If a client pays you outside of Practice Better, such as by cash, check, or bank transfer, you can record the payment on their invoice so your records stay accurate. This article covers how to record a payment, what happens after you do, and how to edit, refund, or delete it.
In this article:
- Before You Begin
- Recording a Payment on an Invoice
- What Happens After You Record a Payment
- Sending a Receipt
- Editing, Refunding, or Deleting a Recorded Payment
- Record a Payment vs. Other Billing Actions
- Frequently Asked Questions
Before You Begin
Practice Better has two actions with similar names. This article covers Record a payment on an invoice.
If you are working with an insurance claim in My Practice > Insurance Claims, the claim has its own Record External Payment action, which is separate.
Recording a payment on a claim overwrites existing and future ERA payments for that claim, and the two actions are tracked separately. Learn more in Managing Insurance Claims with Claim.MD →
Recording a Payment on an Invoice
If you've received a payment for an invoice outside of Practice Better (for example, cash, check, or bank transfer), follow these steps to record the payment.
- Go to My Practice > Billing & Payments.
- Click Edit next to the invoice, or open the More Options menu (3 dots) > Edit.
- On the invoice editing page, click the More Options menu (3 dots) in the top-right corner, then select Record a payment.
- If the More Options menu is unavailable on a smaller screen, select Record a payment from the Fast Action Button in the bottom-right corner.
- Select the payment source from the drop-down list in the pop-up. Select from: bank transfer, cash, check, credit card, debit, insurance, PayPal, or Venmo.
- Enter the amount paid, the payment date, and any notes you want to attach to the payment.
- Click Add to record the payment.
- Click Save at the top of the page to save your invoice.
💡 Record a payment stays available after you select Process or Send on an invoice, so you can record money you receive at any point.
What Happens After You Record a Payment
The payment appears in the invoice's Payments History tab and reduces the invoice balance.
- Full payment: When the recorded amount covers the full balance, the invoice is marked paid.
- Partial payment: When the recorded amount is less than the balance, the invoice shows a partially paid status and stays open until the remaining balance is paid or recorded.
Your client sees the partially paid status in their client portal. They can see the recorded payment by downloading the invoice PDF.
Sending a Receipt
Once an invoice is paid, the invoice serves as your client's receipt. Practice Better doesn't generate a separate receipt document.
To send a receipt right after recording a payment, click Send in the top-right corner of the invoice.
To send a receipt later:
- Go to the client's record and open their Billing & Payments section.
- Click View on the paid invoice to open the invoice summary page.
- Click Send invoice/receipt.
- In the confirmation pop-up, click Send.
Editing, Refunding, or Deleting a Recorded Payment
If you entered the wrong amount, date, or source, you can correct it. Open the invoice and go to the Payments History tab.
The options for a recorded payment are Edit, Refund, and Delete.
- Edit: Update the amount, date, source, or notes.
- Delete: Remove a payment you recorded in error.
- Refund: Record a refund against the payment on the invoice.
After making any adjustments in the Payments History tab, be sure to click Save at the top of the page.
📍 Note: Recording a refund on a manual payment keeps your invoice accurate, but it does not move money. Return the money to your client outside of Practice Better, for example by check or bank transfer.
Record a Payment vs. Other Billing Actions
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Record a payment vs. Process: Record a payment is for money you've already received. Process collects payment on your client's behalf through the invoice payment screen, and it makes the invoice read-only. Learn more in Creating and Managing Invoices in Practice Better →
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Record a payment vs. Record a write-off: A write-off clears an amount you don't expect to collect, such as a discount or an insurance shortfall. It is not money received. Learn more about Tracking Write-offs in Invoices →
- Invoice vs. claim: Recording a payment on an invoice does not change an insurance claim. See Before You Begin above.
Frequently Asked Questions
Q: Can I record a partial payment?
A: Yes. Enter the amount you received. The invoice shows a partially paid status and stays open until the full balance is paid.
Q: Can I record a payment after I've sent or processed an invoice?
A: Yes. Record a payment is still available after you select Process or Send.
Q: Will my client see that I recorded a payment?
A: Yes. Your client sees a partially paid status in their portal when the invoice isn't fully paid. They can see the recorded payment by downloading or viewing the invoice PDF.
Q: My client paid online, but the invoice still shows as unpaid. Should I record a payment?
A: Contact our support team before recording a payment. Recording a payment for money that was already collected online can lead to a duplicate entry, and our team can check the payment for you.
Q: I recorded a payment by mistake. How do I fix it?
A: Open the invoice, go to the Payments History tab, and choose Edit or Delete for the payment.
Q: Does recording a refund return money to my client?
A: No. Recording a refund for a manual payment updates the invoice. Return the money to your client outside of Practice Better.