Allocating Unearned Income

Unearned / Unallocated Income, such as prepayments, can be quickly allocated to completed procedures.

One Unearned Type

This method is useful when you only have one unearned type.

In the Account Module:

  1. Select the procedure(s) to allocate unearned income to, then click the Payment dropdown, Allocate Unearned.

    Or, do not select procedures and click the Payment dropdown, Allocate Unearned. All completed procedures that are not yet paid off will list.

    There are three credit filter options:

    • Only allocated credits: Show all procedures that do not have enough attached credits (e.g. paysplits, adjustments) to cover the full cost of the procedure (e.g. procedures that have attached paysplits that only cover part of the cost).
    • Include all credits (FIFO): Show all procedures that are not paid off using first in/first out logic. This logic applies when credits in a payment are not explicitly attached/allocated to procedures.
    • Exclude all credits: Show all procedures on this patient's account.

    Highlight the procedure(s) to attach to the payment, then click OK. The Payment Window will open.

    The payment type will equal 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.

  2. Click OK to save and close.

Multiple Unearned Types

If you have more than one unearned income type (e.g. overpayment, copay, etc), use this method to manually allocate to a specific type to a procedure.

To allocate a specific unearned income type:

  1. Click the Payment dropdown and select Income Transfer.
  2. The Payment window will open with a Payment Type of None and payment amount of $0 (indicating a transfer of income only).
  3. Create two paysplits to subtract the amount from the unearned income type and add the amount to the procedure.
    • First, subtract the amount from the unearned income type: Click Add Split, enter a negative amount, and select the Clinic. Under Payment Split, click Attach to select the unallocated paysplit. The Unearned Type and Provider will automatically change to that of the original prepayment. Click OK to go back to the payment window. Repeat for each unearned income type.
    • Then add the income to a procedure: Click Add Split, enter a positive amount, leave Unearned Income Type as None, select the Clinic and Provider to transfer the income to. Under Procedure, click Attach to select a procedure. Under Payment Split, click Attach to select the prepayment used above to link to this procedure. Click OK to go back to the payment window. Repeat for each procedure.
  4. 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.
  5. 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).

  1. Double click the original prepayment.
  2. On the Payment window, click the Allocated tab in the Current Payment Splits grid.

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