Manage negative commissions

Negative commissions occur when the sum of all monthly transactions for an agency net less than $0.

Example: Both Agency 1 and Agency 2 have negative commissions for the month of January 2021.

Agency 1 has negative commissions on paid premiums because:

• The payment received for P-2021-2 was marked NSF.
• The insured on P-2021-3 was overcharged, and Agency 1 had to issue a return premium.

Agency 2 has negative commissions on written premiums because:

• Policy P-2021-2 was canceled mid-term, which resulted in Agency 2 issuing a return premium for the amount of written premium that was more than the earned and paid premium.
• Policy P-2021-3 was flat canceled, so Agency 2 had to issue the return of the paid premium in full.

Negative commission calculation

Each month, negative commissions can be billed or carried (rolled) over to the next month.

To define the Roll over negative commission balances each month (delay negative commission) setting:

1. In BriteCore, select Settings.
2. On the Settings screen, select Modules > Contacts > Commission Payments.

Note: By default, the setting isn't selected and is disabled.

Bill negative commissions

Clients may prefer that commissions start from $0 each month. When the above setting isn’t selected, BriteCore will process as if the agency will pay the negative amount owed. The next month's commissions for that agency will then start at $0. The commissions for the month will match the monthly activity.

Roll over negative commissions

When the above setting is selected, BriteCore assumes the agency won't pay the negative commission and will roll over the negative amount to the next month. The next month's commissions for that agency will then start at the negative amount from the previous month. Commissions won't be paid until the net balance is positive.

Agency 2 had a negative commission balance in January. In February, the net activity was positive, so the commission paid was the sum of February's activity of $3,000.00 and January's activity of -$1,000 for a total commission paid of $2,000. 

Receive notification of negative commissions

Designated recipient(s) can receive administrative alert emails regarding negative commissions or potential commission issues for an agency. These emails will be sent regardless of the Roll over negative commission balances each month (delay negative commission) setting.

Designated recipients can receive any of the following email types:

• Commission Payments Delayed: Review ASAP: This email will show all negative payments for the month broken down by agency and policy number. This email will include the following message:

  This month at least one commission payment was delayed. Below is a list detailing why each payment failed, who the payment was for, the amount of the payment, and the records that the payment is comprised of.

• Policy Terms Missing Revisions: This email will notify recipients of missing revisions. This email will include the following message:

  The following policy/effective date combinations appear to be missing at least one key revision (probably the effective/renewal revision). Commission processing will skip all policy terms listed below unless the issues are corrected before the end of the month.

• Agents Missing Agencies: This email will notify recipients when an agent isn't associated with an agency. This email will include the following message:

  Please address the following issues as soon as possible by adding agencies to each agent! When making these updates, you should also verify that all other agents on a given policy's history belong to agencies as well. Also, please note that the policies listed below may not be an exhaustive list of those a given agent is associated with. Rather, the policies listed are those that will experience issues when commissions are next calculated.

To designate recipients for these administrative alert emails:

1. In BriteCore, select Settings.
2. On the Settings screen, select System Wide > Administrative Alerts > Processing.
3. In the Payments box, type the email address(es) of the designated recipients.

   Note: If you're entering more than one email address, use a comma to separate the email addresses.

4. Select Save.