This document discusses algorithms and processing methods used by AERONET to calibrate direct sun and diffuse sky radiance measurements from its global network of sun photometers and derive aerosol optical depth, precipitable water, and other aerosol properties. It describes current algorithms and plans for refinements, including updating extraterrestrial solar flux calculations, Rayleigh scattering calculations, ozone and water vapor modeling, and implementing corrections for water vapor and gases in retrieving aerosol optical depth at 1020nm and 1640nm. It also discusses recalibrating the water vapor channel of AERONET instruments and quality assuring the updated precipitable water database through comparisons with GPS and microwave radiometer measurements.