Dynamic Payment Plan
A Dynamic Payment Plan is an open ended repayment agreement for completed procedures.
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.
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 any further additions to production or changes to the repayment schedule. 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: 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 you will add procedures and adjustments to the payment plan. Unlike normal payment plans, the total amount is not fixed and additional procedures and adjustments can be added.
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.
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.
Plans with APR cannot be edited. You must create a new plan to add treatment instead.
Patient payments made towards a dynamic payment plan are first applied to any pay plan interest charges that have posted to the account. After the interest is covered, any payment amount left over is then applied to the principal balance.
When a patient pays more than what is currently due on the Payment Plan, the following prompt will populate: