How do I record clawbacks?

A clawback entry is reconciled in exactly the same way as a commission expectation.

You may have written business with a particular provider and have a clawback in the same period. In many cases the provider would pay you a net figure. For example, you may have written 2 cases, each worth £500 and have a clawback for £300. You may receive a net £700 (£500 x 2 - £300). When reconciling your commission you will have 2 commission expectations worth £500 and a clawback entry of £300, which is effectively a negative expectation. By entering your receipt of £700 and reconciling all three entries, you will be able to show the receipt of the full commission and the payment of the clawback.

As you can see by the following screen shot, this is the situation of this receipt.


A commission statement has been received for £1000 but there is a £300 clawback, therefore the Received amount is recorded as what you would have received without the clawback, and the Statement amount is what the actual monetary amount on the statement.  Click on the Reconcile tab.

Firstly, deal with the clawback.  The provider is clawing back £300 and there is the clawback recorded on CCD, therefore use the black arrow to confirm that this money has been clawed back.  The Balance of the receipt will now increase to £1000.

The 2 amounts of commission received of £500 each can now be dealt with.  Once the Balance is at '0' the receipt can be processed.

Alternatively, you may not have written any business with the provider but still have received a clawback. This would mean you might need to physically pay the money back, perhaps by cheque. In this case you should record a negative receipt for the amount of your cheque. In the example above, if you have not written any business, you should record a receipt of ‘-300’ (minus 300).


Now move to the Reconcile tab and deal with the clawback recorded.

Once this piece of clawback has been dealt with Process this receipt.

This receipt has now been dealt with.