Understand Endorsement Transactions and Billing

Conceptually, endorsement transactions describe the delta between the endorsed policy version and the previously issued version. Only the net-new or removed components are included in transaction details.

When you send the endorsement transaction to billing:

• Billing schedules are created only for newly added billable components.
• Billing starts from the endorsement effective date, even if it falls mid-billing period.
• Previously billed periods from policy issuance aren’t rebilled.

Note Sending a price-adjustment endorsement transaction to billing results in an error because billing information for the adjusted components isn’t generated.

• Handle Price Change Endorsements for Advance and Arrears-Based Billing
  Process mid-term price adjustments for insurance policies using advance and arrears-based billing to automatically calculate the delta (difference) between the updated and previous versions of the policy and adjust future invoices to ensure financial accuracy.