When an insurance provider or other payer covers less than a client's full invoice balance, you can record the difference as a write-off to close out the balance without changing what your client owes. This article covers recording, editing, and tracking write-offs in Practice Better.
In This Article:
- Before You Begin
- Recording a Write-off
- Editing or Deleting a Write-off
- What Happens After You Record a Write-off
Before You Begin
- Recording a write-off doesn't submit or process an insurance claim. It only lets you log the shortfall once you already know what your client's insurance provider paid. For help submitting and tracking claims, see the Insurance Billing section of our help center.
- This also works for invoices generated by an active payment plan or installment. Payment plans typically charge the client right away and create a paid invoice, but if that invoice is still pending or unpaid, you can record a write-off on it the same way described below.
- In a PLus or Team plan, team members need a staff permission level that includes “modify” access for invoices to record, edit, or delete a write-off.
Recording a Write-off
There may be times when you invoice a client for a purchased service or package, expecting their insurance provider to cover the remaining balance after the copayment. If the insurance provider pays less than expected, you can record the difference as a write-off so the invoice balance reflects what's actually owed. You can record a write-off on an invoice in any status, whether it's unpaid, partially paid, or paid in full.
- Go to Billing & Payments, find the invoice, and 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 of the invoice and select Record a Write-off.
- Enter the write-off Amount and Write-off Date, and add an optional note, then click Add.
- Click Save at the top of the invoice.
💡 Tip: You can record more than one write-off on the same invoice if the balance needs adjusting over time. The combined total of all write-offs on an invoice can't exceed its remaining balance.
Record a Write-off sits in the same menu as Record a Payment, but the two are independent actions. Recording a write-off doesn't require, or trigger, a payment record, and vice versa.
Editing or Deleting a Write-off
Made a mistake on a write-off amount, date, or note? You can fix or remove it at any time.
- Go to Billing & Payments and open the invoice you want to update.
- Select Edit, then click the Write-offs tab at the top of the invoice editing page.
- Find the write-off you want to change. Click Edit to update its details.
- Or click the trash icon to delete it entirely.
- Click Save at the top of the invoice.
What Happens After You Record a Write-off
Invoice Balance and Status
Recording a write-off doesn't change the invoice's payment status. It reduces the invoice's remaining balance by the write-off amount.
You’ll see an orange icon in your invoices list, indicating an invoice with a write-off.
Client Visibility
Clients aren't notified when you record a write-off, but any notes you add in the write-off appear on the client's invoice/receipt PDF, so avoid including internal-only details.
Reporting
Every write-off you record appears in your Transaction Statement report, giving your practice a clear audit trail of balance adjustments. Learn more in Viewing Reports →