How do I allocate insurance payments?

After a claim has been sent to an insurance company you may receive full or partial payment from the insurance company. This article explains best practices on how to book these payments and follow up on actual payments received from an insurance company.

Before you start

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  • An insurance claim must have been created (see Related articles)
  • A preliminary payment must have been booked on the suspense account “Insurance Claims” (see Related articles).
  • You need permission to be able to add payments and edit invoices. Permissions can be adjusted by practice administrators in General Settings > Role Management.

Step-by-step instructions

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For the purpose of this article, we are using the following example,

  • We have an invoice for £25,84 which we claimed with the insurance company Petplan, insurance claim number is CL-2021-0001.
  • We have already booked a preliminary payment for the full amount on the suspense account “Insurance Claims”.
  • The insurance company has decided to only pay £20,- on this claim by the bank on 09-02-2020.
  • This will leave a balance of £5,84 to be paid by the client on 09-02-2020.
  1. Browse to  > Financial > Balance Cash/Bank.
  2. Click Add new transaction behind “Bank” under “bankbooks”.

  3. Field “Search”: fill in “Insurance Claims” (not necessary to search for the full word).

  4. Select “transfer from Insurance Claims.
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    Notice how on the left from “transfer from Insurance Claims” you see “transfers” is showing in grey highlight. By clicking only those transfers, you can see all transfers between the chosen bank book and other ledgers created by you.
  5. On the right side fill “Paid on” (as per this article’s example): 09-02-2020.
  6. On the right side fill “Amount” (as per this article’s example): 20.00.

  7. On the right side fill “No” (as per this article’s example): CL-2021-0001.

  8. On the right side fill “Payment description”: Claim amount (partially) accepted (or full if the full amount was received).

  9. Click Save.
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By following the above steps, you will have booked the payment you received from the insurance company on this claim number. You do want the client file to show an open amount for the amount that has not been accepted by the insurance company. Read how to do this in our Related Articles section below.

More about this

How do I check the transactions booked on an insurance claim?

  1. Browse to > Financial > Balance Cash/Bank > Insurance Claims > Grouped Per Bank Statement.
  2. Following our example above, click CL-2021-0001.

This will show you the full report on all transactions booked on this claim number.Above reports shows that this claim is not balanced. The difference shown in the line total amounts to £ 5.84. The original Invoice this related to was number S-2020-0142 (as per this article’s example).

Related articles

Updated on 12 April 2022

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