Using FIFO Payment Spreads
You can use the FIFO or First In, First Out spread, to apply the payments starting with the oldest line items by the create date until the payment is distributed.
When a transaction is entered for a non-third party payment, for example a patient payment, NextGen® Enterprise PM applies the payment FIFO to the patient responsibility. The Balance Control window for the encounters on which a payment is being made is used to calculate the patient responsibility. The payment is then applied in a FIFO manner in the following order:
- Encounter patient responsibility date or invoices first bill date.
- Encounter number or invoice number.
- V or I based on the above encounter or invoice.
- The charge sequence number.
You can use the FIFO - Patient Responsibility Date spread to apply payments to the oldest line items determined by the patient responsibility date, until the payment is distributed. Whenever a transaction is entered for a non-third party payment, for example a patient payment, the application applies the payment FIFO to the patient responsibility.
NextGen Healthcare recommends FIFO-patient responsibility for patient transactions.