Demystifying Commission EDI

Commission EDI (Electronic Data Interchange) supplied by product providers, has been around for a number of years and put simply, is an electronic version of a paper commission statement.

When allied to a commission reconciliation system (from a back-office system) or service they can, electronically, match commission received against commission expected and quickly highlight any significant anomalies which need to be investigated.  This automated service helps to accurately account for commission received (including renewal amounts), whilst reducing the resources spent on a task that can be laborious and time-consuming.

In this section, we hope to demystify the process of using Commission EDI so that you can get the most from the benefits that it offers.

• Setting Up Commission EDI: How to set up commission EDI? How long can it take? And how often can I receive it?
• Importance of Policy Numbers: How to make sure your system can identify the payments against the right policies.
• Commission Types and Codes: What do the codes stand for and how is Fund Based Renewal Commission and Level Commission shown?
• EDI, Paper and Debt: Can EDI and paper statements differ? What happens when an account is in debt?