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This feature, or some fields and options described, might not be available depending on your settings, security rights, or platform package.

Setting Up and Using Business Unit Split (Commissions)

If your agency has multiple business units across which you want to split commission revenue and expense, the Business Unit Split feature helps you accomplish this task. Business Unit Split includes the following tools:

The following information explains more about the components of Business Unit Split.

A business unit split can only be added on the policy data entry form. When applied, the link then appears on the invoice, direct bill statement, and direct bill entry windows.

    ClosedTurning On Business Unit Split and Creating Standard Templates

To use this feature Business Unit Split must be turned on in Agency Setup.

  1. From the menu select Toolbox > System Administration > Agency...

  2. In the Agency Setup form, open the Accounting Options section.

  3. Check Use Business Unit Split.

  4. Select the G/L Number to use for Interdivision Accounting Transfers and/or Business Unit Split. If this is the first time you are choosing a number, you'll want to set up the number in Chart of Accounts Setup first, before selecting it here.

If you use Interdivision Accounting this number may have already been selected. AMS360 uses the same number for both.

To create standard or common splits, use Business Unit Split Templates and complete the following steps:

  1. In Accounting Options section of Agency Setup, click the Business Unit Split Templates link.

  2. The template data entry form opens, filling the grid with all possible business unit combinations.

  3. Check each of the business unit combinations to include in the split and assign percentages.

  4. When you have finished, save the template.

    ClosedSecurity Requirements for Business Unit Split

To see and use Business Unit Split in policy, invoicing, direct bill statement, or direct bill data entry the user must have full access to the following:

    • Link - Create Invoice to use Business Unit Split on a policy.

    • Policy Specific Split Templateto create a policy-specific business unit split.

Filter Group to Invoice under Secured Task List in Security Group Setup to see all security items related to Invoicing.

    ClosedPolicies with a Business Unit Split

The following conditions apply when you copy, renew, or rewrite a policy; or create a policy from a submission that incudes a Business Unit Split (split):

Condition

Result

Copy/Renew/Rewrite/Create

  • The current split 'template' copies over and the split is automatically applied.

  • The current 'specific policy' allocation copies over and the split is automatically applied.

  • The split template or policy allocation split is applied, and any alterations to the allocations made on the prior policy split are ignored.

The split template is applied as it exists currently. There is no historical tracking of the split template from the original policy.

Template on policy set to Inactive in Agency Setup

Split template is copied over and the split applied. However, you cannot re-select the split template from the list.

Policy with a split is copied to a Multiple Entity or a Subscription policy

Copy occurs, but the newly copied policy will not include a split template nor a policy specific split.

Endorsing, canceling, binder billing, or replacing a binder bill on a policy with a split

Split appears and is automatically applied.

Downloaded policy matches a policy with a split

Split is applied to the downloaded policy transaction.

   ClosedExample of Business Unit Splits on Policy Transactions

On January 1st, New business is set up, template is applied and policy BILLED.

Business Unit

Percentage

Tacoma Division

50

Seattle Division

50

On February 1st, Premium Endorsement added, same template is used and invoice is BILLED.

Business Unit

Percentage

Tacoma Division

50

Seattle Division

50

On March 3rd, the policy is moved to a new division.

Business Unit

Percentage

Everett Division

60

Snohomish Division

40

The user clicks APPLY (New division information is added to all prior billed transactions, with 0% and 0 premium. If a transaction is NOT BILLED, the prior division information is wiped out and replaced with new division information.)

You can add the business unit split to previously billed transactions by entering allocations to the previously billed transactions. See Applying a Business Unit Split Allocation to a Previously Billed Policy in this topic.

January 1st, New business billed transaction.

Business Unit

Percentage

Tacoma Division

50

Seattle Division

50

Everett Division

0

Snohomish

0

February 1st, Endorsement billed transaction.

Business Unit

Percentage

Tacoma Division

50

Seattle Division

50

Everett Division

0

Snohomish

0

March 3rd

Business Unit

Percentage

Everett Division

60

Snohomish Division

40

   ClosedApplying a Business Unit Split Allocation to a Previously Billed Policy

If you have already billed a policy transaction and want to add a Business Unit Split, use the following procedure.

  1. Open the policy and click the Transaction Premiums / Billing section.

  2. In the Business Unit Split area of the section choose one of the following ways to apply a split:

    • Select a Business Unit Split template from the list and click Apply Split (button to the right).

    • Alternately you can add a Policy Specific Split by clicking the Edit Policy Specific Split link. If you choose this method, a Policy Specific Split Template data entry form appears for you to enter the split allocations. After entering the allocations click Save and then Close.

  3. After applying a split using either method, a message appears that you have changed the Business Unit Split. Click OK.

  4. A Business Unit Split link appears on the previously billed transaction in the Transaction Premiums grid. Click the link to verify the allocation was correctly applied.

  5. Click Create Invoice. The invoice data entry form appears with a zero balance. Click Post to apply the Business Unit Split allocations to the invoice.

Cash Basis Accounting - you cannot change a Business Unit Split for a previously billed transaction.

