Scenario

An endorsement was processed and the commission was assigned to the wrong producer. The agency now needs to:

• Remove the incorrect producer commission
• Assign the commission to the correct producer
• Ensure reconciliation balances remain accurate

In some cases, users may attempt to enter a negative commission adjustment directly on the endorsement.

Recommended Best Practice

While Momentum AMS allows negative commission entries, the recommended workflow is typically:

1. Set the incorrect producer commission to 0
2. Save the endorsement
3. Add the correct producer commission assignment
4. Allow reconciliation balances to reflect any overpayment or repayment owed

This creates a cleaner audit trail and simplifies future reconciliation reporting.

Example Workflow

Step 1: Open the Endorsement

• Navigate to the policy endorsement
• Open the Agent Commissions section

Step 2: Remove Incorrect Commission

Instead of entering a negative commission:

• Edit the incorrect producer entry
• Change the commission amount or percentage to 0
• Save the record

This indicates the producer should not have received commission on the endorsement.

Step 3: Add the Correct Producer

• Add the correct producer to the endorsement
• Enter the proper commission percentage or dollar amount
• Save the endorsement

Step 4: Reconcile Balances

If the incorrect producer was already paid:

• The system will reflect a balance owed back during reconciliation
• Future reconciliations will display the outstanding adjustment
• The correct producer will appear as owed commission

Be sure to reconcile using the appropriate accounting periods and dates.

Alternative Method (Allowed but Not Preferred)

Momentum AMS does allow:

• Negative commission adjustments on positive endorsements
• Positive commission adjustments on negative endorsements

However, this approach can make reconciliation reporting more difficult to follow.

For cleaner accounting and audit history, it is generally recommended to:

• Zero out incorrect commissions
• Reassign the proper producer
• Let reconciliation handle repayment balances naturally

Key Notes & Best Practices

• Always verify the producer assignment before final reconciliation
• Use caution when reconciling prior accounting periods
• Review outstanding producer balances regularly
• Avoid mixing positive and negative commission adjustments unless necessary
• Reconciliation balances are expected behavior when commissions were previously paid incorrectly

Troubleshooting

Reconciliation Balance Appears Incorrect

If a producer was previously paid incorrectly:

• The balance may appear as owed back during future reconciliations
• This is expected behavior until the balance is resolved
• Verify reconciliation dates and accounting periods