Reconciling Accounts Receivable

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Reconciling AR to Actual Billing

Before you begin the reconciliation, make sure that all billing cycles for the AR that must be generated are closed.

Caution: Be aware that MSP PPS claims are not generated in Netsmart Homecare.

1.	Total the Net column for all billing registers for the period.

This total is the total net billing (AR) that should be generated from the billing registers for this period. The application stores both gross and net amounts but you use net to determine AR.

2.	From the billing register, identify any voids related to the previous billing periods (from and through dates).

3.	Add the amounts of these voids per billing period, and add them back to the appropriate billing period.

The previous period voids affect the Accounts Receivable report in the Ageing column appropriate to the original claim. For example, if there is a void against a claim from two months ago, that claim appears in the 61-90column, and the void nets against the balance—in the 61-90 column. A claim and a void generated in the same billing period affect the current period, so you do not need to add the current period voids back.

Note: You might want to create a separate total of current period voids and any replacements generated. You can use this total with the AR Balance Worksheet.

4.	From the billing register, identify any RAP reversal claims for the period.

They are subtracted from the billing register.

5.	Add the totals calculated in steps 1-4.

This total is the AR increase before payments, adjustments, and overpayments.

6.	Run the Collections Journal report for the current period.

7.	Identify any items paid in the current period related to the current period.

For example, if there are four weekly billing cycles in the current month, it is possible that by the end of the month you might have received some payments for the claims billed in the beginning of the month.

8.	On Collections Journal, identify any adjustments made in the current period that relate to claims from the current period.

9.	Also on Collections Journal, identify any amounts that represent overpayments.

The application applies overpayments to the 0-30 column.

10.

From the AR increase total (calculated in step 5), subtract the amount of items paid in the current period (step 7) and any overpayment amounts (step 9).