I need some help understanding how/why the software posts interest in the manner (and sometimes the amount) that it does.
First example: Patient came in for treatment, paid off his previous balance plus a down payment on that day's services, resulting in a large credit. After the appt was complete, charges were posted. Insurance paid a couple weeks ago. We just sent the first statement that has gone out since his 2/13/20 service (hasn't even been a month yet) and interest was posted? That didn't seem right, but I was sure I was missing something, so I asked my teammate who had been working with support to change our statement setup a few months ago.
Here is her response (after calling support b/c it didn't make sense to her either):
They said it is because his ledger never reached a $0 balance because treatment was added the same day as his payment. It still doesn't make sense to me because there is a 60 day grace period. If we would have collected a payment for whatever the balance was (to bring it to zero) and THEN posted his patient portion for the services that day he said he wouldn't have accrued interest.
Please tell me that whoever she spoke with is mistaken. That is a great way to infuriate patients.
My second question is why are the interest amounts so random? I have seen numerous accounts, where the balance is not being affected either by payments or services, and the interest amounts are all over the place. I'm going to make up numbers, but this is pretty close to what is happening:
Again, can someone explain this?
I would suggest going into your statement set up and view your current interest charge set up.
Here are screen shots for the first scenario. I really hope you can help me understand this.
For the second scenario, I didn't think that the interest was on the new charges - I just couldn't understand why there would be interest on a balance that had been paid. But now I do.
Unfortunately, without seeing all the ledger details we won't be able to try and manually calculate what's going on for the interest amounts. We'd need to see the tx code entries as well so we can see the amounts and balances.
As far as the amount of the interest getting smaller. That will have been affected by the payment made on December 23. The interest added in January would have still been at least partially including the amount from before the payment was entered. Possibly even some on the Feb intr. and then the March wouldn't have any prior part of the balance still calculating into it.
but we can't really make a full manual calculation to figure out what it is doing without all the details. We want to see the ledger history details going back to the last 0 balance on the account. with patient information marked out of course.