We have a bonus system for our staff. How do we account for membership club revenue?

Bonus systems vary. However, most are based on either collections, production, or a combination of both. Fortunately, your Membership Club will increase both production and collections over time. So total revenue and team bonuses are likely to increase.


To track production for your Membership Club patients, post your normal codes and fees into your dental management software (e.g. Dentrix, Eaglesoft) for any treatment or preventive care provided during the patient’s appointment. Then post a “Membership Club Preventive Discount” for covered preventive care or a “Membership Club Treatment Discount” for your patient’s treatment discount. This will cause a “production” report to include everything done on the patient. In other words, a hygienist who sees eight Membership Club patients in one day would still “produce” a full day of preventive care at normal fees in your software.


To track collections, simply post Membership Club patient dues received at the end of each month to your accounting software (e.g. Quickbooks, Peachtree) in one lump sum under a category like “Membership Club Revenue.” (You do not need to necessarily track individual members because the production per member has already been accounted for and balanced with the adjustment.)


If you bonus on production, run a gross production report from your dental software for the cycle. If you bonus on collections, run a report from your accounting software at the end of the cycle. If you bonus on both, combine those reports in accordance with your bonus formula.



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