Company Payables Setup

HawkSoft makes it easy to set up your company payables. These are the funds due to the carrier that the agency is responsible for billing the insured. These accounts will also integrate with the Chart of Account items in QuickBooks and track the commission that the agency retains.

Completing the Company Payables Setup will enable your agency to track company payables and to create agency bill invoices. To learn more about the other types of General Ledger (GL) Accounts, see Trust Accounting Settings.

This article provides steps for performing Company Payables Setup for the first time, as well as steps for adding additional Company Payables accounts as new carriers are added to your carrier list.

Initial Company Payables setup is typically completed during Trust Accounting Setup with the guidance of a HawkSoft Accounting Consultant prior to using HawkSoft accounting features.

Trust Accounting Setup is typically completed by the agency Owner, Bookkeeper, Admin, or the person at the agency responsible for making deposits and/or reconciling the Trust Bank Account in QuickBooks.

For additional information about configuring Trust Accounting, including general workflows to add Line Item Templates and Descriptions, and to configure your QuickBooks Integration, see Trust Accounting Setup Overview.

Initial setup for Company Payables accounts

This workflow will help you set up your Payables General Ledger (GL) account, and to group all of your company payables accounts together in your QuickBooks Chart of Accounts. This will allow you to track each company account separately, as well as track all of your company payables in aggregate.

Create a Payables General Ledger account.

The Payables account groups all of your company accounts in your QuickBooks Chart of Accounts.
To add your Payables account
1. Click + Add Account on the General Ledger Accounts tab.
2. In the Account Name field, enter Payables.
3. In the Account Type field, select Other current liability.
4. Leave This is a Sub-Account and This is an agency revenue account unchecked.
5. In the Description field, enter Payables.
6. Click Save.
Create one account for each company you do agency billing with, including MGAs, Brokers, Wholesalers, and Carriers.
To add company payable accounts
1. Click + Add Account on the General Ledger Accounts tab.
2. In the Account Name field, enter the name of the company you are creating an account for.
3. In the Account Type field, select Other current liability.
4. Check This is a Sub-Account.
5. Leave This is an agency revenue account unchecked.
6. In the Parent Account field, select Payables.
7. In the Description field, enter the name of the company you are creating an account for.
  
  Alternatively, you can add important notes about this company account.
8. Click Save.
Repeat the To add company payable accounts workflow for each company you do billing with.
Create a Line Item Template for each company you do agency billing with including MGAs, Brokers, Wholesalers, and Carriers.

Line Item Templates are available when your agents create receipts, invoices, credit memos, and NSF transactions.
To add Line Item Templates
1. Select the Line Item Templates tab in the Account Settings window.
2. Click + Add Line Item Template.
3. In the Select Payee field, select Agency.
4. In the Item Name field, enter the name of the company you will be invoicing for.
  
  This text will appear when creating invoices, receipts, or credit memos.
5. Check the Invoices box.
  
  Leave the Receipts and NSFs boxes unchecked.
  
  This line item template will only be available when creating invoices.
6. Select the agency bill Bank Account.
7. Select the Reporting Account these transactions will apply to.
  
  This should be Payables and the company sub-account, for example Payables > The Hartford.
8. Conditional: If your agency retains commissions when paying this company, check Allow Retained Commission, then select your Transfer from Trust > Retained Commissions account in the Retained Commission Reporting Account field.
9. Optional: Enter a Default Invoice Amount.
10. Click Save.
Repeat the To Add Line Item Templates workflow for each company you do billing with.

Creating a new company payables account after initial setup

This workflow will help you create a company payables account for a carrier you have started doing business with after your initial payables setup.

Create a General Ledger account for the company.
To add the company account
1. Click + Add Account on the General Ledger Accounts tab.
2. In the Account Name field, enter the name of the company you are creating an account for.
3. In the Account Type field, select Other current liability.
4. Check This is a Sub-Account.
5. Leave This is an agency revenue account unchecked.
6. In the Parent Account field, select Payables.
7. In the Description field, enter the name of the company you are creating an account for.
  
  Alternatively, you can add important notes about this company account.
8. Click Save.
Create an invoice Line Item Template for the company.
To add Line Item Template
1. Click + Add Line Item Template on the Line Item Templates tab.
2. In the Select Payee field, select Agency.
3. In the Item Name field, enter the name of the company you will be invoicing for.
  
  This text will appear when creating invoices, receipts, or credit memos.
4. Check the Invoices box.
  
  Leave the Receipts and NSFs boxes unchecked.
  
  This line item template will be available when creating invoices and credit memos.
5. Select the agency bill Bank Account.
6. Select the Reporting Account these transactions will apply to.
  
  This should be Payables and the company sub-account, for example Payables > The Hartford.
7. Conditional: If your agency retains commissions when paying this company, check Allow Retained Commission.
8. Optional: Enter a Default Invoice Amount.
9. Click Save.