When a policy change or cancellation results in money being refunded to Close Brothers, the refund needs to be recorded against the relevant case in Digit and reconciled against the payment leaving the client money bank account.

The process is similar to reconciling an incoming payment, except the bank transaction is recorded as Money Out.

Example

For this example, we'll use:

Refund amount: €1,250.75
Payment to: Close Brothers

1. Find the return premium in Accounts Receivable

In Digit, go to Accounts Receivable and search for the relevant Case ID.

The MTA or cancellation should already have generated a negative transaction for the amount that needs to be refunded.

In our example, the case has a return premium of €1,250.75.

The amount shown as due should match the amount being refunded to Close Brothers.

2. Find the payment in the bank account

Go to the relevant client money bank account in Digit and open the Account statements tab.

If your bank transactions are imported automatically, locate the payment to Close Brothers.

If the transaction needs to be entered manually, select Add payment.

3. Record the refund as Money Out

Enter the Close Brothers refund as a bank transaction.

The refund must be entered in the Money Out column - not Money In.

For example:

Select Add Payments once the transaction details have been entered.

Important: The Money Out amount should match the return premium recorded against the case.

4. Reconcile the payment against the case

Once the bank transaction has been recorded, go to Account reconciliation.

Match the Money Out bank transaction to the corresponding negative MTA or cancellation transaction in SchemeServe.

In this example:

Bank transaction: -€1,250.75
SchemeServe transaction: -€1,250.75
Difference: €0.00

Complete the reconciliation in the same way you would reconcile an incoming client payment.

The difference should be €0.00 before completing the reconciliation.

5. Check Accounts Payable

Once the refund has been reconciled, check Accounts Payable.

Digit will update the accounting position to reflect the payment made to Close Brothers and any corresponding amount that needs to be clawed back from the insurer.

In summary

Return premium created on the case → payment made to Close Brothers → record/import the bank transaction as Money Out → reconcile it against the return premium → check Accounts Payable.

The key difference from a normal incoming payment is simply that a Close Brothers refund is money leaving the bank account, so it is reconciled using a Money Out transaction.