Overview
For practices that compensate providers based on collections, Denticon recommends using the Income Allocation – Summary report located under: Reports > Monthly Reports > Income Allocation (with Summary option)
This report provides the most accurate view of payments allocated to services rendered, helping ensure providers are compensated correctly.
How to Use This Report
- Run the Income Allocation – Summary report.
- Pay providers based on the “Income” column (far right of the report).
- Generate the report for each location where the provider has completed treatment.
Why This Report Is Recommended
- Daily Reports show total collections received, but not how those payments are allocated.
- The Income Allocation – Summary report shows payments allocated specifically to completed services, making it ideal for provider compensation.
Multi-Location Considerations
- Allocation is based on the location where the procedure was originally charged, not where the payment was entered.
- Each location will reflect income tied to the services performed at that location.
- This ensures accurate reporting for multi-location organizations.
How Credits and Prepayments Work
- Payments (including prepayments/credits) are only allocated after services are completed.
- Unallocated credits will:
- Remain with the office where the payment was entered, temporarily.
- Be allocated later when treatment is completed (even in a different period or location).
Credits may move between locations based on where treatment is performed.
Important: This report is dynamic and changes as transactions are recorded and allocations occur.
Example Scenarios
Scenario Setup:
- Treatment: $100 (Dr. 1)
- Insurance estimate: $80
- Patient portion: $20
- Patient pays $30 → $20 allocated, $10 remains unallocated
Scenario 1: Insurance Underpays ($70)
- Remaining $10 is applied to the treatment
- No unallocated balance remains
Scenario 2: Insurance Pays as Expected ($80)
- Extra $10 remains unallocated
Scenario 3: Additional Treatment by Dr. 2
- The $10 is applied to Dr. 2’s treatment
- No unallocated balance remains
Understanding the Report Fields
- Prov ID – Provider identifier
- Beginning Balance – Outstanding production not yet collected
- Charges – Production within the selected date range
- Prod Adj (+/-) – Positive or negative production adjustments
- Payment – Patient and insurance payments within the date range
- Prev Allocation – Payments applied to prior charges
- Income Adjust (+/-) – Collection adjustments
- End Balance – Remaining provider balance after all calculations
- Non-Income – Adjustments not tied to provider income (e.g., contract adjustments)
- Income – Total provider income (used for compensation)
- Unallocated Row – Displays amounts not yet applied to production
Quick Tip
Think of the Income Allocation – Summary report as a provider-level A/R summary, showing how payments and adjustments impact each provider’s balance and income.
Additional Reporting Guidance
For multi-location practices, always run the Aging Report by Home Office.
This provides a more accurate view of outstanding balances based on the responsible party’s home office, regardless of where transactions were recorded.
Article Version 1.0 2026.06.10