I am working on extremely aged accounts and need to write off balances so that it doesn't effect our current records. Is there a code that post the write off, but does not go against our current year, or is there a method that that can be done?
Hello @Sinie ,
Cleaning up old uncollectable balances is a very good idea! You will want to create a transaction code specifically for this purpose. When the code is created you must pay particular attention to the effect the code has on the following:
All transactions codes will have an effect on 2 out of 3 from the above list.
Since you did not collect the funds to pay the balance, you do not want to use a code the effects collections. So that leaves us with using a code that effects account/patient balance and production.
Therefore you need a code that will decrease balance and decrease production in order to clean up the old balances. Create a code in the 50's range in the SoftDent transactions codes.
In my list, code 52 is the next available code. Yours will likely be different. (and that is OK)
Now any code posted will show for the date it was posted. And it will appear on your Daysheet.
You cannot go back to previous dates in history to change codes or amounts from the past to clear a balance. If you did, then you are still changing all the AR numbers from that point forward and creating a mess.
But when you run reports, you can subtract the total amount from you other production adjustment codes.
@lindamoseley - I get your solution ... and as far as balances that are sitting in accounts that say for example are in collections, then that makes sense. But, per our accountant, those balances stay on the account until/unless there are payments made, from collections agencies, for example.
If I understand the original question, it is about not so much cleaning up old balances, but rather removing those outstanding $$ in account budget plans ... so specifically for our office:
Receivables Summary shows $xxxx.xx in the total Amount outstanding on Account Budget Plans, as well as $xxxx.xx Total amount outstanding on Credit Card Payment Plans (excluding budget plan).
These categories came from the Practice Summary Report I ran on 7/1/2021.