Play Video
Watch a Video Tutorial

Invoice Underpayment and Overpayment

When more or less money is received than is currently owed for an invoice, AngelTrack has a set of rules for how the money is applied to the invoice's items.


When a payment is not sufficient to pay every item in an invoice, AngelTrack applies the payment to items in the invoice as far as it will go. Each item is paid in full where possible, with remaining funds applied to the next item in line, and so on.

Any item fully paid is then moved to  Finished ; the rest are moved back to  Billing office  so that they will be picked up by the next generated invoice.

The invoice will then be marked 'Paid', regardless of how many of its items are still unpaid.

Leaving an underpaid invoice open

If you expect another payment against the invoice, you can choose to leave the invoice open by checking ☑ Leave the invoice open, awaiting additional payments or credits. You can then pay the invoice again later.

If you leave an invoice open and then later change your mind and wish to close it, simply pay it again and input a zero for the amount received.

Immediate writeoff / Courtesy discount

A third option for an underpaid invoice is to give the customer a courtesy discount, immediately writing off the balance rather than carrying it forward or sending it to collections. Elect this option by checking the ☑ Write off the balance as a courtesy discount box when closing the invoice. If you choose this option, the customer's ledger will not be adjusted even if the invoice included a ledger debit or credit.

Be careful with discounts given to nursing homes and hospitals. If they refer Medicare or Medicaid patients to you, then a discount on their invoice might violate the Federal Anti-Kickback Statute. Read the Anti-Kickback Statute Primer to learn more.

To learn more about writeoffs, invoices, and tax consequences, read the Collections, Taxes, and Writeoffs Guide.


When processing an overpayment, you direct AngelTrack to do one of the following with the surplus amount:

Ignore the overage

This option instructs AngelTrack to do nothing with the overpayment, on the assumption that you (the Biller) will take care of issuing a refund on your own. AngelTrack will pay all items in the invoice at their correct prices, and ignore the overpayment.

Apply the overage to the facility's ledger

This option is only available for Facility invoices. The overpayment is added as a credit on the Facility's ledger. From there, it can be applied to future invoices.

Apply the overage to the invoiced items

This option instructs AngelTrack to apply the overpayment by overpaying items in the invoice, causing them to have refunds due, and therefore causing them to show up again in the next invoice.

AngelTrack follows this procedure for consuming the overpayment:


Refunds are applied like payments: first, the refund amount is applied to any items that were paid more than the amount invoiced; then, to any items that were paid more than the current price quote; and finally, to any items that were paid at all. A refund will therefore square up all overpaid items first, and will then un-pay items (newest first) until the refund amount is fully applied.


An overcredit occurs when a refund check was issued, but the amount refunded exceeds the refund amount actually due. This situation can occur if there is a time lag between generating a refund invoice versus cutting the check; during that time lag, the price of an underlying item might change, and so when the check is eventually cut, it is cut for too much.

Ignore the overage

As with overpayments, you have the option to tell AngelTrack to ignore the overcredit, to simply apply credits wherever they will fit and then ignore the rest.

Apply the overage to the ledger

This option is only available for invoices sent to a Facility or an Affiliate. The overpayment is added as a credit on the facility's/affiliate's ledger. From there, it can be applied to future invoices.

Apply the overage to the invoiced items

When applying an overcredit, AngelTrack performs the following steps, in order:

AngelTrack Help Index - Training Portal - AngelTrack Support