Direct Bill overview

Last updated: March 2, 2026

Overview

Direct Bill is a billing method where the carrier invoices the insured directly. The agency does not collect the premium. With Direct Bill:

  • The insured pays the carrier.

  • The carrier pays the agency its commission.

  • The agency does not create Accounts Receivable (AR) for the premium.

  • The agency does not create a carrier payable for the premium.

  • Only commission income is recorded.

Enter required fields on the policy

Accurate policy information ensures billing generates correctly. While some fields are optional, they will still populate into the billing if entered.

Important: Enter all required fields carefully. Incorrect or missing values can cause billing errors.

  1. Navigate to the Details tab on a Policy record.

  2. Ensure the following fields are entered and correct as these fields will map to the Billing:

Policy Number

Enter the exact value provided by the carrier. If using Downloads, this field auto-populates from the Policy Download Detail.

Billing Company

Search for and select the Account that will pay the premium.

Billing Type

Select Direct.

Billing Frequency

Select None, Transaction, or Advance, or Advance and Transactions. For more information, see 📄 Understanding Direct Bill frequencies .

Agency

Ensure this matches GL Variable 1 in Accounting Seed.

Branch

Ensure this matches GL Variable 2 in Accounting Seed.

Department

Ensure this matches GL Variable 3 in Accounting Seed.

Primary Producer

Select the primary producer. The system uses this to determine the correct commission rule.

House

Select this checkbox if there is no Primary Producer.

  1. Scroll to the Commission section.

  2. Enter or confirm the following fields:

Producer Commission Type

Auto-populates based on the Producer Commission Rule Id. If left blank, Producer Payables will not generate.

Producer Commission Rule Ids

Auto-populates based on system rules. For more information, see 📄 Managing Producer commission defaults. If blank, Producer Payables will not generate.

Agency Commission Rule Id

Auto-populates based on Billing Company or Issuing Company. The system may also consider policy coverage, department, or agency. If this field is blank:

  • Select Override Agency Commission Rules in the Accounting section.

  • You can insert billing, but updated policy changes may produce an error unless a rule is added or override is enabled.

Commission Basis

Defaults to Agency Commission. If blank, Producer Payables will not be created.

  1. Scroll to the Accounting section.

  2. Enter or confirm the following fields:

Initial Premium Amount

Auto-populates when using Downloads. Otherwise, enter the premium manually.

Agency Commission Percent

Auto-populates from the Agency Commission Rule Id. If no rule is selected:

• Enter the percentage manually.

• Select Override Agency Commission Rules.

Initial Agency Commission

Auto-calculates after you save, based on Initial Premium Amount and Agency Commission Percent.

Override Agency Commission Rules

Select only if Agency Commission Rule Id is blank.

  1. Click Save.

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Insert billings

  1. Click Insert Billings.

    Screenshot 2026-03-02 at 12.07.09 PM.png

  2. On the confirmation modal, click OK.

    Screenshot 2026-03-02 at 12.07.41 PM.png

  3. On the Policy record, navigate to the Accounting tab.

  4. The Billing appears on the Billings tab.

Screenshot 2026-03-02 at 12.09.41 PM.png

  1. Select the Billing Number to open the Billing record.

    Screenshot 2026-03-02 at 12.11.42 PM.png

  2. Confirm all required fields are accurate on the Details tab.

  3. Review the Related List Quick Links section for accuracy.

Screenshot 2026-03-02 at 12.13.52 PM.png

Correct a Direct Bill

You may need to return unearned commission to a carrier due to:

  • Cancellation

  • Down endorsement

  • Post-policy audit

The system records return transactions the same way as earned commissions, but you enter the amounts as negative values.

Return commission

  1. In the App Launcher, search and select DB Manual Entry.

  2. Click the magnifying glass icon to search for the policy.

Screenshot 2026-03-02 at 12.19.07 PM.png

  1. Enter the remaining fields:

    1. Transaction Date: Defaults to the current date. Edited if needed.

    2. Transaction Code: Select Direct Bill Download.

    3. Premium/Fee Amount: Enter the premium as a negative amount.

    4. Agency Commission %: Auto-fills if agency defaults are set. Manually enter, if needed.

    5. Agency Commission $: Auto-calculates based on the premium and commission percentage.

  2. Click Add and Complete Statement if no additional entries are needed.

    1. Or click Add Another Transaction to enter multiple return items.

Screenshot 2026-03-02 at 12.23.34 PM.png

 Finalize the return commission

  1. On the DB Statement Processing page, locate the billing associated with the negative entry. Filter by:

    1. Agency

    2. Billing Company

      Screenshot 2026-03-02 at 12.25.40 PM.png

  2. Select the arrow in the Name column to open the billing details.

    Screenshot 2026-03-02 at 12.26.27 PM.png

  1. Click the Billing Number of the negative billing.

  2. Click Invert to Payable.

    Screenshot 2026-03-02 at 12.44.20 PM.png

Pay the return commission

  1. In the App Launcher, search and select Company Payables.

  2. Select the carrier from the dropdown menu.

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  1. Select the agency from the dropdown menu that appears.

    Screenshot 2026-03-02 at 1.02.23 PM.png

  2. Use the filters to locate the payable created from the inversion.

    Screenshot 2026-03-02 at 1.03.09 PM.png

  3. Click the name of the payable in the Payable Name column.

    Screenshot 2026-03-02 at 1.04.03 PM.png

  4. On the Payable page, click Pay.

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