How to Record Pass-Through Payments in Momentum AMS

When to Use a Pass-Through Payment

Use this workflow when:

• The policy is Direct Bill.
• The insured gives the agency a payment.
• The agency is temporarily holding the money.
• The money will be forwarded to the carrier or MGA.

The agency is acting as a pass-through for the funds rather than billing the insured through the normal Agency Bill workflow.

Do not create an Agency Bill invoice or Receivable simply to give the payment somewhere to go.

Step 1: Open the Invoices / Receipts List

Go to the insured's profile and open:

Documents → Invoices/Receipts

From the Invoices / Receipts List, locate the Actions menu in the upper-right corner.

Step 2: Select Take Payment (Pass-Through Carrier)

From the Actions menu, select:

Take Payment (Pass-Through Carrier)

This allows you to record money received from the insured that will ultimately be forwarded to a carrier or MGA.

You do not need to create an insured invoice first.

Step 3: Record the Insured's Payment

Enter the applicable information for the payment received from the insured.

Select the appropriate Direct Bill policy associated with the payment and enter the required payment information.

Complete the payment.

Momentum records the money so it can subsequently be passed through to the appropriate carrier or MGA.

Step 4: Locate the Payment

After the payment has been recorded, locate the payment in the applicable payment/credit list.

Select the Actions dropdown next to the payment.

Step 5: Select Pass-Through Carrier

From the Actions menu, select:

Pass-Through Carrier

This tells Momentum that the money received from the insured is being forwarded to the carrier or MGA rather than being retained by the agency.

Step 6: Complete the Carrier or MGA Payment

Complete the payment to the appropriate carrier or MGA.

Enter the applicable payment information, including the amount and other required payment details.

Review the information and save the payment.

This completes the movement of the funds through the agency:

Insured → Agency → Carrier/MGA

Why Isn't an Insured Invoice Created?

A Pass-Through Payment is typically associated with a Direct Bill policy.

With Direct Bill, the carrier or MGA is responsible for billing the insured. Your agency is simply receiving money that needs to be forwarded.

Therefore, you should not create an Agency Bill invoice or Receivable just because the insured handed the agency a payment.

The Pass-Through Payment workflow allows the agency to record the money it actually received without creating unnecessary Agency Bill accounting.

Pass-Through Payment vs. Credit Payment

These workflows are similar because both allow you to record money when you do not have a standard insured invoice to apply it to.

The difference is where the money is ultimately going.

For example:

Premium isn't known yet and the money will later be applied to an insured invoice:
Use a Credit Payment.

Direct Bill carrier is owed the money and the agency is simply forwarding it:
Use a Pass-Through Payment.

Best Practices

Before recording a Pass-Through Payment, confirm that the policy is Direct Bill and that the agency is actually forwarding the funds to the carrier or MGA.

Do not create an Agency Bill transaction, Receivable, or insured invoice simply because the agency temporarily received the money.

Follow the actual movement of the funds:

Receive the insured's payment → Take Payment (Pass-Through Carrier) → Record the payment → Pass-Through Carrier → Complete the carrier/MGA payment

Also retain any applicable payment or carrier confirmation documentation according to your agency's normal procedures.

Summary

When an insured gives your agency money for a Direct Bill policy and the agency needs to forward the payment to the carrier or MGA, use the Pass-Through Payment workflow.

Start from the Invoices / Receipts List and select:

Actions → Take Payment (Pass-Through Carrier)

Record the insured's payment and associate it with the appropriate Direct Bill policy. Then use Pass-Through Carrier to complete the payment to the carrier or MGA.

The simplest way to remember the workflow is:

Direct Bill + Agency receives money that belongs to the carrier/MGA = Pass-Through Payment