Principle generates Practitioner Income reports as part of our reporting system. This is calculated based on the line items and which practitioner they are allocated to on an invoice, with unallocated invoices being considered an income/expense of the company, rather than of a particular practitioner.
The different line item types you will encounter are as follows:
Line Item Type | Allocated to Practitioner? |
Treatment | Always (default) |
Deposit | Optional (can be allocated to a practitioner) |
Products | Cannot be allocated |
Fees | Cannot be allocated |
Ways to Calculate Incomes
By Invoice Issued Date
Each line in the report represents a single invoice
Invoices are displayed if they were issued within the specified date range
Usage: Typically used for compensating practitioners based on what they've invoiced for, rather than what the patient has paid
Invoice Paid Date
Each line in the report represents a single invoice
Invoices are displayed if they were fully paid within the specified date range
Usage: This is not commonly used for paying practitioners, as it can be unreliable. Invoices which are modified or refunded may appear in multiple reports.
By Transaction Date
Each line in the report represents a single transaction
Transactions are displayed if they were taken within the specified date range
Usage: This is the most common method for calculating practitioner income, as it reports from when the payment is received.
These methods provide flexibility in how you can calculate income based on the specific needs and circumstances of your practice.
Expanding on 'By Transaction Date'
Most practices prefer to calculate practitioner income by transaction date. When reporting by transaction date each line on the report represents an individual transaction, and the income is divided amongst 'receivers' based on their share of the total invoice.
Here is how income is divided across transactions:
Calculate the practitioner's portion for a single transaction by determining their share of the total invoice. For example, if an invoice is $100, and $75 of that invoice is for the practitioner, they receive 75% of all transactions for that invoice.
Invoice: $100Practitioner's share: $75 (75% of the invoice)
Unallocated share: $25 (25% of the invoice)
If the invoice is paid with multiple transactions, allocate income from each transaction accordingly:
For a $50 Eftpos transaction:
Practitioner's share: 75% of $50 = $37.5
Unallocated share: 25% of $50 = $12.5
For a $50 Cash transaction:
Practitioner's share: 75% of $50 = $37.5
Unallocated share: 25% of $50 = $12.5
3. In total, the practitioner is allocated $75 out of the total $100 for both transactions:
Invoice total: $100
Practitioner's allocated: $75 (75% of the total)
Unallocated: $25 (25% of the total)
For the Eftpos payment:
Practitioner's allocated: $37.5 (75% of the total)
Unallocated: $12.5 (25% of the total)
For the Cash payment:
Practitioner's allocated: $37.5 (75% of the total)
Unallocated: $12.5 (25% of the total)
This method ensures that the practitioner's income is divided accurately based on their share of each transaction within the total invoice amount.
Understanding Table Columns
Practitioner Income Report By Transaction Date displays various columns. When selecting a practitioner:
Reserved Account Credits: These are credits set aside for the practitioner and resemble the Account Credit Report, used when a deposit is received. Account credits are allocated when the invoice is paid in full.
Account Credits Used: The total of Account Credit transactions for the practitioner.
Discounts Given: Total of discount transactions for the practitioner.
Payments: The total of non-account credit or discount transactions for the practitioner.
Practitioner Portion: This is the total of Account Credits Used and Payments. Reserved Account Credits and Discounts Given don't contribute to a practitioner's income.
When viewing a specific practitioner:
Account Credits: Shows the amount of account credit transactions.
Discounts: Shows the amount of discount transactions.
Payments: Shows the amount of non-account credit or discount transactions.
Practitioner Portion: This is the total of Account Credits and Payments. Discounts do not count towards a practitioner's income.
Examples
Single Transactions
An invoice allocated to a single practitioner:
Invoice Total = $200
Practitioner's Share = $200 (100% of invoice)
An invoice split between two practitioners:
Invoice Total = $250
Practitioner #1 receives 80% of each payment since they're allocated 80% of the total invoice. This evenly distributes the transactions among all recipients, including unallocated amounts.
Treatment (Practitioner #1) = $200 (80% of invoice)
Treatment (Practitioner #2) = $50 (20% of invoice)
Payment Total = $250
Practitioner #1 gets 80% of the payment, which is $200.
Practitioner #2 gets 20% of the payment, which is $50.
An invoice with treatment allocated to one practitioner and unallocated products:
Invoice Total = $250
Practitioner's Share = $200 (80% of invoice)
Unallocated products = $50 (20% of invoice)
An invoice with treatment allocated to two practitioners and unallocated products:
Invoice Total = $500
Practitioner #1 receives 60% of each payment, amounting to $300, since they're allocated 60% of the total invoice.
Practitioner #2 receives 30% of each payment, amounting to $150, because they're allocated 30% of the total invoice.
The unallocated portion is $50.
These examples illustrate how payments are distributed for different scenarios.
Multiple Transactions
Invoice allocated to a single practitioner, with multiple payments:
Invoice Total = $200
Practitioner's Share = $200 (100% of invoice)
Payment #1 = $100
Payment #2 = $100
Practitioner receives 100% of each payment, totalling $200 allocated to the practitioner.
An invoice divided between two practitioners, with multiple payments:
Invoice Total = $250
Treatment (Practitioner #1) = $200 (80% of invoice)
Treatment (Practitioner #2) = $50 (20% of invoice)
Payment #1 = $150
Practitioner #1 receives 80% of payment, totalling $120
Practitioner #2 receives 20% of payment, totalling $30
Payment #2 = $100
Practitioner receives 80% of payment, totalling $80
Practitioner #2 receives 20% of payment, totalling $20
An invoice with treatment allocated to one practitioner and unallocated products, with multiple payments:
Invoice Total = $250
Payment #1 = $150
Practitioner receives 80% of payment, totalling $120
The unallocated portion is 20% of payment, totalling $30
Payment #2 = $100
Practitioner receives 80% of payment, totalling $80
The unallocated portion is 20% of payment, totalling $20
An invoice split between two practitioners and unallocated products, with multiple payments:
Invoice Total = $500
Treatment (Practitioner #1) = $300 (60% of invoice)
Treatment (Practitioner #2) = $150 (30% of invoice)
Products (Unallocated) = $50 (10% of invoice)
Payment #1 = $300
Practitioner #1 receives 60% of payment, totalling $180
Practitioner #2 receives 30% of payment, totalling $90
The unallocated portion is 10% of payment, totalling $30
Payment #2 = $200
Practitioner #1 receives 60% of payment, totalling $120
Practitioner #2 receives 30% of payment, totalling $60
The unallocated portion is 10% of payment, totalling $20