PRACTICAL GUIDE
Carrier Statement Reconciliation: A Practical Checklist
A useful reconciliation explains the statement at the transaction level. It shows which records agree, which differences remain, and what evidence supports the amount your team plans to remit.
1. Agree on the period and the records
Start with the carrier, agency entity or account, statement date, and accounting cutoff. Preserve the statement you received and note when the agency reports were generated. A statement from month-end and a report run a week later may include different activity.
- Carrier statement, including detail pages and credits.
- Agency payable and billing transaction reports.
- Receipt, remittance, and payment-application history relevant to the review.
- Prior unresolved items and their supporting correspondence.
2. Compare transactions before totals
Match the policy or bond reference and the transaction itself. Check whether the line represents a renewal, endorsement, cancellation, or installment. Then compare the dates, premium, commission, and net amount. Two lines with the same policy number are not necessarily duplicates.
3. Give each difference a specific explanation
| Exception | What to check |
|---|---|
| Missing agency transaction | Alternate references, unrecorded activity, and the correct agency entity. |
| Amount difference | Premium, commission, transaction changes, fee treatment, and gross versus net basis. |
| Prior payment recorded | Payment reference, bank evidence, statement cutoff, and carrier application. |
| Possible duplicate | Whether the lines represent separate installments or transactions. |
| Missing credit | The credit document, processing date, and how it can be applied. |
Record the reference, difference, evidence, person responsible, next action, and resolution. A status such as “waiting for the carrier to confirm payment application” is easier to follow than “pending.”
4. Review the proposed remittance
Recalculate the selected lines, including documented credits and adjustments. Check collection status separately from the contractual remittance requirements. Keep unresolved differences visible to the reviewer instead of changing a number solely to force agreement.
For example, three approved net items of $900, $1,200, and $600 total $2,700. If a documented $200 credit is applicable, the proposed remittance is $2,500. Preserve the item list and the credit support so the carrier and agency can apply the payment consistently.
5. Finish both reconciliations
Statement-to-transaction matching explains what the carrier says is due. Separately, reconcile the agency’s payable detail to the appropriate general-ledger balance, including relevant adjustments. Retain both reconciliations and explain any differences.
Retain the reviewed statement, proposed item list, approvals, and eventual payment reference. Carry forward unresolved items with their last action and next review date. The next month should begin with that context available.
Common questions
- What should I compare first?
- Start with the carrier account, cutoff, and amount basis. Then compare the policy or bond and the exact transaction.
- Is a zero net difference enough?
- No. Equal and opposite differences can offset. Review the individual items and unresolved questions.
- Does a matched amount authorize a remittance?
- It supports one check. Payment terms, previous payments, approval, and any unresolved matters still need review.