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.
- Want to know how an insurance company is paying (or not paying) on a specific procedure or procedures? Run the Insurance Payment by Procedure report.
- Looking for a summary or detailed look at outstanding A/R by producer? Run the Unpaid Production report.
- Want to track your patient payment collections on specific procedures? We have the Payment by Procedure report that gives you the information.
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.