Does Premium Accounting reconcile carrier commission statements?

Yes. Carrier statements are matched to expected commission activity with variance tracking.

Can Premium Accounting handle commission adjustments from endorsements and cancellations?

Yes. Commission adjustments are tracked and reconciled automatically.

Does Premium Accounting support split bill and MGA bill workflows?

Yes. Split bill and MGA bill variants are supported using the same premium accounting and reconciliation logic.

Does commission reconciliation synchronize to the accounting ledger?

Yes. Reconciled commission outcomes are synchronized to the accounting ledger.

Direct Bill Commission Reconciliation for Insurance Accounting

Direct bill commission reconciliation is one of the most time-consuming tasks in insurance accounting. When carriers bill the insured directly, MGAs and wholesalers must reconcile commission statements against expected premium activity. Differences in timing, adjustments, and carrier reporting formats force accounting teams into spreadsheets. Premium Accounting provides insurance-specific direct bill commission reconciliation built for MGAs and wholesalers who need accuracy without manual work.

Why Direct Bill Commission Reconciliation Is So Difficult

In direct bill workflows:

The carrier bills and collects from the insured
The MGA or wholesaler earns commission
Commission is paid based on carrier statements

Accounting teams must reconcile:

Expected commission versus paid commission
Adjustments from endorsements and cancellations
Timing differences between earning and payment
Carrier statement variances

Without a structured reconciliation process, spreadsheets become the system of record.

How Premium Accounting Handles Direct Bill Commission Reconciliation

Premium Accounting treats direct bill commission as a core accounting workflow.

The process includes:

Tracking expected commission from policy and transaction data
Ingesting carrier commission statements
Matching statements to expected commission activity
Identifying variances and timing differences
Maintaining a clear audit trail of reconciliation outcomes

This allows accounting teams to reconcile commissions without rebuilding logic each month.

Handles Endorsements, Cancellations, and Adjustments

Direct bill commission rarely matches original expectations.

Premium Accounting supports:

Commission adjustments from endorsements
Reductions or reversals from cancellations
Timing differences between earned and paid commission
Clear explanation of why variances occurred

All adjustments remain traceable to the underlying policy and transaction history.

Supports Related Billing Variants (Split Bill and MGA Bill)

In practice, direct bill workflows often include variations.

Premium Accounting supports:

Split bill scenarios, where premium is divided between parties
MGA bill workflows, where the MGA bills part of the premium while the carrier bills the remainder
Mixed billing models within the same program or carrier relationship

These are handled using the same premium subledger and reconciliation logic, avoiding special-case spreadsheets.

Reduces Spreadsheet Dependency in Commission Reconciliation

Spreadsheets are commonly used to:

Match carrier statements to expected commission
Track open commission balances
Explain differences month over month

Premium Accounting replaces spreadsheet logic with:

Structured commission tracking
Rules-based reconciliation
Transaction-level audit history

This reduces risk and improves confidence in reported commission income.

Keeps Commission Reconciliation Aligned With Accounting

Direct bill commission reconciliation in Premium Accounting flows into:

Accounts receivable where applicable
Netting and settlement workflows
Transaction history and audit trail
Synchronization to the accounting ledger

This ensures commission reporting aligns with financial statements and close. To see how commission reconciliation fits into broader workflows, review how Premium Accounting integrates with insurance management systems and accounting ledgers.