Term Effective Date
Overview
The Term Effective Date marks the beginning of a policy term. It is used to calculate the expected commission schedule and drive the Accounts Receivable report.
🛠️ Key Concepts
- Billing vs. Received: The Effective Date is the "Billing Date." It is when the money is earned, regardless of when the check arrives.
- Payment Expectations: Combined with # Of Payments/Term, this date defines the window of time Commission Tracker expects to see revenue for this policy.
💡 Best Practices
- ✅ Consistency: Match the Effective Date to the Carrier's master record to prevent false positives in A/R reporting.
- ✅ Modifications: Use caution when changing this date on policies with existing payment history to avoid orphaned or invalid payment records.