Check Processing Workflow

Overview

Processing checks in Diamond is a relatively easy process to perform. Checks are set up by adding a "Job" and corresponding options. Jobs can include:

• Any combination of check types / company / state / line of business (e.g., Return Premium, Claims, Suspense Account checks for all states / lines of business for a company)

•  A single check type / company / state / line of business (e.g., Return Premium for the state of Ohio, Personal Auto).

Once the job has been set up with corresponding options (Generate, Add, Edit, Renumber, Print or Export and Post), users can:

• Run each option process "manually" by clicking the Next button on the Check Processing Wizard screen. Only those screens relating to the options chosen in the Job Setup screen are displayed.

• Run the process automatically by clicking the Process Defaults button. When processing the defaults, all applicable information must be selected on the Job Setup screen.

Note: Once a check type / company / state / line of business combination is selected for a job, it cannot be added to any other job unless it is deleted from an existing job.

Workflow Diagram

The diagram below shows how checks are processed in Diamond.

Step 1: Diamond System Editor - Checks Folder

Prior to using Check Processing, review the system settings in the Checks folder listed in the table below. Set these according to your company's requirements.

Step 2: Company Configuration Tool - Billing / Bank Account

Next, establish the bank account (s) your company will use in Company Configuration Tool / Billing Bank Account. Entries here include:

• Account Number: Corresponding account number.

• Bank Account Type: Select either "Checking" or "Savings;" defaults blank.

• Starting Check Number: If bank account type is "Checking," enter the starting check number.

• Bank Name: Name of banking institution.

• Routing Number: Corresponding routing number; nine (9) characters.

• Address: Select Address to return the Edit Address screen. Make the necessary entries for the bank's address and choose OK.

• Account Status: For a new bank account, defaults "Open;" do not change.

• Positive Pay Export: If you will be exporting your checks to a bank for reconciliation, click in this field to place a check mark.

Step 3: Company Configuration Tool - Company / Line of Business / Bank Account

The bank account (s) must then be assigned to each state / line of business combination for your company. This is done in the Company Configuration Tool / Company / Line of Business (tab) / Bank Account (tab).

• In the upper portion of the screen, highlight the line of business the checks are being processed for.

• Highlight the bank account in the Accounts Assigned section to the left.

• Choose Add.

• When the Add Bank Account Use screen is presented, select the check type (use) from the combo box.

• Click Save. The use is displayed in the list view.

Note: You can assign more than one (1) check type for an account.

Step 4: Diamond Administration - Users & Workflow Queues / User

Here you set up authorities for users to process, clear / unclear each type of check in addition to add, edit and delete Check Jobs. Authorities listed in the table below are in the Check Processing group.

Step 5: Diamond Administration Process Checks / Check Processing Wizard - Add New Job

Setting up (or adding) a job is done in Diamond Administration: Process Checks / Check Processing Wizard.

• Bank Account: Select the bank account you are using for the job from the combo box. If you wish to see more information about the account you selected, click the Detail button to return the Bank Account Detail screen.

• Click Add to return the Add New Job screen.

• Job Name: Enter the name of the job checks are being processed for on the Add New Job screen.

• Check Types (Claims, Claim Drafts, Agency Commission, Return Premium, Suspense Account and Municipal): For each type of check you want to include in the job, click in the field to place a check mark. As you make your selections, each company / state / line of business / check type is displayed in the list view.

Next, set up the options for running the job:

• Generate Checks (Return Premium and Agency Commission Checks Only): Select to create the checks to be included in the job. These are checks that have been added to the system since the last check processing run.

• Add Checks: This selection adds all types of checks to the queue.

• Edit Checks (Return Premium Checks Only): This selection is used for editing Return Checks only; all others, the field is protected and cannot be selected. When Return Premium checks are chosen, the field automatically defaults with a check mark.

• Set Accounting Date (Agency Commission Checks Only): This selection is used for setting the accounting date for Agency Commission Checks only; all others, the field is protected and cannot be selected.

• Can Renumber Checks / Starting Check Number: Select the "Can Renumber Checks" field to place a check mark in the box if your company is numbering their own checks. Enter a corresponding check number.

• Manually Renumber Checks: If you are running the job automatically by using the Process Defaults button, click to place a check mark in this field. The system stops at the Renumber Check screen and allows the user to either confirm or override the number. Once the user confirms or changes the information, the Check Wizard automatically finishes the remaining defaults.

• Print Checks: Select if you are printing your checks at your company using the Print Manager.

