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Understanding PCC AR Aging Reports: A Simplified Guide

This document explains the PointClickCare (PCC) Accounts Receivable (AR) Aging system in simple terms, helping non-technical users understand how the aging reports work and what they mean.

What is AR Aging?​

Accounts Receivable (AR) Aging is a way to track how long money has been owed to your organization. It categorizes unpaid invoices based on how much time has passed since they were created or since payment was due.

Think of AR Aging like sorting your mail by when it arrived:

  • Today's mail (Current)
  • Last month's mail (30 days)
  • Mail from two months ago (60 days)
  • And so on...

How PCC Tracks Aging​

PCC's system tracks every financial transaction for each resident and payer. These transactions include:

  • Charges: Money owed to your facility (like room and board, therapy services)
  • Payments: Money received from residents or insurance companies
  • Adjustments: Changes to amounts owed (like write-offs or corrections)

Two Ways to View Aging​

PCC offers two different methods to calculate aging:

1. By Effective Date (Service Date)​

This method ages transactions based on when the service was provided or when the charge was effective. This answers the question: "How old is this service we're trying to collect payment for?"

For example:

  • A therapy service provided on March 15th
  • Viewed on May 20th
  • Would appear in the "60 days" bucket (because it's between 60-90 days old)

2. By Transaction Date (Posting Date)​

This method ages transactions based on when they were entered into the system. This answers the question: "How long ago did we record this transaction?"

For example:

  • A therapy service provided on March 15th
  • But not entered into PCC until April 10th
  • Viewed on May 20th
  • Would appear in the "30 days" bucket (because it was posted between 30-60 days ago)

The Aging Buckets​

PCC organizes unpaid amounts into these standard time periods:

  • Current: Less than 30 days old
  • 30 Days: 30-59 days old
  • 60 Days: 60-89 days old
  • 90 Days: 90-119 days old
  • 120 Days: 120-149 days old
  • 150 Days: 150-179 days old
  • 180 Days: 180-209 days old
  • 210+ Days: 210 days or older

Reading the AR Aging Report​

The PCC AR Aging report shows:

  1. Detail View: Lists each resident and what they (or their payers) owe, broken down by aging bucket
  2. Summary View: Groups the totals by payer, showing how much each insurance company or payment source owes in each aging bucket

Example:​

Detail View:

Resident: John Smith (ID: 12345)
Payer: Medicare
Current: $1,500
30 Days: $800
60 Days: $0
90+ Days: $0

Summary View:

Payer: Medicare
Current: $12,500
30 Days: $8,200
60 Days: $3,400
90+ Days: $1,200

Using the Web Interface​

The PCC web interface (shown in the screenshots) allows you to:

  1. Select a Reference Date: This is the date from which aging is calculated
  2. Choose Facilities: If you manage multiple facilities
  3. Filter by Payer: To focus on specific insurance companies or payment sources
  4. Select Aging Method: Choose between effective date or transaction date aging
  5. Run the Report: Generate the aging report based on your selections

Why Aging Reports Matter​

AR Aging reports help you:

  1. Identify Collection Issues: Spot which accounts are falling behind
  2. Focus Collection Efforts: Prioritize older accounts that are harder to collect
  3. Evaluate Payer Performance: See which insurance companies are slow to pay
  4. Forecast Cash Flow: Predict when you might receive outstanding payments
  5. Assess Financial Health: Monitor the overall state of your accounts receivable

Common Questions​

Why might the aging report not match my expectations?​

Several factors can cause confusion:

  1. Effective Date vs. Transaction Date: The two aging methods can produce different results
  2. Payment Application: How payments are applied to specific charges affects aging
  3. Timing Differences: When transactions are entered versus when services occurred
  4. Filtering: Some payers or transaction types might be excluded

What's the difference between the PCC web report and database reports?​

The web interface is a user-friendly way to access the same data that's in the database. However:

  1. The web interface might apply additional filters or formatting
  2. Custom database queries might use different calculation methods
  3. The web interface might be limited in how it can display or export data

Next Steps​

If you want to better understand your AR aging:

  1. Compare Methods: Run reports using both effective date and transaction date to see differences
  2. Validate Data: Check individual resident accounts to verify the aging calculations
  3. Regular Monitoring: Run aging reports consistently (weekly or monthly) to track trends
  4. Documentation: Keep notes about unusual patterns or discrepancies you notice