NextGen Knowledge Center

Set up Transaction Codes for Charge Discounts

When Charge Discounts are enabled in Practice Preferences, Discount Criteria section becomes available in the setup of Transaction Codes. You can set up specific adjustment transaction codes that are used for calculating charge discounts. You can create separate transaction codes to differentiate discount adjustments entered from the Charge Posting window and from other types of adjustments entered from the Payment Entry window.

To set up adjustment Transaction Codes for charge discounts, do the following:

  1. Open File Maintenance.
  2. Select System Master Files, and then PM.
  3. Select Transaction Codes.
    The Transaction Codes List window opens.
  4. Do one of the following:
    • To add a new transaction code, select the Open Menu icon and select New.
    • To modify an existing transaction code, select the transaction code from the list, select Open Menu and select Open.
    The Add Transaction Code Information window opens.

  5. Enter a descriptive name for the code in the Transaction Description field. This is a required field.
  6. Enter any additional information for the code in the Note field.
  7. Select Adjustment in the Type field. This is a required field.
  8. Select one of the following in the Source field. This is a required field.
    • Select Patient if the adjustment code is used for patient discounts.
    • Select Third Party if the adjustment code is used for payer discounts.
  9. In the Sign Type section, select Negative (-) to indicate the adjustment code reduces charge balances.
  10. To use the adjustment code as Positive (+) and reverse the transactions, select the Allow sign override check box.
  11. To make the adjustment code available for selection on the Discounts window, select the Discount check box
    When this check box is selected, you can view the following:
    • The Sign Type is automatically set to Negative (-) and cannot be modified.
    • The Allow sign override check box is automatically selected and cannot be modified.
    • The Discount Application field becomes available.
  12. To define the discount adjustment code for an encounter, do the following in the Discount Application section:
    • Select Contracted Payers if the adjustment code should be available for selection only when the payer on the encounter is flagged as a contracted payer.
    • Select Non-Contracted Payers if the adjustment code should be available for selection only when the payer on the encounter is not flagged as a contracted payer.
    • Select <None> if the adjustment code should be available for selection when the payer on the encounter is either contracted or non-contracted. The code will also be available for selection for patient balance discounts.
  13. Select Do Not Use in Payment Entry to use the adjustment code from the Charge Posting window, and not from the Payment Entry window.
  14. Select Exclude from in progress encounters when the adjustment code is not available for selection on encounters with In Progress status.
  15. Select OK.