Skip to main content

GL Accounts

  1. Last updated
  2. Save as PDF
Setting up General Ledger accounts.

In the accounting world, debits and credits act differently depending on the type of account they are applied against.

For Asset and Expense Accounts (i.e. Checking and Accounts Receivable):

  • Debits increase the balance
  • Credits decrease the balance

This is the way that the payment/adjustment codes work in myAvatar PM. A code set up as a debit will increase the client's balance and a code set up as a credit will decrease the client's balance.

For Liability, Equity and Revenue Accounts:

  • Debits decrease the balance
  • Credits increase the balance

Earned Income Report balances to the GL Charge File.
Payment Adjustment Report balances to GL Payment/Adjustment File (be sure to exclude transfers and exclude charge reversals).

Charge reversals are shown in the Charge File.
All Transfers and Charge Reversals are mapped in the P/A account numbers.

This needs to be done for each transfer code and for each combination of components (Financial Class, Program, and Transfer Code).

  • Both sides of the transfer are on the payment/adjustment file.
  • The “to” side is a new charge so that is set up like any other charge in the Charge file even though the results will appear in the payment/adjustment file. The payment/adjustment detail file shows these with a –T.
  • The “from” side is treated like any other payment/adjustment and must be mapped in the Payment/Adjustment file.

Caution: Transfers should always be set up as credits in myAvatar ’s Posting/Adjustment Codes Definition form.

Example: Setting Up Transfers in the GL

If the user transfers money from Medicare to Medicaid, the set up would be as follows:

What you want the system to do on the "from" side is to decrease the specific Revenue account (Medicare) and decrease the overall AR account (aka-balance sheet account).

The "from" side would be mapped as follows: (This is done is in the Payment/Adjustment file - Payment/Adjustment Account Numbers form - just like any other payment would be.)
DB Medicare
CR  Overall AR account

What you want the system to do on the "to" side is to increase the specific Revenue account (Medicaid) and increase the overall AR account.

The "to" side would be mapped as follows: (This is done in the Charge file – Charge Account Numbers form - just like any other service would be.)
CR Medicaid
DB  Overall AR account

Both sides of the transfer will appear in the Payment/Adjustment report.

The overall net effect of all of this is $0.