Sometimes a credit should be written off and counted as income for your practice. If a credit remains on your books for several years, the credit should be written off and considered revenue. You may choose to write off old insurance overpayments as well, recording them as income. To write off credits, post an adjustment in
refund and then link the credit to that adjustment. Follow the procedure below.
For the steps below to work, you will need a “Credit Write-Off” adjustment procedure in the Procedures table of
ted. You can create different procedures for writing off different kinds of credits, such as “Credit Write-Off (Personal)” and “Insurance Overpayment Write-Off”. All adjustment procedures for writing off a credit should have the accounting type of “Revenue – Non-Service.”
Follow these step to write off a credit:
refund For the Account With a Credit
refund from the Daily Operations window, or by typing
refund at a command prompt. Find the account with the credit. If you are writing off a credit from an insurance overpayment, it may be on the Insurance Overpayment account.
Post the Credit Write-Off Procedure
Using the Credit Write-Off procedure (with the accounting type of “Revenue – Non-Service”), post the full amount of the credit that you wish to turn into income.
Run Correct Mistakes (
oops) from the Daily Operations window, type
oops at a command prompt, or just press the F6 – Correct Mistakes key while in
Locate the Credit
Page Down and
Page Up to locate the credit you are writing off. Note the item number next to it.
You may notice that part of the payment is linked to a charge on the account. The payment listing will use line numbers to indicate where portions of it are applied. In the example above, a $10 check pays off a $5 copay, leaving a $5 credit open and unlinked.
Press F7 – Relink Pmt and Choose the Credit
Press F7 and enter the number that appears next to the credit in the history:
Select the Credit Write-Off Procedure
From the list of outstanding charges, find the Credit Write-Off procedure you posted in
refund. Type the corresponding number and press Enter. If the payment pays off other charges, and you are only writing off part of it, link the payment to both the Credit Write-Off procedure and the charges it is paying off, as shown in the example below:
Confirm the Credit Links to the Write-Off
On the next screen, confirm that the payment you are writing off links to both the Credit Write-Off procedure and any charges to which it is also applied. In other words, the payment should be fully accounted for, with no unlinked amount remaining. The Balance fields should be $0.00.
Record Your Actions in
Run the Family Editor (
fame) for any affected accounts. Record your actions on the Notes page.