Payment Posting: Definition, Importance, and Role in Medical Billing | Trupp Global (2023)


What is Payment Posting in Medical Billing?

(Video) Payment Posting & Their Rules - Chapter 17

Why is Accurate Payment Posting Important in Revenue Cycle Management?

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Benefits of Payment Posting in Medical Billing

1. Solving Recurring Issues

2. Easier Analyzation of Revenue Cycle

3. Reduction of Denial Resolution Time

(Video) Manual Payment Posting

4. Strengthens Existing Process

5. Accurate Claim Submissions to the Secondary Payers



Payment posting in medical billing is considered one of the most common challenges faced by the majority of healthcare service providers. It is almost impossible to complete the process of reimbursement without the payment posting by these medical billing agencies. It is the reason that payment posting is considered the most integral part of revenue cycle management. The process of payment posting can affect many business processes of the healthcare facilities that can have a significant impact on efficiency, patient care, and overall financial growth.

What is Payment Posting in Medical Billing?

Payment Posting: Definition, Importance, and Role in Medical Billing | Trupp Global (1)

Also known as cash posting, payment posting allows in viewing the payments while providing the snapshot of the practices of the financial picture by making it easy in identifying problems and resolving them fast. After the adjudication of the payer’s claim, it will be either paid or can be denied, and a document called EOB (Explanation of Benefits) will be sent to the healthcare service provider and will be insured.

If the claim is being processed towards the payment from the payer or patient, then a check will be issued or an EFT (Electronic Fund Transfer) can be sent to the provider from the payer with the EOB. If the patient has signed the AOB (Assignment of Benefits) document, then the payment will finally reach the patient.

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The payment posting process when done precisely can examine the revenue cycle for major development opportunities so that it can increase the revenue while including the dissents and posting changes that recognize the main reason for the issues and solving all repeating problems. Since it is a crucial step for the whole medical billing process, healthcare professionals analyze its various advantages before opting to outsource this.

Types of Payment posting

Depending on the level of insurance coverage and the patient’s financial ability, payment posting in medical billing is done in two ways which are as follows:

1. Manual Posting:

Manual posting is the kind of payment posting which is completed by the administrative staff that usually takes a longer time to fill the information. This posting comes with an increased risk of various errors like typos that delays the payment posting.

2. Auto Posting:

Auto payment posting is categorized as more of a software-driven approach that most industries prefer as their digital solutions while speeding up the medical billing process for a consistent revenue stream. However, few solo medical practitioners feel that manual payment posting provides them less control over their revenue-generated system.

Why is Accurate Payment Posting Important in Revenue Cycle Management?

  • Payment posting is the most critical part of the medical billing process as it enables the healthcare service provider to monitor its incoming payments. When efficiently streamlined and properly organized payment posting helps in detecting all types of issues and resolving those issues quickly. It includes stuff like daily insurance payments from EOBs, ARAs, insurance checks, and patient payments.
  • Incorrect payment posting affects the precision of the claim submissions towards the secondary to tertiary payers. When the primary insurance payment is not posted perfectly, the chances are more than the secondary and the tertiary payers get the incorrect bill.
  • If payment posting is incorrectly done by the team, the balance of the paid account will still reflect in the system. The AR team works closely in the medical billing process and they will spend efforts and time on reimbursing the claims.
  • To identify non-payment issues, efficient payment posting in medical billing is important while seeking solutions which include stuff like claim rejections, failure to attend prior authorization, and claim denials.
  • The process of medical billing occurs in multiple steps, each is important for maintaining a constant revenue system. If at any of these steps, the problem has been recognized, then it can interrupt the critical process of incoming revenue while limiting the ability to treat patients and expanding patient care.
  • When a problem shows up in the process of payment posting, either the problem can be solved as a short-term process, or it can be marked as a red flag while identifying the possible patterns & recurring errors in the policies of medical billing. It can be used as a long-term improvement in your revenue stream.

Benefits of Payment Posting in Medical Billing

Payment posting is one of the most vital steps in the medical billing process and it is also a crucial component of the revenue cycle management. Below are the benefits of accurate payment posting in the process of medical billing.

