Credit & Debit Notes

2026-02-17 · 3 min

Overview

Credit Notes and Debit Notes are used to adjust bills after they have been finalized. Credit notes reduce the amount owed by a patient (for overcharges, returned items, or negotiated discounts), while debit notes increase the amount (for missed charges or additional services).

Creating a Credit Note

Navigate to Billing > Credit Notes > New Credit Note:

1. Select the original bill to adjust.
2. Enter the credit amount and reason (overcharge, service not rendered, goodwill discount, etc.).
3. Add line items if the credit applies to specific services.
4. Submit for approval. Notes above a configurable amount require manager approval.
5. Once approved, the patient's outstanding balance is automatically reduced.
6. GL entry: Debit Revenue/Discount Allowed, Credit Accounts Receivable.

Debit Notes

Create debit notes for under-billed services:

1. Select the original bill.
2. Enter the additional charge amount and reason.
3. Submit for approval.
4. Once approved, the patient's balance increases.
5. GL entry: Debit Accounts Receivable, Credit Revenue.

Tracking & Reporting

Track all notes:

• Status workflow: Draft > Pending Approval > Approved > Applied.
• Full audit trail with creator, approver, and timestamps.
• Filter by date range, status, or original bill number.
• Monthly credit/debit note summary report for finance review.

Notes

Related topics