Refunds and Adjustments

Refunds and Adjustments
Refunds and adjustments in Momentum AMS allow agencies to correct overpayments, return premium amounts, or update balances when policies are canceled, endorsed, or otherwise changed.

Common reasons for refunds include:

• The insured overpaid – For example, duplicate payments or paying the wrong amount.
• Policy was canceled – Resulting in the insured being due a return premium for the unused portion of coverage.

These entries ensure that both the insured and the agency’s accounting records remain accurate. If money is owed to an insured, the refund will appear in the Credit Payments list below the Invoices/Receipts section in the insured’s profile for easy tracking and processing.

Important Pre-Refund Step for Return Premiums

If the refund is due to a return premium, you must first process the cancellation or negative endorsement that generates the negative receivable in Momentum AMS.

Without this step, the system will not reflect the credit balance needed for the refund.
Once processed, the negative receivable will automatically save as a credit payment under the Credit Payments list in the insured’s profile.

1️⃣ Locate the Credit Payment

If a negative invoice is created in Momentum AMS, it will automatically save as a credit and display under the Credit Payments list in the insured’s Invoices/Receipts section.
Locate the applicable credit payment by matching details such as the Credit Payment Number, Transaction Date, Due Date, Description, and Balance.

2️⃣ Start the Refund Process

From the Credit Payments list, click Actions → Take Payment.
In the next screen, you will see an Issue Refund button appear.
Click Issue Refund to open a form that looks very similar to the Take Payment screen.

3️⃣ Enter Refund Details

Details Section — Verify and complete:

Transaction Date / Due Date – Defaults from the credit record but can be adjusted if necessary.
Description – Reason for the refund (e.g., Down Payment Credit, Return Premium after Cancellation).
Amount – Confirm the correct refund amount based on the credit balance.

Transaction Section — Enter:

Payment Receipt Date – Date the refund is being processed.
Agent (processed by) – Select the staff member issuing the refund.
Primary Office – Choose the office location tied to the transaction.
Payment Method – Select refund method (Check, ACH, Credit Card, etc.).
Confirmation Ref Num – Enter the check number, ACH confirmation, or card refund ID.
Payment Notes – Provide context (e.g., Refund for overpayment, Return premium for policy cancellation).

4️⃣ Save and Finalize

Click Issue Refund to complete the process.
Momentum AMS will update accounting records to show the refund issued and adjust the credit balance accordingly.
The updated status will remain in the Credit Payments list for recordkeeping.

Best Practices

Always confirm the credit amount matches the refund amount before issuing.
Document the reason in Payment Notes for transparency and compliance.
For premium finance cases, confirm with the finance company before processing to avoid duplicate refunds.