Patient Deposits & Advance Payments

February 2026 · 5 min

Overview

Patient Deposits (advance payments) are collected before or during admission to secure the hospital's financial commitment. The deposit amount is held against the patient's account and adjusted against the final bill at discharge.

Deposits are tracked separately from regular payments. Each deposit generates an advance receipt with a unique receipt number, and the patient's total advance balance is visible across billing, admission, and discharge screens.

Collecting Deposits

Navigate to Billing > Patient Deposits > New Deposit:

1. Select the patient (or create a new registration).
2. Enter the deposit amount.
3. Select the payment mode (cash, UPI, card, bank transfer, cheque).
4. For card/UPI, enter the transaction reference number.
5. Add an optional narration (e.g., 'Pre-admission deposit for knee replacement').
6. Click 'Collect Deposit'.

The system generates an advance receipt with a unique receipt number (e.g., ADV-2026-00045). The deposit is credited to the patient's advance account.

Multiple Deposits: Patients can make multiple deposits against the same admission. Each deposit generates a separate receipt. The cumulative balance is tracked automatically.

GL Posting: Debit Cash/Bank account, Credit Patient Advance (liability account). This happens automatically at the time of collection.

Tracking Deposit Balance

The patient's advance balance is visible in multiple places:

• Billing Screen -- Shows available advance balance when creating a bill for the patient
• Admission Screen -- Displays total deposits collected against the current admission
• Discharge Screen -- Shows balance to be adjusted against the final bill
• Patient Profile -- Advance ledger tab shows all deposits, adjustments, and refunds

Deposit Status:

• Held -- Deposit collected, not yet utilized
• Partially Utilized -- Part of the deposit adjusted against a bill
• Fully Utilized -- Entire deposit consumed by bills
• Refunded -- Excess deposit returned to the patient

Adjusting Deposits Against Bills

At the time of billing or discharge:

1. Open the bill payment screen.
2. Click 'Adjust Advance' to see the patient's available deposit balance.
3. Enter the amount to adjust (up to the available balance).
4. The adjusted amount reduces both the bill balance and the deposit balance.
5. If the deposit exceeds the bill, the remainder stays as credit.
6. If the bill exceeds the deposit, the patient pays the difference via cash/card/UPI.

Partial Adjustment: You can adjust only a portion of the deposit and keep the rest for future bills (e.g., during a multi-day stay with interim billing).

GL Posting: Debit Patient Advance (liability), Credit Revenue/Accounts Receivable.

Refunding Excess Deposits

If the patient's advance balance exceeds their total bills:

1. Go to Billing > Patient Deposits.
2. Search for the patient and view their deposit ledger.
3. Click 'Refund' on the excess balance.
4. Select the refund mode (cash, bank transfer to patient's account).
5. Enter the bank details if refunding via NEFT.
6. Submit for approval (if refund amount exceeds the configured threshold).
7. A refund receipt is generated.

Forfeit / Lapse: For deposits that remain unutilized beyond a configurable period (e.g., 180 days), the system sends automated reminders to the patient. After the lapse period, an admin can mark the deposit as forfeited (with proper authorization).

Deposit Reports

Available reports under Billing > Reports:

• Advance Deposit Summary -- Total deposits collected, utilized, and outstanding for a date range
• Patient-wise Deposit Ledger -- Complete transaction history for a specific patient
• Unutilized Deposits -- All patients with outstanding deposit balances
• Deposit Aging -- Deposits held beyond 30/60/90/180 days
• Deposit vs. Billing Reconciliation -- Cross-check deposits against final bills to ensure all adjustments are accounted for

Notes

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