Setting up of Payer-Level Default Bad Debt Transaction Codes

File Maintenance Help for NextGen® Enterprise 8

Bad Debt Transaction Codes and the ERA Process

The ERA process can use the default bad debt transaction codes from the Payers master file for auto-posted transactions for bad debt encounters. If the Remittance Profile posting rules allow posting to bad debt encounters, the ERA process uses these default codes to generate the payment. Note: If a reason code associated with a transaction has a specific transaction code set in the Reason Codes library, then the bad debt transaction ignores the transaction associated with the reason code. To allow the ERA process to use the default transaction codes, perform the following steps: Open the Remittance Profiles library. Under Posting Rules, make sure the Do not post to encounters in Bad Debt option is not selected. Parent topic: Setting Up of Bad Debt Transaction Codes

File Maintenance Help for NextGen® Enterprise 8

Setting Up of Bad Debt Transaction Codes

Transaction codes are set up in the Transaction Codes master file as Bad Debt transaction codes only. When payments and adjustments are posted against encounters that are in Bad Debt status, the Bad Debt transaction codes are the only ones that are available to use. To set up bad debt transaction codes: In File Maintenance > Master Files > System select Transaction Codes. Do one of the following: Double-click the applicable transaction code. Select the Open Menu button, then select New. The Add/Modify Transaction Code Information window displays. In the Type field, select Payment. In the Source field, select Patient. Select the Bad Debt Only check box. Select the Allow sign over ride check box. Select OK. To prevent out-of-balance conditions from occurring between the accounts receivable and the general ledger with regard to bad debt, open the Transactions Practice Preferences, and then select the Show bad debt charges (Account Level) check box. Users will not be able to use unapplied

Help Guide for NextGen® Enterprise PM 8

Set Up Default Payment/Adjustment Transaction Codes

Access File Maintenance. Select System Master Files > PM > Payers. The Payers List window opens. From the list, select and open the desired payer. The Modify Payer Information window opens. Select the Practice tab, and then select the Transactions sub-tab. Use the following table to select Transactions parameters for the payer. To save changes and close the window, select OK. Field Description Default Payment Select a third-party payment transaction code for the payer. The code defaults to the Pay Code field on the Payment Entry screen for manually entered payments and for ERA payments received from the payer. This field is required. Default Adjustment Select a third-party adjustment transaction code for the payer. The code defaults to the Adj Code field on the Payment Entry screen for manually entered adjustments and for ERA adjustments received from the payer. This field is required. Default Payment for Bad Debt Select a third-party bad debt payment transaction code for the payer. Th

File Maintenance Help for NextGen® Enterprise 8

Set Up Default Payment/Adjustment Transaction Codes

Access File Maintenance. Select System Master Files > PM > Payers. The Payers List window opens. From the list, select and open the desired payer. The Modify Payer Information window opens. Select the Practice tab, and then select the Transactions sub-tab. Use the following table to select Transactions parameters for the payer. To save changes and close the window, select OK. Field Description Default Payment Select a third-party payment transaction code for the payer. The code defaults to the Pay Code field on the Payment Entry screen for manually entered payments and for ERA payments received from the payer. This field is required. Default Adjustment Select a third-party adjustment transaction code for the payer. The code defaults to the Adj Code field on the Payment Entry screen for manually entered adjustments and for ERA adjustments received from the payer. This field is required. Default Payment for Bad Debt Select a third-party bad debt payment transaction code for the payer. Th

Help Guide for NextGen® Enterprise PM 8

Settings - default transaction codes for the alternate payer

Field Description Default Payment Select a third-party payment transaction code for the alternate payer. The code defaults to the Pay Code field on the Payment Entry screen for manually entered payments and for ERA payments received from the alternate payer. If a transaction code is not selected, then the Default Payment code from the Practice > Transactions is used for payments from the alternate payer. Default Adjustment Select a third-party adjustment transaction code for the alternate payer. The code defaults to the Adj Code field on the Payment Entry screen for manually entered adjustments and for ERA adjustments received from the alternate payer. If a transaction code is not selected, then the Default Adjustment code from the Practice > Transactions is used for adjustments from the alternate payer. Default Payment for Bad Debt Select a third-party bad debt payment transaction code for the alternate payer. The code defaults to the Pay Code field on the Payment Entry screen for man

Help Guide for NextGen® Enterprise PM 8

Set Up Default Transaction Codes for an Alternate Payer

When you are using the alternate payer functionality, you might find that the main payer on the Payer master file, and the alternate payer on the Payers-Alt Payer master file has different Default Transaction Codes. In File Maintenance, select Master Files > System > PM > Payers-Alt Payers. The Payers-Alt Payers List window opens. From the Payers-Alt Payers List window, select and open the applicable alternate payer. The Modify Alt- Payer Information - Demo Payer window opens. Select the Alt Payer Transaction Option tab. The fields under the Alt Payer Transaction Option tab appear. Select default transaction codes for the alternate payer. For more information, see Settings - default transaction codes for the alternate payer To save the changes and close the window, select OK. Note: For more information on the Payers-Alt Payers master file go to NextGen Healthcare Success Community and download the latest Claims User Guide for NextGen® Enterprise PM. Settings - default transaction codes

Setting up of Payer-Level Default Bad Debt Transaction Codes

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