Occasionally, an agency may need to refund a customer or premium finance company for a premium over payment on a direct bill policy. For example, when an endorsement change causes a premium decrease, a producer may have to pay back part or all of a previously paid commission. Another scenario is when a customer has made a payment on a policy, invoice, or a one-time payment using Client Center and requests a refund. 


In this article we will cover how to handle both of these scenarios!


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How to handle an Over Payment of Premium


Occasionally, an agency may need to refund a customer or premium finance company for a premium over payment on a direct bill policy. For example, when an endorsement change causes a premium decrease, a producer may have to pay back part or all of a previously paid commission. These steps will help you through that process!


Create a negative amount invoice


On the insured's account, locate the policy and click the More actions icon. Then, hover over the Service option and click on the Change or Cancel option depending on the situation. 



In the Change Premium field, enter the refund amount as a negative number. Make sure that the Billing Type is set to Agency and Generate Invoice is set to Yes. Then, click the Change or Cancel Policy button.


 

Under the Totals section, in the Billing Premium field enter the refund amount as a negative number. In the Gross Commission field, enter the Agency Commission Percentage. Then, verify the applicable producer(s) appear under the Producer Commission area. If needed, click the Add Producer to enter a producer and their commission.



For a Customer Refund, make sure the Invoice Type is set to Single Invoice. Then, click the Actions button and click Create Invoice. Then, skip to the Create a Carrier Receipt step in this article.



For a Finance Company Refund, make sure that Invoice Type is set to Premium Finance. Set the Paid To option as Agency. In the Amount Financed field enter the refund amount as a negative number. Next, verify the Invoice Total on the left-hand side is the total amount owed to the insured. Often this amount is $0. Finally, click the Actions button and then click Create Invoice. Once complete, move on to the Create a Carrier Receipt section of this article.



Create a Carrier Receipt


Click and hover over the Accounting icon. Then, click Receivables.




On the Receipts tab, click the Add Receipt button.



Using the dropdown, set the Payer to the billing company. In the Amount field, enter the credit amount from the billing company and fill in any other required fields. Then, click the Save button. This will automatically create the receipt and redirect you to the receipt page.



On the receipt page, click the Actions button. Then, click Apply By Line Item.



Checkmark all applicable line items on the left-hand side. Then click the Add button to move them to the Selected Items section. Remember, if you are looking for a specific Invoice Number and don't see it you can use the search bar at the top of the window. Once all applicable line items are moved to the Selected Items section, click the Pay In Full or Partial Payment buttons depending on the situation. 



Issue a Customer or Finance Company Check


Hover over the Accounting icon, then click Payables.




On the Checks tab, click the Add Check button.




Using the Payee drop-down choose the customer or finance company. Then fill out the rest of the required fields and click the Save button. This will automatically create the check and redirect you to the check page.




On the Check page, click the Action button. Then, click Select Line Items.



Checkmark all applicable line items on the left-hand side. Then click the Add button to move them to the Selected Items section. Remember, if you are looking for a specific Invoice Number and don't see it you can use the search bar at the top of the window. Once all applicable line items are moved to the Selected Items section, click the Next button.



Verify the refund amounts are correct and then click the Save button. If there is an issue you can click the Previous button to go back to the previous screens.



Back on the Check page, click the Actions button again. Then, click Submit. 



A pop-up will appear asking you to confirm the action to submit the check. Click the Yes button to continue. 



Remember to export checks from EZLynx and then import them into QuickBooks unless you have the Direct Integration using the Online version of QuickBooks. Check out our EZLynx Accounting: Export from EZLynx help article to learn more!

How to handle a Payment Refund


Occasionally, a customer may request a refund for a payment on a policy, invoice, or a one-time payment they inputted using Client Center. By following the steps below, your agency will record the reception of money from the customer and then record the refund to the customer. These steps will help you through that process! 


If you've already created a receipt for the payment requesting to be refunded, then we need to unapply the receipt. To do this, click and hover over the Accounting icon. Then, click on Receivables.



On the Receipts tab, find the receipt in question. Remember you can use the filters and search bar at the top to help find a specific one. Once located, click on the receipt number on the left-hand side to open the receipt page.



On the receipt page, click unapply on the right-hand side on the invoice in question.



A pop-up will appear asking you to confirm the action to unapply the receipt. Click Yes to continue.



Now that the receipt is unapplied, we can refund it. Click the Actions button and then click Refund Unapplied.



Fill out all the required fields in the pop-up that appears and then click the Save button. This will refund the unapplied receipt and refresh the receipt page.