Reconciliation

The reconciliation process is used to select posted invoices and mark them for payment to carrier (agency bill invoices), payment received from carrier (direct bill invoices), payment due to people if commission is paid on posted invoices, or payment due to a tax authority as applicable. The general ledger results depend upon posting rules and whether or not the end result is offset by disbursements, receive payments, or adjustments. If an amount remains, then the offset will be to the reconciliation clearing account. The offset would then be cleared by the applicable disbursement or receive payment.

To Perform a Reconciliation

1. On the Primary menu, click ORGANIZATION.
2. Select the lowest book level tab, such as the territories tab and select the Details icon next to the entity to reconcile.
3. Select the accounting > transactions > reconciliation tab.
4. Click [Add New Reconciliation]. The Reconciliation dialog box is displayed.

5. Select an Entity Type from the list and search for the entity.

Note: Only carriers that are associated to the territory will be available in the search. For more information about carrier associations, see the Carrier Associations topic.

6. Once the entity is found, click OK. The reconciliation tab is displayed.

Note: Use the Maximize / Minimize icon to display the full screen view of the reconciliation.

7. In the Quick Navigation panel, there are several reconciliation options. The following example is for reconciling by clicking Receipts / Disbursements.

8. In the Receipts area, click [Add New]. The selection dialog box is displayed.

9. Select the receipts to be included in the reconciliation and click OK. The receipts is added to the reconciliation tab.
10. If any disbursements are to be included, click [Add New] in the Disbursements area and select the disbursements to be included.
11. Once all Receipts and Disbursements are selected, click Post. The Post Reconciliation confirmation is displayed.

12. Click OK to confirm the Post. The reconciliation tab is again displayed.
13. In the Quick Navigation panel, there are several reconciliation options. The following example is for reconciling invoices by clicking Transactions.

Note: When working with general ledger item under Quick Navigation > Adjustments, the 1099 check box is available. Once the reconciliation has been posted, only the 1099 check boxes are editable. If it is necessary to update a 1099 selection, make the new selection and click [Update 1099]. The system records are then updated to match the selection. Only a staff member with Accounts Payable > Modify rights can change 1099 selections. Changes to locked or closed months can only be made by a staff member with Accounts Payable > Post Locked rights can change 1099 selections in a locked or closed month. For more information on security settings see 1099 Security.

14. In the Select column, select the check box next to each invoice to be reconciled.
15. If partial payments are to be made on an invoice, click the Details icon and enter the amount.

Note:  Each invoice is posted showing the individual LOBs for that policy. There may be multiple invoices with the same invoice ID, these are not duplicates, but different LOBs on a package policy.

16. In the Navigation Toolbar, click Save.
17. In the Navigation Toolbar, click Pay All Selected. The Pay All Selected dialog box is displayed.

18. In the Pay All Selected dialog box, verify the amount to be paid on Agency Bill and Direct Bill. Click OK.

Important: The Pay All Selected option will bay all selected items on all pages.

19. On the Navigation Toolbar, click Post. The Post Reconciliation dialog box is displayed.

20. In the Post Reconciliation dialog box, verify that the general ledger postings are correct. Click OK. The reconciliation tab is again displayed showing any remaining invoices.

Note: When posting to locked periods, keep the following in mind. If the staff member has rights to post to a locked period a dialog box is displayed letting the staff member know they are posting to a locked period. If the staff member does not have rights to post to a locked period, the only option is to change the date booked to an unlocked period. More information on rights for staff members to post to locked periods can be found at Transactions > Reconciliation Security.

21. On the Navigation Toolbar, click Print to print either the Reconciliation Summary or the Remittance Advice.

Note: The Remittance Advice can be printed prior to posting.

Related Topics

Direct Bill Carrier Statement Entry

Revising Commission During Reconciliation