Using Auto-Apply – The Quick and Easy Way to Record Non-Insurance Payments

Applying non-insurance payments to a patient account is as easy as a single click of the mouse.

1. Create a new Credit Entry, specifying the patient, payer, type of payment, and the payment voucher (in most cases you will add the voucher on-the-fly). The credit amount will default to the amount of your voucher. Your credit will look something like the image above. In this example, there are three outstanding charges and a cash payment of $50.
2. Click the Auto-Apply button indicated by the red arrow in the image above. The available $50 payment will be immediately applied to the balances, starting with the oldest, until the payment is completely applied. See the results below:

The outstanding balances total $88, so the $50 payment was not enough to pay the last balance in full. There was, however, $12 left after paying the other two charges, so it was applied as a partial payment to the third charge.

Another possibility is that the payment is more than the total of all the outstanding balances. In the example below, there is a total outstanding balance of $138 and a payment of $150. SOS shows that there is an unapplied amount of $12. If you check the box indicated in this screenshot, that $12 will be saved as an unapplied payment for use on this patient’s account. If you do not check the Keep unapplied amount on this credit option, the $12 will remain on the voucher and can be used for this patient or any others for whom the current payer is responsible. Leaving the $12 on the voucher (this option unchecked) has the advantage of saving a little time if the $12 might have to be refunded in the future. See What is the Difference Between Unapplied and Undistributed Payments? for a full explanation of the difference between unapplied and undistributed payments.

Use of Auto-Apply is a great time-saver, but you can apply a payment manually if you prefer. Let’s say that you would rather pay the entire third charge balance and leave the older two for another day. In that case you would simply highlight the third charge and click the other button, Apply Credit, instead.