How to record wholesale broker fee income
Records the specific service fee charged by a wholesale broker to a retail agent for policy placement services.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accounts Receivable - Broker | Debit | 250.00 | - |
| Wholesale Fee Revenue | Credit | - | 250.00 |
💡 Accountant's Note
Wholesale brokers often charge a flat fee in addition to commission. This entry recognizes the fee income separately from the premium transaction.
Practitioner & Systems Framework
💻 ERP Architecture
Ensure the fee is mapped to a non-commission revenue GL code to avoid distorting loss ratio reports.
⚠️ Audit Flags
Discrepancies between the fee schedule and actual amounts invoiced to retail partners.
📄 Required Documentation
Wholesale agreement and policy invoice showing the itemized fee.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.
Related Journal Entries
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Premium Trust Account — Client Premium Received (Not Broker Revenue — Fiduciary Obligation)
Discussion & Community Questions
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