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Accounts, Set-up Posting Defaults

Starting from the “Accounts Menu”…

  • Click the “Set-up” button
  • Click the “Signpost” button
  • Select “Insurance / Posting Defaults”
  • What Are Posting Defaults?

    “Posting defaults” only apply to insurance-related systems, such as “Financial Adviser” and “General Broker”. If you are using a non-insurance Durell system, such as “Office Manager” then ignore this section.

    “Posting defaults” define how the system should automatically create invoices for each policy when the user chooses to post its details to the accounts. Apart from the different types of business (e.g. pensions, motor, life, etc) there are also different posting defaults for the various payment methods, because for example, motor premiums paid by cheque would require a sales invoice to the policyholder for the premium, commission and any other charges, while an identical policy paid by direct debit would instead require a sales invoice to the insurer for just the commission.

    You are most strongly advised not to edit your posting defaults, which will have been set-up during the installation process, most probably by using the automatic set-up procedure (see “Accounts, Set-up Account Sets”).

    WARNING!

    There is no “Save” button for posting defaults. Instead each change is saved automatically immediately you move away from the changed field. So unless you are absolutely certain about the changes you intend to make you are advised not to proceed.

    Finding, Deleting & Creating New Posting Defaults

  • Click the “Find First” button on the toolbar (i.e. two to the left of the “Binoculars” button)
  • To check existing posting defaults simply click the “Find Next” button (i.e. right of the “Binoculars” button)
  • Click on the “Ledger” line you wish to check (e.g. “Advisers” or “Policy insurer”, as shown above)
  • Use the “Show Nominal Info” and “Show Journal Info” buttons, as shown above, to see the nominal accounts used for each invoice
  • Use the “Show Who Info” button, as shown below, to return from the nominal accounts info back to the address set details
  • To delete an unwanted posting default click the yellow “Bin” button
  • To create a new posting default, either…
  • o Delete the current posting defaults, then use “Account, Set-up Account Sets” to re-instate them correctly

    …or…

    o Find the most similar existing posting default

    o Click the “Signpost” button and accept the option to “Copy current default”

    o Edit the copied default, move off the final change, then save by exiting via the “Open door” or “Exit” button

    Example for DD Savings & Investments (Above) Explained

    The above two illustrations show the same posting default for all “Savings & Investments” business with the DD payment method. In the first illustration, above, you can see that the first invoice to be issued will be in the “Sales” ledger and be addressed to the “Policy insurer”. The second illustration shows the same posting default after the “Show Nominal info” button has been clicked, and allows you to see what sum needs to be included in the invoice, what nominal account it should be allocated to, and what text should be used for the invoice description.

    The posting defaults for Life, Pensions, Investments & Savings, Consultancy and Mortgage policies are all similar except that the different types of business get allocated to different nominal accounts. In the example above, which is for Savings & Investments, the nominal account that has been selected is “ICEA Investment Comm (Indemnity)”. The equivalent one for pensions would only differ in its use of the “PCEA Pensions Comm (Indemnity)” nominal.

    The payment method in this example is “DD”, which the system sets automatically when commission is indemnified, such as for a 20 years endowment. Payment methods are described fully in a section below, but in the case of all Life & Investment business there are only three types (i.e. DD, SO & RE) which distinguish between indemnified, non-indemnified and renewal business. Hence the posting default for non-indemnified “Savings & Investments”, such as for the purchase of a bond, would only differ from the illustrated “DD” one in its use of the “SO” payment method and the “ICEN Investment Comm (Non-indemnity)” nominal.

    The two illustrations, below, are for the same posting default, but show the second “Ledger” invoice, which in this case is to pay for the adviser’s commission. The first illustration, below, shows that the invoice will be in the “Purchase” ledger and use an address in the “Advisers” address set, while the second shows that it should use the “CADV Pay-away to Advisers” nominal account, for the applicable sum of adviser’s commission, with “Pay-away” as the invoice’s text description.

