Commission reconciliation for independent P&C agencies

A carrier statement is uploaded as a CSV, Excel or PDF file. Nexus AI reads it into lines, and every line then goes to a person for review before it affects a split or a payout. Nothing the AI read is applied on its own.

A statement exported in NowCerts' own column layout — policy number, paid commission, effective date, paid date — is recognised directly, without a manual column mapping and without an AI call. Statements from a PEO are reconciled too, against the payroll period they bill.

Each line is compared with the commission the agency expected for that policy, and the system says where that expectation came from:

• The ledger — what the agency actually recognised.
• The projection — what the agency was shown when the policy was set up.
• An estimate — used only when neither exists, and labelled as one.

Showing the three the same way would invite disputing a carrier over a number the system made up. Each agency sets its own tolerance, as an amount and as a percentage, so a rounding cent is not an exception.

A line that does not match is classified by its most likely cause, from the most certain to the most inferred:

1. a non-commissionable fee inside the carrier's base.
2. a rate that differs from the schedule.
3. a transaction booked twice.
4. a policy that is not in the book.
5. a transaction that was never generated, typically an endorsement.
6. a transaction that exists but did not match.

The last one is deliberately named for what it is. A system that cannot tell why a line failed should say so, not dress it up as a diagnosis.

Behind the reconciliation sits a double-entry commission ledger with three rules enforced by the database itself, not only by the application:

• Every journal balances. Its entries sum to zero per currency, and a journal needs at least two lines.
• Entries cannot be edited or deleted. The database rejects it, whoever asks. A mistake is corrected by posting a reversal, so the ledger always shows what was believed before and why it changed.
• Each economic event posts once. Retrying an import or a cancellation cannot post the same commission twice.

Producer balances are not stored numbers that can drift. They are calculated from the ledger every time they are read, and a negative balance means the producer owes the agency.

A producer's share can be calculated on any of five bases, and set separately for the producer, servicing agent and CSR roles.

The rate that applies is resolved in one fixed order — the policy, the payee, the carrier and line of business, the agency, then the default — so two identical policies always resolve the same rate.

Splits do not have to add up to 100%: whatever is not paid out stays with the agency. A set of splits that adds up to more than 100% is rejected when it is saved, and the message names the agents responsible for the excess. An agency cannot owe more commission than it received.

When a policy is cancelled, Agency Nexus calculates the return premium under the flat, pro-rata or short-rate method, counting real calendar days, and posts the commission chargeback to the ledger.

• Both paths post it. A cancellation recorded by hand and a pending cancellation that takes effect on its date go through the same calculation.
• The chargeback follows what was paid. It scales the commission already posted, instead of recalculating it from a rate that may have changed since.
• A cancellation is never blocked by the ledger. If posting the chargeback fails, the cancellation is still recorded, the error is logged, and the chargeback can be replayed safely.

Workers' compensation premium audits often land months after a policy expires. They can be posted with a back-dated effective date, and if that month is already closed the commission is recognised in the next open period instead of reopening the closed one. Policies written under a loss-sensitive rating plan earn no commission on audit adjustments, in either direction.

Approving a statement locks it. Approval is refused while any line in it is still flagged, because approval means committing to the number, not just having looked at it.

Closing a month is refused while any statement in that month is unapproved, and the refusal lists those statements by carrier. A month can be closed anyway, but only with a written reason that goes to the audit log with the count of what was skipped. Reopening a closed month also requires a reason.

The agency statement groups commission by carrier and by MGA, and the agent statement shows what each producer earned. Both come straight from the ledger and export to PDF and Excel.

A report on a month that is not fully reconciled says so at the top of the PDF and on the first sheet of the workbook, with the amount involved. An exact report and a provisional one look identical once printed, so the warning is part of the document rather than a footnote.

For producers paid as contractors, Agency Nexus keeps a tax profile per payee with the TIN encrypted, and prepares the 1099-NEC and 1099-MISC report from the ledger, with filing deadlines and a plan for correcting a form filed under the wrong type.