Tracing Agent Fees Accounting Activities

Purpose

Tracing Agent fees, Legal fees and Handling fees are defined for a product and made available to be deducted from a benefit amount when a benefit payment is processed, in a similar way to the deduction of the tax directive fees.

In the case of automated claims, these fees are deducted automatically from the gross benefit amount if a fee has been set up for the product.

The fees deducted can be paid via the Bulk Payment process via EFT.

Note:

The Accounting Activities and Bulk Accounting Activity Association must be set up.

Accounts

The following Accounts must be created to record all of the Benefit Payment related fees so that the same BT’s can be created for all the Service Types and qualified by Income Type to distinguish the different types of fees as follows:

Account	Description
BENFEESRCD	BENEFIT FEES RECEIVED
BENEFIT FEES	BENEFIT FEES
BENFEESPBL	BENEFIT FEES PAYABLE

Accounting activity

The following Accounting Activities must be created for the creation of the Business Transaction (BT) to record the Tracing Agent Fee, Legal Fee or Handling Fee and for the reversal of the BT if the claim is cancelled:

Tracing Agent Fee

Process	Accounting Activity	Stakeholder	DR Account	CR Account
BENEFIT PAYMENT	TRACING FEE	FUND	BENPAYABLE	BENFEESRCD
BENEFIT PAYMENT	TRACING FEE	FUND	BENEFIT FEES	BENFEESPBL
BENEFIT PAYMENT	TRACING FEE	MEMBER	BENPAYABLE	BENEFIT
BENEFIT PAYMENT	TRACING FEE	MEMBER	TRFTO/FFND	MEMDEPOSIT

Tracing Agent Fee Reversal

Process	Accounting Activity	Stakeholder	DR Account	CR Account
BENEFIT PAYMENT	TRACINGFEERV	FUND	BENFEESRCD	BENPAYABLE
BENEFIT PAYMENT	TRACINGFEERV	FUND	BENFEESPBL	BENEFIT FEES
BENEFIT PAYMENT	TRACINGFEERV	MEMBER	BENEFIT	BENPAYABLE
BENEFIT PAYMENT	TRACINGFEERV	MEMBER	MEMDEPOSIT	TRFTO/FFND

Legal Fee

Process	Accounting Activity	Stakeholder	DR Account	CR Account
BENEFIT PAYMENT	LEGAL FEE	FUND	BENPAYABLE	BENFEESRCD
BENEFIT PAYMENT	LEGAL FEE	FUND	BENEFIT FEES	BENFEESPBL
BENEFIT PAYMENT	LEGAL FEE	MEMBER	BENPAYABLE	BENEFIT
BENEFIT PAYMENT	LEGAL FEE	MEMBER	TRFTO/FFND	MEMDEPOSIT

Legal Feel Reversal

Process	Accounting Activity	Stakeholder	DR Account	CR Account
BENEFIT PAYMENT	LEGALFEERV	FUND	BENFEESRCD	BENPAYABLE
BENEFIT PAYMENT	LEGALFEERV	FUND	BENFEESPBL	BENEFIT FEES
BENEFIT PAYMENT	LEGALFEERV	MEMBER	BENEFIT	BENPAYABLE
BENEFIT PAYMENT	LEGALFEERV	MEMBER	MEMDEPOSIT	TRFTO/FFND

Handling Fee

Process	Accounting Activity	Stakeholder	DR Account	CR Account
BENEFIT PAYMENT	HANDLING FEE	FUND	BENPAYABLE	BENFEESRCD
BENEFIT PAYMENT	HANDLING FEE	FUND	BENEFIT FEES	BENFEESPBL
BENEFIT PAYMENT	HANDLING FEE	MEMBER	BENPAYABLE	BENEFIT
BENEFIT PAYMENT	HANDLING FEE	MEMBER	TRFTO/FFND	MEMDEPOSIT

Handling Fee Reversal

Process	Accounting Activity	Stakeholder	DR Account	CR Account
BENEFIT PAYMENT	HANDLINGFEER	FUND	BENFEESRCD	BENPAYABLE
BENEFIT PAYMENT	HANDLINGFEER	FUND	BENFEESPBL	BENEFIT FEES
BENEFIT PAYMENT	HANDLINGFEER	MEMBER	BENEFIT	BENPAYABLE
BENEFIT PAYMENT	HANDLINGFEER	MEMBER	MEMDEPOSIT	TRFTO/FFND

Alternatively the above Accounting Activities can be created using the following Accounts that can be qualified by Income Type and the bulk payments then done by selecting the Account and Income Type:

Account	Description
FEERECEIVED	FEE RECEIVED
FEEEXPENSE	FEE EXPENSES
FEEPAYABLE	FEE PAYABLE

Accounting activity association

The Accounting Activities above must be linked to the BENENHANCE Accounting Activity with a Bulk Purpose Type of BENEFIT ADJUST.

Bulk payments

The following Accounting Activity must be created for the payment of Benefit related fees via the Bulk Payment process:

Process	Accounting Activity	Stakeholder	DR Account	CR Account
BULK PAYMENT	PAYBENFEES	FUND	BENFEESPBL	BULKPMTALLO

The following Accounting Activity must be created for the offset of the negative (reversed) Benefit related fee transactions in the Bulk Payment process:

Process	Accounting Activity	Stakeholder	DR Account	CR Account
BULK PAYMENT	BENFEESOFF	FUND	BULKPMTALLO	BENFEESPBL

The following retrieval Accounting Activity must be created for the retrieval of the Benefit related fees to be paid via the Bulk Payment process:

Process	Accounting Activity	Stakeholder	Account
BULK PAYMENT	BENFEESPBL	FUND	BENFEESPBL

The following Accounting Activity Associations must be set up to enable the payment of the Benefit related fees via the Bulk Payment process as per the details below.

Purpose Type	Account Code	Accounting Activity
BULK RETRIEVAL	BENFEESPBL	BENFEESPBL
BULK POSITIVE	BENFEESPBL	PAYBENFEES
BULK OFFSET	BENFEESPBL	BENFEESOFF

For more information, refer to

Product Launch Requirements

Product Update

Product Update Type: Service / Fees

For more information refer to

Processes

Benefits

Capturing of Exit Notifications

Complete a Claim

Service Fees

For more information, refer to Tracing Agent Fees under

Processes

Benefits

Benefit payment Update Type

Benefit Payment Update Types (Standard Benefit Rules)

Benefit Payment Update Type: Adjust Benefit

Processes

Benefits

Benefit payment Update Type

Benefit Payment Update Types (Flexible Benefit Rules)

Benefit Payment Update Type: Adjust Benefit