Making a Write-Off Adjustment

The write-off adjustment enables you to adjust account balances that you do not think will be paid. There are five pre-defined write-off types, and you can customize them for your practice. More...More...

When you enter a write-off adjustment, the software expects the amount entered to be a negative amount. If you enter a positive amount for the write-off, a warning is displayed. The only reason to enter a positive write-off amount is to correct an error.

ExamplesExamples

A patient has moved, and you need to write off the remaining balance on the contract. Select the Transfer out write-off type.
You want to write off balances that are long past due. Select the Collectible and UnCollectible write-off types. Collectible is generally used if the account has been turned over to a collections agency, and UnCollectible is used if you do not expect to be able to collect this money.
If treatment for a patient is stopped before completion, and the remaining contract balance will not be paid, select the Discontinue tx write-off adjustment.
Write-offs can be reversed if they were posted in error. Select the adjustment you want to reverse and use a positive dollar amount. If any write-offs exist on the ledger, they are displayed in the adjustment grid for selection.

To make a write-off adjustment:

Select the Write-Off option button in the Financial Functions — Adjustments window. The charges you can write off are displayed in the center of the Financial Functions — Adjustments window.
In the Account to Adjust box, select whether you want the write-off to affect the responsible party balance or the insurance balance.
The amounts shown in the Actual section of the Balance Adjustment section reflect the amount owed by the responsible party or insurance carrier for the selected patient only.

In the Type of Write-Off box, select the write-off type.
In the Write-Off Amt field, type the amount of the write-off as a negative dollar amount. The software calculates the effect on the account balances and aging.
Review the default comment displayed in the Comment section. Add your own comment at the end, or select and replace the comment.
Click the Post Transactions button to update the account.
If you have written off an account as a collectible or uncollectible write-off and then receive a payment, this creates a credit balance. Add a procedure code called “Collectible Monies Received” and post that procedure code to offset the credit.