Uncollectible Balances

You tried nice.

Maybe you tried not-so-nice.

Now you just want to move on.

Clearing an uncollectible balance cleans up your reports and gets rid of something that no longer needs your attention.

The best way to write off an uncollectible balance is with an invoice.

  1. Go to Settings > Billing and Insurance > Products, and add a product called “Uncollectible Balance Adjustment”

  2. Go to the offending account and click ‘New’ > Invoice

  3. Click ‘Create Blank Invoice’

  4. Add line item and choose ‘Uncollectible Balance Adjustment’

  5. Add a NEGATIVE amount equal to the balance in the account and save

  6. Click ‘ Add Payment’

  7. You’ll notice unpaid invoices are already listed and check marked. Click ‘ Apply available credit ($xxx)’

  8. Click ‘Allocate credit’

You’ll see that the account is now $0.

 
 

A few things to note:

  • If the client returns and you want to restore the balance, simply delete the uncollectible balance adjustment invoice.

  • If the client still has access to the portal and billing documents, they will be able to view the adjustment invoice. So, if you don’t want them to see it, turn off access in their settings.

  • If you are a group practice using the Income Allocation Report to compute payroll, the invoice credit that you create in this method will not affect clinicians’ income report as it is not counted as actual funds received.

Kari Silverberg