This article provides definitions and explanations for common terms and concepts used in the billing process. It is designed to help users quickly understand important billing terminology related to accounts, charges, payments, invoices, and more, making it easier to navigate and manage billing tasks within the platform.
There are two types of invoices.
- Purchase Rental Invoice (PRI): a record for equipment that has been rented or leased, rather than purchased outright. It details the rental period, pricing, quantities, etc.
- Purchase Sales Invoice (PSI): It records sales revenue and acts as a formal payment request from the buyer. You may receive a PSI that lists lost, damaged, or buy-out equipment.
There are two types of Credit Memos.
- Purchase Rental Credit Memo (PRCM): A record of a reduction in the amount owed for rental transactions. The credit memo serves as an official record confirming that the buyer’s account has been credited for these adjustments, thereby reducing the payable amount accordingly.
- Purchase Sales Credit Memo (PSCM): A document issued by a seller to a buyer that reduces the amount the buyer owes for a previously invoiced purchase. It serves as an official record of this financial adjustment. If the buyer has already made a payment, the credit can either be applied toward future invoices.
Frequently Asked Questions (FAQ)
Do you bill insurance companies directly?
No, we bill the company with which we have an executed agreement. We DO NOT bill insurance companies, private pay patients, Medicare, or Medicaid.