How to Record PMI Sourcing Commissions
Accounting for commissions received from third-party providers for sourcing Private Medical Insurance (PMI) for clients.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Commission Receivable - Third Party | Debit | 3,200.00 | - |
| Insurance Intermediary Revenue | Credit | - | 3,200.00 |
💡 Accountant's Note
Records the accrual of commission income from an insurance provider following the successful placement of a policy for a bank client.
Practitioner & Systems Framework
💻 ERP Architecture
Revenue is tracked via the Brokerage Management Module and synced to the General Ledger.
⚠️ Audit Flags
Clawback provisions not properly accounted for if the policy is cancelled within the first year.
📄 Required Documentation
Brokerage agreement with the insurer and policy issuance confirmation.
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