Accounts receivable & credit · Medical & dental supply
Collect the balance the deduction hid.
A facility short-pays the invoice and codes nothing — maybe a GPO price correction, maybe a return that never cleared RGA. The balance ages in 90+ unproven.
The reality
AR in supply is a deduction problem.
A facility pays the invoice short and codes nothing. The 820 remittance cites a GPO contract number, a price-protection claim, or a damaged-goods return that never came through RGA. The balance sits in 90+ aging while the team chases the buyer, pulls the original PO, and tries to prove whether the deduction was earned.
The operator owns the open balance end to end. It reads the 820 remittance against the GPO contract on the 845 pricing file, matches each deduction to a contract-price correction, allowance, or credit memo, splits the valid from the disputed, files the 844 chargeback to the manufacturer where the spread is recoverable, drafts the dispute packet for the unearned ones, and closes the line — so cash posts and only real exposure stays open.
How the operator runs accounts receivable & credit
Remit RA-88210 · Deductions
matching- Invoice INV-50312 matched
- GPO contract Premier #PP-WI-204
- $1,240 short-pay — price-discrepancy ADX
01Read the short-pay
Pulls the 820 remittance and its ADX adjustment lines, ties each short-pay to its original invoice and PO.
Acct Mercy West · Aging
classifying- Tier price verified vs 845 contract
- Recoverable spread — 844 chargeback filed
- Unearned return — dispute drafted
02Classify the deduction
Decides contract-price correction, recoverable chargeback, or unauthorized; applies the allowance or flags dispute.
Collections · Close-out
posting- Credit memo CM-7741 posted
- Cash applied, line cleared
- Dispute packet to buyer — sent
03Apply credit, close
Posts the credit memo, clears the balance, and sends the dispute packet on what stays open.
The outcome
30% lower outstanding AR balance
Revenue collected without write-off.
- Every deduction matched to a contract clause before it ages into a write-off
- Valid contract-price corrections cleared the day the 820 posts, not weeks later
- Disputed short-pays leave with a packet that proves the balance is owed
Common questions
Accounts receivable & credit
- What does the Accounts receivable & credit operator do?
- The operator owns the open balance end to end. It reads the 820 remittance against the GPO contract on the 845 pricing file, matches each deduction to a contract-price correction, allowance, or credit memo, splits the valid from the disputed, files the 844 chargeback to the manufacturer where the spread is recoverable, drafts the dispute packet for the unearned ones, and closes the line — so cash posts and only real exposure stays open.
- What impact does the Accounts receivable & credit operator have?
- 30% lower outstanding AR balance. Revenue collected without write-off.
- How does the Accounts receivable & credit operator work?
- Pulls the 820 remittance and its ADX adjustment lines, ties each short-pay to its original invoice and PO. Decides contract-price correction, recoverable chargeback, or unauthorized; applies the allowance or flags dispute. Posts the credit memo, clears the balance, and sends the dispute packet on what stays open.
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