• Export Checks: Select this to send your checks to a 3rd party vendor for processing. You may enter the Export File Path or click the ellipse button opposite the field to browse for the file path name. Next, enter the name of the Export File. Place a check mark in the Generate Export XML field to generate the XML file for export prior to posting them.

• Import Checks: You can specify if you want to include the import of checks during the job as well. You may enter the Import File Path or click the ellipse button opposite the field to browse for the file path name. Next, enter the name of the Import File. When the import runs, it transfers a batch of checks with their corresponding check numbers into the file for posting. If "Post Checks" has been set as an option, the imported checks are then automatically included as part of the "Post" process.

• Post Checks: This is the final step in processing any job only AFTER the checks have been exported. Checks cannot be posted if they have not been exported. Click the field to place a check mark in it.

• Click Save to return the Check Processing Wizard screen. This places the "Job" in the Jobs list view and all of the check types / company / state / lines of business in the job items list view at the bottom of the screen.

Step 6: Process Checks / Check Processing Wizard

After your job has been set up, you may now process the job. There are two (2) ways you can do this:

• Manually

• Automatic

Process Manually

To start processing a job manually:

• Click the Next button at the bottom of the screen to begin. This displays the Select Checks screen and begins to process your check selection. (Note: Anytime the Back button is chosen, this takes the user to the first step within a given check type.)

• A Tree View is displayed to the left of the screen. The Tree View displays all options you selected for processing the job during its initial set up. As each process runs, the Tree View displays the option (step) you are running when clicking the Next button.

• You will be asked to confirm some of the validations when running your job manually.

• After Post, click Next one more time to finish your job.

• A Summary screen is presented with all of the job's activity listed.

Process Automatically

To start processing a job automatically:

• Click the Next button at the bottom of the screen to begin. This displays the Select Checks screen and begins to process your check selection.

• Select Process Defaults. This runs your job from start to finish with no user intervention. A Summary screen is presented with all of the job's activity listed when finished.

Process a Single Check

• To process a single check, place a check mark next to only that check in the list of available checks.

• Advance through the check job as normal.

Step 7: Process Job - Check Output

There is done two (2) ways:

• Print

• Export

Step 7A: Checks Print

If you have chosen Print, checks will be sent to the Print Manager and printed at your company. Once printed, their status in the Checks  table is "5."

Step 7B: Checks Export

If you have chosen Export Checks, named a file path and file name, the checks will be exported to a file. Once exported, their status in the Checks table is "7."

Step 8: Post Checks

This is the last phase of your check job. "Posting" the checks updates them. Once checks are posted, they are removed from the Check Processing Wizard screen. Their status in the Checks table is "8."

Step 9: Clear (Reconcile) Checks - Printed & Exported

The Clear Checks process is used to reconcile all four (4) check types: Return Premium, Agency Commission, Claim Checks and Suspense Account Checks. If you have accidentally cleared a check, you can use the Unclear option to change it back to a "Cleared" status.

Fields on the top of the screen are:

• Account Number: Select from the combo box the bank account number for the checks you will be clearing.

• Bank Name / City / State / Routing Number: After selecting the account number, these fields default the corresponding information.

• Cleared Display (All, Cleared, Uncleared): Select to determine the type of checks you want displayed by clicking in the field.

• Filter By: Select how you want the checks to be cleared by from the combo box. Base System values are: Amount, Check Added, Check Number, Date Cleared and Printed Date.

• From / To: Enter the dates after choosing how they will be filtered.

• Filter Button: Select after you have made your "Filter" entries and selection.

• Date Cleared: This is the actual date the checks cleared the bank. It defaults with the current system date but may be changed to show the actual date the checks cleared; entry format MM/DD/YYYY.

• Number of Checks: Displays the number of checks returned matching the filter criteria; protected field.

To clear the checks selected, click Clear Checks. The checks are removed from the list view. Checks are flagged as "12" (Reconciled) in the Checks table.

Option: Exported Checks

If your company has a bank reconciling your checks, you can use the Cleared Check Import function to import the checks into Diamond.

To import checks, select Cleared Checks Import from the Check Process Tree View in Diamond Administration.

1. When the Cleared Check Import screen displays:

1. • Enter the name of the import path or click the ellipse button to the right to browse for the path.

2. Click Import.

3. The system imports the checks found in the file.

4. When finished, Diamond displays a summary screen, showing the number of checks imported from each bank account and the total amount for each account.

Click OK to exit the import.

