Combining vs. Not Combining Receivables and Payables for Invoicing

Combining vs. Not Combining Receivables and Payables for Invoicing
Momentum AMS gives agencies the option to either combine all receivables and payables into a single Accounts Receivable (AR) and a single Accounts Payable (AP) or keep them separate. Understanding the difference helps you decide how to present invoices to insureds and how to manage payments to carriers or MGAs.

Accessing the Transaction

To work with receivables and payables, go to the insured’s policy and open the Endorsement/Fees/Taxes section:

From the policy, click Actions → Endorsement/Commissions → Endorsement/Fees/Taxes.
Enter the necessary premium and any non-premium charges such as MGA fees, surplus lines tax, or stamping fees.

This is where you’ll see the option to Combine all Receivables and Payables.

Checking or Unchecking the Combine Option

By default, the Combine all Receivables and Payables box is checked.
If you prefer an itemized invoice with separate premium, taxes, and fees, uncheck this box before saving the transaction.
If it was not checked and you want to simplify into one AR and one AP, simply check it.
After adjusting, click Generate Transaction and Save.

How Combining Works

When the option is checked:

The system generates one AR and one AP.
The invoice sent to the insured shows a single total balance.
The premium is commissionable, while non-premium items are added for a combined total.
The receivable and payable amounts will match (unless an agency fee is charged), since commissions are netted in the Issue Payment.

This is useful when you want to simplify invoices for insureds or when policies are financed, since the A/R can be matched easily to the finance agreement.

How Not Combining Works

If the option is unchecked:

Premium, taxes, and fees are displayed separately on the invoice.
This gives an itemized look at every line item.
While more transparent, the invoice can look cluttered if there are many fees or taxes.

Best Practices

By default, combining is checked.
Agencies may choose to combine for simplicity or not combine for transparency—both approaches are fully acceptable and depend on your agency’s standard practice.
You can still select multiple receivables or payables when creating invoices and issue payments if you need more granular control.

Final Thoughts

Combining receivables and payables results in a clean, single-balance invoice, while not combining provides a detailed, itemized breakdown. Both options are available in Momentum AMS, and you can easily adjust the setting in the Endorsement/Fees/Taxes transaction screen before generating the invoice.