How to book TPA service fee income
Recording administrative fees charged to carriers for Third Party Administration (TPA) claims handling services.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accounts Receivable - Carriers | Asset | 4,200.00 | - |
| TPA Fee Revenue | Revenue | - | 4,200.00 |
💡 Accountant's Note
MGAs with TPA authority earn fees for processing claims. This revenue is distinct from brokerage commission and represents a service-based income stream.
Practitioner & Systems Framework
💻 ERP Architecture
Track using a separate revenue code to monitor the profitability of the claims department versus underwriting.
⚠️ Audit Flags
Discrepancy between the volume of claims processed and the total fee income recorded.
📄 Required Documentation
Claims service agreement, monthly bordereau of claims handled, and carrier-approved fee schedule.
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Discussion & Community Questions
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