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.
In the toolbar, click Payment Plan, Dynamic Payment Plan, or double-click an existing plan to edit.
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.
Dynamic payment plans are designed to allow the creation of a flexible repayment agreement.
When a dynamic payment plan is first created the window will default to the Production tab (see below). Use the Add button to attach production to the plan, after which you can choose terms, including Payment Amount or Number of Payments, and Charge Frequency. Click Create Schedule to generate an Amortization Schedule. Use the Sign & Print button to complete the agreement.
Category: Assign a category to this 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. It 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.
Full Lock: Check the box 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 Attached). Adding an APR interest rate requires that the plan be locked.
Terms that affect the Amortization schedule:
Create Schedule: Create the amortization schedule based on the terms. A description of the terms will show in the Note field.
Once the schedule is created, these calculations are automatic:
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.
Interest: Open Dental automatically calculates interest (APR) using the following method. Most online calculators use the same method, but some may differ (e.g. assume down payment is first month's payment). Adding an APR interest rate required that the Plan be fully locked.
Note: When you create the schedule, a detailed note of the terms shows for future reference. Other notes can be added as needed.
Sign & Print: Only displays when using a custom sheet for Payment Plans, and a signature box is added to the sheet. Click to sign and print the payment plan. See Sign and Print Payment Plan.
Click OK to create the Payment Plan.
From the Production tab add procedures and adjustments to the payment plan. If the payment plan is not locked, the total amount is not fixed, and additional procedures and adjustments can be added later.
Delete: Delete the selected production item from the attached production list.
Print: Click to print list of attached production.
Add: Click to open the Select Production window.
Highlight procedures and/or adjustments to be included in the payment plan. Only adjustments that are not attached to procedures are listed.
The procedure or adjustment Amount Attached defaults to the remaining balance of the production fee after insurance estimates/payments, negative adjustments, and patient payments. Edit the amount to override the default production amount attached to the payment plan with a new amount. If the amount is changed, additional insurance payments or adjustments applied towards the production will not automatically update the payment plan.
Double-click to open an existing dynamic payment plan. The terms will be grayed out.
Click Unlock to edit the terms or add additional procedures or adjustments. Option is only available if Full Lock is unchecked.
Delete: Click to 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. Any remaining production items that did not have a 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. Use the income transfer manager to allocate the excess to other outstanding charges.
Plans that are locked cannot be edited. You must create a new plan to add treatment instead.
To delete a posted payment plan charge, right-click the PayPln: Debit from the Patient Account and select Delete Charge. The delete option is only available when the Pay Plan charge logic, Age Credits and Debits, is selected in Account Module Preferences. Payments cannot be attached to the charge. Any charges that need to be recalculated and posted will be done automatically the next time the Open Dental Service is scheduled to run for dynamic payment plans. Refer to the Dynamic Pay Plan run time in Account Module Preferences for the scheduled time.