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Sinie
Canine II

Patient Balance Write Off

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? 

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8 Replies
tshaw
Community Manager
Community Manager

Re: Patient Balance Write Off

Hi @Sinie

Thank you for the post. Let me tag a few people that may be able to answer this for you. 

@lindamoseley @tsalcido @rhall any suggestions for this? 

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lindamoseley
CS Dental Employee
CS Dental Employee

Re: Patient Balance Write Off

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:

  1. Account/Patient Balance
  2. Production
  3. Collections

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. 

  • List>ADA Codes
  • Uncheck the box to show active only
  • See what is the next code in the 50's range that we can create for this purpose
  • Click ADD>Enter the next 50's code>hit TAB on keyboard>Name the code in the description field (Old Balance write-off, Bad Debt write-off, etc. - something that makes sense to you)

In my list, code 52 is the next available code. Yours will likely be different. (and that is OK)

lindamoseley_1-1626266257213.png

lindamoseley_3-1626266686963.png

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. 

 

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drcavola
First Molar I

Re: Patient Balance Write Off

@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.

Thx.

 

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drcavola
First Molar I

Re: Patient Balance Write Off

Oops, I believe it was another thread from the same OP that asked about the budget plans ... sorry.

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lindamoseley
CS Dental Employee
CS Dental Employee

Re: Patient Balance Write Off

Ok. I admit I was panicked thinking I answered the wrong question. I did not see anything related to Budget plans on this question. And yes, Budget Plans are handles very differently.
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drcavola
First Molar I

Re: Patient Balance Write Off

Yes, it's from @KDA43920  and the subject line is "How to Delete/Reset Account Budget Plan" ...

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Sinie
Canine II

Re: Patient Balance Write Off

So there is no possible way to write off balances from 10 years ago, without it effecting current production?  

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lindamoseley
CS Dental Employee
CS Dental Employee

Re: Patient Balance Write Off

That is correct. But remember, you can know the amount subtracted from current production based on the adjustment code used. Reports can be run for the total production adjustment by code.
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