Returns, Refunds, Warranties and Credits
There are several scenarios in which an office will credit a patient account. Usually a negative Adjustment will account for the credit whether or not a refund occurs. Once an adjustment is put on an account, if there is a resulting negative balance, you can choose to either leave the account with a credit or refund actual payment by cash, check or credit card.
- Credit the Account
A credit to the account means you remove a portion of the patient's balance by adding a negative adjustment.
Credits occur for the following scenarios:
- Warranty work: The patient has work redone at no additional charge. You will chart the replacement procedure at normal price, then add a negative adjustment. The balance stays the same.
- Product return: The patient is returning a purchased product for a refund or just credit.
- Courtesy credit: The patient is unhappy with work and wants a credit for part or all of the charge.
- (Optional) Refund
If a patient ends up with a negative account balance after a negative adjustment is entered as shown above, the patient may decide to keep the credit on the account or you may process a refund (a negative Patient Payment). Refunds only apply to procedures or goods the patient has already paid for. You would be returning money to a patient with the original payment type.
- Start by crediting the account with a negative adjustment as above.
- If you decide to refund money, click Payment in the account module.
- Enter a negative amount in the amount field. Select the payment type and click OK.
To process a return on a credit card, see Return a Payment.
Scenario 1: Your patient purchased a product that they want to return.
- Add a negative adjustment to the account to negate the original charge.
- Check the account balance. If there is a credit, choose to:
- Refund the balance by creating a negative Patient Payment in the correct amount.
- Leave the credit.
Scenario 2: Your patient received a filling that fell out, so it needs to be redone. This is called a warranty credit. You aren't going to return money to the patient, but you will add a negative adjustment to account for the warranty when you chart the replacement procedure.
- Chart the replacement procedure and mark it complete.
- Add a negative adjustment equal to the procedure fee amount.
Scenario 3: A patient has a crown break soon after treatment, but has since moved out of state. They already paid for the crown so their current account balance is 0.
- Enter a negative adjustment (Misc Neg Adjustment) for $800. This makes the patient balance $ -800 and affects production amounts.
- Enter a negative payment for the refund amount and write them a check. This takes the balance back to 0 and affects the income amount.