Accounts Payable

The Accounts Payable module handles the processing and payment of vendor invoices.   The capabilities of the AP module include cash or accrual basis accounting, multiple trade accounts, account current, tax and state or agent fee payables, MGA and producer commission processing, surplus lines taxes, direct deposit processing, bank reconciliation, 1099 processing, and laser check printing.

• Voucher Processing:  GAAPinsurance is a multi-subsidiary ledger system so you may have multiple A/P Trade accounts.  All policy activity is automatically posted to the multiple Accounts Payable Balance Sheet accounts that would be typically labeled as A/P Premium Payable, A/P MGA Commissions Payable, A/P Producer Commission Payable and A/P Taxes and Fees Payable.  The appropriate payable vouchers are created as the policies are bound.  You may also have the more traditional A/P Trade payable account through which business overhead payables are processed, i.e. rent, utilities, etc.  Voucher processing functions include:
  
  
  • Voucher Entry
  • Void A/P Vouchers
  • Void Insurance Vouchers
  • Cancel Voucher Balance
  • Change Payee / Payment Schedule
  • Voucher Inquiry of Updated Vouchers
  • Voucher Registers
    
    
• Payment Selection Processing:  Scheduling or “payment” records are created for each payment that is to be made on a voucher; vouchers may be scheduled for an unlimited number of future payments.  This section provides for the process of approving what is to be paid, what has been scheduled and committed for payment and un-approving items that were previously approved for payment.  Premium payables are not typically approved through this process, see Account Current Processing for premium payables.
  
  
  • Cash Requirements Report
  • Scheduled Payments Report
  • Payment Approval Process
  • Pending Disbursements Report
  • Payment Un-approval Process
    
    
• Account Current Processing:  Unless policy issuance is through a program directly managed on behalf of or directly connected to the carrier and the premium trust accounts are managed by the carrier, an “account current” report of policy and endorsement activity eligible for payment for a selected time period is produced.  Rules vary by carrier as to when policy premiums, taxes and fees must be reported and paid, but typically all collected premium must be forwarded to the carrier within a specified number of days and commissions (MGA and producer) may be taken at that time.  GAAPinsurance does have switch setting options that allow MGA commission to be taken when the Account Current is paid, when the Account Current is “locked” or whenever collected, commissionable premium exists.  Account Current functions include:
  
  
  • Account Current Assignment
  • Account Current Review
  • Account Current Status
  • Commission Reports (MGA and Producer)
  • Issue Checks: Account Current (Carrier)
  • Issue Checks: MGA Commission
    
    
• A/P Cash Receipts:  Return premium endorsements and cancellations may create a situation where a filing agent owes you and it is determined that you are not going to carry the “credit voucher” to be applied toward a future payment to the given agent.  In this case you may receive a cash receipt from a “vendor” and you need to apply the cash against a credit payable, hence the “A/P Cash Receipts” function
  
  
• A/P Check Processing:  GAAPinsurance provides for complete check printing, i.e. corporate logos, scanned signatures and MICR encoding to be printed using the laser printer, a standard magnetic ink toner cartridge and built-in menu selections.  The following functions indicate the flexibility of disbursement capabilities that exist within GAAPinsurance.  These functions are in addition to those capabilities provided in the Account Current Processing and Producer Commission Processing sections of the system.  Third-party and refund check processing also has the added feature of allowing the disbursement to be net of receivables and payables to the given entity (typically the producer):
  
  
  • Issue Checks: Standard Trade Payables/By Policy/By Vendor/Refunds/Third Party / Filing Fees
  • Reprint Checks: Insurance (with or without account current report attached)/ Standard
  • Issued Checks Inquiry
  • Laser Checks Format Control
  • Manual Disbursements Posting
  • Void Checks Process: Insurance/ Standard
  • Re-instate Void Checks
  • Disbursements Journal: Insurance/ Standard
  • Check Registers
    
    
• A/P Vendor Aged Trial Balance:  Standard aging of vendor invoices for selected A/P accounts, companies, vendor types (insurance, trade, etc) and the specified as-of-date.  Trial balance reports, along with most reports in GAAPinsurance may be displayed (HTML pages), printed and exported.  There are two formats of Aged Trial balance, the standard accounting format (30, 60, 90, etc) and the insurance accounting format to include columns for policy-specific information (inception date, insured, etc) and aging of deposits as well as premium balances.
  
  
• A/P Trial Balance Reconciliation:  Integral functionality to assist in automatic reconciliation of vendor invoices and variance calculations.
  
  
• Bank Reconciliation:
  
  
  • Bank Reconciliation By Check/By Statement
  • Check Reconciliation Registers
  • Deposits Journal
  • Deposits Inquiry Display
    
    
• Invoice Inquiry and Reporting:  Select any vendor by number or name in order to view (or print) a full audit trail of accounting activity by invoice.  The report may by filtered by company, date, check number, voucher number, invoice number and invoice status (open, closed, all).
  
  
• Vendor Audit Trail Reports:
  
  
  • Detail Audit Trail Reports
  • Summary Disbursements Reports
    
    
• 1099 Forms and Reports:  Any Accounts Payable voucher may have detail activity that is “1099 eligible”.  A vendor may be defined with a default 1099 block assignment that will automatically track these eligible amounts whenever a payable is posted to the General Ledger.
  
  
  • 1099 Reports and Forms and Magnetic Media (tape, files, etc)
  • Clear 1099 Adjustments
    
    
• Transfer Vendor Activity:  In the event that a “duplicate” vendor was created and has had posted activity, the references and audit trail from one vendor may be transferred to and merged with the activity of another vendor.  This process may also become useful if an existing producer/broker is purchased by another and all activity should be “merged” to just one producer.