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Accounting - Insurance

sam
2006-11-21
2013-05-02
  • sam
    sam
    2006-11-21

    Hi,

    Scenario : A company issues a Purchase Order for Insurance Services to an Insurance Company and later makes a payment against that PO (the premium).

    Clarifications :

    1) Can that PO be made in Compiere ?  If yes, how do we define the Insurance in the system ? (eg., service, price of service..)

    2) How the Payment (Insurance Premium) will account postings ? Will the postings be made by the system or the User has to do a GL Journal entry & Post it.

    Regards

    Sam24368

     
    • ADAXA
      ADAXA
      2006-11-21

      you could extend your idea a little as follows:

      create a product-item or product-service you want to buy/sell
      (if 'item' you will end up with 'stock' of any you dont invoice out .. could either be a useful control or a PITA .. your call.  if you set up as a service beware of
      https://sourceforge.net/tracker/index.php?func=detail&aid=1571919&group_id=29057&atid=410215 )

      create a sales order for the insurance sale to the client.

      use the 'create PO from SO' functionality to auto generate the PO to the insurance company.

      generate "shipment" to the client and create invoice to the client (or use an order type that does this automatically if you want).

      create an Invoice Vendor directly from the PO by using the create lines functionality.

      if you want to you could also do a 'material receipt" suitably renamed to debit costs and credit accrued liabilities, the associated vendor invoice would then clear the accrued liabilities and credit Accounts Payable.

      You could also use one of the other account elements in your account schema elements eg Project, Campaign, Activity so each SO and Sales Invoice were explicitly linked to each PO and Vendor invoice in the created accounting records. Maybe that could be the policy number?

      Warning .. this is how Compiere could work out of the box .. have never worked for a broker and have no idea of your real business needs ;-)

      regards..

       
    • sam
      sam
      2006-11-22

      Hi Adaxa,

      Thanks for the quick response. Much helpful.

      The clarification request is that any company that uses Compiere, ie., not only an Insurance Broker/Agent,  if they want to buy insurance services from an insurance Provider, how do they do it and how are the accounting transactions posted ?

      In Accounting elements, accounts exist for insurance.   For eg, in US CoA, SearchKey 69  (under Expenses) and Assets>PrepaidExpenses>Insurance Search key . But how are these accounts posted ? Does compiere post them automatically (for eg., when the  user pays the Insurance Premium against a Purchase Order) or is it that they have to be posted mnually via GL Journal ?

      Regards

      Sam24368

       
    • ADAXA
      ADAXA
      2006-11-22

      happens automatically based on gl account settings stored against products, customers etc

       
    • sam
      sam
      2006-11-24

      Hi Adaxa,

      Thanks.

      Regards,

      Sam24368