Glossary
Statement Variance
The difference between the commission a carrier paid on a transaction and the amount the agency expected, calculated as received minus expected.
A variance is the unit of work in commission reconciliation. Negative variance means underpayment; positive means the carrier paid more than the schedule implies, which is worth investigating too because it is often a duplicate or a misapplied transaction.
Sign convention has to be consistent everywhere it is calculated, or the same underpayment will read as a shortfall in one report and a surplus in another. Agreeing on received minus expected — and applying it uniformly — removes an entire class of confusing reconciliation bugs.
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
- Commission Reconciliation — The process of verifying that the commission a carrier actually paid matches what the agency was contractually owed, lin…
- Short Pay — A commission payment smaller than the agency was owed, whether from a wrong rate, an omitted transaction, or an unexplai…
- Commission Statement — A document from a carrier showing the commissions earned by an agency on policies sold, including premium amounts, commi…