System EDI Settings

In the ‘Technical’ section of the ‘Setup’ module, details of how the system will handle EDI messages need to be input.

On the first ‘Remunerations’ screen in the ‘Technical’ section of the ‘Setup’ module the tolerances need to be set. Any tolerances set here will apply to both EDI and manual remuneration reconciliation.

Setting up these tolerances is essential and will ensure that if remuneration is reconciled automatically, any large differences between expected and received remuneration will be flagged for YOUR attention.

Once the tolerances have been set, instructions on how EDI will handle each piece of remuneration need to be entered.  These are the ‘rules’ which will dictate how each piece of remuneration should be dealt with when it is received on the message into CCD.

There are 5 methods of reconciliation to choose from:

Manual – Any transactions marked for Manual reconciliation will be set-aside, so that the user can deal with them manually in the same way as if they were dealing with transactions on a paper statement and exclude any automation. This is used extensively for Clawback remuneration.

Pay – CCD will automatically reconcile these transactions if an Agency Code is located within CCD. If no Agency Code match is found, an exception will be created.

As no further information is required by CCD, the impact of this method means, that essential FSA information may be omitted and make RMAR reports, produced by CCD, less effective. In Setup > Providers > Provider name > Information > Remunerations > Agency.

If this is a company agency code then the ‘Adviser’ field can be left blank.

The second location that agency codes can be added is in the individual adviser’s staff record.

Setup > Staff List > Adviser name > Financial > Agencies

NB. Some client’s have found it useful to contact Providers to consolidate their Agency numbers prior to commencing EDI.

Match Additional – CCD will look to match your commission record in a table called CommMatching. This is found within a remuneration receipt, under a tab called ‘Additional’.

This is only relevant if a record has previously been created in the ‘CommMatching’ table through a manual commission receipt, in reconcile, and the additional tab. This can be used for an expectation, which has not been created through the holding in the normal manner, but instead manually added in the receipt for repetitive use. This information therefore has no relationship to a client or holding but allows for the expectation to be used on more than one occasion.

If no match is found, an exception will be created.

Match – This option looks in the holdings file for a provider and policy number match. As this option is looking just in the holdings area it will not clear an expectation from the ‘amounts due but not yet paid’ list.

If EDI cannot find a matching policy number it will try to match to the client initial and surname.  If no match is found, a further search will be carried out on just surname.  If no match is found, the last search to be carried out will be done on a soundex level.  If no match is found, then an exception will be created.

(Soundex means that CCD will look for a name which sounds like the one that the remuneration came in for).

If this method is being used for renewals the renewal transfer flag needs to be set to ‘NO’ so that no expectation of remuneration is posted.

Reconcile – CCD will look through your remuneration expectations. If a remuneration expectation is located with the same policy number then reconciliation will occur.  If no match is found, the following occurs:

EDI will try to match to a piece of remuneration with the client of the same name (Surname and initial).  If it can’t find one, then it will try to match to a piece of remuneration with the client of the same surname.

If EDI still cannot find a piece of remuneration to reconcile to, it will try one final check which is to try to match the piece of remuneration to a Soundex surname match.  If nothing can be found, then an exception is created.

NB: If you select your renewals to reconcile, you must have created an expectation via the renewal transfer flag saying Yes for your EDI Providers and have Posted.

Enter the methods of reconciliation to be used into the EDI screen of Setup>Technical>Remuneration>EDI.

Enter the level of reconciliation for each commission basis.

The ‘Within tolerances’ section allows practices to set up different payment methods for the same type of remuneration. For instance, a company may want Renewal remuneration between certain amounts to be dealt with in one way, but anything over could be dealt with in a different way.

The above example shows how the reconciliation methods might be added; this is an example and might not show the methods selected by your company.

Clawback has been set to Manual so that each claw back item received via EDI will be set to be manually reconciled.

Renewal and Fund based renewal have been set to Match for items between £0.00 and £10.00; anything over this amount will use Reconcile. This could have been set like this because, as an expectation of remuneration (renewal transfer flag is set to yes) is only created where the expectation is greater than £10.00. So any small amounts of renewal remuneration are set to match (looks for policy to be set up in the holdings area) any renewal over £10.00 is set to reconcile (looks for an expectation of remuneration).

Indemnity, Level, Non Indemnity, SP, Mortgage Fee and Initial are all set to Reconcile as the remuneration expectations are always set up.

Sundry is set to manual, so that a person can look at this to try and sort out what it is for.

The other section that needs to be completed on this page is the large case limit:

What this will do is to flag any single case where the amount of remuneration received is greater than this figure and show it as an exception.  This figure here is for the company however, an individual figure can be set for each adviser in the company.  If using this option, when EDI checks for exceptions the adviser figure over rides the company figure.

To record a figure for an adviser use Setup > Staff List, choose the adviser and then into the ‘Financial’ tab.  Complete the field.