Considerations for Agency Billing

Here are some important considerations when using Agency Billing with insurance policies.

• Agency Billing supports billing only at terminal nodes, such as coverages. Billing isn’t supported at aggregated parent levels like policy or asset when child components exist.
• Agency Billing supports policy hierarchies of up to five levels, with surcharges allowed as an additional level. Because billing involves intensive calculations, deeper or more complex hierarchies aren’t supported and may impact billing performance.
• Taxes and fees must be modeled using Surcharge records to be included in billing. Amounts entered directly in tax or fee fields on policy components aren’t considered for billing.
• Agency Billing doesn’t support billing for taxes or fees associated at parent levels in the policy hierarchy. Associate surcharges only at terminal nodes, such as coverages.
• Agency Billing doesn’t support aggregated billing. If a policy has child components, billing always occurs at the most granular terminal level. Because billing involves intensive calculations, designs with very deep or highly complex hierarchies may impact performance and aren’t supported beyond the defined limits.
• The Send to Billing action is available only for policies whose billing type matches the values configured in Agency Billing setup. Policies with a non-matching billing type aren’t eligible for billing.
• Set the correct billing type before issuing the policy. Changing the billing type after issuance may affect the policy’s eligibility for the Send to Billing action.
• If your org is upgraded and no billing type eligibility is configured, all billing types are allowed by default. This preserves existing Send to Billing behavior for orgs that haven’t set up billing type restrictions.
• If you add custom values to the Insurance Policy Billing Type picklist, also add those values to the billing type eligibility configuration in Agency Billing setup. Otherwise, policies using those values aren’t eligible for billing.