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.
- From Libraries on the Left Side Menu, select the Transaction Codes button.
- Select Add.
- Code: Enter INTADJ.
- Type: Choose Debit from the dropdown list
- Group: Use the Lookup icon to choose IC.
- Description: Interest
- Abbreviation: Interest
- Responsibility: Select All Insurances from the dropdown list.
- Report As: Choose Write-Off from the dropdown list.
- Selct Save [F2].
Setup an Interest Payment Transaction Code
- Select the Add button in the Transaction Code Library.
- Code: Enter INTPAY.
- Type: Choose Credit from the dropdown list.
- Group: Use the Lookup icon to choose IP.
- Description: Interest Payment
- Abbreviation: INTPAY
- Responsibility: Select All Insurances from the dropdown list.
- Report As: Choose Payment from the dropdown list.
- 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
- Create a Generic Patient. For Example:
- First Name: Interest
- Last Name: Interest
- Create an Insurance Profile for the insurance charging or paying the Interest.
Add a New Charge to the Generic Patient
- Select the Post Charge link on the Patient Dashboard.
- Insurance: Choose the Insurance from the dropdown.
- Select the Facility and Provider.
- Use the Diagnosis Code, MISC.
- Enter a Date of Service: You can use the date of the ERA/EOB, Reference Batch, or the current date.
- Use the CPT, Interest or MISC.
- Fee: Enter 0.00.
- Validation Warning for $0.00 Charge: Yes
- Choose Proceed to Encounter from the dropdown.
- Select Save [F2].
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