Resolving payment mismatches

Agency bill payments are typically more complex to process than direct bill payments. A single agency bill payment applies to multiple invoice items, each with its own gross amount, commission amount, and net amount. The payment provided by the producer is supposed to correctly pay for the net amounts of every invoice item on a given statement. With so many amounts to track, it is not unusual for issues to occur. For example:

• The net amount provided by the producer could be less than or greater than the net amount expected.
• The producer could use a commission rate that is different than what BillingCenter is using.
• Payment could be included for an invoice item that is not on the current statement. (For example, the invoice item might be on a future statement.)

To reduce the complexity of agency bill payments and to help manage the distribution process, BillingCenter uses payment mismatch exceptions. A payment mismatch exception is a record of a mismatch between the amount of payment expected for a specific invoice item and the amount of payment received. Payment mismatch exceptions are created when an executed payment is distributed. This can occur either:

• When the payment is being created and distributed at the same time
• When a previously executed payment is being distributed

Options for resolving payment mismatches

Provide payment

When an underpaid invoice item is fully paid, BillingCenter automatically resolves any associated exception. There is no single button that executes this action. This requires modifying an existing payment, entering a new payment, or creating a new agency bill disbursement that settles the unpaid invoice item.

Carry forward

When you carry forward a payment mismatch exception, BillingCenter:

• Dismisses the current payment mismatch exception
• Moves the unresolved invoice item to the next statement

If the carried forward invoice item is not settled by the next payment that is executed and distributed, BillingCenter creates a new mismatch exception for the invoice item.

Write off

When you choose to write off a payment mismatch exception, BillingCenter creates an item-level write-off. You can choose to write off the gross amount, the commission amount, or both.

Override commission

When you override commission, you modify the amount of commission expected and therefore the amount of net expected. You can do this so that the expectation of the net amount received now matches that actual net amount received. If the commission override does not result an exact match between net expected and net received, the exception remains open.