Tuesday, August 16, 2016

Correcting Posting Errors on Payments in History

Occasionally, you may find that you made a mistake on a payment posted in the Dentrix Ledger. You cannot delete payments in history, but you can correct the mistake and maintain accurate A/R records by entering an adjustment to offset the incorrect payment amount and then posting a corrected, backdated payment. Knowing how to correct posting errors in history will allow you to close each month without fear that you won't be able to go back and correct mistakes later.

Consider this scenario:
Jane Doe called today with a question about her billing statement. Her statement shows a balance of $270, but she says she made a $300 payment the last time she was in the office. You look at her Ledger and see that there was a $30 payment entered for her last month on the date of her visit. You check your credit card receipts and verify that she did make a $300 payment, it was just posted incorrectly. Since the payment is in history, you cannot delete it. To correct the mistake, you will need to post an adjustment to offset the incorrect payment amount and then post a corrected, backdated payment.

To correct posting errors for payments in history:
  1. In the Ledger, select the patient.
  2. Find the payment that needs to be corrected. Double-click it to open the Edit History Payment dialog box. You won't be making any changes in this dialog box, but you need to open it to take note of the Date, Amount, and Provider the payment was allocated to, which you will need to know when you enter the adjustment. Once you have noted this information, click OK to close the dialog box and return to the Ledger.
    Note: If the original payment was split when it was entered, you may need to find two or more payments when, when added together, equal the payment amount you are trying to correct.
  3. From the Ledger menu, select Transaction > Enter Adjustment. The Enter Adjustment dialog box appears.



  4. Enter the amount of the payment you are correcting in the Amount field.
  5. Select the type of adjustment being made in the Type pane. For example, if you are offsetting a payment, you will select a debit (+) adjustment to negate the amount of the payment.
    Note: If you do not already have one, you should set up a debit (+) adjustment type specifically for correcting payments in history.
  6. Select the Provider to whom the adjustment should be applied. This should be the same provider the payment was originally applied to.
  7. In the Note field, enter a note explaining why the adjustment is being made. This is a good practice to be in the habit of doing, so you have a record of why a change to the payment is being made.
  8. Click OK to enter the adjustment.
  9. Now that you have posted an adjustment to offset the amount of the payment, it is as if the payment were never made. You must next post a new payment with the correct information to complete the process. From the Ledger, click the Enter Payment button. The Enter Payment dialog box appears.


  10. In the Date field, enter the date the original payment was made. Refer to the notes of the original payment you made in step 2; backdate the new payment to the date of the original payment.
  11. Enter the correct amount of the payment in the Amount field.
  12. Enter the rest of the payment information as you normally would.
    Note: Make sure you apply this payment to the specific patient for whom you are correcting the procedure in history, and make sure you apply it to the correct individual provider. You should not split by provider or by family when posting a corrected, backdated payment. If you have two providers with incorrect payments, you should correct them individually and post two separate backdated procedures.
  13. In the Note field, enter a note explaining the situation and reason for this corrected payment.
  14. Click OK to post the corrected payment. The payment will have a ^ symbol listed in the Transaction Flags (*) column of the Ledger to indicate that it was backdated.


For additional information on how to manage Ledger transactions, consider signing up for and attending a Dentrix Accounts Receivable Management Workshop, offered in 17 cities around the country this fall. Or visit our Dentrix Workshops page for information on other workshops in your area.

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