This article outlines the recommended procedure for handling debt write-offs within our system.
Permissions
Access to the client's account within the system
Ability to add payments with a payment type "Other"
Access to the Payments Report
Ability to add client alerts
How to write off the debt
Add a Payment:
Navigate to the
Health Cardof any patient for this ClientClick
Add PaymentEnter the Amount
Select Other as the Payment Type
Enter a Payment Description such as "Debt Written Off."
Select an appropriate
dateIdeally, date the payment on a day with minimal other payment activity.
Generate Payment Report:
Select
Reports-> Financial Reports -> Payments Report.Apply a filter for the Payment Type Other
Exportthe filtered report.
Provide Report to Accountant:
Submit the printed report to your accountant for accurate recording of the debt write-off.
Add Client Alert:
Navigate to the
Edit ClientpageClick on the➕ to add a new tag
If the Client Alert already exists, search for the appropriate tag and
click on the alert to selectIf the Client Alert does not yet exist, Add a new Client Alert such as "Handed Over."
CloseClient AlertsClick on
Save
Example
Let's say you need to write off the debt of a client named "John Doe."
You would navigate to John Doe's account and add a new payment with the following details:
Payment Type: Other
Payment Description: Debt Written Off
Date the payment on a day with minimal other payment activity.
Next, you would generate the Payments Report and filter it by the Payment Type "Other"
You would then print the report and provide it to your accountant.
Finally, you would add a "Handed Over" client alert to John Doe's account for future reference.
FAQs
Why is it important to use a specific payment type and description?
This helps to clearly identify and track debt write-offs for reporting and accounting purposes.
Can I write off debt without adding a payment?
No, adding a payment with the specified details is crucial for proper recording and reporting.
What is the purpose of the client alert?
The client alert helps easily identify clients with written-off debts in the future.
It can be used to filter the Accounts Receivable Report
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