Best Practice Guidelines: Healthcare Practice Management
12. Receipt Corrections
Check the cash and card reconciliations daily. Check that the ERAs balance with the bank account. When a reconciliation is incomplete or does not reconcile, the discrepancy must be investigated. Incorrect receipts can be written back by the Practice Manager.
Receive all patient payments (card and cash). Link all payments to the corresponding invoices. When errors occur, corrections must be requested from the Practice Manager or Credit Controller (Receipt Written Back).
||Does receipt corrections. (This task can be performed by the Practice Manager or the Credit Controller.)|
|Draw the list with the reasons of all the receipt corrections (Receipt Written Back). Check if proper reasons were given and if authorised personnel did the corrections.|
Purpose of Receipt Corrections
To correct erroneous receipts and linking and to link unlinked receipts to their corresponding invoices.
Critical Steps of Receipt Corrections
A word of warning:
DO NOT USE JOURNALS TO CORRECT ERRONEOUS RECEIPTS - your reporting will be incorrect as journals post to expense ledger accounts and will not correct the practice’s turnover or cash flow in the software.
Journals are ONLY used for the following purposes:
- Settlement discount
- Small balance write off
- Bad debt written off.
The Receipt Written Back Function
When posting receipts, there are two types of errors that can occur:
The details of the payment and/or the debtor can be captured incorrectly
The payment can be linked to the incorrect invoice.
Erroneous receipts must be written back so that it will amend the practice’s turnover cash flow in the software. When a receipt was captured incorrectly, the Receipt Written Back function must be used to cancel the incorrect receipt so that the correct receipt can be captured.
The Receipt Written Back function is used when a receipt was captured incorrectly. The account will be adjusted with a positive amount to cancel the original/incorrect receipt.
This will also correct the cash books and the cash flow.
Link Unlinked Receipts / Amend Linking
The Unlinked Receipt line / column in the receipt screen was designed for patients who pay for services and stock in advance. Eg practices that take deposits before private patients visit the Practitioner, will post receipts without the ability to link them to the invoices that will only be created after the consultations.
If a receipt is not linked to its corresponding invoice, the account will show both a debit and a credit after billing and receipting was done and reports will show the invoice as outstanding.
The age analysis will also then show the debit and credit and if the practice does not draw the age analysis for both debits and credits, a wrong debt collection message could be sent to the debtor, resulting in embarrassment to the practice.
To correct this situation, all unlinked receipts must regularly be linked to their corresponding invoices. The invoices will then be marked as paid.
If a receipt was linked to the wrong invoice, the linking must be corrected.
Desktop App - A Zero Receipt will be used to link the unlinked receipt. This will ensure that the cash flow does not increase when the receipt is linked to the correct invoice.
Web App - Will auto-link the invoice to the unlinked receipt if the amounts are the same as on the receipt and the invoice.