Net Practice Revenue Budget — 2026

1. Source Data

• Production Budget — Copy of 2026 Budget v8 - Doc Days and Production.xlsx, sheet Doc & Hyg Prod Metrics, columns AA–AW. Rows where Production Data = "Doc Production" or "Hyg Production" are summed by Location ID per month.
• TTM Adjustments — GEN4 03.2026 TTM Reporting with Summary - vx free.xlsx. Each practice tab (single- or multi-location) provides 13 months of Gross Charges, Contractual Allowance, Sales Returns & Discounts, and Net Practice Revenue. Multi-location tabs carry a Sage Location ID in column A (e.g., KSACD0001).

2. Crosswalk

• Primary key = Sage Location ID from budget column AC.
• Match priority: exact ID → exact location-name → practice-group fallback → network-average fallback.
• Locations with no usable TTM history (recent acquisitions like AZAID0001, TNNAD0001) inherit the volume-weighted network ratios.

3. Ratio Derivation (per location, weighted)

allowance_%_wtd = Σ |Contractual Allowance| ÷ Σ Gross Charges

returns_%_wtd = Σ Sales Returns & Discounts ÷ Σ Gross Charges

net_%_wtd = Σ Net Practice Revenue ÷ Σ Gross Charges

Months with zero or missing Gross Charges are excluded from the ratio calculation. Sales returns can be negative (a credit), in which case net % > 1 − allowance %.

4. Forecast Build (per location, per month)

Total Production = Doctor Production + Hygiene Production

Est Allowance = Total Production × allowance_%_wtd

Est Returns = Total Production × returns_%_wtd

Est Net Practice Rev = Total Production − Est Allowance − Est Returns

5. Why Weighted (Σ/Σ) and Not Simple Average

A simple monthly average over-weights low-volume months (e.g., the month a location was acquired). Σ/Σ collapses to the same ratio you would compute on the full annualized P&L, which is how SGA East ties out adjusted-budget figures to QofE reporting.

6. Comparison: Gen4 vs SGA East

• Gen4 (legacy practice) — books production as-is, no contractual or returns adjustment. Reports gross.
• SGA East — applies the same allowance/returns model in this dashboard to every line item before reporting net practice revenue.
• This dashboard — converts Gen4-style gross production into SGA East-style net practice revenue using each location's own TTM behavior, so 2026 budget conversations work in apples-to-apples revenue terms.