Overview: Understand aged accounts receivable and finance charges – IDEXX Neo

Aged accounts receivable provides increased visibility to clients’ outstanding, unpaid balances and the tools to manage them. Here is an overview of how aged accounts receivable works in Neo and its benefits, including how monthly finance charges are assessed when you enable them for your practice.

Easily identify clients with older debit balances

View client balances and statements in aging periods to help you decide whether to send statements and attempt to collect payment, send the account to collects, or write off the balance.

Neo will automatically age clients’ unpaid debit balances for you in relation to the associated invoices’ last close date.

Current = unpaid balances 0-30 days old, all credit balances, and automatically calculated finance charges
30 days = unpaid balances 31-60 days old
60 days = unpaid balances 61-90 days old
90 days = unpaid balances 91 days old and older

IMPORTANT:

Aged accounts receivable in Neo are rolling balances, meaning when you view a client’s record, it will show any unpaid balances as of that day in the appropriate accounts receivable aging period. The next day an invoice’s unpaid amount could move forward to the next aging period if invoice ages to 31, 61, or 91 days older.
Draft consultations are not included in the client balance. Credit balances and automatic finance charges are included in the Current balance and do not age.
If a prepayment or credit is not associated to a closed invoice, you may see a debit (positive) balance in 30 days, 60 days, and /or 90 days with a credit (negative) balance in current. and the total balance due may appear to be zero or a credit. To correct this, you must apply the prepayment or other credit to any unpaid or partly paid invoice(s).

Monthly automatic finance charges

Finance charges can be automatically calculated and applied on the last day of each month to any client account that carries an aged balance. See Configure monthly finance charges.

Finance charges are calculated based on a client’s unpaid aged balance multiplied by the finance charge percent used by your practice.

on the last hour of the day in your time zone.
on the last day of the month.
for unpaid debit balances that are 31 days old or older.

IMPORTANT: Finance charges are calculated based on unpaid and partly paid invoices, not the client account balance. A client account can have a zero or credit balance when there are unallocated prepayments and credits equal to or greater than the unpaid and partly paid invoice total; and a finance charge will be calculated. To correct this, you must apply the prepayment or other credit to any unpaid or partly paid invoice(s).

Any existing unpaid finance charges and unallocated credits are not included when calculating subsequent finance charges.

Once a finance charge is calculated, it will be automatically added to the client’s Financial Activity tab.
You can pay a client’s finance charge just as you would pay any other outstanding invoice.

Note: If needed, specific clients can be opted out of having finance charges assessed on their aged account balance. For example, rescue organizations. See Search for a client and confirm information for additional information.

Reporting aged accounts receivable

The Aged Accounts Receivable report lets you review your practice’s aged accounts receivables by client at the time you run the report including their current and aged (30 days, 60 days, 90 days) balances, total account balances, finance charges, and last payment date and amount.

This report can also be used to view clients’ credit balances.

The report includes a chart, summary, and details that can be printed to PDF, or exported as a CSV file.

For multi-branch practices. All unpaid balances are reported using the client's associated or home /primary practice listed on the client Overview at the time the Aged Accounts Receivable report is run. This is to consolidate statements to a single email or letter to the client from their primary practice, regardless of where the transaction (sale) occurred. You can change a client's associated ID (branch), if needed.

See List of Reports in Neo for additional information.

IMPORTANT: Once an outstanding balance is paid, the amount will no longer be reported on the Aged Accounts Receivable report.

If you need a “snapshot” of your accounts receivable to calculate period-to-period (daily, monthly) change, we recommend:

Run Aged Accounts Receivable report consistently either:
- First thing in the morning before any financial transactions are entered for the day.
- Last report of your end-of-period closing after all transactions have been recorded /corrected.
Save a PDF copy of the report to your device to refer to, as needed.

See List of Reports in Neo for additional information.

Client statements

In addition to displaying a list of individual unpaid and partially paid invoices, your clients will see their current and aged (30 days, 60 days, 90 days) balances, total account balances, and any accrued, unpaid finance charges on their statement.

To learn how to create and print or email statements for your clients, see Send statements.

Invoice and report integrity with permanently closed invoices

Closed consultations are permanently closed automatically at 23:59:59 PM the same day you close the invoice (mark ready to pay). Any unpaid invoice amounts can then automatically age based on the invoice close date, to provide the most accurate insights to your clients' outstanding balances

Note: The invoice close date is used for reporting because that is when a sale is considered final. Closing an invoice is typically considered the moment when charges have been reviewed with the client, services have been completed, and products have been given.

Tip: Once an invoice has been close, the calculated permanent close date will display at the bottom of the consultation.