    Address Set “Ledger” Definitions

    The example posting default, above, includes a total of three “Ledger” invoice definitions: a sales invoice to the insurer for the commission, and two purchase invoices to pay any associated advisers and introducers. Note that if there is more than one adviser then each will cause an invoice to be generated based on the same definition for the “Advisers” address set (see section on “Multiple Pay-Aways”, below). This means you don’t have to create a definition for each individual adviser or introducer. Equally it means that you cannot create more than one definition for each associated address set.

    So for example, when using the “AG” method in General Insurance to invoice a sub-agent as illustrated below, you may need to enter your sub-agents’ details in one of your “Client” address sets (e.g. Clients, Business), because the “AG” posting default will already include definitions for the Insurer, Adviser and Introducer address sets.

    If there are no advisers or introducers involved in a given policy’s posting then the system will not attempt to generate any invoices for them, and their definitions will be ignored.

    Note that sometimes “Policy holder” and “Policy insurer” are used instead of a specific address set. In both cases the system will refer to the policy in question to find the applicable address set, as for example, the client record could be in any of the “Clients, Individual”, “Clients, Business”, or “Customers” address sets.

    Multiple Pay-Aways

    The following two illustrations show how commission pay-aways to different advisers result in three separate purchase invoices all based on the same “Advisers” definition in the posting default for “Savings & Investments”.

     

    Payment Methods

    Payment methods indicate the type of invoice required, and which nominal accounts to include, rather than the physical type of payment. So for example, a payment by cheque to the brokerage (method CH) for general insurance will require the same type of invoice as one by cash or credit card. In all of these cases the invoice will need to addressed to the brokerage and include the premium, commission and charges. In contrast if the customer chooses to pay the general insurer by direct debit or standing order (method DD) then the invoice will need to be addressed to the insurer and just comprise the commission.

    All general insurance payment methods are selected by the user on the policy “Premium Details” screen, as fully described in the section “General Insurance, Payment Methods”. The choices are…

    CH

    Cheque, cash, etc, paid to brokerage. In this case the client pays everything to the brokerage, which then forwards just the net premium plus IPT to the insurer

    DD

    Direct debit to insurance company. In this case the client pays the insurer direct, and the broker invoices the insurer for just the commission

    PR

    Parent policy controls payment & renewal, so no invoice required

    IN

    Identical to CH method (i.e. should be a direct copy of the CH one) but included to make it more obvious where payments are to be made to the brokerage by instalment

    AG

    Agency method, similar to CH method but invoiced to an agent or introducer (i.e. where sub-brokerage buys its insurance through your brokerage)

    CO

    Collection method, similar to CH but includes the commission in the brokerage’s payment to the insurer, which is subsequently returned

    CI

    For co-insurance cases, with no invoice to client. Similar to CH method except that no invoice is raised for the client (see CC, below)

    CC

    For co-insurance cases, with no invoice to insurer. Other half of the CI method, above, except this time no invoice is raised for the insurer

    The payment methods for all Life, Pensions, Investments & Savings, Consultancy and Mortgage postings are all pre-set automatically by the system, as follows…

    DD

    Indicates indemnified commission

    SO

    Indicates non-indemnified commission

    RE

    Indicates renewal commission

    Types of Business

    If for example, you only do Life, Pension & Investment business and do not have separate nominal accounts for Life, Pensions, Savings, etc, then you could get away with just three posting defaults for the three different payment methods (i.e. just for indemnified, non-indemnified and renewal). In this case you would set all of the “Set”, “Sub-set”, “Company” and “Product” dropdowns of your three posting defaults to “All”, and they would then apply equally to all types of business. On the other hand, if you do have separate nominals for each type of business (or “Set”) then you’ll also need to create a posting default for each one. In the case of mortgage work, as illustrated below, you might need to further distinguish between business paid by the customer and that paid by the provider (i.e. because the former will require an invoice addressed to the customer, while the latter will invoice the provider, or “Insurer”). In the absolute extreme you could create posting defaults for every individual insurance product you handle, but generally speaking you’ll find that the less posting defaults you have the more likely they are to work consistently.

