Dynamic Payment Plan
A Dynamic Payment Plan is an open ended repayment agreement.
In the Account Module, the Payment Plans grid lists all payment plans associated with the family.
- The grid can also include Patient Payment Plans, Installment Plans and Insurance Payment Plans.
- If production on a dynamic payment plan has been overcharged, the plan will turn yellow. Run the Dynamic Payment Plans Overcharged Report to find any overcharged production.
- Dynamic Payment Plans cannot be used in conjunction with an Insurance Payment Plan for the same procedures.
- The Open Dental Service is required to use Dynamic Payment Plans. This service updates plans as needed daily. To set a time for Dynamic Payment Plans to update, see Account Module Preferences, Dynamic Pay Plan run time.
In the toolbar, click Payment Plan, Dynamic Payment Plan, or double-click an existing plan to edit.
Related Links:
General Steps
To create a new dynamic payment plan:
- From the Production tab, click Add, and select the production items to attach to the plan.
- Once production is attached, set the plan Guarantor; click Change to select the person responsible for the payment plan.
- Next, enter the repayment Terms then, click Create Schedule to generate an Amortization Schedule.
Use the Sign & Print button to complete the agreement.
Patient Information
Category: Assign a category to the payment plan (e.g., Ortho, Implant). Useful to distinguish one payment plan from another when families have many plans. Customize the category options in Definitions: Payment Plan Categories.
Patient: The person who was treated. Click Go To to switch to their account. Patients can have multiple payment plans, and each plan can have a different guarantor.
Guarantor: The person who will make the payments. Defaults to the currently selected patient. The guarantor does not have to be in the same family as the patient. It also can differ from the account's guarantor. Click Change to select a different guarantor. Click Go To to switch to their account.
Lock Options
Full Lock: Check to lock current terms of the payment plan. Prevents further changes to the repayment schedule or the production (e.g., adding procedures and adjustments or changing the production Amount Override). Plans that are locked cannot be edited. You must create a new plan to add treatment instead. Adding an APR interest rate requires the plan be locked.
Unlock: Option is available when an existing plan is re-opened and Full Lock is unchecked. Click to unlock the Terms section to edit the repayment schedule.
Term Options
Date of Agreement: Defaults to today's date.
Total Principal Amount: The total amount of the payment plan, excluding interest. Calculates based on the attached production.
Date of First Payment: Defaults to one month from today's date.
Down Payment: The amount of the down payment. Immediately due when the payment plan is created regardless of the Handle Treatment Planned setting.
APR: The percentage of interest to charge on the principal balance of completed procedures. If entered, additional options are available to delay interest charges. Enter only one. If both fields are left blank, interest is charged to all scheduled payments. Payment plan must be locked before saving.
- No interest for the first [ ] payments: The number of payments before interest is applied.
- Interest start date: The date of the first interest charge.
Interest is automatically calculated using the following method:
- Subtracts the down payment from the payment plan balance.
- Calculates the number of payments, or the payment amount, based on the new balance (balance minus down payment).
The amortization schedule can be based on a total number of payments or a specific payment amount. Enter only one.
- Payment Amount: Enter the payment amount. Number of payments will be calculated automatically.
- Number of Payments: Enter the number of payments. Payment amount will calculate automatically.
Charge Frequency: Select the frequency of which charges are applied to the payment plan. The options below are calculated based off the Date of First Payment.
- Weekly
- Every other week
- Specific day of the month
- Monthly
- Quarterly
Handle Treatment Planned: Determine whether treatment planned procedures should be included in the total now, or as the work is completed. If toggling this setting, click Create Schedule to see changes.
- Await procedure completion: Do not include treatment planned procedures in the Amortization Schedule until the work is completed. When selected, treatment planned work will not display on printed payment plans. The patient may need to re-sign the payment plan each time work is completed.
- Procedure as complete: Include treatment planned procedures in the Amortization Schedule. The total for treatment planned work will display as a credit on the patient's account until the work is completed.
Term Buttons
Create Schedule: Create the Amortization Schedule based on the terms. A description of the terms will show in the Note field. Production must be attached first. When editing the terms on existing plans, click Create Schedule to view the changes.
Cancel: Cancel changes made to the Terms on existing payment plans. Click the Unlock button to enable.
Save: Save changes made to the Terms on existing payment plans. Click the Unlock button to enable.
Payment Plan Summary
Once the schedule is created or, updated and saved, the calculations below are automatic.
