Occasionally, insurance carriers pay you interest for charges they have failed to pay in a timely manner. How can you record that interest in PCC, without throwing off your Accounts Receivable? An interest payment is unexpected revenue that should not be posted against the original charges. Is there a “correct” way of keeping track of the income in PCC? The procedure below will teach you one common method.
For this process to work, you will need:
An “Insurance Interest” procedure in the Procedures table in
ted. The procedure should have an accounting type of “Revenue – Non-Service.”
An “Insurance Interest” payment type in the Payment Types table in
An “Insurance Interest” account and dependent patient for the interest payments. You can create a dummy account and patient for all interest payments, or create one account for each insurance or group, as needed.
Contact PCC support for help configuring the items listed above.
Follow the procedure below when you receive an interest payment:
refund For the Insurance Interest Account
refund from the Daily Operations window or by typing
refund at a command prompt. Find the account you are using to store the interest payments.
Post the Insurance Interest Adjustment Procedure
refund, post an Insurance Interest procedure for the amount of interest paid by the insurance company. This procedure is the offset, used to balance the insurance interest payment.
pam for the Insurance Interest Account
You can run
pam from the Daily Operations window, by typing
pam at a command prompt, or by pressing F4 – Post Payments while you are in
Post the Interest Payment and Link it to the Interest Adjustment
Post an “Insurance Interest” payment for the amount of interest paid.
Press F4 – Special Payments and link the payment to the adjustment you posted in the steps above. To learn more about
pam and the Special Payments key, read Post Personal Payments and Adjustments.
Record Your Actions
Run the Family Editor (
fame) for the Insurance Interest account. Record information about the interest payment on the Notes page.