How to record run-off service revenue
Recognizing fees for managing claims and administrative tasks for expired insurance programs.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash - Operating Account | Asset | 15,000.00 | - |
| Run-off Service Revenue | Revenue | - | 15,000.00 |
💡 Accountant's Note
When a program enters run-off, the MGA may be paid a lump sum or periodic fees to handle the remaining tail of claims.
Practitioner & Systems Framework
💻 ERP Architecture
Use deferred revenue accounts if the run-off period spans multiple fiscal years.
⚠️ Audit Flags
Lump sum payments recognized entirely in one period without deferral.
📄 Required Documentation
Program run-off agreement and transition plan.
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Discussion & Community Questions
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