PracticeWorks Version 8 - What is Line Item Accounting?
Over the next few weeks I'll be sharing details about the latest addition to PracticeWorks - Line Item Accounting.
So what is line item accounting? Line item accounting allows you to assign payments to procedures. Put another way, you can designate down to the penny where payments are applied. This is an internal accounting function and has no effect on patient facing items such as statements or ledger print outs.
Let’s look at an example.
Traditionally patient payments reduced the overall balance but could not be allocated to a procedure or series of procedures.
With line item accounting enabled you can now designate how a payment is applied to procedures. The payment still reduced the total balance. Additionally, the payment is distributed to producers via the procedures performed.
In the example above we could distribute to the oldest balance first, resulting in JEK receiving the full $50. Or we could distribute to the newest balance first, resulting in $50 distributed to HYG. Or we can manually split the payment and distribute $25 to JEK and $25 to HYG. The power is in your hands.
Next time we'll take a look at how PracticeWorks Version 8 makes distributions possible.