🚨 Important: The write-off process detailed below is a short-term workaround that we recommend to allow you to write off debt - we are currently improving our accounting features to make this process much easier and more efficient. Look out for more information on these exciting updates in the future!
Can I write off a patient's debt?
If a patient has outstanding debt which is not going to be recoverable, you may wish to write it off in order to clear the account.
There are two ways to write off a patient's debt, depending on whether:
You want the debt to be deducted from the practitioner's gross takings.
You want to still credit the practitioner as if the work had been paid for.
If you choose to write off a patient's debt, it is important to follow the correct process, to ensure your reporting accurately reflects the changes.
How do I write off a patient's debt and deduct it from the practitioner?
If you need to write off a patient's debt, and you want this charge to go against a practitioner's gross takings:
First, you need a treatment item called 'Bad debt' - if you don't already have one, create a new one. Ensure the 'Appear on invoice' option for the item is ticked. (For UK NHS practices only, do not apply an NHS banding to it).
Next, navigate to the patient's chart, and click the plus ➕ button below the chart to create a new treatment plan.
In the treatment list, select your 'Bad debt' treatment item and add it to the course of treatment.
Set the treatment price to a negative amount, equivalent to the amount that you are writing off. For example, if you wish to write off £/$50 of debt, set the item price to -£/$50.00.
This write-off will be taken from the gross takings of whichever practitioner is set against this course of treatment. By default, that will be the patient's assigned practitioner, but you can change it manually if needed, by clicking the dropdown and setting a different practitioner in the treatment details. The 'Practitioner' field is compulsory, which is why you should only use this method if you are going to assign the charge to a practitioner.
Next, complete and charge the treatment. This will raise an invoice for the negative amount, shown in the patient's account as a negative amount in credit. You will see the icon for the practitioner you assigned to the treatment, shown in the 'Practitioner' column.
If the amount you have written off is exactly the amount of debt the patient owed, their outstanding balance will now appear as £/$0.00.
You will then need to explain the write-off invoice, to ensure your reporting is accurate.
How do I write off a patient's debt and still credit a practitioner?
If you need to write off a patient's debt, but want to credit the practitioner's takings as if the work had been paid for:
Navigate to the patient's 'Account' tab.
Click 'New Invoice'.
In the invoice that is generated, add a new line item - call it 'Bad debt'.
Set the item price to a negative amount, equivalent to the amount that you are writing off. For example, if you wish to write off £/$50 of debt, set the item price to -£/$50.00.
For AU 🇦🇺 users, ensure the tax rate is at 0%.
When you are ready, click 'Save'.
This will raise an invoice for the negative amount, shown in the patient's account as a negative amount in credit. You will see that no practitioner is assigned to the invoice. When this is explained, the money will be deducted from the practice's 'Sundry' account.
You will then need to explain the write-off invoice, to ensure your reporting is accurate.
How do I explain a write-off invoice?
In order to write off patient debt, you will end up with the original invoice(s), plus your new negative invoice that you have created to write it off. You will need to allocate both invoices to a payment in order to clear the account and ensure your reporting is accurate.
Go to the patient's 'Account' tab, and click 'Take Payment'.
Set the 'To Pay' amount to £/$0.00, and set the 'Payment Method' field to 'Cash' or 'Other'. You may also wish to add a note clarifying what this payment is for.
Click 'Record payment'. The £/$0.00 payment will now appear in your list of payments, and needs to be explained.
Click the question mark ❓ button to the right of the £/$0.00 payment to explain it.
First, set the amount to the negative amount you are writing off, and select the negative invoice from the dropdown. Then click 'Save'.
Then, repeat the process by explaining the payment, and this time select the original outstanding invoice(s) that you are wanting to write off. When you are ready, click 'Save'.
Both invoices will now show as explained, and the £/$0.00 payment will have the invoices shown against it. The patient's outstanding balance will reflect this debt as written off (so if there are no other outstanding invoices, their balance will now be 0).
