Setup for Posting Interest and Penalty

Setup for Posting Interest and Penalty


Set up an Interest Adjustment Transaction Code

Create a custom Transaction Code to adjust the Interest/Penalty off the current A/R depending on your accounting practices. An alternative is to enter a Charge for the same amount as the Interest, but keep in mind that this would affect Charge amounts for reporting.


  1. From Libraries on the Left Side Menu, select the Transaction Codes button.
  2. Select Add.



  1. Code: Enter INTADJ.
  2. Type: Choose Debit from the dropdown list
  3. Group: Use the Lookup icon to choose IC.
  4. Description: Interest
  5. Abbreviation: Interest
  6. Responsibility: Select All Insurances from the dropdown list.
  7. Report As: Choose Write-Off from the dropdown list.
  8. Selct Save [F2].



Setup an Interest Payment Transaction Code

  1. Select the Add button in the Transaction Code Library.



  1. Code: Enter INTPAY.
  2. Type: Choose Credit from the dropdown list.
  3. Group: Use the Lookup icon to choose IP.
  4. Description: Interest Payment
  5. Abbreviation: INTPAY
  6. Responsibility: Select All Insurances from the dropdown list.
  7. Report As: Choose Payment from the dropdown list.
  8. Select Save [F2].




This System is an Encounter-based accounting system, and you must have an Encounter to post a Payment against. If the Interest or Penalty is for a specific, existing Encounter; you may skip this step.


Create an Encounter to Post the Interest or Penalty

  1. Create a Generic Patient. For Example:
  • First Name: Interest
  • Last Name: Interest
  1. Create an Insurance Profile for the insurance charging or paying the Interest.



Add a New Charge to the Generic Patient

  1. Select the Post Charge link on the Patient Dashboard.



  1. Insurance: Choose the Insurance from the dropdown.
  2. Select the Facility and Provider.
  3. Use the Diagnosis Code, MISC.
  4. Enter a Date of Service: You can use the date of the ERA/EOB, Reference Batch, or the current date.
  5. Use the CPT, Interest or MISC.
  6. Fee: Enter 0.00.
  7. Validation Warning for $0.00 Charge: Yes
  8. Choose Proceed to Encounter from the dropdown.
  9. Select Save [F2].




Learn More

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