1. Solving Recurring Issues

Problems can exist within the revenue cycle and they can be resolved with accurate payment posting. Payment posting in medical billing is not only limited to posting payments but also includes payment adjustments and denials. While resolving the reason for the payment denial by identifying its reason can help in preventing future claim denial.

2. Easier Analyzation of Revenue Cycle

Whenever a payment is posted on a patient’s account, an ideal occasion appears in analyzing the revenue cycle and opportunities for improvements. While doing effective analysis on payment posting, it helps in maximization of revenue cycle by improving the profitability and the functions of the account receivable departments.

3. Reduction of Denial Resolution Time

Preventing denial is considered the most effective method of resolving these. The formula which is used in this case is to closely monitor the instructions from the various taxpayers while keeping updated on the bulletins and different correspondence from the payers while providing certain information on the coding rules. Each time the denials remain unresolved contributes to the overall accounts of the receivable days.

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4. Strengthens Existing Process

The efficiency of the healthcare service providers creates a great impact on the revenue cycle of the organization. However, sometimes the management puts less emphasis on the revenue cycle from functioning at its maximum level. Once, the problem has been recognized, then the management should focus on the solutions in enhancing the effectiveness and the accuracy of the revenue cycle.

5. Accurate Claim Submissions to the Secondary Payers

Accurate payment posting creates a direct effect on the accuracy of the claim submissions towards the secondary and tertiary payers. However, if the primary payment is not posted correctly, then there is a high chance that the billing for the secondary and tertiary payers will be incorrect. Medical professionals should always find ways to improve the various areas of the revenue cycle while continuously monitoring the process which is not only limited to maximize the reimbursement but also stay in compliance with the proper billing guidelines.


When a payment posting is done correctly, the revenue cycle in the medical billing process thrives. With improved cash flow from collections, problems being spotted and solved quicker than ever leads the medical billing process to run smoothly. Issues in the billing process if addressed quickly, secondary and tertiary payers will be billed accurately and thus patients will receive the statements that increase the efficiency of the medical billing process.


What does it mean to post a payment? ›

Posting means that the debit – or credit – is applied to your account balance, and the transaction is completed. After a check or other debit arrives at your bank, it posts in the evening along with credits and any other transactions that occurred since the last posting.

What is the role of payment posting? ›

Payment posting refers to the viewing of the payments and the financial picture of medical practice. It also refers to the logging of payments into the medical billing software. It provides a view on insurance payments in EOBs, payments from patients, and insurance checks from ERAs.

Why is it important to post charges payments and adjustments in a timely manner? ›

They post payments promptly, so the Accounts Receivable team can work the outstanding claims, or the Patient Statement department can bill the patient for the balance due in a timely manner. This ensures that your practice is paid more quickly and more accurately.

What is cash posting in medical billing? ›

What is Payment Posting in Medical Billing? Also known as cash posting, payment posting allows in viewing the payments while providing the snapshot of the practices of the financial picture by making it easy in identifying problems and resolving them fast.

What does payment posting date mean? ›

What Is a Post Date? The post date is the day, month, and year when a card issuer posts a transaction and adds it to the cardholder's account balance. It is the date on which funds are taken or added to an account. Also called the settlement date, the post date can be on the same day as the transaction date.

What is the difference between posted and pending transactions? ›

Pending and posted transactions

A transaction begins its life as a pending transaction, then becomes posted once the funds have actually been transferred. It typically takes about one to five business days for a transaction to move from pending to posted, although it can take up to fourteen days in rare situations.

What is a payment posting specialist? ›

Responsible for posting payments, adjustments and denials to patient accounts. Notifies manager of any issues related to payment posting, adjustments or. High school or equivalent (Preferred).

What is EOB in payment posting? ›

Insurance Payment Posting: All payers either send an EOB (explanation of benefits) or ERA (electronic remittance advice) towards the payment of a claim. The medical billing staff posts these payments immediately into the respective patient accounts, against that particular claim to reconcile them.

What is payment posting in SAP? ›

The SAP System posts advance payments to the cost center the employee is assigned to in the period the advance is paid. This occurs regardless of future organisational changes, future time or pay data with different cost allocations, or future splits in the Cost Distribution infotype (0027).

What is charge entry and payment posting? ›


Our team gets Claims and Demographics entered in your billing system accurately and cash posted within 24 hours. The team analyzes the payment while posting for the partial and low payment and takes the necessary action to recover the due reimbursement for partial and low payments.

