The Applied & Unapplied Payments Report provides a comprehensive breakdown of all of the payments that have been allocated towards an invoice within a particular date range.
This report is of additional importance for clinics who report their income based on the cash (collected) accounting method, as it will breakdown which invoices have been paid within the period.
For clinics who report their income based on the accrual (invoiced) accounting method, we recommend you check out the Sales Report for a similar breakdown by invoiced amounts.
Understanding the Applied & Unapplied Report
The data shown in the Applied & Unapplied Report represent each time a payment is applied or unapplied. An applied history can be viewed at the bottom of an individual payment.
This report can be thought of as the aggregate of all applied history line items across all payment methods (including credit memos and gift cards).
It is worth clarifying that this report determines which data to display based on when a payment was applied (applied date, shown on the left-hand side for each applied history item), and not based on when the payment was originally received by the clinics (the received at date). More often that not, these two dates match. But it is not always the case (e.g. account credit).
If you’re interested in learning more about the different types of dates in Jane, check out our guide: Working with the Purchase, Invoice, Received At, and Applied Dates
Using this report, you will be able to review the invoice a payment was applied to, who and what was billed, the value of the invoice, and the staff member who rendered the service.
Most importantly, you will be able to review the collected subtotal, tax, and total (after tax) for each applied/unapplied line item.
💡 Note: For consistency with the Billing Summary Report, this report currently excludes any payments applied/unapplied to tips. To review any tips collected within the period, check out the dedicated Tip Report.
At the top of the report, there is a summary section with three helpful calculations:
- Total Applied: This is the net total (sum) of collected total column for all applied (positive) and unapplied (negative) line items within the period. This number will always match the applied amounts shown on the Billing Summary Report when the same filters are used.
- Total Applied to Invoices Within Report Period: The net total for all payments that were applied/unapplied to invoices with a purchase date that falls within the date range set. For example, with a date range set to the month of January: Total all applied/unapplied payments where the purchase date associated within the invoice falls between January 1 and 31.
- Total Applied to Invoice Outside of Report Period: The net total for all payments that were applied/unapplied to invoices with a purchase date that falls outside the date range set. For example, with a date range set to the month of January: Total all applied/unapplied payments where the purchase date associated within the invoice falls before January 1 or after January 31.
The sum of the last two calculations will always add up to the total applied value.
💡 Interested in paying out your practitioners based on when payment is received for one of their services? The dedicated Compensation Report can help!
It is also worth noting that unlike the Compensation Report, this report will include applied line items even if a payment is put towards an invoice that is not assigned to a staff member.
Like most other reports in Jane, the Applied and Unapplied Payments Report can also be exported to a CSV or Excel file format. The exported version of the report will include all of the information shown in Jane, as well as some additional columns: Invoice Date, Patient GUID, and Income Category.
Further Reading: Applying and Unapplying a Payment?
So what exactly does it mean to apply a payment towards an invoice? We understand that this can be a tricky concept to wrap one’s head around, so here’s a (delicious!) analogy that we find helpful.
When an appointment is arrived or a product is sold, Jane automatically generates an invoice for that item. An invoice can be thought of as an empty container that can hold a payment— much in the same way a box would hold an assortment of doughnuts 🍩
During the checkout process, Jane records that a payment has been collected from the patient and automatically associates the payment to the invoice. In other words, we are filling up our box with doughnuts. It is this process of applying a payment towards an invoice that officially deems the invoice as fully paid.
We can use our example to visualize some other common billing scenarios:
- An invoice is unpaid (a box with no doughnuts)
- An invoice is partially paid (a box with some doughnuts, but with room for more)
- A payment is collected, but not allocated towards any invoice (we have doughnuts, but no box)
In that last example, payments that have not yet been applied to an invoice will sit on the patient’s profile as an account credit. The doughnuts (payments) are resting on a separate cooling rack (patient profile), ready to be distributed to any boxes (invoices) that become available and have some empty room.
In some cases it may be appropriate to unapply a payment from an invoice. Often, this is because we may have applied the wrong payment to the invoice (maybe we put jelly doughnuts in the box when they should have been crullers), or we need to make a change to the invoice itself (we used the wrong box size for the order).
In these cases, we will want to remove the doughnuts from the box and place them back on the cooling rack until we figure out what to do with them.
Every time a doughnut is moved into the box, we are applying a payment to an invoice. And likewise, every time we move a doughnut out from the box, we are unapplying a payment.
These are the actions shown in the Applied History for a payment as well the information displayed on the Applied & Unapplied Report.
Further Reading: What is the difference between Applied Payments and Transactions?
Transactions and Applied Payments are two very closely related concepts. Transactions totals for a period can be found on the Billing Summary Report, as well as the (Daily) Transactions Report
Transactions represent payments that have been collected by the clinic, regardless of whether or not they have been applied to an invoice or not. This total also includes any refunds that may have occurred, where money was returned to the patient. Transactions on their own do not have an income category, discipline, or staff member.
Applied Payments on the other hand, represent payments that have put towards invoices. It is possible that the date a payment is applied to an invoice is not the same as the date a payment was originally collected. It is only when a payment has been applied to an invoice when it can assume an income category, discipline, or staff member.
When completing your bookkeeping, a friendly reminder to double check which number is more appropriate for the particular task at hand. While the two values can often seem very similar— and can sometimes equal the same amount on a given day— they are their own distinct calculation.
Hungry for more? If you haven’t already, don’t forget to check out our Reporting FAQs. For any further questions on working with applied/unapplied payments in your account don’t hesitate to contact us.