Appointment Charges Paid by Debtor Bulk Funding

Issue

A practice is paid a bulk amount each month to cover charges that are in the future for that month. When the amount is used up we need to make sure we are not using more than the amount paid. 

The lump sum payment needs to be recorded and the funds need to be allocated as needed.

An example of this is if a charity gives your practice a lump sum to cover peoples appointment charges if they are unable to pay them themselves.

Solution

The basic solution for this issue would be to create a brand new debtor that will be used only for this situation. An overpayment for the lump sum payments will be created and then made use of to pay off the appointment charges when they are to be covered by this debtor.

1. Create a new debtor.
   A new entry should be created even if this company already exists in the debtors list. This would ensure that the transactions are kept separate.
2. When the bulk funding is received, create an overpayment for the debtor.
3. Use the overpayment assigned to this debtor and adjust the amount paid to that of the appointment charge that is been paid for (see How to Use a Previous Overpayment).
   To ensure that the limit of the overpayment is not exceeded, it is recommended that the debtor be invoiced and the charges be paid off immediately.