Aging is automatically calculated when you open the Account Module, run Billing/Finance Charges and Billing, generate the Aging of Accounts Receivable (A/R) Report, or generate the Insurance Aging Report. By default, aging is calculated daily.
How Aging is Calculated
Aging is calculated for each family as follows:
- Charges for all family members are sorted into one of four categories based on the date of the charge. The categories are 0-30, 31-60, 61-90, and over 90.
- Total charges are calculated for each category by adding all the charges in each category respectively.
- Total credit is calculated by adding together all credits for the entire family history.
- The total credit is applied to the over 90 category, then the 61-90 category, then the 31-60 category, then the 0-30 category. Some categories will still contain amounts due if the total credits were not sufficient to cover the total charges. Credits are applied to the oldest debts first in order to give the family as much credit as possible. This way, if you see that the family has a balance in the over 90 category, you might be more comfortable moving the guarantor account to precollections.
There are two preferences in Miscellaneous Setup that affect aging:
- Automated aging run time: Specify a time of day to automatically run daily aging.
- Aging for enterprise Galera cluster environments using FamAging table: Only for enterprise organizations running Galera cluster environments. This preference can change how often aging is run and prevent potential deadlocks.
Monthly aging: There is an option in Account Module Preferences for Aging calculated monthly instead of daily. This is an old method that was retained for backwards compatibility. It is not recommended. If selected, you must manually update aging by running the aging tool (see below). Aging in a patient's Account will be based on the last calculated date. The last calculated date will also be the default in the Aging of A/R report, though can be changed.
Manually Calculate Aging
If you have opted in Account Module Preferences to have Aging calculated monthly instead of daily, you will need to manually update patient aging. Typically you will update near the beginning of the month.
- In the Main Menu, select Tools, Aging.
- Enter the Calculate as of date. The default date will be one month after the last calculated date, but can be changed as needed.
- Click OK.