Billing and Accounting
      Back to home
      1. Momentum AMP Support Center
      2. Support Resources
      3. Billing and Accounting

      Mapping Chart of Accounts in Momentum AMS

      Step-by-Step Guide to Account Mapping in Momentum AMS

      Proper account mapping in Momentum AMS ensures that transactions such as receivables, payables, commissions, and agency fees flow correctly into QuickBooks. Follow these steps to set up your mappings correctly.

      Step 1: Access the Account Mapping Section

      1. Log into Momentum AMS using your agency credentials.

      2. Navigate to Miscellaneous → Import/Export → Export to QuickBooks.

      3. If prompted, authenticate your QuickBooks account. This allows Momentum AMS to access your QuickBooks chart of accounts, but does not give access to financial data.

      4. Once authenticated, proceed to Online Configuration to begin mapping transactions.

      Step 2: Map Accounts Receivable and Payable

      Mapping Accounts Receivable (AR)

      • When a policy or endorsement is created, the system will credit Accounts Receivable - Agency Business to reflect the amount owed by the insured.

      • Once a payment is received, the system must debit the trust account and credit accounts receivable - agency business to properly apply the funds.

      • This ensures that the trust account balance matches the actual funds received, making reconciliation easier.

      Mapping Accounts Payable (AP)

      • When paying MGAs, carriers, or finance companies, the system must debit Accounts Payable - Agency Business and credit the trust account.

      • This ensures that the agency's liability is properly reduced and that funds are accounted for when disbursed to the carrier.

      • Ensuring these mappings are correct is critical for tracking outstanding receivables and payables, as well as maintaining compliance with trust accounting regulations.

      Step 3: Map Agency Fees

      • Unlike premium payments, agency fees belong to the agency and should not be mapped as payables.

      • Upon billing, agency fees are recorded in Accounts Receivable - Agency Business.

      • When a payment is received, the system must:

        • Debit the trust account

        • Credit accounts receivable - agency business

        • Debit agency fee income and credit the trust account, transferring the funds from the receivables category into revenue.

      • Some agencies use Boss Funds as a temporary holding account for agency fees, but it is best practice to map these fees directly into income to ensure clearer financial tracking.

      • Proper mapping prevents agency fees from being incorrectly held in trust accounts and ensures they are accurately recorded as revenue.

      Step 4: Map Direct Bill Commissions

      1. Direct bill commissions differ from agency bill commissions because the carrier collects the premium directly and later sends the agency a commission check.

      2. When the commission is expected, it should be recorded as Commissions Receivable to track the amount owed by the carrier.

      3. Once the commission payment is received:

        • Debit Commissions Receivable

        • Credit Commission Income

        • Move funds into the operating account to reflect that the agency has received the earnings.

      4. This mapping ensures that agencies can track outstanding commissions, recognize revenue at the correct time, and reconcile bank deposits against expected income.

      Step 5: Map Premium Financing Transactions

      Scenario 1: Financing Paid Directly to the Carrier

      • If the premium finance company sends payment directly to the MGA or carrier, the system must:

        • Debit Accounts Payable - Agency Business

        • Reduce the agency’s payable balance, ensuring the agency does not record a liability for a payment they did not process.

      Scenario 2: Financing Paid to the Agency First

      • If the agency receives the financed amount first, additional mapping steps are needed:

        • Credit Accounts Receivable - Finance Companies (to track the amount received from financing).

        • Debit the trust account to reflect the deposit.

      • When the agency remits the financed amount to the carrier:

        • Debit Accounts Payable - Agency Business

        • Credit the trust account (reflecting the outgoing payment).

      • Proper mapping ensures that premium financing transactions are accurately tracked, preventing discrepancies in the agency’s receivables and payables.

      Step 6: Map Agent Commissions

      Recording Agent Commission Liability

      • When a commission is earned by an agent, the system must:

        • Credit Commission Payable - Agency Business (to track commissions owed).

        • Debit Commission Expense, recording the financial impact of the commission payout.

      • This ensures that the agency tracks outstanding commissions owed to agents correctly.

      Paying Agents

      • When the commission is paid, the system must:

        • Debit Commission Payable - Agency Business (reducing the liability).

        • Credit the operating account (reflecting the withdrawal).

      • This process ensures that agent payouts are properly recorded and aligned with QuickBooks financials.

      Handling Negative Transactions (Policy Cancellations, Return Premiums, and Adjustments)

      • In cases where commission adjustments are required (such as policy cancellations), the system may need to:

        • Debit Commission Payable - Agency Business (reducing what is owed).

        • Credit Commission Expense, reflecting a reversal of previously earned commissions.

      • If the agency has already paid the commission, they may need to issue a chargeback or adjust their financials to reflect the return premium.

      • If financing transactions behave differently in negative cases, additional adjustments may be required. The Momentum AMS support team can assist in customizing these mappings.

      Step 7: Save and Finalize Account Mapping

      1. Review all mapped accounts receivable, payables, commissions, and agency fees to ensure accuracy.

      2. Scroll to the bottom of the mapping screen and click Save.

      3. After saving, review QuickBooks financial reports to confirm that transactions are correctly categorized.

      4. Now, your Momentum AMS and QuickBooks accounts are properly mapped, allowing for smooth financial synchronization and reconciliation.

      Final Thoughts

      Proper account mapping in Momentum AMS ensures accurate financial tracking, seamless synchronization with QuickBooks, and efficient reconciliation of trust and operating accounts. By correctly mapping receivables, payables, agency fees, commissions, and premium financing, agencies can automate financial workflows, reduce manual data entry, and maintain compliance with trust accounting standards.

      If you need further assistance with customizing account mappings, reach out to the Momentum AMS support team for additional guidance.