Overview of Commission Reconciliation in Momentum AMS

Overview of Commission Reconciliation in Momentum AMS
In Momentum AMS, commission reconciliation is the process of verifying that the commission amounts paid by carriers or MGAs match the transactions recorded in the system. This process ensures accurate accounting, prevents lost revenue, and keeps agency and agent commission records up to date.

Commission reconciliation can be performed for both agency commissions (what the agency earns from carriers) and agent commissions (what producers earn from the agency). The workflow typically begins with importing or processing a commission statement from a carrier or MGA, matching the data to policies in Momentum AMS, and finalizing the reconciliation so all records are accurate and ready for reporting.

This article explains the key concepts, available reconciliation methods, and where to find commission data in the system.

Steps

Step 1: Understand Commission Types

Agency Commission — The percentage or flat fee the agency receives from the carrier for each policy sold, renewed, or endorsed.
Agent Commission — The portion of the agency commission paid to a producer or CSR based on agreed commission rules.

Step 2: Access the Commission Reconciliation Module

Go to Miscellaneous → Accounting Items → Reconciliations.
From the dropdown menu, select one of the available options:
- Import from File — Upload a carrier or MGA commission statement (CSV import).
- Manually Select Agency Commissions — Choose specific transactions to reconcile agency commissions.
- Manually Select Commissions for Agents — Choose specific transactions to reconcile producer commissions.
- Reconcile Broker Statement — Match broker commission statements to AMS records.
- Manually Select Payables — Reconcile payable items owed to carriers or MGAs.
- Manually Select Receivables — Reconcile receivable items owed by insureds.
- Manually Select Parent or Sub-Agency Commissions — Reconcile commission splits between parent and sub-agencies.

Step 3: Process Commission Data

There are four common methods for getting commission data into Momentum AMS:

Carrier Downloads – Direct Bill Statements
- Automatically received via IVANS or carrier feed.
- Merged into the system to generate a Direct Bill commission statement.
Manual Import of Carrier/MGA Statements (CSV)
- Upload CSV or Excel statements directly into Momentum AMS.
- Map columns to match system fields.
PDF Statements via Momentum AI
- For commission statements received as PDFs with no CSV provided, use the AI conversion tool located in Momentum AI or the Toolbox.
- The tool reads the PDF statement and converts it into a CSV format for importing into the system.
- Important: Policy numbers in the AI-generated file must match those in Momentum AMS. Always verify the data before importing to ensure accuracy and prevent erroneous transactions.
Manually Adding Commission Transactions
- Create individual commission entries for policies not included in a bulk statement.

Step 4: Match Transactions

The system attempts to match statement entries to existing policies based on policy number, insured name, and effective dates.
For unmatched entries, use available tools (e.g., Match to Insured) to link them manually before finalizing.

Step 5: Approve and Finalize

Review matched transactions for accuracy.
Approve the statement to complete reconciliation.
Once approved, the statement is recorded for reporting and audit purposes.

Step 6: Locate Reconciled Statements

Go to Miscellaneous → Accounting Items → Agency Statements to view past reconciliations.
Statements are labeled using these formats:
- Direct Bill: DB_NAME OF CARRIER_DATE AND TIME
- Data Import: DB_Data_Import_DATE AND TIME

Best Practices

Reconcile as soon as possible after receiving statements to prevent backlog.
Verify policy and insured records are in the system before processing.
Use the AI PDF-to-CSV tool only after confirming formatting and data accuracy.
Standardize carrier policy number formats in Momentum AMS to improve matching accuracy.
Run reconciliation reports regularly to monitor trends and detect discrepancies early.