Glossary
Commission Reconciliation
The process of verifying that the commission a carrier actually paid matches what the agency was contractually owed, line by line.
Commission reconciliation asks a narrower question than premium reconciliation: not 'did the money balance' but 'were we paid correctly'. It compares each statement line against expected commission derived from the policy's premium and the applicable rate schedule.
The output is a variance list. Most lines tie out; the ones that do not are short pays, missing transactions, wrong rates, or chargebacks that should not have been taken. Chasing those variances is where the recoverable money in agency operations actually sits.
Work this out on your own numbers
Paste the lines off a statement and see which ones differ from the rate you expect. Runs in your browser.
Commission statement variance checkerSee also
- Statement Variance — The difference between the commission a carrier paid on a transaction and the amount the agency expected, calculated as …
- Short Pay — A commission payment smaller than the agency was owed, whether from a wrong rate, an omitted transaction, or an unexplai…
- Commission Rate Schedule — The agreed table of commission percentages a carrier pays an agency, typically varying by line of business, new versus r…