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Income

Income

 

Income is a curious beast when it comes to medical billing and how you handle it depends on who receives the income. If all income belongs to the business it is different than income belonging to specific providers. It also depends on what you define as income

 

Aeris Basic assumes that income goes to providers so payments don't become income until they are assigned to a provider. This is important and it means that payments that remain as an active payment or as prepayments are not counted as income until the moment they are applied to providers and/or services.

 

Patient Payments

When you make a patient payment, you assign the payment amount directly to the selected providers. You cannot leave any part of the payment as a prepayment. You can, however, leave part of a payment as the active payment.

 

With payments that cover more than one patient, each patient amount is handled individually so the same provider can be assigned part of the payment as income separately for each patient.

 

Insurance Payments

Insurance payments are not so direct. When you apply some or all of a payment to a service, you select the provider and that amount becomes income for that provider. However, on insurance payments, you have the option of leaving some or all of that payment as an overpayment that is not assigned to a provider and is therefore not considered income even though you may have deposited it into your bank account. When you eventually apply that overpayment to services, only then does it become income. If you refund the overpayment, it does not become income.

 

Income in Aeris is reported on the Income by Provider report. This report presents a snapshot of the income for the reporting period as it looks at that moment. If you change anything related to income, the report for the same period will change.

 

A more rigorous handling of income would track every change and show those changes as adjustments to income as of the date the change was made. Aeris is not an accounting program, it is a basic billing and practice management program and this level of detail is beyond the scope of the program.

 

WARNING!   If you change the date applied for a payment applied to a service, you will change the income reported in the income reports for the periods that cover both the original and new dates.

 

See Also:

Accounting Principles