Accounting Transfer Methods

The following transfer methods are available for invoice processing:

• Transfer Items: This is the most commonly used transfer option. It allows for exact line item posting and accurate EOB posting to the line items within an invoice. Due to the line item capability of this transfer, your reports and line item payments accurately portray what is being billed and received for this type of item transfer. When you remove this transfer from an invoice, it will change and affect the corresponding invoice(s). Using the Transfer Items button creates a link between the items on the invoices. This method requires the line item to be available prior to processing the transfer, thus, charges must be billed prior to the transfer.
• Transfer: This is an invoice balance transfer. It transfers a bulk amount to another payer without being associated to a specific charge(s). This method reduces the invoice that is being processed while increasing the invoice that has been selected. Line items remain intact for their entire amount, while the invoice amount is altered. This method can cause EOB postings to not match exactly per line item as one item will need to be reduced by the transfer amount to post the payment. Reducing the line item allows the invoice to balance to $0.00 even though the line item amount has a balance. Using this method impacts two sales categories within your Sales Report (i.e., Balance Transfer and Balance Transfer Out). The two sales report categories do not link to invoices, therefore, it is possible to remove one from one invoice while not altering another invoice.
• Patient Portion: This is an invoice copay transfer and is used for offices that need to handle tax situations. The use of Patient Portion transfers a bulk amount to another payer without being associated to specific charges. Using this method reduces an invoice while increasing another invoice for the same amount. All line items will remain intact for their entire amount, while the invoice amount is altered. This method can cause EOB postings to not match exactly per line item due to one line item needs to be reduced by the transfer amount to post the payment. The process allows the invoice to balance to $0.00 even though the line item amount has a balance. Using this method impacts two sales categories within your Sales Report (i.e., Insurance Co-Pay and Co-Pay). The two sales report categories do not link to invoices, therefore, it is possible to remove one from one invoice while not altering another invoice.

Instructions

We recommend using the Item Transfer approach as this will give you the most accurate reporting and provide measures to ensure that invoices stay in-balance with the transfers. To set 'Use Item Transfers on Payments' but still post payments in bulk, please follow these steps:

1. Access Admin > General > Practice Preferences > Additional Preferences > Accounting.
2. "Payment by line item" set to 'None,' if following our suggestion above.
3. "Use Item Transfers on Payments" set to 'Yes.'
4. Click 'Save.'
5. Log out and log in to see the changes associated to the setting.

Additional Information

• Split button: Use of the split button is only recommended in states that require the tax to be charged only on the patient overage/patient responsibility of the item, not the full unit price of the item, as the lack of functionality is limiting. If any changes are needed to correct the amount, the item will need to be removed from both invoices as the unit price will not adjust back to the amount before the split status.
  • If your office does not charge tax on materials, the setting in Admin should be marked as 'No.'
    • Access Admin > General > Practice Preferences > Additional Preferences > Accounting > Allow Split Button.