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ERP for Insurance Claims in Automobile Industries

ERP for Insurance Claims in Automobile Industries
Reading Time: 3 minutes

In automobile industry, we often come across a scenario where a damaged vehicle comes to the service center for repair / service. If the damaged vehicle is insured, then the repair cost is either shared by Customer and Insurance Company or borne by insurance company entirely.

Suppose the repair cost is 1, 00,000 INR for the vehicle, then the invoice will be raised against the customer but since the damaged vehicle is insured, the customer will only pay partial amount say 40,000 INR whereas the remaining balance amount will paid by Insurance Company.

Since invoice is raised against the actual customer 60,000 INR amount is still on the debit side. Now, we have to move this balance from Customer to Insurance Company. For this we will have to configure Insurance Company as customer in Sage 300.

This can be done with the help of Adjustment entry by using some clearing account and then passing the Debit note entry against insurance company.

Below mentioned are GL effects entries of the entries.

AR Invoice Entry

                        Dr                        Cr
Customer A                    100000
Income account                    100000


AR Receipt Entry

                        Dr                        Cr
Bank                     40000
Customer A                    40000


AR Adjustment Entry

                        Dr                        Cr
Clearing Account                      60000
Customer A                    60000


Debit Note

                        Dr                        Cr
Insurance Company                   60000
Clearing Account                    60000


But Before passing this debit note as per protocol, many check points are there which needs to be verified.

Hence, we have developed a utility which will automatically create the debit note against the particular Insurance Company once all those check points are satisfied. Let’s us first discuss how the configurations and how entry will be recorded in Sage 300, ERP for Insurance Claims in Automobile Industry.

Entry 1: An Invoice entry will be raised against the Actual customer as you can see in below screen.

ERP for Insurance Claims in Automobile Industry
ERP for Insurance Claims

Now, against this invoice which worth 100000 INR customer will pay only 40000 INR.

Pending balance will be transferred to Insurance company customer with the help of adjust button as shown in below screen shot:


ERP for Insurance Claims in Automobile Industries
ERP for Insurance Claims

As you can see we have selected Dist. Code at this level which is linked to Insurance clearing GL code. You have to make that Insurance company customer Code and Dist. Code should be same. You will come to know the logic behind this when we discuss below screen.


ERP for Insurance Claims | Automobile Software
ERP for Insurance Claims

This utility screen will create AR debit note on click of process against the insurance company customer.

Code of Insurance Company: This will be the list of all the distribution code from distribution master. Once you select the dist. Code and click on the go button, the program will fetch the data from adjustment which has the selected dist. Code at its detail line within selected date range.

The Grid in the above screen shows the following info:

Posting Date: Adjustment entry posting date.

Customer Name: Actual customer Name against whom invoice was raised.

Customer Code: Customer ID

Document Submitted: Implies whether required legal documents are submitted to insurance company or not.

Surveyor Certification Received: Indicates whether Surveyor Certificate is received from the Insurance Company.

Surveyor Certification Date: Certification received date.

Amount: Debit Balance

Debit Note: Indicates whether to create AP Debit Note or Not.

On click of process button program will create AP Debit Note for the Insurance company customer. As shown in the below screen:


ERP for Insurance Claims | Automobile Software
ERP for Insurance Claims

Hence, by using this utility from Sage 300, ERP for Insurance Claims in Automobile Industry, you can easily manage Vehicles Insurance claims.

For more details on ERP for Insurance Claims and what ERP is best suited for your business, SMS SAGE to 56767. You can also write to Sage Software Solutions at

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