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

    • Related Articles

    • Post the Interest or Penalty

      Post the Interest or Penalty Post Interest or Penalty Post your Interest Payment or Penalty to the newly created Encounter, and use this same Encounter for future Interest/Penalty Payment from this Insurance. Create a Receipt for the Interest or ...

    • Future Takeback Notifications or Interest on the Remit

      Future Takeback Notification or Interest on the Remit Provider Level Adjustment for a Future Takeback The Insurance can signify that a Takeback will happen in the future. The actual Takeback will be done on another future remit. On the ERA File ...

    • Statement/Invoice Profiles Setup

      Statement/Invoice Profiles must be set up before Statements or Invoices can be batched. If the Statement Profile is selected as the Default, it will be attached to new Patients automatically. Other Statement/Invoice Profiles can be created to be used ...

    • Auto-Apply Interest on ERAs

      Release v4.8 Interest can be Auto-Applied on ERAs. The Transaction Codes for Interest are: IIP: Insurance Interest Payment Credit IID: Insurance Interest Payment Debit Encounter Level If the Interest is reported on the Encounter level, it will post ...

    • ERA Posting Overview

      ERA Access on the Payment Dashboard All Loaded ERAs are viewable from the Payment Dashboard in the Electronic Remittance Advice - Loaded panel. From this screen, you can navigate to the ERA File Dashboard or the ERA Remit Items screen by selecting ...