Overview

Agency Bill policies generate both:

• Receivables (the full amount billed to the insured)

• Payables (the net amount owed to the carrier or MGA after commission is retained)

When the agency issues payment to the carrier or MGA, Momentum AMS automatically retains the agency’s commission during the Issue Payment process. This built-in transaction becomes the basis for commission reconciliation — ensuring that the commission earned matches the commission retained when the payable is satisfied.

This ensures:

• Commission income is recorded accurately at the time of disbursement

• Policy-level commissions match the amounts retained by the agency

• All reconciled and unreconciled items are clearly tracked in Momentum AMS

When to Use Agency Bill Commission Reconciliation

Use this process when:

• You have Agency Bill policies where commissions are earned upfront

• You manually issue payments to the carrier

• Commissions must be reconciled in Momentum AMS

This process applies to:
✔️ Agency Bill – Paid in Full
✔️ Agency Bill – Monthly
✔️ Agency Bill – With Outside Financing
✔️ Any policy where the agency remits net premium and retains commission

How Commission Transactions Are Created

When you generate a transaction on an Agency Bill policy, Momentum AMS automatically creates:

1. Agency Commission Record

The system calculates the agency’s retained commission based on:

• New business / renewal rules

• Carrier/MGA commission rules

• Line of Business rules

This commission is automatically reconciled when the agency issues the payment to the carrier or MGA (via Documents → Issue Payment).
No manual reconciliation is required for agency commission.

2. Agent Commission Record (if applicable)

The system also generates agent commission entries based on:

• Agent assignment

• Agent commission rules

Agent commissions do require reconciliation and appear in:

Misc → Accounting Items → Reconciliations → Agent Commissions

How Agency Bill Commissions are Reconciled

1. Agency Commission Record (Reconciled Transactionally)

Momentum AMS calculates the agency’s retained commission based on:

• New Business / Renewal

• Carrier or MGA commission rules

• Line of Business

• Any applicable commission overrides

Important:
Agency commissions are not reconciled in the Reconciliation module.

Agency commission reconciliation happens automatically when the user completes the Issue Payment to the carrier or MGA.

You can access Issue Payments in three locations:

• Insured or Policy Level → Documents → Issue Payments

• Carrier or MGA Level → Carrier / MGA → Issue Payments

• Left Navigation → Miscellaneous → Accounting Items → Payments Due

Once the Issue Payment is marked “Paid,” Momentum AMS automatically:

• Updates the payable

• Retains the agency commission

• Marks the agency commission as reconciled

• Closes the agency-side billing cycle

No additional steps are needed for agency commission reconciliation.

2. Agent Commission Record (Manually Reconciled)

If agents are assigned and commission rules exist, Momentum AMS creates agent-level commission entries.

Agent commissions appear in:

Misc → Accounting Items → Reconciliations → Agent Commissions

Agent commissions must be reconciled manually, following the steps you listed earlier:

• Filtering

• Matching

• Creating a statement

• Saving/reconciling

⭐ Summary of the Correct Logic

Best Practices

• Complete the Issue Payment first.
  Agency commission is reconciled automatically when the Issue Payment to the carrier/MGA is marked Paid. Always finalize this step before reconciling any agent commissions.
• Use the correct workflow.
  Agency commissions → Issue Payments
  Agent commissions → Misc → Accounting Items → Reconciliations
• Fix data before reconciling.
  Ensure all endorsements, fees, premiums, and commission rules are correct before issuing payment or reconciling agent commissions.
• Use “Create New Statement” for agent reconciliation.
  This keeps agent commission batches clean, organized, and easy to audit later.
• Reconcile on a consistent schedule.
  Issue Payments as they occur; reconcile agent commissions weekly or monthly to stay aligned with internal accounting processes.

Summary

Agency Bill Commission Reconciliation in Momentum AMS allows agencies to:

• Agency Commission
  Reconciled automatically when the Issue Payment is completed.
  This records the retained commission, updates the payable, and closes the agency-side transaction.

• Agent Commission
  Reconciled manually through Misc → Accounting Items → Reconciliations, where agent-level payouts are matched and finalized using statements.

This separation ensures accurate financial tracking, clean audit history, and consistent commission reporting across all Agency Bill policies.