How to book sub-broker premium collection fees
Records the administrative fee charged to a sub-broker when the MGA performs the direct premium collection service on their behalf.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Due from Sub-Broker (Premium Account) | Asset | 250.00 | - |
| Service Fee Income (Admin) | Revenue | - | 250.00 |
💡 Accountant's Note
Debit the sub-broker's ledger account to deduct the fee from their net premium remit and credit the service fee income account.
Practitioner & Systems Framework
💻 ERP Architecture
Set up an automatic deduction rule in the sub-broker settlement process for collection services.
⚠️ Audit Flags
Lack of provision for collection fees in the sub-agency contract.
📄 Required Documentation
Sub-broker agreement and monthly premium collection report.
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Expert Analysis by Qusai Ahmad
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Discussion & Community Questions
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