How to Record Telehealth Service Revenue Gross with the Platform Fee as a Separate Expense
Recognizing full telehealth visit revenue and expensing the third-party platform's transaction fee separately.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash / Bank | Asset (+) | 85.00 | - |
| Technology Service Fee | Expense (+) | 15.00 | - |
| Telehealth Service Revenue | Revenue (+) | - | 100.00 |
💡 Accountant's Note
Telehealth is often billed through third-party platforms. Like a delivery app for restaurants, you must record Gross Revenue to track your clinical volume accurately.
Practitioner & Systems Framework
💻 ERP Architecture
When a telehealth platform processes patient payments and remits net to the clinic, the clinic is the principal (it provides the clinical service) and the platform is the agent (it provides the technology). Record Gross Revenue (full consultation fee) and the platform fee as a Technology/Distribution Expense — not net revenue. This is identical to the hotel OTA merchant model treatment and the IFRS 15 principal vs. agent analysis applies. Gross presentation preserves the ability to track clinical volume and calculate revenue per consultation accurately.
⚠️ Audit Flags
Auditors apply the IFRS 15 principal vs. agent test — if the telehealth platform actually provides the clinical service (e.g., it employs the doctors), then the clinic may be the agent receiving only a referral fee. Most arrangements where the clinic's own doctors conduct the consultation put the clinic as principal. Net recording (only the cash received) understates both revenue and technology expenses, distorting the cost structure analysis.
📄 Required Documentation
Telehealth platform agreement (service description, fee structure), patient invoice or receipt for the full consultation fee, platform remittance statement (showing gross, fee deducted, net paid), IFRS 15 principal vs. agent assessment, Technology Service Fee expense, Telehealth Revenue ledger, and clinical volume metrics (consultations per period).
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.