    Editing or Creating Posting Defaults

  • Use the “Payment method” dropdown to select the payment method, as described above.
  • Use the “Set”, “Sub-set”, “Company” and “Product” dropdowns to select the type of business
  • Click the “Add” or “Delete” buttons to add or delete “Ledger” definitions for each associated “Address Set”
  • Use the “Ledger” dropdown to specify whether each address set definition should go to the “Sales” or “Purchase” ledger
  • Use the “Address set” dropdown to select the applicable one (N.B. “Policy holder” and “Policy insurer” both work for any address set)
  • Click on, and thereby highlight, the “Ledger” item you wish to edit or review, then click the “Show Nominal info” button
  • Refer to the following illustration that shows the set-up of Motor business paid by CH (e.g. cheque or cash to the brokerage)
  • Click the “Add” button at the bottom left of the screen to add the first sum to be included in the invoice
  • Select the nominal account for the first sum (e.g. GPRM General, Premiums Received)
  • Tick the sums to be allocated to this nominal account (e.g. the insurer’s gross premium, minus the insurer’s NCD discount, plus the IPT tax, minus the brokerage’s commission)
  • Ensure the buttons to the right of each sum are correctly set to “Add” or “Subtract” (e.g. to “Add” the insurer’s gross premium, then “Subtract” the insurer’s NCD discount, etc)
  • Select a VAT rate, if applicable
  • Enter an invoice description (i.e. text to appear in this line of the invoice), such as “Net premium”
  •  

  • Refer to the following illustration that continues with the set-up of Motor business paid by CH (e.g. cheque or cash to the brokerage)
  • Click the “Add” button at the bottom left of the screen to add the second sum to be included in the invoice
  • Tick both of the “Show control accounts” tick-boxes
  • Select the account for the second sum, which in this case needs to be the control called “G*CS General, Comm (in Suspense)”
  • Use the “Transfer to” dropdown to select which control account to move this sum into after it has been received (i.e. reconciled in the Cashbook)
  • Tick the sums to be allocated to this nominal account (e.g. total commission)
  • Ensure the buttons to the right of each sum are correctly set to “Add” or “Subtract” (e.g. to “Add” the commission)
  • Select a VAT rate, if applicable
  • Enter an invoice description (i.e. text to appear in this line of the invoice), such as “Commission”
  • Carry-on editing the posting default until complete, then move away from the last field that you’ve worked on and click the “Exit” button to save and exit
  • Adding A Journal

    In the case of motor business by CH (cheque, cash, etc) you should include the net premium, which the client pays to the brokerage, to be forwarded to the insurer. However in the case of motor business by DD (direct debit, standing order, etc) you should not include the net premium, as the insurer will simply be sending you the commission. This means that although your Profit & Loss and Trial Balance reports will correctly show your profitability, they will not include your net premium turnover for DD business, unless you also add a journal to the “Sales” invoice of each DD posting default. To do so, with reference to the following illustration…

  • Click on, and thereby highlight, the sales “Ledger” item, then click the “Show Journal info” button
  • Click the “Add” button at the bottom left of the screen to add the first journal
  • Select the “Purchase” nominal account to debit
  • Select the matching “Sales” nominal account to credit
  • Tick the sums to be allocated to these nominal accounts (e.g. the insurer’s gross premium less the insurer’s NDC discount – i.e. the net premium)
  • Ensure the buttons to the right of each sum are correctly set to “Add” or “Subtract” (e.g. to “Add” the gross premium)
  • Enter a text for the journal (e.g. “Net premium”)
  • Carry-on editing the posting default until complete, then move away from the last field that you’ve worked on and click the “Exit” button to save and exit