Agency Commission Checks (General Processing)

Agency commission checks are processed in Diamond two (2) ways:

1. Manual: "Manual" checks are posted via the Accounting button when the Agency Payments option is selected. When the Add Checks button is selected on the Agency Payments screen, agency commission checks are added in "batch mode." Once checks have been added and posted, these records are updated immediately. Their printed status equals "Y" (Yes). "Submit Check for Check Processing:" If you wish to pay, for example, a commission bonus, you can post it manually on the Agency Payments screen and place a check in the Submit Check for Check Processing field. Once you have done this, the check is then processed via Agency Commission Checks in Diamond Administration / Process Checks.
2. Automatic: Agency commission checks may be generated automatically. Diamond customers vary in the manner in which commission is paid. In Diamond, companies pay agency commission on: Written or Paid Premium.

Agency Commission Checks: Special Notes

• End-of-Day and End-of-Month: If automatically generating agency commission checks using the End-of-Day Program, the End-of-Day and End-of-Month Program must be run on the last day of the current month prior to processing agency commission checks. The Create Direct Bill Statements and Create Agency Bill Statements in End of Month Processes put records in the Agency Activity table. Only after End-of-Month has successfully completed can agency commission checks be processed.
• Check Processing: Generate – Agency commission checks are generated for the Month / Year of the Accounting Date that is on the screen (provided the “Set Accounting Date” option was checked in the Check Job.) This will also update the “generated” field for each row in the Agency Activity table that is applicable and also writes out new data to the check tables including Check Item and Check Payee. The Name / Address IDs for the refund mail to are then stored with the Check Item record, and the Payee Name / Address IDs are stored in Check Payee. The check item has a “Pending” status.
• Adding Checks: When Check Processing runs and checks are “added,” the system takes the information from Check Item and turns it into a new record in the Checks table and updates the Check Item status to “Assigned.”
• Agency Commission Checks: Posted – Once Check Processing has been completed and the checks have been posted, an ”Agency Payment” record (with a description of “Commission Check Processed”) is added to the Agency Activity table for the amount of the check.

Claim Checks

• Claim Transactions: When a claim transaction is entered and issued and the Manual check box is not selected, a claim check can be generated. Diamond stores the claims specific data in the Claims table in addition to writing out data to the Check tables (including Check Item and Check Payee. The name / address ids for the Claims Mail-to are stored with the Check Item record, and the Payee Name / Address ids are stored in Check Payee. The check item’s status is “Pending.”
• Check Processing: Generate - When claim checks are added, the system pulls the claim checks from the Check Item table to the Checks table and updates the Check Item Status.

Special Notes:

1. When a Claim End of Month Bulk Payment is issued, the date in the Check Item table will be the last day of the month; it will not be pulled into the Checks table until on or after that date.
2. Separate Accounts can be set up by Payment Type (Check or Draft).
3. Manual Checks: These can also have separate accounts (Manual Checks or Manual Drafts).

There are no special rules to consider when processing claim checks. End-of-Day or End-of-Month does not have to be run prior to processing the checks. Once a claim transaction has been entered and issued against a claim feature / coverage, a claim check can be generated.

Return Premium Checks

Refund (Credit) Exists: When a credit balance exists, such as an over payment, on a client's policy, a return premium check can be generated. This happens when there are no future installments and the billing method is "Direct Bill."

• Policy Installments: If a policy's Pay Plan contains installments such as "Three Pay" (e.g., three separate payments), "Direct Bill" and an over payment is made on the first installment, the credit amount is applied to the next installment. Therefore, a return premium check will not be issued if any future installments exist on a policy. Only when the final installment rolls and the balance is a credit will a return premium check be issued.
• Special Rules: Some company specific criteria are used when processing return premium checks. End-of-Day or End-of-Month does not have to be run prior to processing these checks. Once cash is posted and a credit balance exists on an insured's account, the check can be generated when the display is built providing there are no future installments.
• Check Processing: Generate - This runs a series of stored procedures that automatically generate Check Item records for policies that meet the criteria. The Check Item / Check payee records are created the same as for a manual refund check. As Check Processing runs and checks are “added,” the system takes the information from Check Item and turns it into a new record in the Checks table and updates the Check Item status to “Assigned.”
• Check Processing: Posted - When Check Processing has completed and the check is posted, a record is added to the Billing Cash table for the amount of the check.

Suspense Account Checks

• Suspense account checks can be generated when a "Refund" adjustment has been made and the "Submit Refund to Check Processing" has been selected against a payment that was applied to a suspense account.

All Checks

• Exporting Checks: If your company is exporting checks to a 3rd party vendor, checks must be exported prior to being "Posted" (updated).