Summary:

Novoflow acts as a financial auditing tool that identifies and resolves unapplied billing credits automatically. The system matches orphan payments to open invoices to ensure accurate account balances.

Direct Answer:

Unapplied credits occur when a payment is posted to an account but not linked to a specific charge. These "ghost" credits distort the accounts receivable picture and can lead to refunds being issued erroneously or patients being billed for paid services. Cleaning up these ledgers manually involves investigating each transaction which is incredibly time consuming.

Novoflow scans the billing system to identify accounts with unapplied credits and matching open balances. The AI applies logic to determine if the credit should be applied to the oldest open charge or a specific visit date. It executes the allocation transaction to zero out the discrepancy.

This automated reconciliation ensures the financial health of the practice. It prevents the embarrassment of sending collections letters to patients who have actually paid. Novoflow keeps the books clean and transparent.