Under Setup>Offices>Office Setup>Advanced is where Finance Charges for the office can be set up for charging patients a fee for overdue balances.
- Necessary Fields:
- Annual Fin. Charge % - This is the annual percentage rate to be charged out
- Minimum Balance - The minimum balance the patient can have due to incur a finance charge
- Minimum Finance Charge - The minimum finance charge that can be applied to a patient. If the percentage calculation generates a charge less than this amount, this amount will be charged instead.
- # of Days Before Applying Fin. Charge - How aged an account must be to incur finance charges. Typically 30, 60, or 90 days.
- FAQ
- Question: "I entered a finance charge percentage of 10%, why was the patient not charged for 10% of their balance this month?"
- Answer: The finance charges are calculated with an annual percentage. That means the Finance Charge of 10% will be divided by 12 months.
- Formula for Calculation:
- Patient Balance $100 X Finance Charge 10% / Months 12 = Finance Charge $0.83 per month
- OR
- Patient Balance $100 X Finance Charge 10% / Months 12 BUT Minimum Finance Charge $1 = Finance Charge $1 per month.
- Additional Important Notes:
- Patient Palance $100 X Finance Charge 10% / Months 12 BUT Minimum Balance $200 = No Finance Charge.
- If the patient pays off some of their balance, the next charge will calculate based on their new remaining balance.
Article Version 1.1 2026.8.7