Broker Setup

The Commission Setup section lets you set up commission defaults by Effective Date. Commissions pull from the latest effective date for the broker that is less than or equal to the effective date of the policy being billed.

From there, you can setup commissions using the following parameters:

• Parent Company

• Writing Company

• Line of Business

• Plan

• Transaction

AMS360 then finds the closest commission match for the policy based on the parameter ranking set up in Agency Setup> Accounting Options > Commission Rankings.

You can create as many commission setup combinations as necessary for the selected broker. If you subsequently revise commission schedules it is recommended that you add additional combinations with new effective dates, rather than editing existing commissions.

The first billing for a policy period uses commissions from setup. Subsequent policy billings use the commissions from the most recent billing transaction.

Don't forget to enter a general commission default record that applies to All parent companies, writing companies, lines of business, plans, and/or transactions. Consequently, when a specific match is not found, the general commission default applies.

To setup your commission schedule, do the following:

1. Click New on the Commission Setup section bar. This opens the data entry fields.

2. For your commission default, choose to apply to both Premium and Fees. (Although, you can set up default commissions for Premium and Fees separately.)

3. Enter the desired effective date for your commission default record.

4. Select any combination of Parent Company, Writing Company, Line of Business, Plan, and/or Transaction.

5. Select the Commission Method (% of Agency Commission, % of Premium/Fees or Flat Rate), and the corresponding percentage rate or commission amount.

6. Click Add.

Field	What is this?
Applies To	Option What is this? Premium and Fees The setup selections you enter apply to both premium and fees. If you select this option, you cannot choose a line of business, nor plan. Premium The setup selections you enter apply to premium only. Line of Business and Plan are available when the commission setup applies to only premium. Fees The setup selections you enter apply to fees only. If you select this option, you cannot choose a line of business, nor plan.
Effective Date	Select the date the commissions take effect. If you enter an effective date that matches an existing record, you receive a warning that the system cannot copy a duplicate entry.
Transaction	If the broker is paid different commission based on Type (New Business, Renew Policy or Rewrite) of transaction, choose the transaction here.
Line of Business	If the broker is paid different commission based on Line of Business (LOB), choose the line of business here.
Parent Company	If the commission applies to a particular Parent Company, select the company here. The parent company is not used in commission ranking. It is used to appropriately fill the writing company and plan fields. See the Writing Company and Plan fields below for more information.
Writing Company	If the commission applies to a particular Writing Company, select the company here. If a Parent Company is select, then fill the Writing Company field with only the writing companies that belong to the selected parent. If All is the selection for the Parent Company field, then fill the Writing Company field with All writing companies that belong to all parent companies.
Plan	If the commission applies to a Plan select it here. If a particular Parent Company is selected, then fill the Plan field with all plans that are assigned to the selected parent. If All parent companies are selected, then fill the Plan field with all plans assigned to all parent companies.
Commission Method	Use to identify the method for calculating the broker commission. Based on the Method you select, the corresponding Percent or Amount field becomes active. % of Agency Commission % of Premium/Fees Flat Rate