For dentists which the office desires to pay on collection, Denticon advises to generate the “Reports / Monthly Reports / Income Allocation - with Summary option" report.
Offices should pay the provider based on the "Income" column at the far right of the report.
The allocation information will generate for the office in which the original procedure was charged. This is especially helpful for multi-location organizations. That means, for transactions entered in LocationA, the in LocationA report will show the payment allocation for that location. This is regardless of the location in which the payment was actually recorded. The “Income Allocation - Summary” report should be generated for each location the provider has recorded treatment balances.
Denticon recommends the “Income Allocation - Summary” report for payment based on provider collection because, while the office’s Daily Reports show the total collection received, the "Income Allocation - Summary" report shows the total of payments allocated, for only the services rendered in the location.The “Income Allocation - Summary” report will not allocate credits to doctors until the services are rendered. Previous credits (aka: unallocated amounts) will get allocated when the provider performs completed procedures for which there is a patient-side balance due. A pre-payment (aka: credit) in one period in the past may get allocated in a current period because the provider is due the money during the current period.
Any credit within a patient's ledger will temporarily reside with the office that collected and recorded it. However, during the next reporting period, the credit might get allocated to a different office because that's where the treatment was actually performed and recorded. Therefore, the patient's credit is going to move from one office to another as it is getting allocated for completed procedures.
NOTE: An important factor to remember: this is a constantly moving report, based on the recorded transactions in the patient's ledger, based on the location in which the transaction is recorded.
Some examples ("Dr" is interchangeable to "location"):
- treatment was done today by Dr 1
- charges for treatment is $100
- patient has insurance, and ins portion is $80 ... therefore, pt portion is $20
- patient makes payment of $30
- only the anticipated pt estimate of $20 is currently allocated to Dr 1 ... the excess $10 is held as unallocated money
Scenario 1:
- insurance underpays the estimated portion, pays only $70
- the previously paid $10 will go toward Dr 1's treatment
- no more unallocated money
Scenario 2:
- insurance pays the estimated portion
- the previously overpaid $10 remains as unallocated money
Scenario 3:
- insurance pays the estimated portion
- Dr 2 performs treatment
- the previously paid $10 will go toward Dr 2's treatment
- no more unallocated money
Income Allocation Summary-The income allocation report can be thought of as a mini A/R summary based on provider. The (+) s and (-) s on the report indicate how that item will affect the provider’s balance. For example, a positive production adjustment will increase the providers production adjustment balance.
A guide to understand the "Income Allocation-Summary" report:
Prov ID – Provider id
Beginning Balance – Provider beginning balance, the beginning balance is the unallocated production that doctor has available to be collected against in general on the start date of the report. It's an accumulation of the production charges posted under doctor that have not yet been collected or adjusted against.
Charges – Production within the date range
Prod Adj (+) – Production adjustment that are positive.
Prod Adj (-) – Production adjustment that are negative.
Payment – Payments within the date range. (Patient and Insurance)
Prev Allocation (-) – Amount allocated to previous (before From Date) charges and adjustments (Ignores any production adjustments)
Prev Allocation Prod Adj (-) – Amount allocated to previous production adjustments.
Income Adjust (+) – Collection adjustment that are positive.
Income Adjust (-) – Collection adjustment that are negative.
End Bal – Provider balance as of To Date – Calculation: = Beg Bal + Charges + Positive Prod Adj - Negative Prod Adj - Payment - Prev Allocation - Prev Allocation Prod Adj - Negative Coll Adj + Positive Coll Adj
Non-Income – these are payments/adjustments that are not internally allocated towards production and hence do NOT count towards the provider’s income. Contract adjustments (periodic billing, balance moved to contract etc.) are a type of non-income adjustment.
This is an internal setup and not something the user can add/edit from the adjustment setup screen.
Income – Provider income – Calculation: = Payment + Prev Allocation + Negative Coll Adj - Positive Coll Adj
Unallocated Row– All unallocated amounts
Aging Report by Home Office- Multi-location practices should always generate the “by home office” aging reports. These reports provide the organization with a true reporting of which accounts owe money, regardless of the recording office location, based on the home office location of the Responsible Party.