General Ledger Numbers

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Mandatory General Ledger Numbers

Nexsure provides extensive flexibility and power in terms of transactions and automated work-flow. To properly record general ledger information internally, a series of mandatory general ledger numbers are required. Classification is assigned by the system. As a specific general ledger number is selected, the Account Type and Group populates.

Note: The General Ledger Number range indicated below is typical but is not required. The general ledger numbers used below are samples and may be altered per the agency's requirements. The specific Classification indicated is required. If a mandatory general ledger number is required based on setup variation, the specific variation code will be indicated after Classification.

Income Posting Variations

Agency Bill Accrual (Income hits general ledger at invoicing)

Agency Bill Cash Basis (Income hits general ledger as payments are received and applied to insured invoice)

Direct Bill Accrual (Income hits general ledger at invoicing)

Direct Bill Cash Basis (Income hits general ledger as commission payments are reconciled as received from carrier)

People Payable Posting Variations

Pay People on Invoiced

AB and DB payable and expense is created at invoicing.

Pay People on Fully Paid

AB people payable due and expense is created when insured pays agency in full and the payment is applied to the invoice.
Installments paid in full will create payable and expense as they are paid.
DB people payable and expense is created when agency reconciles receipt of commission statement and check where commission due agency is paid in full.
Installment commission paid in full will create payable due and expense as they are reconciled.

Pay People on fully paid, accrue expense

AB people payable non-due and expense is created when invoice is posted.
People payable due is created when insured pays agency in full and the payment is applied to the invoice, clearing non-due payable.
DB people payable non-due and expense is created when invoice is posted.
People payable due is created when agency reconciles receipt of commission statement and check, paying the commission in full, clearing non-due payable.

Pay People on partially paid

AB people payable due and expense is created proportionately based on the amount of payment when insured pays agency and the payment is applied to the invoice.
DB people payable due and expense is created proportionately based on the amount of payment reconciliation posted.

Pay People on partially paid, accrue expense

AB people payable non-due and expense is created when invoice is posted.
People payable due is created proportionately based on the amount of payment when insured pays agency and the payment is applied to the invoice, clearing non-due payable.
DB people payable non-due and expense is created when invoice is posted.
People payable due is created proportionately based on the amount of payment reconciliation posted, clearing non-due payable.

Invoice Mandatory General Ledger Numbers

To Navigate to the Mandatory General Ledger Numbers

On the Primary menu, click ORGANIZATION.
Click the territories tab and select the Details icon next to the appropriate territory.
Click the accounting > general ledger > mandatory general ledger numbers tab. The Assign Mandatory General Ledger Numbers screen is displayed.

Use the [Open All] / [Close All] and / options to view the mandatory general ledger numbers.

Note: Mandatory General Ledger Numbers cannot be deleted or flagged as inactive. General ledger numbers with transactions cannot be deleted.
Non-Mandatory General Ledger Numbers with transactions booked against them cannot be deleted. Once the balance is zero, they can be flagged as inactive.

Agency Bill Accounts Receivable

The following Accounts Receivable general ledger numbers are used for agency bill invoice transactions that should be debited or credited with additional or return premium. If desired, a separate general ledger number can be established for each Bill To or they can all be assigned the same general ledger number. It is recommended that Retail Agent have a separate accounts receivable general ledger number.

Description	General Ledger Number	Account Type	Account Group	Classification
1. Client	100000 range	Receivables	Current Asset	Asset
2. Additional Interest	100000 range	Receivables	Current Asset	Asset
3. Premium Finance Company	100000 range	Receivables	Current Asset	Asset
4. Retail Agent	100000 range	Receivables	Current Asset	Asset
5. Retail Agent	110200	Receivables	Current Asset	Asset

Direct Bill Accounts Receivable

The following direct bill Commissions Receivable general ledger number is necessary for direct bill invoice transactions to record commission due the agency. The offsetting entry will depend upon whether or not an agency records commission income on an accrual or as cash is received. Accrual will offset immediately to the direct bill income account. Cash as received will be held in a non-earned income account until reconciliation occurs, flagging that payment has been received and income should be recorded.

Description	General Ledger Number	Account Type	Account Group	Classification
1. Commissions Receivable	100000 range	Revenue Receivables	Current Asset	Asset
2. Commissions Receivable	110800	Receivable	Current Asset	Asset

Unearned Income

The following unearned income general ledger numbers are required only if an agency is cash basis as received for either agency bill or direct bill. If setup is not cash basis, the system will disable the applicable section reference.

