Ledger Setup for Line Item Accounting

Use the Ledger Setup window to select Line Item (vs. Balance Forward) accounting, and to set the associated payment distribution options.

To set up the Ledger:

Select File > Preferences > Ledger setup. The Ledger Setup window is displayed.
Under Accounting System, select Line Item. The Line Item Accounting settings are displayed.
Under Treat collection adjustment credits on Payroll & Distribution Audit Report as, select an option for how to categorize collection adjustments that decrease a patient's balance:

Collections - to treat collection adjustment credits as payments that are paid to producers in the Distribute column on the Payroll and Distribution Audit reports. Collection adjustment credits are handled just like cash, check, or credit card payments: distributed to the producer or production owner.
Adjustments - to treat collection adjustment credits as adjustments that are not paid to producers, but appear as Adjustments on the Payroll and Distribution Audit reports. Adjustment credits are treated like production or other types of adjustments, and reduce the amount a producer is paid for a procedure.

Require all payments to be distributed is not selected by default.
Select to require that all payments be distributed in full to open charges. When selected, a user cannot leave the distribution screen until a credit is fully distributed.
Auto-distribute patient payments is not selected by default.
When selected, the distribution screen does not appear when patient payments (cash, credit, or check) are entered. Instead, the software uses the default distribution method chosen in the next two options. If not selected, the distribution screen appears when a patient payments is entered.
If the default distribution method chosen frequently results in a proper distribution, deselecting this option saves time. Conversely, if this option is not selected and you find yourself frequently correcting distributions made by the system, return to the Ledger Setup window and select this option.

Use the lists to select a Default Auto-Distribution for Check-out Payments setting and Default Auto-Distribution for Mail Payments setting.

Default distribution methods are provided for patient payments. Insurance and adjustment values are not distributed automatically. Though the default options listed below are the same, you can select different default options for the Check-out ledger and the ledger.
No distributionNo distribution - No values pre-populate AMT TO APPLY. You must manually type in the amount to distribute or select an option from the DISTRIBUTION METHOD TO USE and click DISTRIBUTE.
Oldest balance firstOldest balance first - The credit is distributed to the oldest DUE NOW balance first.
Newest balance firstNewest balance first - The credit is distributed to the newest DUE NOW balance first.
Today first, then oldestToday first, then oldest - The credit is distributed to the DUE NOW portion of today’s charges. If an amount remains, it is distributed to the oldest DUE NOW balance.
Smallest balance firstSmallest balance first - The credit is distributed to procedures based on the smallest DUE NOW value, working to the highest until the credit is fully distributed, or the DUE NOW for each debit is reached.
Only if distribution results in zero amt dueOnly if distribution results in zero amt due - The credit is distributed only if the resulting DUE NOW amount is equal to zero.

Select whether to include columns for Producer, Production Owner, or both on the Payment Distribution window's charges list.
Set the Outstanding distribution date filter defaults. Outstanding distributions are filtered for a specified time period, so that credits past a certain date are fully distributed and no need exists for PracticeWorks to examine the records.

Select All transactions if you want the entire ledger record to be reviewed for possible distributions whenever you open a ledger, check out a patient, or open a distribution screen. This option can cause a delay in functionality when ledgers contain a large number of entries.
Select Transactions newer than ___ months to limit the time frame reviewed for possible distributions. The recommended value is between 6 and 12 months.

Under Automatic Distribution Swap Setting, select Manual, Newest First, or Oldest First. For more information, see Distribution Swaps.
Click OK.