Adjustments

Content

  • Introduction
  • Adjustment Types
  • How to Create Adjustments
  • Viewing Adjustments
  • Posting Adjustments

Introduction

This article is meant to assist you with adding adjustments to invoices. Adjustments can be created to correct incorrect invoice amounts, reverse payments made for an invoice, and more. This is part of the optional add-on tool, for Enterprise Accounting. If you are interested in the extendedReach Enterprise Accounting tool, please contact sales@extendedreach.com.

Adjustment Types

There are several adjustment types that can be made and applied to invoices. The adjustment types are as follows:

  • Adjustment to Charges
    • Fee Reduction: Adjustment to reduce the balance due on an invoice.
    • Fee Increase: Adjustment to increase the balance due on an invoice.
    • NSF Check Fee:  Adjustment to increase the balance with specific charge for items returned for non-sufficient funds

  • Adjustment to Balance
    • Provider Discount: Adjustment to reduce the balance due on an invoice.
    • Reverse Provider Discount

  • Adjustments to Transfer Balances/Credits
    • Internal Transfer: Adjustment to reduce the balance due on an invoice by transferring that balance to another Program/Account. Transfer Accounts are set up under Program Settings>Transfer Accounts
    • Reverse Internal Transfer
    • Use Prepaid Funding: Reduce a balance by applying dollars from a Prepaid Funding source:
    • Reverse Prepaid
    • Transfer Credit Balances: Move a credit balance to other open invoice(s) for the same client

  • Adjustments to Refund/Reverse Payments
    • Refund: Adjustment to refund all or part of an applied payment. [Credits Accounts Receivable, Debits Refund Wash ledger]
    • Reverse Refund: Adjustment to reverse all or part of a previously applied Refund.
    • Reverse Payment: Typically used to reflect a recoupment from Insurance. [Credits Accounts Receivable, Debits Cash]

  • Adjustments to Write Off Balances
    • Write Off: Adjustment to write off all or part of the balance due on an invoice. [Debits Bad Debt/Write Offs, Credits Accounts Receivable]
    • Reverse Write Off: Adjustment to reverse all or part of a previously applied write off. [Debits Accounts Receivable, Credits Bad Debt/Write off]
    • Recovered Bad Debt Income: Adjustment to reverse all or part of a previously applied write off before applying new payment. [Debits Accounts Receivable, Credits Recovered Bad Debt Income]


How to Create Adjustments

To create an adjustment, go to the client's Financial tab and click on the green "Adjustment" button. 

Image: Add adjustment

In the Adjustment Information section, enter in the date of adjustment, select the adjustment type, add the adjustment amount, apply it to the appropriate invoice, and add a memo (optional). 

To apply an adjustment to an invoice, click on the hyperlinked "Apply To" field. A pop-up will then appear where you can select the invoice to apply it to. Click on the hyperlinked invoice number to select the particular invoice. 

Image: Apply adjustment to invoice

Once you have filled out the adjustment information, click on Save.

Image: Save adjustment


Viewing Adjustments

All adjustments made for a case can be found under their Financial tab; you can filter the Financial Records to show only Adjustments. 

Image: All case adjustments


Posting Adjustments

To post any adjustments to your accounting system, go to System Settings > Posting: Ready to Post > Post. For more information on how to post items, click here

All posted adjustments can be viewed under the Financial Summaries Menu > Posted: Adjustments. The posted adjustments view can also be exported to Excel by clicking on the Excel button to further filter, sort, and organize the data.

Image: Viewing posted adjustments