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How do I enter write-offs?

By definition, a write-off is a reduction of the recognized value of something. When billing, a write-off is the difference between your total session fee and the amount that you are actually paid. In SimplePractice, we give you the tools you need to easily track the amount that is written-off for each session.

There are two types of write-offs you can track in SimplePractice:

  1. Sessions set with the Billing-Type: Self-Pay, which is used for clients who are paying out-of-pocket.
  2. Sessions set with the Billing-Type: Insurance, which is used for clients who bill through insurance.

Entering write-offs for clients paying out-of-pocket

When your clients pay for your services out of pocket, you may choose to offer a discounted rate--in which case, you can calculate the write-off amount. To do so, you can:

  1. Go to the client’s billing details page.
  2. Locate the session you would like to apply a write-off. Hover your cursor over the session fee to display an Edit link. Click on this link. Note: If the Edit link does not appear, this session is already on an invoice or superbill. Delete these items and you’ll be able to access the Edit link.
  3. Enter the amount of the session fee you want to write-off, as shown below.billing-1.gif
  4. Click Save.

Tip: As shown below, you can verify that the write-off was applied after entering.

billing-2.png

Note: The write-off amount you enter will reduce the portion of the session fee that your client is responsible to pay, causing the client’s overall balance to decrease.


Entering write-offs for insurance clients

When billing insurance companies for reimbursement, it is likely that your contracted rate will be lower than your advertised session fee. In order to track the write-off amount, you can:

  1. Go to the Add Insurance Payment page
  2. Enter the write-off for each one of the sessions that require it from this page. You can either type in the amount in the write-off box or use the circle of arrows so the system auto-populates it for you.
  3. Click Save.

billing-3.gif

You will know that the write-off was entered successfully because you will see it on the client's billing page like so:

billing-4.png 

Important: If you do not calculate the write-off amount when adding an insurance payment, the associated insurance claim will not update to "Paid"

Note: If you are enrolled for Payment Reports, the write-off amount will already be calculated in the automated insurance payment.

 

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