    ClosedInvoices with a Business Unit Split

When a Business Unit Split has been added to a policy, if you have appropriate security access, a column appears in the Invoice Commissions grid with a link to Business Unit Split. Clicking the link opens the Business Unit Commission Split form showing the split amounts. You can only edit the commission amount. The total of the individual commission must match the total commission on the invoice. The Premium pulls from the Policy Transaction and can only be edited on the policy.

You cannot add the Business Unit Split on the invoice. The split must be applied on the policy data entry window before the link appears in invoicing.

Field/Group

What is this?

Invoice Posting

Posting the invoice allocates the amounts to the corresponding business units. If the allocation crosses divisions, an Interdivision Journal Entry(s) (IJE) is created to move the income and expense from the policy’s division to the other

    ClosedExample of Invoice Posting with Business Unit Split of Income and Expense 

Type

Business Unit

General Ledger Account

Debit

Credit

Agency Bill (Accrual)

$100 premium

30% agency commission

30% producer commission

 

Income and Expense split across two business units:

1) 80% - Unit 1

2) 20% - Unit 2

Unit 1

AR - 11211

100.00

 

Unit 1

Comp Pay 21111

 

70.00

Unit 1

Comm Pay 21131

 

 9.00

Unit 1

Income 40111

 

24.00

Unit 1

Interdivsion transfer account

 

 6.00

Unit 1

Comm

7.20

 

Unit 1

Interdivision transfer account

1.80

 

Unit 2

Interdivision transfer account

6.00

 

Unit 2

Income 40111

 

 6.00

Unit 2

Interdivision transfer account

 

 1.80

Unit 2

Comm

1.80

 

 

Invoice Correction

Posting Invoice Corrections automatically applies changes across business units.

When the entry is posted the original rows are automatically reversed and replaced with the changed information. The business units in the grid contain the original business units and any new business units in the current template or policy allocations.

Void Invoice

Voiding an Invoice backs out the invoice as posted including any journal entries.

Cancellation

Uses the current Business Unit Split/Policy Specific Split on the policy Cancellation transaction.

Subsequent Invoices for Billed Policies

Uses the current Business Unit Split/Policy Specific Split on the policy, not a manually altered split entered on a previous billing.

    ClosedDirect Bill Statement and Direct Bill Entry Transactions with a Business Unit Split

When a Business Unit Split has been added to a policy, if you have appropriate security access, a column appears in the Direct Bill Detail Commissions grid with a link to Business Unit Split. Clicking the link opens the Business Unit Commission Split form showing the split amounts. You can only edit the commission amount. The total of the individual commission must match the total commission on the transaction.

You cannot add the Business Unit Split on the direct bill statement or direct bill entry form. The split must be applied on the policy data entry window before the link appears in the direct bill statement or direct bill entry form.

Field/Group

What is this?

Direct Bill Statement Posting

Posting the Direct Bill Entry Statement allocates the amounts to the corresponding business units. If the allocation crosses divisions, an Interdivision Journal Entry(s) (IJE) is created to move the income and expense from the policy’s division to the other

    ClosedExample of Direct Bill Entry Posting with Business Unit Split of Income and Expense 

Type

Business Unit

General Ledger Account

Debit

Credit

Direct  Bill (Accrual)

$100 premium

30% agency commission

30% producer commission

 

Income and Expense split across two business units:

1) 80% - Unit 1

2) 20% - Unit 2

Unit 1

DB Comm Receivable  - 11241

30.00

 

Unit 1

Comm Pay 21131

 

 9.00

Unit 1

Income 40121

 

24.00

Unit 1

Interdivsion transfer account

 

 6.00

Unit 1

Comm

7.20

 

Unit 1

Interdivision transfer account

1.80

 

Unit 2

Interdivision transfer account

6.00

 

Unit 2

Income 40121

 

 6.00

Unit 2

Interdivision transfer account

 

 1.80

Unit 2

Comm

1.80

 

 

Subsequent Direct Bill Entries for Policies with Previously Posted Direct Bill Statement Transactions

Uses the current Business Unit Split/Policy Specific Split on the policy, not a manually altered split entered on a previous Direct Bill Entry Statement.

    ClosedReports and Registers Affected by Business Unit Split

The Business Unit Split affects the following reports and Registers either with new fields or reporting conditions that affect the amount appearing on the report/register. The table below explains the effect of Business Unit Split on various reports/register.

Report

Effect

Billing Register

 

Customer Register (Customer Center)

The Register available when viewing a customer may include zero balance invoices. These invoices represent an invoice posted because of a change in Business Unit Split allocation.

Policy Book of Business

 

Production Analysis Report

The report now filters business units based on the business unit entered on invoicing, direct bill entry, or direct bill statement, not by the business unit entered in basic policy. Because of this, if you choose a single business unit, the full policy amount may not appear on the report.

    ClosedBusiness Unit Split Affect on Change Personnel or Company

When you change personnel or company for a billed policy, any business unit splits are considered and all general ledger postings are moved to the new personnel or company based on the split used when the transactions were posted.

This also applies to Global Change for Personnel.


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