Entering Taxable Transactions into Medisoft

Medisoft EMR and medical billing software is extremely versatile, with settings, adjustments and fields that can customize the system to your specific practice. It’s designed for medical practices of all types, with all the capabilities you might need to run your practice efficiently and smoothly. It can be used by doctors in any specialty, alternative health practitioners who provide services covered by insurance companies – there’s even a version that’s especially modified for use by dentists. One capability that may not be used by many offices who use McKesson Medisoft is the ability to enter taxable transactions.

Why would a medical practitioner need to enter taxable transactions into Medisoft? After all, most states make it illegal to charge a tax on medical services. The same doesn’t hold true for some types of medical or physical therapy equipment, vitamin supplements and other items that your practice may sell directly to your patients. There is a place to enter these items and the taxes you collect for them in the Medisoft program, but it’s not as intuitive as the rest of the user interface. Here’s how to set up a taxable transaction and record the tax in the accounting section of Medisoft Clinical.

Set up a procedure code for the item. Put a tick in the Taxable field in the procedure setup screen.

Set up a separate procedure code for the tax. Under procedure type, enter TAX, and in the corresponding field, enter the tax percentage.

Open the Program Options screen. Click on the Data Entry tab. Tick off the box beside Auto Create Tax Entry. Under Default Tax Code, enter the procedure code you set up for the tax in the last step. The Auto Create feature in Medisoft reduces the amount of work you’ll need to do as well as nearly eliminating the risk of forgetting to enter the tax when you enter a transaction on a taxable item. When you enter a taxable transaction with the Auto Create box ticked, Medisoft will automatically create a second line item for the sales tax, and populate the field with the correct amount based on the percentage you entered into the tax procedure code.

If you choose not to have Medisoft automatically create the tax transaction, you’ll have to remember to click the Tax button in order to create the charges for the amount of the tax.

Medisoft is one of the most full-featured and comprehensive practice management suites available. The price makes it affordable for health-based practices of any size. The ability to enter taxable transactions automatically is just one more example of how the electronic patient records and medical billing software adapts to your practice.