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sandy6717
Canine II

Failed ACH payments

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We have switched most of our patients over to ACH drafts from their checking or savings accounts in order to save on credit card fees to the practice. In doing so, when and ACH draft is posted to the account, we do not know until approximately 2 days later that the payment was returned. At that time we do a payment adjustment, however what I am finding is that the account is not aging as past due properly, due to the fact that the payment was originally posted and then returned as a payment adjustment. Is there any solution to this? Thank you in advance. 

Sandy Archer, Orthodontics Limited

 

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prcarter
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Re: Failed ACH payments

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Good morning Sandy ( @sandy6717 ), 

First let me apologize for the delay in response, we have been a bit busy this week and have not had a chance to check the Exchange site for questions. 

I can see why you would want these patients to show as past due if their original payment was returned. Unfortunately, since the original payment would have removed the balance that was on the ledger at that time (thereby making them current), then the payment adjustment put the balance back on the ledger only when the payment adjustment was done, the countdown to them being past due would begin when the payment adjustment put the balance back on the ledger.

If you want them to show as past due sooner than thirty days after the payment adjustment was done, you can always do an Aging Adjustment on the account to reflect that the balance is past due. The Aging Adjustment allows you to reallocate the Current Due amounts (the Current Due balance must equal the sum of This Month, 30-60, 60-90 and 90+  fields, but can be allocated however you like between those fields). 

Regards,

Phil Carter / OrthoTrac Escalations

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sandy6717
Canine II

Re: Failed ACH payments

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Thank you Phil, that would be much appreciated.

Sandy

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prcarter
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Re: Failed ACH payments

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Good morning Sandy ( @sandy6717 ), 

First let me apologize for the delay in response, we have been a bit busy this week and have not had a chance to check the Exchange site for questions. 

I can see why you would want these patients to show as past due if their original payment was returned. Unfortunately, since the original payment would have removed the balance that was on the ledger at that time (thereby making them current), then the payment adjustment put the balance back on the ledger only when the payment adjustment was done, the countdown to them being past due would begin when the payment adjustment put the balance back on the ledger.

If you want them to show as past due sooner than thirty days after the payment adjustment was done, you can always do an Aging Adjustment on the account to reflect that the balance is past due. The Aging Adjustment allows you to reallocate the Current Due amounts (the Current Due balance must equal the sum of This Month, 30-60, 60-90 and 90+  fields, but can be allocated however you like between those fields). 

Regards,

Phil Carter / OrthoTrac Escalations

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sandy6717
Canine II

Re: Failed ACH payments

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Hi Phil, Thank you for your response. I'm still not sure that the accounts are aging properly after the payment adjustment is made and the monies are put back on the account. I have an example that I could send to you showing the patient's ledger and the aging. Let me give first explain the example and then you can let me know if you need to see the patient's ledger. We have drafted the said patients account every month since June 2021, and all four of the payments were returned. The payment adjustments were made approximately 5 days after each of these payments were posted. The monthly payment is $146.79 and there is a $20.00 NSF charge for each returned payment. The aging for this patient shows as follows:

Total Bal $1107.57  Current Due $667.16 This month $480.37 31-60 $186.79 61-90  $0 over 90  $0.00 This aging just doesn't seem right to me.

I need to know if I have to manually age these accounts, which I haven't been very successful with in the past. 

Thanks in advance for any further info you can provide. 

Sandy

 

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prcarter
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Re: Failed ACH payments

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Good day Sandy ( @sandy6717 ), 

You would definitely need to perform an Aging Adjustment on the account if the past due balances are not properly allocated where they need to be in the various fields. We are short staffed today but I will give you a call tomorrow to walk you through the process of performing an Aging Adjustment on a problem patient. 

Regards,

Phil Carter / OrthoTrac Escalations

 

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sandy6717
Canine II

Re: Failed ACH payments

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Thank you Phil, that would be much appreciated.

Sandy

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