What is the difference between a write-off and an adjustment in Resolute?

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Multiple Choice

What is the difference between a write-off and an adjustment in Resolute?

The main idea here is how each term affects the account balance in Resolute. A write-off is used when a portion of a balance is deemed uncollectible under policy; that amount is removed from accounts receivable and typically tracked as a bad debt. It does not modify the contractual terms or the payer’s allowed amount—it's simply eliminating what isn’t expected to be collected. An adjustment, on the other hand, changes the balance to reflect the true, contractually allowed amount or to correct an error. It accounts for payer allowances (the discounted or contracted rate) or fixes a billing mistake. It does not indicate uncollectibility; it adjusts the numbers to the correct amount due under the contract or corrected charge. For example, if a service is billed at 500 but the payer contract allows 350, an adjustment of 150 would reflect that contractual allowance, reducing what is expected to be collected to 350. If, after collection efforts, 200 is truly uncollectible, that amount would be written off. That’s why the correct description is that write-offs remove uncollectible balances per policy, while adjustments reflect payer/price allowances or corrections.

The main idea here is how each term affects the account balance in Resolute. A write-off is used when a portion of a balance is deemed uncollectible under policy; that amount is removed from accounts receivable and typically tracked as a bad debt. It does not modify the contractual terms or the payer’s allowed amount—it's simply eliminating what isn’t expected to be collected.

An adjustment, on the other hand, changes the balance to reflect the true, contractually allowed amount or to correct an error. It accounts for payer allowances (the discounted or contracted rate) or fixes a billing mistake. It does not indicate uncollectibility; it adjusts the numbers to the correct amount due under the contract or corrected charge.

For example, if a service is billed at 500 but the payer contract allows 350, an adjustment of 150 would reflect that contractual allowance, reducing what is expected to be collected to 350. If, after collection efforts, 200 is truly uncollectible, that amount would be written off.

That’s why the correct description is that write-offs remove uncollectible balances per policy, while adjustments reflect payer/price allowances or corrections.

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