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Insurance clawbacks pull payments from other client accounts

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  • Wendy Belding

    Hi Carrie,

    Honestly, the easiest way is to "write off" the amounts for David, Elton, and Janice now.  In 2020, you already paid taxes on John, Paul, George, and Ringo.  Just "Add Insurance Payment" for D/E/J and write off the reduction - even all the way to a $0 payment if required. 

    If J/P/G/R's amounts totaled $500 - but should've been $250, and D/E/J are reduced from $500 to $250 (or from $250 to $0), you're clear accounting-wise over the two-year period.

    The total collected in 2020/2021 should've been $500.  The total collected was $500.  The $500 already went to 2020, and 2021 is accurate as well (since you didn't get it this year).  And, David, Elton, and Janice's accounts are zeroed out and reflect "paid-in-full" ... which they are (by using "credit" from the earlier 2020 payments).

    You could make an "Administrative Note" if you want, to remind yourself later.

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