Production and Income Report  

From the Reports window, select one of the Production and Income reports. If you use the More Options report, then you will see this window first.

Select the date range, typically one month, and the providers you wish to show and click OK.

The Production column shows work that has already been completed. The Scheduled column shows work that is scheduled in the Appointments module, but has not been completed. The Scheduled column automatically subtracts writeoff estimates from your total fees for production with anticipated PPO writeoffs. The total production is the sum of those two columns minus PPO Writeoffs plus Adjustments. PPO Writeoffs should usually be shown by Date of Service, but can be shown by Date of Insurance payment. The defaults for how writeoffs are shown can be changed by checking or unchecking the boxes 'Monthly P&I scheduled production subtracts PPO writeoffs' and 'Default to using ProcDate for PPO writeoffs'. These settings are found in Miscellaneous Setup.

The Total Income at the bottom is the sum of the Pt. Income and Ins Income.

The relationship between production, income, and adjustments

Every financial planner has different opinions about what is an acceptable relationship between production and income, and it also depends on your personal preferences.

The total production and income over the life of your practice will differ by the amount you have failed to collect (Accounts Receivable) minus the amount you have over collected (Accounts Payable). But because the period relative to service date is different for production and income (that is, some money collected in a month is related to production in a previous month) you should not expect your monthly production and income to be comparable for one particular month. This is discussed in more detail at Production and Income.

For the numbers to be meaningful, production should only include fees billed which are actually expected to be paid. So if you give a senior a 10% discount, then you are actually reducing your production by that amount, because you never expect to be paid that 10%. Discounts are automatically subtracted from the production numbers above. Most adjustments will also affect production similarly, including any broken appointment charges, finance charges, referral discounts, writeoffs, and cash discounts.

But some adjustments affect income rather than production, specifially patient refund checks, because they do not change the amount expected to be received, but only affect the income. A refund check is the exact opposite of a patient payment, so enter it as a negative payment in order to correctly affect the income. If the patient had overpaid for previous work, and you wrote them a refund check for the difference, then it would only affect income, not production. But a patient refund check is sometimes associated with a balancing adjustment that does affect the production. For instance, you did a crown which broke in half a month later and the patient has moved out of state. So lets say you have decided to give them a full refund. Their current balance is 0. You would first enter a miscellaneous negative adjustment (production) for $800, taking their balance to -800. Then, you would enter a negative check payment (income) for a patient refund and write them a check, taking the balance back to zero. In this case, the adjustment affects production, and the negative payment affects income.

We understand that this can be confusing, so revisit this page periodically until you can understand fully how your accounts are organized. Also, see the Provider Income Transfer page for details on how to properly track Income split by provider. This is only necessary if you need to track income by provider. Most offices will not do this. They will instead track production by provider, which is easier.