In part three of this series we look at why you would want to use the Line Item Accounting feature.
First and foremost, line item accounting is used for paying producers on Collections.
All prior versions of PracticeWorks provided a payroll by collections option called the Cross Settlement report. Cross Settlement works on the First In, First Out accounting principle. Payments were applied to the patient’s oldest balance, even when insurance payments were applied to specific procedures.
Starting in Version 8, PracticeWorks provides a new payroll option. Line item accounting payroll reporting is generated based on distributions you make. When an insurance payment is entered and distributed, the producer who performed those procedures gets paid. The same goes for patient payments.
A secondary function of line item accounting is detailed payment reporting. With the ability to distribute payments (and write-offs), PracticeWorks can deliver detailed reporting previously unavailable.
In the next discussion I’ll help you decide whether Line Item Accounting is right for your practice.
To continue the discussion click “Add a reply” below.
Thanks juriz! Great summary.
First and foremost, this new feature will be the answer people have been looking for to get relief from a hard-to-use Cross Settlement Report. It will take a little bit of extra effort to learn to post your payments in a new way, but the the results you will get are fantastic! It will be great to have an easier way to pay the doctors on collections, as well as have such detailed reports about where the money is coming from.
Secondly, these are features that you don't have to use -- not everyone is interested in Line Item Accounting and are perfectly happy using the existing FIFO in their single provider practice. For them, we made it so these features are elective, and not a requirement after the update; you choose when and if to start using LIA.
We have had great feedback from our beta testers, and I am really looking forward to introducing this to a wider audience.