Description	General Ledger Number	Account Type	Account Group	Classification	Setup Variation
1. Agency Bill Commission Unearned Income	100000 to 300000 range			Asset/Liability/Equity	Cash
2. Agency Bill Commission Unearned Income	112010	Non-due Revenue Receivable	Current Asset	Asset/Liability/Equity
3. Agency Fee Unearned Income	100000 to 300000 range			Asset/Liability/Equity	Cash
4. Agency Fee Unearned Income	112020	Revenue Receivable	Current Asset	Asset/Liability/Equity
5. Vendor Fee Commission Unearned Income	100000 to 300000 range			Asset/Liability/Equity	Cash
6. Retail Agent Fee Unearned Income	112050	Non-due Revenue Receivable	Current Asset	Asset/Liability/Equity
7. Direct Bill Commission Unearned Income	100000 to 300000 range			Asset/Liability/Equity	Cash
8. Direct Bill Commission Unearned Income	112040	Non-due Revenue Receivable	Current Asset	Asset/Liability/Equity

Invoice Payables

The following payable general ledger numbers represent moneys that will be due based on invoice entry. Non-due accounts will be disabled depending upon system setup. Note items 7, 15 and 16 are used for cash basis income recognition for fee expenses and payables due to other vendors. Carrier Payable is the account total used for the balances displayed in alerts.

Description	General Ledger Number	Account Type	Account Group	Classification	Setup Variation
1. Carrier Payable	200000 range	Insurance Payables	Short Term Liability	Liability
2. Binder Bill Payable	200000 range	Insurance Payables	Short Term Liability	Liability
3. Binder Bill Payable		Insurance Payables	Short Term Liability	Liability
4. Tax Authority Payable	200000 range	Insurance Payables	Short Term Liability	Liability
5. Tax Authority Payable		Insurance Payables	Short Term Liability	Liability
6 Vendor Payable	200000 range	Insurance Payables	Short Term Liability	Liability
7. Vendor Payable Non-due	200000 range	Insurance Payables	Short Term Liability	Liability	Cash
8. People Payable Due	200000 range	Insurance Payables	Short Term Liability	Liability
9. People Payable Due		Insurance Payables	Short Term Liability	Liability
10. People Payable Non-due	200000 range	Insurance Payables	Short Term Liability	Liability	People Pay-Paid Accrue Expense
11. People Payable Non-due		Insurance Payables	Short Term Liability	Liability
12. Retail Agent Payable Due	200000 range	Insurance Payables	Short Term Liability	Liability
13. Retail Agent Payable Non-due	200000 range	Insurance Payables	Short Term Liability	Liability	People Pay-Paid Accrue Expense
14. Retail Agent Unrealized Cost	202001	Insurance Payables	Short Term Liability	Liability
15. Agency Fee Expense Payable (Non-due)	200000 range	Insurance Payables	Short Term Liability	Liability	Cash
16. Vendor Fee Expense Payable (Non-due)	200000 range	Insurance Payables	Short Term Liability	Liability	Cash

Income

The following payable general ledger numbers represent moneys recorded as income based on the invoice entered. Note that Agency Fee Income exists but alternative general ledger numbers may be assigned as an aspect of the fee setup process. Vendor Fee and Service Charge Income may be implemented in a future release as the general ledger number for automatic Service/Late charge fees generated.

Description	General Ledger Number	Account Type	Account Group	Classification
1. Agency Bill Income	400000 range	Agency Bill Revenue	Insurance Income	Income
2. Direct Bill Income	400000 range	Direct Bill Revenue	Insurance Income	Income
3. Direct Bill Income	410000	Direct Bill Revenue	Insurance Income	Income
4. Agency Fee Income	400000 range	Fee Revenue	Fee Income	Income
5. Agency Fee Income	421100	Fee Revenue	Insurance Income	Income
6. Retail Agent Fee Income	421150	Fee Revenue	Insurance Income	Income
7. Service Charge Income	400000 range	Service Charge Revenue	Other Income	Income
8. Vendor Fee Commission Income	400000 range	Fee Revenue	Fee Income	Income/Under Ops Income

Retail Agent Expense

The following expense general ledger numbers represent moneys based on commissions paid to retail agents. Classification can be either income or expense.

Description	General Ledger Number	Account Type	Account Group	Classification
1. Retail Agent Expense - Agency Bill	400000 to 900000 range	Commissions Paid	Insurance Income	Income/Expense
2. Retail Agent Cost - Agency Bill	431000	Commissions Paid	Insurance Income	Income/Expense
3. Retail Agent Expense - Direct Bill	400000 to 900000 range	Invoice Commissions	Sales Expense	Income/Expense
4. Retail Agent Cost - Direct Bill	501000	Invoice Commissions	Sales Expense	Income/Expense

Expense

The following People expense general ledger number represent moneys based on commissions paid to agency personnel entered in the system as employees , used as the offset to people payable due or non-due. Vendor Fee expense reflects activity related to vendor fees.

