Income Transfer Manager

In the Account Module, click the Payment dropdown, Income Transfer.

The income transfer manager is used to correct family balances with unallocated payments and transfer overpayments and unearned income to outstanding charges.

Note: If the Account Module Preference, Enforce Valid Paysplits, is set to Don't Enforce, do not use this tool to transfer income. Instead, do a manual Income Transfer.

When the window opens, any payments not allocated to an unearned type or charge (e.g. adjustments, payment plan charges, procedures) are automatically transferred, immediately updating the items available in the income sources grid. The automatic transfer moves unallocated insurance payments (claims paid using the As Total option) to the claims' procedures, updating the remaining patient portion for those procedures. Unallocated patient payments are moved to the default unearned income type, making it easier to allocate existing patient income to charges.

Use the income transfer manager to transfer any Unearned Income / Prepayments or income from overpaid procedures to outstanding charges.

  1. From the Income Sources grid, select a charge (adjustment, procedure, or payplan charge with a positive ending balance).
  2. Select one or more credits (adjustment, procedure, prepayment/unallocated payment with a negative ending balance) to allocate or pay towards the selected charge.

  3. Or, to transfer everything in the list, do not select any income sources.

  4. Click Transfer.
    • This creates offsetting negative and positive paysplits under Current Payment Splits.
    • The negative split subtracts the amount from the credit source and the positive split adds the amount to the outstanding charge.
  5. Click OK to complete the transfer. If an automatic transfer was created, it is also saved.

  • Income transfers require the PaymentCreate Permission.
  • An Audit Trail entry is logged for the automatic transfer.
  • When the Account Module Preferences, Enforce Valid Paysplits, Enforce Fully is enabled, some transfers may not be allowed.

Current Payment Splits: List of positive and negative payment splits (paysplits) created to transfer income to outstanding charges.

Delete Selected: Delete the selected paysplits from the grid. The corresponding positive or negative paysplit will also be deleted. The total amount of the deleted split is added back to the Amt End under Income Sources for future transfers.

Delete All: Delete all the paysplits in the grid. All paysplit amounts are added back to the Amt End under Income Sources for future transfers.

Income Sources: List of family adjustments, completed procedures, payment plan charges, and unearned income with a positive or negative ending balance. Positive ending balances reflect amounts owed. Negative ending balances reflect unearned income or overpayments made by insurance or the patient.

Each row is a summary of charges and credits for the same provider/patient/clinic combination. Click the right-arrow next to the provider abbreviation to view the summary breakdown.

Note: The income sources available for transfer may be different than what shows on the family account; this happens when an automatic transfer of unallocated payments takes place. Since these payments are automatically transferred when the income transfer manager is opened, the procedure ending balances (Amt End) and unearned income totals reflect here first.

Transfer: Transfers selected income sources to selected production sources.

Positive and negative paysplits are created for each transfer of income. The negative split subtracts the amount from the original source. The positive split adds the amount to the new source.

Ok: Post the income transfer as a line item to the patient account, along with the automatic transfer of any unallocated insurance and patient payments. Income allocated to providers/clinics/procedures for multiple family members will post to each patient account.

Cancel: Cancels any changes made in the window. Also deletes the automatic transfer of any unallocated splits.

Transfer Logic

If all items in the income sources grid were selected for transfer, the transfer manager will attempt to allocate any unearned income and negative adjustments to procedures, positive adjustments, and payment plan charges. Income from overpaid procedures is re-allocated to another outstanding charge. All income transferred is applied to the oldest charges with at least one matching provider/patient/clinic combination in the order below.

  1. Provider, Patient, and Clinic
  2. Provider and Patient
  3. Provider and Clinic
  4. Patient and Clinic
  5. Provider
  6. Patient
  7. Clinic

For example, if a prepayment/unearned income amount does not have the exact same provider, patient, and clinic allocation as an existing procedure, payplan charge, or adjustment, the income transfer manager will not allocate the prepayment. It will move on to find the next best matching production source based on the provider and patient, then provider and clinic, and so on until at least the clinic matches. If no provider/patient/clinic combination match is found the payment stays as unearned income.

Automatic Claim Payment Transfer

The automatic transfer of unallocated insurance payments is done using negative and positive supplemental claim payments, which are added to each affected claim. To view or delete these transfers, double-click into any received claim that was paid using the As Total option.

Note: Deleting one of the supplemental claim transfers or editing a received claim procedure will delete all of the transfers on the claim. See Supplemental Insurance Payments.

The negative supplemental entry is made for the same provider, payment, and write-off amount as the original payment. This subtracts the payment from the claim to re-distribute to the claim procedures.

The positive supplemental entries add the payment back, allocating it directly to the procedures on the claim. A positive entry is made for each procedure on the claim.

The insurance payment is split between each procedure on the claim until the payment is completely allocated. It first loops through each procedure and allocates the payment up to the procedures' insurance and write off estimates. If income is left over, then up to each procedure fee. Anything excess of the procedure fees is added to the first procedure on the claim and may result in an overpaid procedure. Overpayments not refunded back to insurance may be transferred to other charges with a remaining balance through the income transfer manager.

Note: Run the Insurance Overpaid Report to catch overpayments created by the automatic transfer and process any Insurance Refunds if necessary.

Automatic Patient Payment Transfer

The automatic transfer of patient payments moves any patient refund, patient payment, or previous transfers of income not allocated to a charge or unearned type (e.g. prepayment) to the default unearned income type. These negative unallocated payments are transferred to negative unearned income and positive unallocated payments to positive unearned income. This is done for every family member of the currently selected patient.

If the patient, provider, and clinic combination of the resulting negative and positive unearned income does not match, it may cause excess negative or positive unearned income totals. The excess unearned income re-calculates the family unearned balance and updates the income sources available for transfer in the income transfer manager window. However, if they match, the unearned income cancels out and is not available for transfer. Transfer any excess unearned income to outstanding charges from the income transfer manager.

To view or edit the automatic transfer, click OK on the income transfer manager window then double-click on the Txfr line item in the patient account.

The negative paysplit is for the original amount of the payment, subtracting the payment from its' unallocated state as preparation for the transfer. The positive split completes the transfer by adding or allocating the payment to the default unearned income type. If the Account Module Preferences, Allow prepayments to providers is enabled, the patient, provider, and clinic allocation of the original payment will remain.