How do you reconcile direct bill in Applied Epic?

In direct bill, the insurer bills and collects the premium from the client directly, then pays the brokerage its commission — usually reported on a statement. So the brokerage’s books mainly track the commission earned and receivable, and reconciliation is what proves that number is correct.

Reconciling direct bill in Applied Epic comes down to comparing two things and resolving the gap:

• What the carrier reported and paid — the commission shown on the carrier’s direct-bill statement.
• What Epic expected — the commission Epic calculated it should earn based on the policies recorded in the system.

The reconciliation workflow generally runs like this:

• Load or enter the carrier’s direct-bill statement.
• Match each statement line to the corresponding policy or transaction in Epic.
• Flag the differences — missing items, rate mismatches, cancellations, endorsements, or timing gaps.
• Investigate and correct each one, whether that’s a missing policy entry, a wrong commission rate, or a carrier error.
• Post the reconciled commission so income and receivables are accurate.

Done every month, this keeps commission income reliable and stops differences from compounding into mystery balances at year-end. The most common failure is skipping the match entirely and just booking whatever the carrier paid — which hides both carrier underpayments and the brokerage’s own data errors. (Applied Epic and Applied Systems are trademarks of Applied Systems, Inc.)

For how this fits into the broader system, see our guide to Applied Epic accounting for Canadian brokerages.