Some agencies have policies that were financed and then cancelled or endorsed causing premium and commission to be paid back to the customer. 


In this scenario:

  • The carrier pays the premium directly to the premium finance company instead of the agency.

AND

  • The agency is responsible for paying their owed commission to the premium finance company instead of the customer.


This means that a user must create a credit financed invoice. This requires a negative receivable to the finance company, not a payable.


To create a credit invoice:

  • Locate the customer, and at the policy, click the blue Actions link and select Edit.
    • Verify the Billing Type is set to Agency and the Billing Company is correct. 
    • Set Generate Invoice to Yes, and Save Policy.

  • Enter the owed commission in the Billing Premium & Gross Commission fields as a negative dollar amount.
  • Next, set the Invoice Type to Premium Finance, and choose the Premium Finance Company.
  • At Paid to, select Agency.
  • Enter the owed commission as a negative dollar amount in the Amount Financed field.
  • When ready, click Actions, and select Create Invoice.
    • EZTip: It's a good idea to take note of the unique Invoice Number, since this information is needed later.

Next, create the Check to the Premium Finance Company:

  • Click the Accounting icon on the left navigation bar, and hover to select Payables.
  • On right, click Add Check, and enter the required data.
  • From the Check Overview page, click the blue Actions link, and Select Line Items.
    • In the pop-up, type the Invoice Number from earlier into the Search bar.
    • Check all applicable items, and click Add in the middle, and Next on the Left.
    • Verify the total to be paid is a positive dollar amount and equals the total the agency owes to the finance company.
    • Click Save, and then Submit from the blue Actions menu.