Description	General Ledger Number	Account Type	Account Group	Classification
1. People Commission Expense	500000 range	Invoice Commissions	Sales Expense	Expense
2. Vendor Fee Expense	500000 range	Other Sales Expense	Sales Expense	Expense/Under Ops Expense

Bank Activity Mandatory General Ledger Numbers

Accounts Payable Entry

The following general ledger numbers represent general ledger numbers used in the accounts payable entry function. Accounts payable entry automatically uses the Operating Payable general ledger number as the credit. Use of Reconciliation Clearing Account and subsequent selection of the accounts payable item in check issuance (disbursement entry) will make the item available as a disbursement in reconciliation. Discounts taken may be implemented in a future release.

Description	General Ledger Number	Account Type	Account Group	Classification
1. Operating Payable	200000 range	Accounts Payable	Short Term Liability	Liability
2. Reconciliation Clearing Account	100000 range	Receivable	Current Asset	Asset/Liability/Equity
3. Discounts Taken	400000 to 999999 range	Discount/Interest Inc	Other Income	Income/Expense

Check Issuance

Generating a disbursement may pull entries from the general ledger, accounts payable, invoicing, or reconciliation. The primary definitive accounts would be a trust or operating account. Additional bank accounts using alternative general ledger numbers are setup at organization or books level entities and selected when issuing disbursements. These accounts balances are used in Alerts on the accounting summary screen.

Description	General Ledger Number	Account Type	Account Group	Classification
1. Trust Account	100000 range	Cash Accounts	Current Asset	Asset
2. Operating Account	100000 range	Cash Accounts	Current Asset	Asset

Receive Payments

Accounts receivable general ledger numbers will be set at invoicing mandatory general ledger numbers and are disabled. Undeposited funds should always be cleared by deposit on a timely basis. Using Reconciliation Clearing Account will enable selection of payment in reconciliation.

Description	General Ledger Number	Account Type	Account Group	Classification
1. Client	Set at invoicing	Receivables	Current Asset	Asset
2. Additional Interest	Set at invoicing	Receivables	Current Asset	Asset
3. Premium Finance Company	Set at invoicing	Receivables	Current Asset	Asset
4. Retail Agent	Set at invoicing	Receivables	Current Asset	Asset
5. Undeposited Funds	100000 range	Receivables	Current Asset	Asset
6. Reconciliation Clearing Account	Set at Accounts Payable	Receivables	Current Asset	Asset/Liability/Equity

Make Deposit

Making a deposit presents items based on selected ranges created through Receive Payments. Alternative general ledger numbers may be used based on bank account selected for deposit. These accounts balances are used in Alerts on the accounting summary screen.

Description	General Ledger Number	Account Type	Account Group	Classification
1. Trust Account	Set at check issuance	Cash Accounts	Current Asset	Asset
2. Operating Account	Set at check issuance	Cash Accounts	Current Asset	Asset
3. Lockbox Suspense Account	110050 Will increase sequentially if already exists.	Receivable	Current Asset	Asset

Description

General Ledger Number

Account Type

Account Group

Classification

1. Trust Account

Set at check issuance

Cash Accounts

Current Asset

Asset

2. Operating Account

Set at check issuance

Cash Accounts

Current Asset

Asset

3. Lockbox Suspense Account

110050

Will increase sequentially if already exists.

Receivable

Current Asset

Asset

Reconciliation Mandatory General Ledger Numbers

Adjustments

Accounts available to balance reconciliation permit an offset to a designated Commission Differences account. Use of Reconciliation Clearing Account will enable selection at disbursement entry.

Description	General Ledger Number	Account Type	Account Group	Classification
1. Commission Differences	400000 to 999999 range	Invoice Commissions	Sales Expense	Income / Expense
2. Reconciliation Clearing Account	Set at Bank Activity	Receivable	Current Asset	Asset/Liability/Equity
3. Agent Reconciliation Clearing	110210	Receivable	Current Asset	Asset

Journal Entry Mandatory General Ledger Numbers

Journal Entry

Year end processing will create net entries to zero income and expense with an offsetting entry to Retained Earnings.

Description	General Ledger Number	Account Type	Account Group	Classification
1. Retained Earnings	300000 range	Equity	Equity	Equity

Intra-Office Mandatory General Ledger Numbers

Description	General Ledger Number	Account Type	Account Group	Classification
1. Intra-Office Primary Offset	110000-110999 range	Receivable	Current Assets	Asset/Liability/Equity
2. Intra-Office Secondary Offset	220000-229999 range	Non-Insurance Payable	Short Term Liability	Asset/Liability/Equity