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CS Dental Employee
CS Dental Employee

Transitioning to Line Item Accounting

Good morning community!

The Line Item accounting feature received tremendous beta feedback. As a result we are able to provide a more functional, user friendly experience to the PracticeWorks family. 

One area that benefited from beta feedback was the Transition Utility. This utility is used to distribute past credits to debits. To understand why this is important, let's look at an example.

Imagine activating Line Item accounting and applying that first cash payment to a patient's cleaning codes. Not only would the cleaning codes show up, but every procedure the patient had performed! Expand that to your entire patient base and you can see why something has to be done. 

That something is the Transition Utility. The utility applies, or distributes, credits (payments and adjustments that decrease the balance) to debits (procedure codes and adjustments that increase the balance). The utility uses Balance Forward, or First In, First Out accounting to do this.

The good news is that all those old procedures won't show up to receive distributions from the cash payment in the example above.

The bad news is that if you want to use Line Item accounting for payroll, there's no way to match the PracticeWorks data up with your old accounting system.

In my opinion, and in the opinion of the majority of beta customers, the Line Item accounting feature is very easy to use. The transition from a payroll system other than the Cross Settlement to Line Item is the only real pain point. 

I created the attached document to the Transition Utility to assist you with the process of moving to Line Item accounting once it's available. It's not light reading; I recommend going through the document with a highlighter and pen, writing down questions and considering how you will transition your practice to Line Item accounting. 

As always, your feedback and questions are welcome and encouraged. 

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