Glossary
Short Pay
A commission payment smaller than the agency was owed, whether from a wrong rate, an omitted transaction, or an unexplained deduction.
Short pays are the most common commission error and individually small enough to be ignored — a fraction of a percent on one policy. Across hundreds of transactions a month they compound into real money.
They are only findable through systematic comparison. An agency that reviews statements for reasonableness will not catch a rate applied at nine percent instead of ten; only calculating expected commission per line and differencing it will surface that.
See also
- Statement Variance — The difference between the commission a carrier paid on a transaction and the amount the agency expected, calculated as …
- Commission Reconciliation — The process of verifying that the commission a carrier actually paid matches what the agency was contractually owed, lin…
- Accounts Receivable Aging — A report grouping outstanding client balances by how long they have been unpaid, typically in 30, 60, 90 and 120-day buc…