Reconciling Company Statements

The Agency Advantage provides you the ability to reconcile company statements as easily as you reconcile your personal checkbook.  Each policy activity record that you enter becomes an unreconciled item. Using the reconciliation procedure you can assemble open items from one or more companies into a work file and post them with a statement date.

The system provides you reports listing:

  • Unreconciled commissions
  • Reconciled commissions for the agency
  • Reconciled commissions by CSR

What determines whether an item is reconciled or not?

It is the presence of a reconciliation date on the activity record.

This date controls whether the item appears on the unreconciled commissions or the reconciled commissions report. In the event that an item is incorrectly reconciled you simply return to the activity record and clear the recon date.  (return to main menu)

Now lets look at how the ‘Reconcile Activity’ screen works. From the main menu choose accounting, then chose reconciliation menu. Now lets click reconcile activity.

  • The first step in the reconciliation process is to rebuild the work file for the company you are working with. You’ll click rebuild and choose a company to add to it from the selected companies list. You can add one or more companies. Notice the cutoff date. Only unreconciled items prior to the cutoff date will be included.

If the statement cuts off on the first and arrives on the 15th your job will be much easier if you exclude items after the first. Selecting ‘Go’ will rebuild the activities list.

  • Click on a heading name once to sort Ascending.  Click again for Descending.
  1. The first option is to fully reconcile an item. This first item exactly matches the first item on your company statement so clicking the check box under full takes care of this item. Notice the totals at the bottom of the screen change as items are checked.
  2. The second option is to change and reconcile an item. This second entry contains the correct premium but the commission paid does not match the company statement. You can change your figure to match the company statement and mark the item fully reconciled. Then post, the commission amount on the corresponding activity record will be updated.
  3. The third option is to partially reconcile an item. This is used for companies that pay you on an as earned basis. If you click the partial check box next to the item. An error message will be displayed giving you instructions on partial reconciliation. Example, “Your company statement shows $1000 in premium and $150 in commission so you will key those figures in and check partial”. When you ‘Post’, this item will be split into two activity records, one with the reconciled amounts and another with the open balance.

This is a very powerful feature that allows you to track your ‘As Earned’ commissions.

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