Understanding Direct Bill frequencies

Direct Bill billing frequency determines how the insured pays and how the system generates invoices, receivables, and payables. This article explains the differences between:

• None

• Transaction

• Advance

• Advance and Transactions

Each option affects accounting and reconciliation differently.

Billing Types

None

Select None when billing is entered through:

• Download

• Manual entry

• Import

Transaction

Select Transaction when you want to invoice and reconcile direct bill commissions at the policy level. When you use this billing type, the system:

• Creates and posts agency commission revenue.

• Creates producer and sub-producer payables.

• Creates a company billing (receivable) for the commission amount.

After the carrier pays the commission:

• Apply the payment directly to the billing.

• Reconcile the transaction at the policy level.

This option tracks commission due from the carrier without creating a receivable for the full premium.

Direct Bill (DB) Advance

In a standard direct bill arrangement:

• The carrier bills the insured directly.

• The agency does not collect the premium.

In a DB Advance scenario:

• The agency pays the carrier upfront, either in full or in part.

• The insured reimburses the agency later.

Agencies typically use this option to ensure timely issuance or meet binding requirements when client payment is delayed.

Record a DB Advance

1. In the App Launcher, search and select Cash Receipts.

2. Click New.

   

3. In the New Cash Receipt modal, complete the following fields:

   1. Received From: Select the Account sending in the payment.

   2. Type: Customer Receipt

   3. Amount: Enter the amount of the Direct Bill Advance.

   4. Posting Status: Approved or In Process.

   5. Receipt Date

   6. Amount

   7. Reference: check number or electronic transaction reference

   8. Bank Account: Select the appropriate bank account

4. A Receivable from the insured is created, automatically applying the payment to the associated Billing.

5. A Payable to the carrier is generated, reflecting the funds the agency has fronted on behalf of the customer.

Pay the carrier

You can pay the carrier in one of two ways:

1. Selecting Pay on the individual Payable record, or

2. Using Batch Pay from the Payables List page.

Advance and Transactions

Select Advance and Transactions when you need to track both premium and commission activity. This billing type:

• Creates a receivable from the insured for the total policy premium.

• Creates a receivable for agency commission due from the billing company.

• Creates producer and sub-producer payables.