Before you can enter collection payments, make sure your collection agency is set up in administration. Go to Admin> Vendors/ Partners> Collection Agency and click the ‘Add’ button. When a patient has a past due balance and you send them to collections, you can transfer that balance from patient to collection agency. This will close the patient invoice and create a new collections invoice. The new invoice is still associated with the patient, but is now pending a payment from the collection agency instead of the patient directly. When payment comes from the collection agency, you will apply it to that authorized invoice.