how do i enter invoice from Insurance Broker that has premium funding with monthly payments

TashGee
TashGee Member Posts: 2
edited June 2019 in Accounts Hosted
what is the best way to process a bill from Insurance broker that is being paid via premium funding with monthly instalments. there are 4 insurance bills attached to the funding. Insurance relating to MV, Landlords, Work Cover, Business. do I do up bill from Insurance broker for each bill, do general journals for all the pre-paid expense ie insurance, stamp duty, policy fee, broker fee?? then how do I pay the premium funding company from our bank account in reckon?? TIA

Comments

  • Shirley Ingle
    Shirley Ingle Accredited Partner Posts: 146 ✭✭
    edited February 2017

    Hi Tash  Don't make it hard for yourself.  All you do is Enter a Bill. Read from the Bill for details.

    E.G. You are paying Premium Funding (that is the Supplier name). Date of the Invoice, Invoice Reference, Total amount of the Funding.

    For Account  Motor Vehicle Insurance NCG  (premium amount and GST), Next line MV Insurance NCF (Stamp duty of the MV insurance)

    Split the same way for Landlords Insurance (that is Landlords Insurance premium and Stamp Duty) and Work Cover.

    Last line charge from Premium Funding (sometimes around $100 or so). Can split this over the 3 insurances or code to Bank Charges (NCF I think).

    For the first payment there will be a small charge from Premium Funding but the next payments will be the same amounts.

    You will see the Direct debit on the bank statement. Go to Pay Bills, Enter the amount PF have deducted, down the bottom make sure you have the right date and where the payment is coming from e.g. Bank or Credit Card.

    Once you have made the first payment, you can go to Pay Bills and you will see there is a balance left to pay. If you were to divide that amount by say 11, that should calculate the exact amount of each months payment. Could be a cent or so difference at the end.

    No need for Journals. Hope you can follow the above.

  • Lee
    Lee Member Posts: 67
    edited February 2017
    Thanks for this Shirley. I have previously calculated all the separate details in a spreadsheet then created separate monthly bills (with split details as you have indicated), and showing the monthly payment due dates. By doing it as a single bill how do you then not have a regular overdue bill showing up in your accounts payables reports?
  • Shirley Ingle
    Shirley Ingle Accredited Partner Posts: 146 ✭✭
    edited February 2017
    Hi Tash  If you put the Bill in at the date of the invoice, the total amount owing will show in your Accounts Payable until the payment is finalized. If the payment has been set up with PF as an automatic deduction, you are not going to miss paying as you will pick it up on your bank statement when you are reconciling if you have not already marked off the monthly payment in Pay Bills. You are only creating more work for yourself by setting up a spreadsheet when the Reckon program can handle the work for you.
  • TashGee
    TashGee Member Posts: 2
    edited February 2017
    Thank you Shirley!! I just thought I needed to account for both bills in my accounts . Plus was concerned re prepaid expenses but I'm taking your approach ! As the Meerakat says "Simples"