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Workflow: Invoicing a Subscription Policy
allows you to create an invoice to your customer for the combined premiums on a subscription policy. Subscription policies are generally used when the size and nature of an insurable risk is such that a single company is unwilling to insure the entire risk. In these cases more than one company participates in covering the risk on a percentage basis.
Creating an invoice for a subscription policy creates a single receivable while creating separate accounts payable records for each company on the risk. The key to successful subscription billing is correctly distributing the premiums and non-premiums among the participating companies.
Before you can create an invoice on a Subscription policy, the following areas must be completed:
Select Subscription as the Company type. The Parent and Writing companies default as "Subscription" and cannot be changed.
At least one line of business must be added to the policy.
Once the Company type is set in Basic Policy Information, and at least one LOB is added to the Line of Business section of the Policy form, opening either the Transaction Premiums or the Transaction Fees, Taxes, Finance & Down Payments sub-sections in the Transaction Premiums / Billingsection displays a Subscription link. Enter the total amount of premiums (or non-premiums) in the appropriate field and click the link to open the Subscription Companies form.
See Subscription Companies Form in the next section of this topic for more information.
The Subscription Companies form is used to distribute premiums and non-premiums among the companies participating in the risk. The entries made in this form control the amounts available in company payables for each company and make it possible to separate commission entries for each company during the invoicing process.
All amounts entered in both transaction sections of the Policy form must be completely distributed (Remaining Premium fields must equal 0.00) before you can Create an Invoice.
If accessing the form from the Transaction Premiums section of the Policy form:
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Click New to create a row in the grid.
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Select Insurance or Brokerage company type. Then select a parent and writing company that is participating in the risk from the list.
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Select a Plan, if applicable.
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Enter the Policy # assigned by the company.
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Enter a Percent Participation and [Tab]. The system calculates the premium for this company based on the percentage entered and fills the Premium field. If you prefer, you may enter the specific amount for the company in the Premium field.
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Click Add.
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Repeat this process until the entire premium amount is distributed.
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Click Save.
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If the Remaining Premium does not equal $0.00 before the form is saved, a warning message advises that the entries are not in balance. Remaining premium must be 0.00 before you can Create an Invoice.
When accessing the form from the Transaction Fees, Taxes, Finance & Down Payments section of the Policy form:
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Click New to create a row in the grid.
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Select Insurance or Brokerage company type. Then select a parent and writing company that is participating in the risk from the list.
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Select a Plan, if applicable.
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Enter the Policy # assigned by the company.
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Enter a Percent Participation and [Tab]. The system calculates the non-premium for this company based on the percentage entered and fills the Premium field. If you prefer, you may enter the specific amount for the company in the Premium field.
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Click Add.
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Repeat this process until the entire non-premium amount is distributed.
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Click Save.
If the Remaining Premium does not equal $0.00 before the form is saved, a warning message advises that the entries are not in balance. Remaining non-premium must be 0.00 before you can Create an Invoice.
Use the Previous/Next buttons to view companies, policy numbers, and percent participations entered for premiums as necessary to complete the appropriate fields for non-premium entries.
Creating an Invoice for a Subscription policy, once the premiums are correctly distributed in the Subscription Companies form, is the same as for a standard invoice. A row displays in the invoice for each line of business/company within the transaction for each installment, if billed on an installment plan.
Creating Subscription Policies