This article explains how to manually apply a refund. Use this process when a payer has recouped (taken back) a payment, and the refund was issued as a check or EOB (Explanation of Benefits) rather than through an 835 electronic file.
Example: A client received a $300 payment from Kaiser. Kaiser has since recouped that payment. A refund will need to be applied in SmartCare to remove the $300 from the Accounts Receivable and update the client ledger to reflect the transaction.
Below is a screenshot of a client’s ledger reflecting the $300 payment that need to be refunded:
- Click the Search icon.
- Type Payments/Adjustments into the search bar.
- Click to select Payment/Adjustments (My Office).
- Use the filter options to locate the payment from the payer. Click Apply Filter.
- Click the hyperlinked Date Received.
- Click the Refund/Adjustment tab.
- Click the Refund Radio button.
- Enter the refund amount in the corresponding field.
- Click Insert. The refund will drop into the Refund/Adjustment History grid.
- In the upper left-hand corner of the Payment/adjustment Details pop-up, click the Service Search tab.
- Use the filters to locate the correct service and click Apply Filter.
- If the service no longer has a balance, click the checkbox for “Find Only Services Where the Balance >0” so it appears in the results.
- Click the checkbox to the left of the service that needs a refund.
- Click Select.
- Enter the amount to be refunded as a credit.
- Leave the Transfer To amount as $0.00.
- Click the Add button.
- The refund will appear in the To Post column.
- Click Update.
- In the confirmation pop-up, click Yes.
- Close the pop-up window and the payment record will reflect the refunded amount.
The client ledger will show the refund as a credit. The balance moves back to the payer and can then be transferred to another payer if needed.