Income transfers allow you to correct previously allocated Patient Payments that were allocated incorrectly. Allocation of income is especially important when Tracking Income by Provider, but also useful when cleaning up family balance items. Transfers affect income allocation only; they do not increase or decrease the total practice income.
In the patient account ledger, income transfers show as payment items with a Txfr code.
Example 1: Guarantor has a negative balance while other family members have a balance owed. The guarantor (Andy) paid the entire family's balance but the payment was only applied to his balance. Thus Andy has a negative balance but Judy still shows a balance owed. To clean up the family balances, transfer Andy's negative balance amount to Judy.
Example 2: One provider has a negative balance while other provider's have a balance owed. A payment was entered for the entire family balance, but only allocated to one provider (Albert). Thus Albert has a negative end balance but Johnson still shows a balance owed. To allocate the income to the correct provider, transfer Albert's negative balance amount to Johnson.
Note: If under Outstanding Charges, the Amt Orig, Amt Start, and Amt End for a line item is $0, this means the procedure is essentially paid for, but the money is not directly allocated to it. If you want to directly allocate the payment to the line item, proceed to step 2 to transfer the income.
In the example above, Provider Sparks was the treating provider for three procedures, but the initial payment was allocated to Provider ENDO. During the income transfer, two pay splits are created for each procedure (one positive, one negative) to reallocate the income to Provider Sparks. Since the payment amount did not match the total outstanding charge, there is still a remaining amount due for Sparks (Amt End).
Note: Total split amount and payment amount must both equal 0 to create an income transfer.
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