What are the Different Types of Adjustments and When Should I Use Each of Those?

• Correction - This adjustment type should be used when you need to correct a payment or charge amount for cash/check payment methods or credit card payments that were NOT processed through a payment processor. (If it will not allow you to correct a credit card payment, it was processed with one of our integrated payment processors and cannot be corrected.)  To enter a Correction adjustment type:
  1. 1.  Click on the line item that needs to be corrected within the Patient Ledger
     2.  Select Correction on the hamburger menu to the very left on the line item.
        
     3. Type in the actual/full amount that should have been entered by typing in a negative (credit) amount or a positive (charge) amount. For this payment example, the payment was entered as 250.00, but it needs to be a 275.00 so the correction will look like this.
        
     4. Type in a comment for what the adjustment was for and click save.
     5. When the correction is complete the ledger will have a blue line item that is an adjustment to make the total correct, instead of changing the payment line item. So the correction from a 250.00 payment to a 275.00 payment looks like this on the ledger.
        

           **Corrections cannot be used to correct adjustments.  Another adjustment will be needed to                          correct an adjustment.

              A quick video tutorial on Corrections can also be found here:  Corrections Tutorial

• Reversals - The reversal adjustment type is essentially an undo button that can be used if something was entered in error.  For example, a late fee was accidentally entered, a charge was entered under the wrong patient, or the incorrect payment type was used. (Reversal only removes a payment from the ledger if used on a payment, it does not refund it to the card.) To enter a Reversal:
  1. 1.  Click on the line item that needs to be corrected.
     2.  Select Reverse on the hamburger menu.
     3.  Type in a comment and click save.
     4.  Click the Reverse button to post the reversal. It will appear as its own line item in blue, (Adjustments show in blue on the ledger.)
        

• Void/Return - The Void/Return adjustment type attempts to refund the payment and remove the payment from the ledger. This is also accessed by clicking the hamburger menu to the very left on the line item for the payment. This can only be used on third party credit card charges, (i.e., if you have Open Edge, FIS, or Cloud 9 Pay, our integrated payment processors.)  If the Void/Return is done before the funds are settled, it will VOID the transaction in Cloud 9 and the third party payment processor, requesting the return of the funds to the card from which the charge was made. It also removes the payment from the ledger. If the funds have already been settled for a transaction, you will not be able to Void/Return that transaction. In this scenario, if you try to Void/Return the payment, it will give you a red error and tell you to manually refund the payment from your payment processor portal. It will still remove it from the ledger though.

Adjustments

• Balance Adjustment - Balance Adjustment is the most common adjustment type used in Cloud 9. If you need to add balance to a patients ledger, you would put a positive amount in the due now or future due. If you need to decrease balance on a patients ledger, you would put a negative amount in the balance adjustment on the future due or total due. Sometimes, you may even need to move balance from the future due to due now or vice versa. There is an article on that scenario that can be found by clicking here.
  Additionally, a quick video tutorial on Balance Adjustments can also be found here - Balance Adjustment Tutorial.
• Contract Adjustment - Used to increase or decrease the amount of a contract.  After completing a contract adjustment you will need to open the contract and check that Charge dates and AutoPay dates and amounts are correct as an additional step.  To create a Contract Adjustment:
  1. 1. Create a new adjustment and select an adjustment type of 'Balance Adjustment'
     2. Select the applicable contract for the patient and enter a positive or negative amount in the contract adjustment field.
     3. Click Save.
     4. When the pop up comes up stating you have changed the contract, click to okay then edit enter the contract and ensure that all amounts and dates are correct with the increased or decreased contract balance.
        
        
  • • Due Now Adjustment - Used to increase or decrease the due now amount on a patient account.
    • Discount Adjustment - Used if a discount applies to the patient account.
    • Write Off - Used if a portion of a balance needs to be written off.  Use a negative amount when writing off a portion of the balance. 
      A quick tutorial on Write-offs can also be found here:  Write off adjustments
    • Refund Adjustment - If an overpayment has been made, a refund adjustment can be done on the patient account.  A refund adjustment can also be done, if for example, treatment has to stop and a refund is owed to the patient. Refund adjustments are a positive amount to return the balance to zero/desired balance.
      A quick video tutorial on Refund Adjustments can also be found here:  Refund Adjustments
    • Transfer - Used to transfer a portion (or entire) balance from one patient to another or from one ledger tab to another. To create a Transfer Adjustment:
      1. 1. From the ledger tab you wish to move the balance from, create a new adjustment and select an adjustment type of 'Transfer'
         2. 'Transfer From' should be filled out since you clicked from the ledger tab you wish to move the balance from. The next step is to fill out the 'Transfer To' section, with patient ID, and the ledger tab for RP or insurance that you wish to move the balance to.
         3. Next step is to fill out the 'Adjustment Details' Tab on the lower left. Transfer should be the adjustment type chosen. Next, you will enter the balance you wish to move. If you are moving a payment the balance will be negative. If you are moving a charge the balance will be positive. If the balance that needs to be moved is in the 'Due Now', you will fill out the 'Due Now' line with the amount. If the balance that needs to be moved is in the "Future Due', you will fill out the 'Future Due' line with the amount.
         4. The last step is to fill out the 'Adjustment Details' tab on the lower right. There are two choices here Receivables or Contract. This correlates to where you entered the amount in the previous step. For Future due balance transfers, choose Contact. For Due Now balance transfers, choose Receivables. 
            The balance transfer should look something like this:
            

For a more in depth article about Balance Transfers, click here.                    
A quick tutorial on Transfer adjustments can also be found here:  Transfer Adjustments