SmartCommissions - Module Setup

• Overview
• Deciding on a Module Configuration
• Contract/Rate-Based Configuration
• Advanced Commission Split Configuration
• Using Multiple Configurations
• Tracking Advisor Commissions Only

Overview

SmartCommissions offers different module configurations designed to accommodate the commission tracking needs of different types of businesses:

• Contract/rate-based configuration
• Advanced commission split configuration

The administrator must decide which configuration is appropriate for his/her organization and set up the SmartCommissions module accordingly. This section describes each configuration to help administrators make that decision. For further assistance in deciding which configuration to use, please contact a SmartOffice commission specialist at (855\) 275-3249\.

Before proceeding with module setup, ensure that:

• All necessary carrier, product and advisor records exist in SmartOffice. For more information, see Creating a Product, Creating a Carrier and Creating Advisors/Agencies.

• The user who will set up the SmartCommissions module has the CTM Administrator license enabled for his/her user account (see [User Accounts
• Viewing and Editing](/help/pro/user/accounts/-/viewing/and/editing)).

Deciding on a Module Configuration

Contract/Rate-Based Configuration

The contract/rate-based configuration is for organizations that typically pay a predefined rate to an advisor for selling a particular product. In this configuration, advisors must have contracts defined either with the house or with each carrier. These contracts link the appropriate commission rate to each policy.

Once contracts are established, any pending case created in SmartOffice is automatically assigned the appropriate commission rates, and commission projections are automatically generated. Because of its automated nature, the contract/rate-based configuration is ideal for organizations that have a high volume of policies.

To set up a contract/rate-based configuration, follow these steps:

1. Establish office-level commission configuration defaults in Commissions Setup.
2. Establish commission configuration defaults at the carrier and product levels.
3. Define commission contracts.
4. Define commission rates.
5. Create a hierarchy for levels of payment by linking contracts to advisors, supervisors and the house account.

Advanced Commission Split Configuration

Under an advanced commission split configuration, unique commission splits are manually defined on a policy-by-policy basis. Every party that may receive a portion of the overall gross commission is defined in each policy record.

In addition to the commission split, information about the premium and commission expected to be received per year of the policy must be entered into each policy record (this data can be entered manually or imported from the original illustration). Once the premium and expected commission data is entered in the policy, the system can generate commission projections.

This module configuration is easier to set up compared to the contract/rate-based configuration, but it also makes commission tracking less automated. For these reasons, this configuration is typically used by organizations that have a low volume of cases and therefore do not mind touching each policy/case to establish a payout structure.

Note: The advanced commission split configuration does not allow for the establishment of commission hierarchies. The gross commission must be split among the advisor levels.

To set up an advanced commission split configuration, follow these steps:

1. Establish office-level commission configuration defaults in Commissions Setup.
2. Establish commission configuration defaults at the carrier and product levels.
3. Establish commission splits and enter premium and expected commission information for each policy.

Using Multiple Configurations

In certain situations, an organization may benefit from using contract/rate-based and advanced commission split configurations at the same time. Such a setup might be used when an organization must deal with a unique commission payment schedule that falls outside any contracts that have been established for a particular policy. In special situations such as this, an advanced commission split can be set up directly in the policy, leaving contracts clean.

Tracking Advisor Commissions Only

Organizations that need to track advisor commissions only do not need the full SmartCommissions module. These organizations can use the SmartCommissions for Advisors module to simply track expected versus received advisor commissions and reconcile commission statements received from carriers.