This article covers frequently asked questions about managing and using accounts receivable and finance charges.
Aged balances are calculated on a rolling view from:
- any unpaid and partially paid invoices based on their last invoice close date, and
- any unpaid and partially paid debit balance adjustments based on their date entered.
This means when the balance is viewed, it will show unpaid balances in the appropriate aging period as of that day.
Current = Invoice close date 0 -30 days old. Also includes unallocated credits and finance charges, both which never age.
30 days = 31 - 60 days old
60 days = 61 - 90 days old
90 days = 91 days or older
A rolling balance 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.
Go to Administration >Financial Settings then in the Monthly Finance Charge section click the toggle to enable the feature, enter your practice’s finance charge percent, and click Save.
See Overview: Understanding aged accounts receivable and finance charges for more information..
Finance charges are automatically calculated at 11:59 pm on the last day of the month to any unpaid or partly paid balance 31 days or older based on your practice’s time zone.
Unpaid finance charges, as well as credits, are not included in the finance charge assessment and will remain in the Current aging period.
Finance charges are enabled at the branch level. This provides the ability for each branch to customize their monthly finance charge percent, as needed.
See Overview: Understanding aged accounts receivable and finance charges for more information.
Yes, users with the System Admin permission can change the Monthly Finance Charge percent in Administration >Financial Settings.
The new finance charge percent will be in effect with the next automatic monthly finance charge assessment.
See Overview: Understanding aged accounts receivable and finance charges for more information.
If your practice decides they no longer want to use monthly finance charges, when you deactivate the feature:
- On the client record, the Finance Charge checkbox will be removed from the client Overview.
- Finance charges will no longer automatically calculate at the end of the month.
Note: Finance charges that have already been applied will not be removed. - When Monthly Finance Charge is deactivated, you will need to manually calculate any finance charges then add them from the client’s Financial Activity tab using balance adjustments.
Note: Should you reactivate the Monthly Finance Charge , the clients' Finance Charge selection on their Overview will be remembered.
The Aged Accounts Receivable will return unpaid balances and unallocated credits in the appropriate aging period as of the date and time you run the report.
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.
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, month) change, we recommend you:
- 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 and /or CSV copy of the report to your device to refer to, as needed
For complete information on the Aged Accounts Receivable report, see List of Reports in Neo.