Entering a Check from a Collection Agency

To enter a check sent to your practice by a collection agency, create an adjustment code called COLLCHK, with a description of "Collection Check Received."

To create an adjustment code for collections:

  1. Select Lists > Transaction Codes. The Transaction Code List window is displayed.

  2. Select Adjustment Codes.

  3. Click Add.

  4. Fill in the Abbreviation field with the desired code label, such as COLLCHK.

  5. Select Adj (other) as the Code type.

  6. Select Increases balance.

  7. Type an appropriate description of the transaction in the Description field.

  8. Click OK.

  9. Use this code to debit the patient’s ledger in the amount of the collection check, and then post the check to return the balance to zero. This accounts for the money received.

The next time you run the Accounts Receivable Report (File > Print > Accounts and Receivables > Account receivable), the total will reflect the amount that has been written off as bad debt.

 

Related Topics

Managing Collections

Writing Off a Balance

Using the REFUND Code

Counting Patients Sent to Collections

Using the Accounts Still in Collections Contact Expert

Using the Sent to Collection Agency Form

Creating a Prompt for Patients in Collections

Turning Off Statement Printing for Collections Accounts