Make a payment from exposure file’s Accounting screen

You can issue payments on a claim from the exposure file’s Accounting screen. To issue a payment, reserves must first be set. See Set reserves from exposure. The amount of payment can’t exceed the remaining reserve amount.

Payment workflow

On the exposure Accounting screen, when you select the Make Payment button, you are directed to the Make Payment dialog box. The Level 2 sub-reserve category is automatically selected based on your point of entry. You have the following options for the payment transaction you are entering:

  • Cancel: When you cancel the payment transaction, the information you entered won’t be saved.
  • Save As Draft: When you save the payment transaction as a draft, you can either submit it at a later date or delete it, which will terminate the workflow. The status of the payment transaction will be Draft.
  • Save: When you save the payment transaction, you submit it.

When the payment transaction is submitted, the status Approved is applied. The transaction will automatically update the Exposure Accounting Summary. If you don’t submit the payment, and instead save it as a draft, the status Draft is applied and the Exposure Accounting Summary will remain unchanged.

Once the payment transaction is processed and assigned to a batch field for issuance, the payment transaction status will change from Approved to Posted. After the payment transaction is processed, it can either be voided or exported for issuance.

When a payment transaction is voided, the following happens:

  • The payment workflow is terminated.
  • Automatic entries are created in the Transactions table. These entries remove the payment, increase the reserve, and reference the Transaction ID of the original payment that was voided.
  • The payment transaction status changes to Voided.

If money needs to be moved from one Level 2 sub-reserve category to another, manual adjustments can be made once the payment transaction is exported for issuance and has been cleared. See Make manual adjustments.

Complete the Make Payment dialog box

To issue a payment on an exposure, access the desired exposure, go to the exposure file’s Accounting screen, and:

  1. In the Actions column of the Exposure Accounting Summary table, select Make Payment for the reserve you are issuing payment on. The Make Payment dialog box will open.
    Figure 1: The Make Payment dialog box.
  2. In the Payee dropdown list, ensure the correct name is displayed. To change the payee name, open the dropdown list and select the correct payee. The dropdown list is separated into Claimants, Associated Parties, Exposure Vendors, and All Vendors.
  3. To add an additional payee, select + Add Payee. Make a selection from the And/Or dropdown. In the Second Payee dropdown list, select the name of the additional payee. The dropdown list is again separated into Claimants, Associated Parties, Exposure Vendors, and All Vendors and will display all names that appeared in the Payee dropdown list, except for the primary payee’s name. Repeat step 3 to add additional payees.
  4. In the Display on Check box, ensure the correct information is displayed. To edit the information, type in the Display on Check box. There is a character limit of 70 characters for the Display on Check box. The system will count characters already consumed by the prepopulated information.
  5. In the Address Information section, complete the address boxes, or if more than one address exists for the payee, select an address from the Select Address dropdown list.

    Note: Addresses can be overwritten. The address in the Make Payment dialog box is stored with the payment record and any changes made to the address in the payment record won’t change the address of the party.

  6. In the Reserve Category dropdown, ensure accurate information for the reserve category is displayed. To change the reserve category, open the dropdown list and select one of the other level two reserve categories listed.
  7. In the Transaction Codes box, ensure accurate information is displayed. The transaction codes available depend on the reserve category selected. Open the Transaction Codes dropdown list and select the correct code from the list.
  8. In the Due Date box, use the date picker to select the date of the payment.
  9. In the Payment Method box, select the type of payment. Payment methods are configurable and separate batch files can be created for each payment method type.
  10. In the Payment Type box, select the type of payment.
  11. If you want to apply a deductible, select the Apply Deductible checkbox. Additional fields will appear. If you leave the checkbox unmarked, move to step 13. See Manage Deductibles for more information. Refer to Figure 2 for step 12.
    Figure 2: Additional fields that appear when you select the Apply Deductible checkbox. Notice the amounts displayed in the Amount Before Adjustments, Deductible Amount to Apply, and Payment Amount boxes.
  12. In the Amount Before Adjustments box, type the amount of the payment before the deductible is applied. In Figure 2, the amount typed is $1,500. The amount in Deductible Amount to Apply is prepopulated and associated with the deductible or overridden deductible associated with the coverage. In Figure 2, the Deductible Amount to Apply is $450. As you type in the Amount Before Adjustments box, the system will automatically subtract the Deductible Amount to Apply box from the Amounts Before Adjustments box and the remaining balance will populate in the Payment Amount box. Using Figure 2 as an example, $450 is subtracted from the $1,500, leaving the Payment Amount at $1,050.
  13. In the Payment Amount box, type the amount of payment.

    Note:The payment amount can’t exceed the reserve balance or be negative, unless the payment method is a manual adjustment.

  14. In the In Payment Of (Memo) box, type what you want to appear on the memo line.
  15. In the Comments box, type any comments you have about the payment. This information will display in the Transaction Details section.
  16. Depending on your role, if manually clearing a check, you can add additional check information. Select the Check Information checkbox and:
    1. In the Check Number box, type the check number.
    2. In the Check Date box, use the date picker to select the check date.
    3. In the Cleared Date box, use the date picker to select the cleared date of the check.
  17. Select Save. When you select Save, rules are triggered and the payment is submitted. The triggered rules are tied to:
    • 1099 information being filled out for payees.
    • Data requirements for injured related parties that are a payee.
    • Financial authority limits of the user.