Allocate Unearned Income

In the Account Module, select procedures to allocate unearned income, click the Payment dropdown and Allocate Unearned.

The Unearned / Prepayment will be quickly allocated to the selected procedures. This method is useful when you only have one unearned income type to allocate (e.g. prepayment).

Alternatively, do not select procedures and click the Payment dropdown and Allocate Unearned. The Select Procedure window will open and all completed procedures with a patient portion remaining will be listed. Highlight one or more procedures to attach to the payment, 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 procedures and unallocated amount will be auto-created, offsetting each other to equal 0. Each paysplit will be linked to the original unallocated payment for reporting purposes. Verify that paysplits are accurate.

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.

Multiple Unearned Types

If you have more than one unearned income type (e.g. overpayment, copay, etc), use the method below to manually allocate a specific type to a procedure. To allocate unearned payments to enabled repeating charges, assign an unearned income type to the Repeating Charge.

To allocate a specific unearned income type, click Payment and enter a $0 payment.

In the Payment window, check Payment Type, None (indicates a transfer of income).

Create two paysplits to subtract the amount from the unearned income type and add the amount to the procedure.

Verify the Total splits equal $0. If they do not, review the paysplits. Both the total amount of the income transfer and paysplits should equal $0.

Click OK to save.

View Allocations

Once unearned income has been allocated, you can quickly view the allocations via the original prepayment. If the unearned income is allocated to the wrong clinic, patient, procedure, and/or provider, edit the original allocation (if done same day) or do an Income Transfer to reallocate the income (if the allocation was done in the past).

Double-click the original prepayment.

On the Payment window, click the Allocated tab in the Current Payment Splits grid.

For each allocation, enter the date, amount and patient list.