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| 1. | Adjust the patient's account to zero using a minus adjustment named "Sent to Collections." |
| 2. | Transfer the patient's account balance to your COLLECTION ACCOUNT using a plus adjustment, identifying the transaction by listing the patient's name and account number in the description column. |
| 3. | Once you have printed the above transactions on the accounting audit trail, you may delete the patient's account. |
Payment Received from Collection Agency
| 1. | Post the entire payment to the COLLECTION ACCOUNT. |
| 2. | Itemize the Agency's fees for each patient's payment by posting a minus adjustment with "FEE FOR _______________" recorded in the description column of the transaction on the COLLECTION ACCOUNT. |
Payment Received from Patient
If a patient in collection sends a payment to the practice, take one of the two following steps:
| 1. | Send the payment directly to the Agency, instead of depositing it in your bank account. When your portion of the payment arrives from the Agency with the statement, follow the instructions listed above. |
| 2. | Deposit the payment to your bank account. |
| 3. | Post the payment in full to the COLLECTION ACCOUNT. |
| 4. | Record the Agency's fee for the patient's payment by posting a minus adjustment itemizing the patient's name with "FEE FOR ___________________" in the description column of the transaction on the COLLECTION ACCOUNT. |
| 5. | This will cause an extra credit to the account for the Agency's fee. When you compensate the Agency, post a plus adjustment named "COLLECTION EXPENSE" to the COLLECTION ACCOUNT. |
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