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Partial Payments and Chargebacks

The Partial/Chargeback tool allows you to handle financial discrepancies where the commission received does not match the expected amount. This is most commonly used for Chargebacks (when a carrier claws back a previously paid commission) or Partial Payments (when only a portion of a month's commission is paid).

When to Use This Tool

Use this feature in the following scenarios:

  • Commission Reversals: A client cancels a policy, and the carrier takes back commission they already paid you.

  • Underpayments: The carrier pays part of a commission now and will pay the rest later.

  • Lapses: Adjusting the records to reflect that a carrier is not paying for a specific month due to client non-payment.

Processing a Chargeback

To record a chargeback, locate the policy and click the Partial/Chargeback button.

Partial Payment and Chargeback Entry Interface

Critical Entry Fields

To ensure your accounting and agent payouts are correct, focus on these three fields:

  1. Billing Date: Select the specific month from the list that the carrier is charging you back for.
  2. Received Date: Enter the date you received the statement showing the chargeback. Note: This date determines which Agent Commission Report period the deduction will appear in.
  3. Actual Commission: Enter the amount as a negative number (e.g., -250.00). This represents the amount the carrier is deducting from your agency.

Premium Adjustments

If your agents are paid based on a Percentage of Premium, you should also enter a negative Actual Premium amount. This ensures the split logic calculates the agent's deduction correctly.

What Happens After Posting

Once you save the entry, Commission Tracker automates the following:

  • Agent Deductions: The system identifies which agents were paid for that billing date and automatically creates a negative entry on their next commission statement.
  • Payment History Audit: A new line item is added to the policy's Payment History with the negative values, providing a clear audit trail.
  • A/R Balancing: The status of that billing month is updated to reflect the reduction in revenue.

Chargeback in Payment History

Fixed Dollar Agent Splits

If an agent on the policy is paid a flat "Dollar Amount" rather than a percentage, the software will trigger a pop-up asking you to manually specify exactly how much of the chargeback should be applied to that agent.

Troubleshooting

Q: I entered a chargeback but it isn't on the Agent's report. A: Check the Received Date of the chargeback. If that date falls outside the date range of the report you are running, the deduction will not appear until the next period.

Q: Can I use this for a partial payment? A: Yes. For a partial payment, enter the positive amount received. The system will show the month as "Partially Paid," and the remaining balance will stay in your Accounts Receivable report.

Next Step: To verify the impact on your carrier statements.

Need help with a complex reversal? Contact support@commission-tracker.com