Payment to a Payment Plan

In the Payment window, payments to payment plans show as a PayPlanCharge payment splits.

Typically, patient payments to a Payment Plan or Dynamic Payment Plan are entered from the account of the person making the payment. To make a payment:

  1. Select the payors account.
  2. Highlight the pay plan charge (PayPln: Debit).
  3. Click Payment and enter the payment amount. If paying more than the pay plan charge amount (e.g. amount due today), see the Payment Plan Prepayment sections below.
    The payment window will open and automatically create Current Payment Splits for the pay plan principal charge and pay plan interest charge (if the plan has interest) associated to the selected pay plan debits.

    If no pay plan debits were selected, the payment window will automatically create Current Payment Splits for the oldest outstanding charges in the family. In this case, click Delete Splits and select the pay plan interest and principal charges from the Outstanding Charges grid, then click Pay.
  4. Enter the payment details and process the payment. See Patient Payment.

The payment will show in the payment plan's Amortization Schedule. Double-click the plan to view.

Note: If a single payment is for multiple pay plan charges, it is split into a line item for each pay plan charge and for the pay plan charge amount.

If the Pay Plan Logic in Account Module Preferences is set to Aged Debits and Credits, payment plan payments also show in the ledger of the patient with the pay plan or the payment plan guarantor (if the guarantor is not in the same family).

Simple Allocations Setup

If the Paysplits preference in Allocations Setup is set to Manual, any patient payment posted to an account with an active payment plan, is automatically attached to the payment plan. If multiple payment plans exist, you will be prompted to select a plan from the Select Payment Plan window.

Select the needed payment plan from the list and click OK. To only view active plans, check Show Active Only.

Patient Payment Plan Prepayments

To prepay or pay extra towards a patient payment plan, click Payment, and enter the payment amount. When the payment window opens:

  1. Under the Current Payment Splits, delete any pay splits not associated to the payment plan but keep any prepayment split. Double-click on the prepayment split.
    If no prepayment split was created, click Add to create one.
  2. Enter the Paysplit details, then click OK.
    • Enter the prepayment amount.
    • Select the unearned type (default is prepayment).
    • Set the clinic and provider to None.
    • Check attached to payment plan.
  3. Enter the payment details and process the payment.
  4. Double-click on the payment plan to recalculate the amortization schedule for the new prepayment, click Recalculate. Select whether to prepay or pay on principal, see Payment Plan Recalculate.
    After a selection is made, a new pay plan charge is added for the prepayment amount.
  5. Allocate the prepayment to the new charge; either use the Income Transfer Manager or highlight the charge, click the Payment dropdown and select Allocate Unearned Income.

Dynamic Payment Plan Prepayments

To pay extra towards a Dynamic Payment Plan than what is currently due, overpay the pay plan principal charge. Highlight the pay plan debits due, then click Payment and enter the payment amount. When the payment window opens:

  1. Under the Current Payment Splits, delete any pay splits not associated to the payment plan, then double-click the pay plan principal charge.
    If the payment did not auto-split to a pay plan charge, click Delete Splits, select the pay plan charges from the Outstanding Charges grid, and click Pay. Then, double-click a pay plan charge.
  2. On the Edit Payment Split window, enter the extra payment amount and click OK. The amount of this pay plan charge should be the current charge amount plus the additional payment amount.
  3. Enter the payment details and process the payment.

  4. You will be prompted to apply the overpayment to principal or to prepay for the next payment plan charge.
  5. Select whether to apply the overpayment to principal or create a prepayment on the payment plan.
    • Click Yes to apply the overpayment to principal and recalculate future interest charges. A new pay plan charge (PayPln:Debit) is added for the excess amount.
      Note: If there are unpaid pay plan charges, the overpayment is first transferred to the principal charges, ignoring any unpaid interest, then, a new principal charge is added for the remaining overpaid amount and the payment is transferred to the new charge. It is recommended to create payment splits for all unpaid pay plan charges before overpaying a principal charge.
    • Click No to apply the overpayment as a prepayment. An income transfer is automatically created, transferring the overpayment to the default Dynamic payment plan prepayment type, set in Account Module Preferences. The prepayment is considered a hidden split and does not affect the patient's balance until the next pay plan charge is due. When the next pay plan charge posts, the prepayment is automatically transferred to the interest charge, and any excess is transferred to the principal balance. See Hidden Splits, Payment Plan Prepayment.
    • Click Cancel to return to the payment window and manually make changes to the payment.

To prepay towards a dynamic payment plan before a pay plan charge is due, click Payment and enter the payment amount. When the payment window opens:

  1. Delete the Current Payment Splits, click Delete Splits.
  2. Create a new pay split, click Add Split.
  3. Enter the Paysplit details, then click OK.
    • Enter the payment amount.
    • Check attached to payment plan.
    • Select the unearned type for dynamic payment plans (default is Payment Plan Prepay).
    • Set the clinic and provider to None.
  4. Enter the payment details and process the payment.

The payment is moved to the Hidden Splits tab and when the next pay plan charge is due, the prepayment is automatically transferred to the next pay plan charge.