Voucher processing tracks the previous balance forward or negative balance and applies it to the current payout amount, resulting in a new amount paid. This is critical for the carrier to track balances owed for accounting purposes and to recoup balances from payees who no longer sell for the carrier.
Let’s look at an example using the carrier in our scenario, SafeCare Insurance. SafeCare pays advance commissions for P&C renewals each year. Let’s say one of our brokers, Deborah Willis, owns a group policy renewed by Page Mortgage Group in January 2022, and was paid the full commission for the year. Now, let’s flash forward to June, when Page Mortgage asks to cancel the policy. This means SafeCare needs to recoup the commissions paid to Deborah for the second half of the year. This is called a clawback.
Typically, the number of dis-enrollments in a given month will be greater than the number of new sales. This results in a payee having a negative net amount paid in a given period. These balances are tracked on the voucher record.
Other functions of the voucher are:
- Tracks Gross amount paid in current payout
- Accumulates and tracks total positive and negative commission amounts separately
- Tracks total number of BrokerHistory records for the voucher to aid in reconciliation
- Tracks the runlist of when voucher was created
- Tracks runlist of when voucher was released for payment
- Links to the statement in APMe