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Reports, General, Net Premiums Owed to Insurers

To find this report click the “Reports” button on the Main Menu, then select the “General” tab. Essentially it is just a version of the “Aged Debtors” report, pre-set to only include insurer transactions in the purchase ledger, as shown below…

If you just click “OK” without changing any of the selection criteria it will show the total amount of premiums you owe (i.e. all outstanding in the Purchase Ledger), inclusive of those for which you have not yet been paid by your clients, and cannot therefore have in your Client Bank account yet. It will also show any unallocated insurer receipts and payments (i.e. sums in the Cashbook to or from insurers that have not yet been reconciled), which should be added to, or deducted from the Purchase Ledger total accordingly (i.e. total net debt = purchase ledger total – unallocated payments in advance + unallocated receipts).

Premiums in the Client Bank Account

To find the amount of “Net Premiums Owed to Insurers” that you have received from clients, which therefore needs to be in the Client Bank account, this report must be run immediately after a “Commission Transfer” and “Cash-up to Banks” with its “Show figures as at date” set to the same date. Calculate the net figure as [purchase ledger total] – [unallocated payments in advance] + [unallocated receipts], which in the example below is £41,451.73 – £24.49 = £41,427.24.

 

You must then run the report called “Net Premiums not Received”, as show below, at the same date and also deduct this report’s total. So in this example, the least amount that should be in the Client Bank account would be £41,427.24 total amount of premiums owed, LESS £12,688.86 not yet received from clients = £28,738.38. See also “Essential Accounting Checks