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Introduction

Scenarios to apply an instalment adjustment

Process

What happens next

Introduction

An instalment adjustment applies to Instalment policies and is a way to update INSIGHT when there are over or underpayments received from the insurer. Once an instalment adjustment is applied, the Trial Balance and your Broker Income will be adjusted to reflect what was actually received versus what is indicated in the instalment plan.

IMPORTANT: Instalment adjustment are only applied to instalment payments 3 months from the expiry of the instalment policy for the following reasons:
1. CGU does not pay every month, waiting 3 months from expiry gives time to receive all CGU payments.
2. In case of dishonors, this provides the chance to receive make-up  payments.
3. Instalment Adjustments are only applied to policies that are finalised and NOT CURRENT.

Scenarios to apply an instalment adjustment

	Instalment policy is underpaid by the insurer.
	Instalment policy is overpaid by the insurer.
	Migrated instalment policies, where some payments have been processed in the legacy system.

Process

	Select Finance, then New Instalment Adjustments.
	Use the filters to locate the instalment payments you want to adjust, then select Search to update the list of instalment payments.
	Select the checkbox(es) beside the individual payments you want to adjust or select the Adjust checkbox in the blue header to auto-select all payments in the list.
	Select Process Adjustments, then Yes to the confirmation message.

What happens next

	Once adjusted, the policy will no longer appear in the New Instalment Adjustments wizard or on the Instalment Income Due Report.
	An Instalment Adjustment transaction is added to the client's transaction list to reflect the instalment adjustment - this 'view only' and is NOT listed as the 'latest version'.
	Another instalment payment is added to the instalment plan reflecting the adjustment amount.
	The Client's Account Enquiry will have a PDI (Pay Direct Instalment) and/or an IAJ (Instalment Income Adjustment) to reflect the instalment adjustment: PDI - accounts for instalment broker income IAJ - reflects money moved from the Trial Balance: Instalment Receivable and Broker Income to account for actual income.