Accounting FAQ

Below are answers to frequently asked questions about the Accounting feature in the Manage Module.

What types of accounts can you set up?

What do I need to do to get started?

  1. Set up chart of accounts: Create at least one asset, expense, and income account. These account types are already available but you can edit/hide, delete, or add new ones.
  2. Set up automated deposit entries: Assign deposits to an asset and income account so when Deposit Slip are created, an entry is made into both the asset account (e.g. checking account) to balance your bank account and income account to keep track of the income total.
  3. Set up automated payment entires: Assign specific payment types that do no use deposit slips (e.g. cash payments, patient refunds) to an asset and income account so when these payment types are created an entry is made into both the asset account and income account.

For detailed instructions, see Accounting Setup.

How do I add an account type to the Chart of Accounts?

In the Manage module, click Accounting, then Add to open the Edit Account window. Enter the description and select a Type.

What is Automatic Payment Entries for on the Setup Accounting window?

It is commonly used for cash payments from patients or patient refunds. When you click Add, you will be prompted to select a payment type and add accounts the cash will be deposited into (we recommend using a second asset account such as Cash Box). Also select an income account so the transactions are included when tracking total income.

Note:
  • Cash box accounts should be treated like a checking account. All money going in and out must be recorded as a deposit to another account or as an expense. If not automatically added, manually enter the accounting transaction in the Cash box account.
  • A checking account does not make sense as a deposit account since each entry in a checking account is reconciled with a transaction recorded by the bank.

How are deposits assigned to an account?

When you create a new deposit, the account that will receive the deposit is listed under Deposit into Account on the Edit Deposit Slip window. The default account is the first one listed in for Automatic Deposit Entries. You can also manually create a deposit if the income received is not from a patient.

How do I enter a transaction for a payment (e.g. utility payments, rent)?

We recommend entering a negative payment from an asset account like a checking account. It is easier to remember that a negative number here deducts from your asset account balance. If you instead enter the payment from an expense account, the payment amount should always be positive since it adds to the expense total.

  1. Double click the account to open it.
  2. Click Add.
  3. Enter the payment (as a negative number from an asset account, or as a positive number from an expense account).

See Accounting Transactions.

How do I account for a patient refund?

Patient refunds are entered as a negative patient payment. Create a patient refund payment type (see Definitions: Payment Types) and set up Automatic Payment Entries for the refund type. Every time a refund payment is created, an accounting entry will automatically be made into the assigned asset and income account. If no Automatic Payment Entries are created for the payment type, manually create an entry in credit entry in the asset account (e.g. checking account) and split the entry to an income account (e.g. patient income).

When do I need to create a manual deposit entry (DEP)?

When you receive income from a non-patient source (e.g. a vendor refund). Manually create a deposit entry in the asset account, split to an account that makes sense for the payment source.

What is the Reconcile button for?

This is only visible when viewing an asset account and is used to Reconcile transactions with bank account statements. A statement is reconciled when the Sum of Transactions and the Target Change equal in value. If they do not match, there is an incorrect or missing entry.

How do I use the Deposits feature in Open Dental with QuickBooks?

In Accounting Setup, select QuickBooks in the upper right under Deposit Software. Linking your QuickBooks file will allow the software to create deposit entries in QuickBooks accounting (checking account and income account). See QuickBooks for more information.