Prior Year Rate Adjustment from Medicade

Thanks for sharing your first concern here in the Community, @skirkman14. We can set up a clearing account A/R balances from one customer to another. 

Here are the steps: 

1. Go to the Lists menu, then select Chart of Accounts.
2. Press CTRL + N to create a new account.
3. Select Bank. Take note that while you can use other types of account, we use a bank because of the following reasons:

• • You can pay into a bank account via Receive Payments or Make Deposits.
  • You can payout of a bank account via Write Checks or Pay Bills.
  • A bank account appears on the balance sheet and on the statement of cash flows to balances and changes in balances.
  • To allocate expenses to overhead or class using a zero check, you must use a bank account as your Clearing account.

1. Click Continue.
2. Enter Clearing Account, Barter Account, or Wash Account in the Account Name field.
3. Leave the Opening Balance box blank.
4. Click Save & Close.

Then, create the credit memo. Here's how: 

1. Go to the Customers menu, then select Create Credit Memos/Refunds.
2. From the Customer:Job drop-down, choose your customer.
3. Enter the items you're giving a credit for, then click Save & Close.

To use a clearing account

1. Create a journal entry, then select the A/R account from which you're moving the credit memo.
2. Add the clearing account, the amount of the credit memo, and any other details.
3. Click Save.
4. Create a second journal entry.
5. Add the clearing and the second A/R account.
6. Add any other details and click Save.
7. Link the journal entries together through the Receive Payment window.

You can also check out these articles to learn more about these process: 

• Set up a clearing account
• Give your customer a credit or refund in QuickBooks Desktop for Windows

For future reference, I've also added this great resource where you can find articles that can help you in managing your books in QuickBooks. Visit our QBDT Help Articles page. We have relevant topics with steps and tips like reconciliation, running reports, tracking income and expenses, etc.

Feel free to visit and post again if you have additional concerns. I'm always around here to help you more. 

Hi skirkman14,

Hope you’re doing great. I wanted to see how everything is going about the prior year rate adjustments concern you had yesterday. Was it resolved? Do you need any additional help or clarification? 

If you do, just let me know. I’d be happy to help you at any time.

Looking forward to your reply. Have a pleasant day ahead!

how do you use quickbooks to bill medicaid

Hi there, Fchageza.

Welcome to the QuickBooks Community. I'll walk you through the steps to ensure you can use QuickBooks Desktop to record Medicaid bills smoothly. 

To begin billing Medicaid through QuickBooks, you must first add the health insurance provider as a vendor in your QBDT.

Here's how:

1. At the top menu, click on Vendors. Then, choose Vendor Center.
2. Click New Vendor drop-down and select New Vendor.
3. Enter the Medicaid as vendor name.
4. Fill in the other necessary fields.
5. Click OK to save the information.

Once done, you can now record or enter a bill in QuickBooks Desktop for the said Medicaid. Follow these steps to perform the process:

1. Go to the Vendors menu at the top, then select Enter Bills.
2. Select a vendor from the dropdown and fill out the Date, Amount, and Due date.
3. Select the type of bill you want to record.
4. Click Save to record to finish the method.

After you record what you owe your vendors in QuickBooks Desktop, you can go to the Pay Bills window to settle your payables. Please know that if you received a discount or credit from a vendor, you can also apply it to your bill payment to reduce your total payable.

Lastly, I'm adding this article to see different details on how QBDT offers a wide variety of ready-made vendor reports that tell you where your company stands, in terms of expenses and accounts payable: Customize vendor reports.

Please let me know if you have further questions or concerns about managing your bill in QBDT. I'm always around to help, Fchageza. Have a good one!