Description
This quick guide covers two common ways to calculate total collections for a period of time.
Steps
This quick guide covers two ways of calculating total collections:
- Collections applied counts the total money that has been received by the practice and applied as payment towards charges on the ledger.
- The advantage of calculating collections this way is that it counts money that has been settled. It will not count deposits or credit balances that are more liquid and may need to be refunded at a later time.
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The calculations for Collections Applied are as follows:
Collections Received (Net Collections).
- Collections Received counts the total money that has been received by the practice.
- The advantage of calculating collections this way is that it counts the total money received by the practice. It counts the total money 'in hand' for the practice without needing to wait on money to be applied, refunded, etc. at a later time.
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The calculations for Collections Received are as follows:
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