Total Cost of Loan: Total Amount plus interest and any added charges.
Accumulated Due: The total amount that has been due up to the current date.
Paid so far: The total amount that has been paid towards the payment plan to date.
Principal paid so far: The total amount that has been paid towards the principal to date.
Tx Completed Amt: The total fee amount for charges that have come due.
Total Tx Amt: The total fee amount for all production that is attached to the payment plan. Will not display until after plan has been saved by clicking OK.
Note
A detailed note of the terms shows for future reference. Any changes made to the terms will be added to the note. Other notes can be added as needed.
If Pay Plans use Sheets is checked, additional Terms and Conditions are displayed when viewing or signing the repayment agreement. Customize the default message in Account Module Preferences. Updating the terms will also update any replacement fields used in the default message.
Schedule Tab
Amortization Schedule: The amortization schedule is generated based on the terms. Principal and interest are calculated automatically. Due dates are based on the Date of First Payment and selected Charge Frequency.
- A horizontal bold line indicates today's date and separates past items from future items.
- Line items in black represent charges that have posted to the account. Gray line items are projected future charges. Charges are actually posted to the account using the Open Dental Service daily at the time determined in Account Module Preferences.
- Gray items can change if production is added or removed, or additional payments are made.
- Payments attached to this payment plan show as green credits and affect the running balance. If extra payments show here, but should not, uncheck the Attached to Payment Plan box on the Payment window for each payment.
Exclude past activity: When checked, only future dated line items show in the Amortization Schedule and past activity is hidden. When unchecked, all activity shows. Totals are not affected by this setting. To set the default setting for the checkbox, see Account Module Preferences, Payment Plans exclude past activity by default.
Current Totals: Automatically calculated based on current and past charges, accumulated payments, and the running balance.
Production Tab
Attached Production: Displays the procedures and adjustments attached to the payment plan.
- Amount: Default amount charged for the attached production item.
- Amount Override: Enter a new amount to override the default for the attached production item. Leave blank or enter zero to use the default amount.
Delete: Delete the selected production item from the attached production list.
Print: Print the list of attached production (as shown), including the production total.
Add: Attach production to the payment plan. Opens the Select Production window.
Select from a list of adjustments, completed procedures, and treatment planned procedures to attach to the payment plan.
- Amount Original: Amount of the production item prior to any payments, adjustments, or insurance estimates.
- Amount End: Amount owed on the production item after any payments, adjustments, and insurance estimates have been applied.
- Production items can only be attached to a single payment plan.
- To show automated sales tax amounts for newly treatment planned procedures, Update Fees in the Treatment Plan Module.
- We do not recommend attaching negative adjustments. Instead, attach them to a procedure first, and then select the procedure to attach to the payment plan.
Buttons
Delete: Delete the entire plan. Also, clears any Authorized Recurring Charges attached to the plan. Payments cannot be attached.
Close Plan: Close Payment Plans that are no longer being paid on.
- Remaining production items that did not have a posted pay plan charge will be removed from the payment plan. The production amount will be subtracted from the total principal and the pay plan credits will be removed from the account.
- Any Payment Plan Prepayments are transferred to the close out charge. If there is income left over, it will be transferred to Unearned Income. Use the income transfer manager to allocate the excess to other outstanding charges.
Sign & Print: Only displays when the payment plan sheet contains a signature box. See Sign and Print Payment Plan.
eClipboard: Send the Payment Plan to eClipboard. See eClipboard: Payment Plans.
Click OK to save changes, or Cancel to close without saving changes.
Edit an Existing Plan
Double-click into an existing plan.
To update an unpaid, posted pay plan charge: Right-click the charge from the Amortization Schedule and select Delete.
- Alternatively, before opening the plan, delete the charge from the Patient Account grid, right-click the PayPln: Debit, and select Delete (option only available when the Pay Plan charge logic is set to Age Credits and Debits in Account Module Preferences).
- Once the charge is deleted, the terms may be updated.
To update the Terms or add/remove production: Above the Terms, click Unlock.
- Select the Production tab and Add or Delete production as needed.
- Edit the Terms and click Create Schedule to update the Amortization Schedule.
- Click Cancel to undo any changes to the Terms, or click Save to keep the changes.
Click OK to finalize the changes and exit the payment plan. Any deleted pay plan charges will re-post to the patient's account the next time the Open Dental Service runs for dynamic payment plans. The charges will include any changes made to the plan terms.