a producer type of BRO with the Broker Net Impact set to "Yes," and the other two producers have a producer type of PRD1 with the Broker Net Impact set to "No." The single producer with its Net Impact set to "Yes" will pre-fill with 100%, while the two with the same producer type will split the percentages 50/50. If three producers were all the same Producer Type, the percentages would be 33.34/33.33/33.33.

The % per Producer Type is validated to equal 100% or 0%. If the total percentages by producer type are not 100 or 0, the following error will occur once the page is saved: (6028) Sum of Prod Credit New% does not total 0.00 or 100.00.

Production Credit fields are carried over on Renewals, Remarkets, and Rewrites when Automatically Copy Policy Multi Information on Renewal, Rewrite or Remarket? and Copy Policy Multi Information on Automatic Renewals in Download? are set to Yes. Please refer to Vertafore Help for Accounting Flags for additional information on these flags.

Invoicing Production Credit

Once your Multi screen is set up with Production Credit percentages, you can begin to invoice. Production Credits only flow from the Multi screen. Invoicing uses Policy Multi first, and it uses Client Multi in the event Policy Multi does not exist. If neither Policy Multi or Client Multi is set up, Production Credit is not calculated.

There are two types of calculations.

  1. When Net Impact on a ProdType = Yes, the Prod Credit Amt will pre-fill on the producer line by using the formula Agency Amt * Prod Credit %

  2. When Net Impact on a Prod Type = No, the Prod Credit Amt will pre-fill on the producer line by using the formula (Total Agency Amt - Total Broker Amount) = (Net) * Prod Credit %

In the example shown below, the first line of Split Information is an outside broker with Net Impact set to "Yes." A new business invoice is created for a $1,000 Transaction Amount and a $102.50 Agency Amount. The producer commission is calculated according to the New%.

For an invoice where there is a producer with Net Impact = Y, each Production Credit Amount is calculated as follows:

  • Producer JM = $102.50 x 0% = $0.00

  • Producer CEC = $102.50 – 10.25 (JM’s producer commission) = $92.25 x 50% = $46.13

  • Producer GM = $102.50 – 10.25 (JM’s producer commission) = $92.25 x 50% = $46.13

Policy Multi:

Policy Invoice:

In the example shown below, all producers have a Net Impact = N. A new business invoice is created for a $5,000 Transaction Amount and a $750 Agency Amount. The producer commission is calculated according to the New%.

Each Production Credit line is calculated as follows:

  • Producer CEC = $750 x 50% = $375

  • Producer GM = $750 x 50% = $375

  • Producer BRW = $750 x 70% = $525

  • Producer LTB = $750 x 30% = $225

Policy Multi:

Policy Invoice:

If Enable Production Credits? = No, you can enter a Producer Type plus Production Credit percentages on the Invoicing tab; however, no calculations will occur.

Production Credit and Staff Code Global Change

Staff Code Global Change of a producer updates the Producer Type field on Client Multi and Policy Multi but does not update Production Credit percentages.

If producers with Production Credits are changed, the following toast message will be displayed after the Final Report: Client Multi & Policy Multi Production Credit% must be changed manually.

Reporting

The Production Credit fields are reflected on an exported Production Report. There are also dictionaries created for Report Builder and SQL.