How to set up Collection or Production when calculating commission

Overview

A new enhancement has been added to improve commission calculations by allowing you to choose between Collection-based or Production-based methods. This gives you more control over how commissions are calculated, either based on payments received or on completed treatments.

Additionally, the reporting system has been updated to allow filtering by the selected accounting method, making it easier to view specific data based on your chosen method.

This article outlines the following topic:

Collection-Based vs. Production-Based Commission

1. Collection-Based Commission
Commission is calculated on the total payments actually received by the practice. This includes:

Cash
Card Payments
Invoice payments
Deposits collected

Only money that has been collected is counted toward commission.

2. Production-Based Commission
Commission is calculated on the total value of completed treatments. Payments are allocated to treatments at the time they are completed, including:

New payments collected to invoice at completion
Deposits payments that were collected previously and are applied to the completed treatment.

Commission is therefore based on treatment completion rather than the timing of when cash payments are collected.

Sample Invoice & Statement

$100 Prepayment has been added for a patient

$50 Prepayment has been used to pay for a treatment.

Collection-based Commission

A prepayment of $100 is showing when creating a statement, but the allocated prepayment of $50 is not.

Production-based Commission

The allocated prepayment of $50 is showing on the statement, but the initial prepayment of $100 is not.

Steps on how to set up for business

On the upper right, click the Cog Icon and select Settings. If the cog icon is not visible, please contact an administrator.
Under Your Business, click on Businesses.
Search for the business whose method you will be changing and click on it.
Look for Accounting Method, click the dropdown, and select either Collection-based or Production-based.
Once done, scroll down and click the Save Changes button.

Reporting based on the selected accounting method

With this enhanced feature, the reporting system now allows you to filter data based on the selected accounting method, making it easier to view specific information according to your chosen method. A toggle button is available to switch between Collection-based and Production-based. This option is available on the following reports:

Payment Report