Dispensing Invoice Item setup and management

Dispensing items are linked to an inventory invoice item that are dispensed in different ways with corresponding dispensing fees. Dispensing items can also be used to apply a revenue center, taxes, and discounts.

Uses for dispensing items

• Different dispensing fees for a medication sold per pill versus sold by the bottle.
• Administered versus prescribed medication, that is taxed only when dispensed.
• Mobile practice that must collect different taxes based on where products are dispensed.
• Multi-location single database configured practices that want a revenue center determined at the invoice item, rather than the billing staff or logged-in practice.
  Note: In this scenario, the same invoice items need to be used at every practice.

Setup a dispensing item

Navigate to Lists > Invoice Item > New.

Some fields are disabled as they do not apply to dispensing type items.

Information tab

1. Accept, modify or enter an appropriate Item ID, up to 7 alphanumeric characters, and press Tab.
2. Select Dispensing.
3. Enter a hospital description, up to 40 alphanumeric characters/spaces. This description is for internal use only and is not shown on the client invoice.
4. Enter the revenue center ID or F2 to search and select from your revenue center list, if using revenue centers at the invoice item level.
   Note: click here to learn about the different areas revenue centers can be defaulted within Cornerstone.
5. For the dispensing fee, do one of the following:
   • Select Amount and enter the amount to add as a dispensing fee.
   • Select Percent of inventory price and enter the percentage to calculate a dispensing fee using the base price of the item, including tiered pricing.
     Ex: The base price is $25 and set at 5%, the dispensing fee would be $1.25. The next-tier price is $20, the dispensing fee would be $1.00.
6. Select Override the inventory price and apply only the dispensing fee: This will use only the amount specified above, instead of the adding a fee to the amount of the invoice item.

Click OK to save your changes or proceed to another setup tab.

Instructions Tab

Departing instructions print on the invoice and save to patient history, based on the items invoiced. If is is appropriate to have a departing instruction on an dispensing item, do the following:

1. Enter departing instruction ID or F2 to search and select from your departing instruction list: Lists > Departing Instructions.
2. Repeat as needed for additional instructions.

Remove a departing instruction by clicking the ID field and pressing Ctrl + D.

Click OK to save your changes or proceed to another setup tab.

Tax/Disc Tab

Link or remove sales tax and discounts to apply to invoice items at the dispensing item level.

1. Select the Sales Tax(es) to apply.
2. Select the discount(s) to apply.
3. Click OK to save your changes or proceed to another setup tab.

Modify a dispensing item

Navigate to Lists > Invoice Item > Update.

Information tab

1. Modify the hospital description, up to 40 alphanumeric characters/spaces. This description is for internal use only and is not shown on the client invoice.
2. Update the item status to inactive, if no longer needed. If the dispensing item is linked to any inventory items, a list will display. Remove from the items and then inactivate.
3. Change or clear the revenue center ID or F2 to search and select from your revenue center list if using item level center assignments.
4. Modify the dispensing fee, by doing one of the following:
   • Select Amount and enter the amount to add as a dispensing fee.
   • Select Percent of inventory price and enter the percentage to calculate a dispensing fee using the base price of the item, including tiered pricing.
     Ex: The base price is $25 and set at 5%, the dispensing fee would be $1.25. The next-tier price is $20, the dispensing fee would be $1.00.
5. Modify or clear Override the inventory price to apply only the dispensing fee.
6. Click OK to save your changes or proceed to another setup tab.

Instructions Tab

1. Enter or remove departing instruction IDs as needed. Click the ID field and Ctrl + D to remove.
2. Click OK to save your changes or proceed to another setup tab.

Tax/Disc Tab

Link or remove sales tax and discounts to apply to invoice items at the dispensing item level.

1. Select or clear the Sales Tax(es) to apply.
2. Select or clear the discount(s) to apply.
3. Click OK to save your changes or proceed to another setup tab.

Link the dispensing item to an inventory item

Navigate to Lists > Invoice Item.

1. Select an appropriate inventory Item > Update.
2. Click Dispensing.
3. Select the appropriate dispensing item(s) for the inventory item. Use Ctrl + click to select more than one dispensing item. This creates a list to choose from when the item is used.
   
4. Select Allow All, if needed. This will allow the option to choose between all active dispensing items, at the time of use.
   • Requires at least two dispensing items are selected .
   • This selection enables a ‘show all’ option at the time of use, with the initial linked dispensing items displaying automatically.
     

Users will select the dispensing item at the time of use, when the linked inventory item is added to an estimate, prescription label, invoice of the Patient Visit List (PVL).

Additional Information

General

• Dispensing item fees are included in inventory item’s revenue reporting.
  • There is no separate reporting available for dispensing fees or items.
  • Specific reports that will display information when the report is saved to a file include the Itemized Audit Trail, Standard Fee Exception, and Treatment reports.
• Dispensing items can only be used when linked to an inventory item. They cannot be added directly to billing windows.
• The Dispensing button of the inventory type item will display ellipses (…) when dispensing item(s) are linked.
• You can use the Mass Markup tool to:
  • Apply or remove dispensing items from multiple inventory items.
  • Apply or remove taxes and discounts across all items or multiple items based on item type and/or classification.

Billing

• Revenue centers are applied in the following manner if there is a revenue center assigned in more than one area.
  Example: The revenue center of Practice A is assigned to the Invoice item and Practice B is assigned based on the billing staff. The item will use the revenue center of Practice A.

• Discounts are only applied automatically when the discount is applied to both:
  • Dispensing item or invoice item
  • Client’s A/R information.
• Minimum price of the invoice item will be used regardless of the override inventory price setting if the minimum price exceeds the dispensing item amount.

Related Reports

• Invoice Item Dispensing Setup report
• Invoice Item Price Information report

Resources

• Inventory and Invoice Item Management Part 2