Chart of Account and Disbursement

Setting-up the Chart of Accounts (CoA) for transactions that perform a disbursement(s) requires specific selections in order to process the accounting correctly.  On the front end of the Oracle Insurance Policy Administration (OIPA) system there is a disbursement and Accounting Activity detail tab, which displays the disbursement account, amounts and status.  You may view this information to verify that disbursements processed correctly.

Disbursement Detail

The disbursement status is originally pending.  If the disbursement activity was reversed the status would be recovered.  In some versions the status may be Pending Shadow.  

The Entry Detail section of the CoA creation wizard has specific fields that are associated with setting-up disbursement accounts.  

• Type  - Select disbursement when account is a type of disbursement.

• Gain Loss/Negative – If you setting-up a type of account that is either ByFund or Total Fund, you may check this box.  Checking this box indicates that accounting will only happen if there is a gain or loss to funds.  For example, a FundTransfer activity may use this selection or in the reversal/recycle of an activity that would result in a difference of the amount due to the fluctuation in market fund value.

• Flip on Negative - This checkbox is no longer needed as now all negative accounting is handled in the OIPA code.

• Original Disbursement Status -   For activities we generally have an active and pending status, but for a disbursement activity that sends money out to a client, there is a chance the money may not be received by the client.  This field is used to track the status of the money in case an adjustment needs to be made.  The status names in this field are pulled from AsCodeDispursementStatus. In certain versions there is a bug and the status name is pulled from AsCodeStatus and can be changed accordingly.

• Pending – Select for forward accounting. This is the status when an activity is processed for the first time.   

• Recoverable – Select for reverse accounting.  For example, if overpayment or recovery of payment, such as broker commission of a policy, that was surrendered.  Money is not always recovered.

Note:  If this is selected then specific configuration using the disbursement element tag in the transaction is required.  The disbursement element tag has an attribute called recoverable that needs to be set to Yes.

• Recovered – Select if the insurance company gets the money back.  Most commonly used when a disbursement transaction is reversed or recycled.

• Generate Suspense Accounting – Select this when an activity associated with the GenerateSuspenseAccount business rule should automatically create a suspense record and the accounting is done to a newly generated suspense record via the transaction.

• Forward Accounting Status –Used to track if all information was fulfilled to perform a disbursement.

•  Active – Select when indicating all information was fulfilled.

• Pending.- Select when indicating more information is required before processing the disbursement.

• Do – Reverse Accounting – Check if you need to capture the accounting information when reversing the disbursement activity.  This is usually always selected, as collecting information for reverse accounting is necessary.

• Reversal Accounting Status – Used to track whether a reversal disbarment activity is active or pending.

• Active – Select when indicating all disbursement was fulfilled.  

• Pending -Select when indicating more information is required before processing the reversal.

Pending Disbursement

The status is pending originally.  If the transaction was reversed then the status was recovered.  

Pending Shadow Disbursement

A disbursement activity that was shadowed will have a recovered status or pending shadow status depending on the version of OIPA you are using.

Accounting Detail Reversal

If the Do Reversal Accounting check box is selected, then when a reversal is processed it will be viewable via the Accounting Detail (Reversal) section. This applies when a disbursement activity was reversed or recycled.  The reversal accounting status is not viewable via the OIPA application. You will need to query the database.  If the status is pending, you will not see the Accounting Detail (Reversal) section at all.  It only displays when the status is active.