The following Accounting frequently asked questions are available in this topic:
How do I determine my beginning balance month?
Typically, the month prior to the first live month on Nexsure will be the month for beginning balance entry.
Accounting entries can begin with beginning balance entry can be held until balances are validated. The beginning balance entry month should be locked to prevent inadvertent entry to the month and then unlocked for beginning balance entry.
How do I establish my beginning balances?
Note: Accounts receivable general ledger number will not be used; rather the mandatory general ledger number for “Client Beginning balances” will be used.
In the event balances are not clearly defined moving forward; i.e. carrier payables are not in balance, use a pseudo account rather than the mandatory general ledger number for beginning balances.
Accounting entries can begin without beginning balance entry. The beginning balance entry month should be locked to prevent inadvertent entry to the month and then unlocked for beginning balance entry after balances are validated.
How do I handle old payables?
When an agency converts to a new accounting system, there are generally balances brought forward from the previous system that will have to be paid over a 30 to 90 day period. Depending upon how the beginning balances are entered, it should simply be a matter of applying amounts due from previous system invoices to a general ledger number with the balance applying to Nexsure invoiced items.
Statement – Apply to Old Balance
In this scenario, a statement is received that consists exclusively of previously invoiced items. Simply access Disbursement, select Carrier as the entity, select the correct carrier, select General Ledger link, and use the general ledger link to offset the payment to the beginning balance general ledger number.
Note: If items have been incorrectly invoiced, the reversing and correct invoice entry will have to be entered into Nexsure and the two items reconciled for payment.
Statement – Combination Old Balance and Nexsure Invoices
In another example, a statement is received where part of the items were invoiced on the previous system and the balance of items were invoiced on Nexsure. This can be handled in a number of ways.
Nexsure does not make a distinction between account current and company statement. With the “Select All” feature, any carrier payable can be completed from the disbursement, selecting invoices to pay and reconcile as an aspect of disbursement issuance. As an alternative, reconciliation can be completed first followed by the disbursement, selecting the reconciliation to include in the payment.
Account Current
Company Statement
Company statement might be handled by reconciling the statement first and then issuing the disbursement. Alternatively, the reconciliation might be created and then the disbursement issued, selecting the reconciliation from the reconciliation link.
Company Statement with Fees or Credits
Post the Reconciliation.
Go to Disbursement, select carrier, and select the appropriate reconciliation.
Add appropriate disbursement
Receive / Deposit Commission Check Prior to Reconciliation
There are a number of situations where an agency will pay a carrier for a direct bill policy on behalf of an insured. Regardless of the terminology, it is important that the definition of direct bill is clear. For Nexsure, direct bill is that policy where payment is presumed to occur between the customer and the carrier and the carrier subsequently sends the agency direct bill commission.
Payment to Carrier – Direct Bill Payment Advance
Any time an insured is going to pay or has paid an agency for a direct bill policy and the agency is going to transfer the funds to the carrier with one of their checks, Payment Advance will be used.
Payment to Carrier – Sweep Processing
Carriers often “sweep” agency bank accounts for funds paid by clients. The process to record the sweep (disbursement) from the agency account is the same as Payment Advance except instead of issuing a check, EFT (electronic funds transfer) or ACH (automatic check handling) can be used which creates an invoice to the insured.
Receive payments is again used to apply the insured payment against the sweep record entered previously.
Receive Payment Recorded before Payment to Carrier
Residual funds are cleared using the Client Reconciliation function.
If Receive Payment is recorded, simply leave on account without applying to any invoice, general ledger, or other Quick Navigation Link. You will note a Residual Amount remains.
After generating the disbursement to carrier (whether check, EFT or CH) as an Advance Payment, add a new Client Reconciliation to apply the residual payment to the Advance Payment Invoice.
Premium Finance by Carrier
Premium Finance by Finance Company
Nexsure does not currently handle “Bill to” Premium Finance that moves the balance from the insured’s account to a premium finance entity. Handling depends upon the information that an agency needs to retain at the insured level.
One is for the amount of the down payment sent to the insured
The other will be for the amount due from the Premium Finance Company. Be sure and change “Bill to” in the Quick Navigation Link to the Premium Finance Company.
Workflow
It is easier to issue the disbursement first
Nexsure v2.0 introduces validation at Policy Info and Invoice with regards to Production Credit values. As this feature can be a bit confusing at first to understand, Nexsure Support has formulated the following FAQs. Please review the FAQs shown below.
Do I have to use this feature?
No. This item is controlled by a setup option at Territory > Invoicing Setup > Invoice Defaults. Agency administrators can turn off the feature by selecting "Production Credit line item total has no restrictions". Agencies should be advised that turning off validation may increase the amount of Unallocated line items on the Income Production Credit report, a report used for detailing Production numbers from Income.
What does this feature validate?
This feature validates whether income bearing line items at Policy Info have corresponding items in Other Commission that add up to 100% associating who produced the income. What is an "income bearing line item"? An income bearing line item is defined as any agency commission line of business or any branch level fee. For example, if an invoice was to have General Liability and Commercial Property and the agency earns commission on both lines, the user must place records in Other Commission that add up to 100% for each line, whether the agency is paying a producer commission or not.
I have added a branch Fee on my Policy Info, but when I go to add an Other Commission record to allocate production credit why does my Fee not show in the list to choose?
This is almost always due to the Commission Type on the Fee itself. Click on the Details icon of the Fee and look for the option for Commission Type. This drop-down should be set to Branch and People. As this is likely defaulted in from the Setup option for Fees, administrators should go to Fee Setup at Territory > Invoicing Setup > Fees, select the Fee and click on each Details icon listed under Service Providers and change their defaults to Branch and People to avoid this problem in the future.
I have Unallocated items on my Income Production Credit report, what can I do to fix these?
Nexsure Support recommends running the Income Production Credit report and reviewing weekly. This report gives you the best indicator of Production in the agency. Should you find an Unallocated item, you can go to the posted invoice and correct the Unallocated condition by clicking the Details icon on the Other Commission records in the invoice and correcting the Production Credit, or you may add a line for Production Credit by clicking Add New Other Commission. You may do this even while the invoice is in a posted state.
I've run the Income Production Credit report, why am I still seeing Unallocated items even though the validation is on?
Since there may be invoices in play that have yet to recognize income (Cash basis invoices, future installments, etc.) that were entered prior to the February 5, 2010 deployment of v2.0, it is possible that you may see invoices showing in Unallocated. Review the previous FAQ to see how to resolve these going forward.
I have just billed a Package policy and entered information for the Lines of Business. I do not have income on the Package line but I show it on the invoice as a 0 and in Agency Commission as a 0. I have updated my Production Credit on all the lines I am getting a commission amount on and the system is still giving me the message. How do I resolve?
To resolve, remember that Nexsure needs you to bill either the Package line or the individual lines of business themselves. To maintain accurate reports, both should not be used in the same invoice. Remove the Package line in this instance (or the lines of business if you wish to have a single line saying "Package") and the associated Agency Commission lines will remove as well.