Producer Commission: What you owe the people who sell — on a statement that does not change under them

Agent commission plans, monthly payout runs, frozen and versioned producer statements, draws and holdback, chargebacks and clawback, upline overrides, the licence check at payment and commission withholding — inside Insurance Agency Management.

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Insurance Agency Management

Producer Commission in the Insurance Suites: What you owe the people who sell — on a statement that does not change under them

The plan decides the number before anybody argues about it

A compensation plan says which ledger a producer is paid from — what was billed, what was collected, or what the carrier's statement reconciled — with collected as the default, because paying on billed is how a small agency funds its payroll out of premium it never received. The plan carries the frequency and payment lag, the minimum payout, the holdback and when it is released, recognition for agency bill and direct bill, and the draw. Each producer's record carries their type, contract rate, production credit, upline and licence.

One payout run

The period, the payout date and the producers in scope, then every statement it produced with commission earned, chargebacks, withholding tax, net payable and any carry forward.

An issued statement is a document, not a report

Producers dispute their pay, and that decides what this app is. A payout run records which producers were in it, on what basis, which statements it produced and which were held and why. Once a statement is issued its amounts, period, lines and opening balance are frozen; a correction is version 2, and version 1 stays exactly as the producer received it. The statement then becomes a vendor bill and joins the ordinary payment run and bank reconciliation.

A chargeback is not a special case, and a draw is a loan

A cancellation is an ordinary transaction with a negative premium, and the commission that follows it is negative through the same arithmetic. Five bases ship — pro rata, short rate, a cliff schedule by months in force, advance, and none — across nine triggers from lapse to loss of agent of record. Warnings still sixty to ninety days out are carried as commission at risk. A recoverable draw nets against every later payout until it is worked off; a non-recoverable draw is a guaranteed minimum whose shortfall is agency expense.

The draw ledger

Recoverable and non-recoverable draws apart, with what was advanced, what has been recovered and what is still outstanding.

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What's inside

Everything in Producer Commission

22 items in 11 areas, every one shipping with the app today.

Reporting
- Today, yesterday, this week — on every listPayouts, payout lines, chargebacks and draws filter by today, yesterday, this week, last week, this month, last month, this year and last year.
Accounting
- Vendor bills and invoices, not a side ledgerA payout run raises vendor bills for producers who invoice the agency, and customer invoices where the agency bills the producer — so payment, matching and ageing are those of Accounting, and a chargeback lands against the document it belongs to.
Plan
- Three payout basesBilled, collected, or reconciled on the carrier's statement. Collected is the default.
- Recognition by bill methodAccrual on agency bill and fully paid on direct bill, or whatever your agreement says, set separately.
- Frequency, lag and thresholdWhen the run happens, how many days after the period it pays, and the balance below which it is held.
- Holdback and its releaseA percentage withheld against clawbacks still in their window, released after the days the plan names.
Producer
- Gross or net, by producer typeAn inside producer is paid from net commission after the external parties; an external one from gross.
- Credit is not the pay rateProduction credit splits the business; the contract rate decides what a producer is paid on their share.
Hierarchy
- Differential or flat overridesDifferential pays the spread to each upline and cannot over-pay; flat pays a percentage and is checked before it is saved.
Payouts
- Runs that rememberWhich producers were in, on what basis, what each statement came to and which were held and why.
- Held, not paidA lapsed licence, a debt over the hard limit or a balance under the threshold holds the statement.
Statement
- Issued means frozenAmounts, period, lines and opening balance cannot move; settlement and disputes still can.
- Versioned, both waysVersion 2 points back at version 1, and version 1 points forward at what replaced it.
- Copied on at build timePremium, commission, credit and rate are written onto the line, so a past statement stays reproducible.
Chargebacks
- Five bases, nine triggersPro rata, short rate, cliff, advance or none; lapse, cancellation, rescission, non-payment, free-look, NSF and more.
- Commission at riskWarnings sixty to ninety days out carried as a forecast before they become a clawback.
- After termination, as a switchWhether business written before a producer left can still claw back is a field on their record.
Draws
- Recoverable or guaranteedA loan netted against later payouts, or a minimum whose shortfall is agency expense.
- Debt limitsA warning limit and a stop limit on the balance a producer may carry, with the balance and its age on the record.
Money
- A vendor bill, not a side ledgerProducer pay joins the ordinary payment run and bank reconciliation.
- Withholding off the paymentThe jurisdiction's commission levies come off what is paid, and a chargeback carries negative withholding.
Access
- Producers see their ownOnly the records that name them, and only issued statements.

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What Producer Commission works with

Producer Commission shares one database with the rest of the Insurance Suites and BridgeERP: these are the apps it already talks to, with nothing to buy in between.