Allocate Unearned Income

In the Account Module, select positive adjustments or procedures, click the Payment dropdown and Allocate Unearned.

The family's Unearned / Prepayment balance will be quickly allocated to the selected items. This method is useful when you only have one unearned income type to allocate (e.g. prepayment). Use the manual income transfer method below when you have multiple unearned types and want to allocate a specific type to a charge (e.g. overpayment, copay, etc).

Alternatively, use the Income Transfer Manager to allocate unearned income to outstanding charges or, without selecting any production, click the Payment dropdown then Allocate Unearned. The Select Procedure window will open and all completed procedures and unattached, positive adjustments with a patient portion remaining will be listed. Highlight one or more items to allocate the prepayment to, then click OK. The Payment window will open.

The Payment Type will be checked as None (indicating this is a transfer of income only). Paysplits for the selected production items and unallocated amount will be auto-created, offsetting each other to equal 0. Verify the paysplits are accurate.

To allocate unearned payments to enabled repeating charges, assign an unearned income type to the Repeating Charge.

Multiple Unearned Types

To allocate a specific unearned type, first confirm there is a positive balance for the type; hover over the family, unearned total to see the total balance for each unearned type. If there is no balance for the unearned type, select one that does or use Allocate Unearned above instead.

Next, click Payment and enter a $0 payment amount. When the payment window opens, check Payment Type, None (indicates a transfer of income).

Click Add Split to create a negative paysplit that subtracts income from the family unearned balance.

  1. One the Edit Payment Split window, enter a negative amount less than or equal to the unearned income amount.
    • Less than, to transfer a partial amount.
    • Equal to, to transfer the entire amount.
  2. Select the Patient (upper right) the original unearned payment was made to.
  3. Select the specific Unearned Type, and the Clinic and provider of the original payment. A payment must exist for the select clinic/provider combination to complete a valid transfer.
  4. Click OK to save the negative paysplit and go back to the payment window.

Click Add Split again to create a positive paysplit that adds the income to a production item.

  1. Enter a positive amount equal to the negative split.
  2. Select the Patient to add the income too.
  3. Attach the income to a procedure, adjustment, or payment plan (one per paysplit). The clinic/provider is inherited from the selected production item.
  4. Click OK to save the positive split.

When the total paysplit equal $0, click OK on the payment window to complete the transfer.

Note: If the paysplits being created exceed the available amount of unearned income on the account, a pop up warning will display. Decline to correct the amounts entered.

Allocation Logic

The Allocate Unearned tool will allocate unearned income assigned to a provider that matches the provider of the selected production items first. If there is no unearned income with a matching provider or the income has no provider at all, the oldest unearned income amount is allocated to the selected production items, regardless of the unearned type.

A single, negative paysplit will be created for the entire amount taken from the unearned income balance. A positive paysplit will be created for each production item selected. The negative paysplit will have the same unearned type as that assigned to the unearned balance. If the unearned balance has multiple unearned types (e.g. multiple payments with an unearned type in addition to prepayment), the negative paysplit will be assigned the default unearned type set in Account Module Preferences

If the selected production is paid in full, expected to be paid in full (i.e. insurance estimate covers 100% of a procedure), or the family does not have a positive unearned balance, the Payment window will open with no payplits for the selected items. Also, unearned will not be transferred to the selected items if there are unattached, negative adjustments on the account. The credit from the adjustments are paying off the production, using first in/first out logic. Either attach the negative adjustments to a procedure, or allocate unearned manually.