How to record MGA policy production fees
Accounting for administrative fees charged by an MGA for the generation and distribution of physical or digital policy documents.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accounts Receivable - Policyholder | Asset | 75.00 | - |
| MGA Policy Production Fee Revenue | Revenue | - | 75.00 |
💡 Accountant's Note
MGAs often charge a flat production fee per policy issued to cover overhead related to document management and carrier compliance reporting.
Practitioner & Systems Framework
💻 ERP Architecture
Set as a non-premium fee item in the agency management system billing module.
⚠️ Audit Flags
Variance between policy count and production fee revenue totals.
📄 Required Documentation
Policy declaration page showing the itemized fee.
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Related Journal Entries
Insurance Broking & MGA
Insurance Commission — Recognized at Policy Inception/Renewal (Point-in-Time)
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Contingent Commission / Profit Sharing — Variable Consideration Constrained Until Carrier Determination
Insurance Broking & MGA
Premium Trust Account — Client Premium Received (Not Broker Revenue — Fiduciary Obligation)
Discussion & Community Questions
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