Why charge entry is important in medical billing? ›

Charge entry is one of the key areas in medical billing. In the medical billing charge entry process, created patient accounts are assigned with the appropriate $ value as per the coding and appropriate fee schedule. The charges entered will determine the reimbursements for physician's service.

When should Posting be done? ›

Posting should be performed in chronological order. That is, the company should post all the debits and credits of one journal entry before proceeding to the next journal entry.

What is cash posting process? ›

Cash posting is a process by which the payment gets received from customers, towards due payment and other accounts in the invoi. Page 1. Cash Posting. Cash posting is a process by which the payment gets received from customers, towards due payment and other accounts in the invoice system.

Who prepares EOB? ›

The insurance company sends a provider the EOB, also known as the Explanation of Benefits, Explanation of Payment (EOP), or Remittance Advice (RA), after a claim has been decided.

What is AR followup? ›

The accounts receivable follow-up team in a healthcare organization is responsible for looking after denied claims and reopening them to receive maximum reimbursement from the insurance companies.

What is the difference between posting date and transaction date? ›

The transaction date is the date when you make a purchase or a cash withdrawal. The posting date is when the transaction is received to your account.

Can a posted transaction be returned? ›

Once a transaction is posted it can only be reversed by refund or chargeback.

Why do payments get returned? ›

Payments may be returned because of insufficient funds in a consumer's account, closed accounts, or frozen accounts. Banks and other financial institutions charge their consumers returned payment fees.

What is a post transaction? ›

The "Post Transactions Process" refers to moving all transactions from all Journals (transaction registers) to the Chart of Accounts (General Ledger). “Posting” can also refer to moving one or more transactions into a Journal from a module.

Why is the same transaction pending and posted? ›

Credit Card transactions may temporarily show as a Pending and Posted Transaction at the same time. This has no effect on your Current Balance or Available Credit, and this does not mean that you will be charged twice. You will only be charged for the transaction once it is posted.

How long can payment be pending? ›

What is a pending transaction, and how long can it stay pending? A pending transaction is a recent card transaction that has not yet been fully processed by the merchant. If the merchant doesn't take the funds from your account, in most cases it will drop back into the account after 7 days.

What is difference between ERA and EOB? ›

Electronic remittance advice (ERA) is an electronic version of the explanation of benefits (EOB) for claims payments. Electronic funds transfer (EFT) transmits funds for claims payments directly from a health plan into your bank account.

What is RCM cycle in medical billing? ›

Revenue cycle management (RCM) is the financial process, utilizing medical billing software, that healthcare facilities use to track patient care episodes from registration and appointment scheduling to the final payment of a balance.

How do you post a customer payment? ›

Click the Post Payment button in the Accounts Receivable toolbar. The Accounts Receivable Payment Details window appears. Enter the amount in the Payment Amount field and click the ePayment button.

What is the difference between F 53 and F110? ›

What is the difference between F-53 and F110? Both F-53 and F110 are used for processing outgoing payments in SAP. The only difference is that F-53 is used to post manual payments against an open invoice whereas F110 is used for making automatic payments.

What is the use of F 47 in SAP? ›

The SAP TCode F-47 is used for the task : Down Payment Request. The TCode belongs to the FIBP package.

Who are involved in 3P system in medical billing? ›

The book is organized around three topics, what we call the three “p's” of health care: the providers of health care, the payers for health care and the producers of health care products. And we loosely tie all of that together as the health care value chain of India.

What is charge entry in RCM? ›

Charge entry is the process of assigning to the patient account an appropriate $ value as per the chosen medical codes and corresponding fee schedule. The reimbursements for the healthcare provider's services are dependent on the charges entered for the medical services performed.

What is medical billing interview questions? ›

Commonly asked medical billing interview questions
  • In which medical departments do you have billing experience? ...
  • What medical records software have you used in the past? ...
  • Can you describe the process of medical billing? ...
  • What are the common challenges you may face in medical billing?
4 May 2022

How do you do charge entry in medical billing? ›

At the most basic level, charge entry can be considered a fairly straightforward two-step process: First, the entrance of all billing and payment information pertaining to a patient's visit. Then, accurate assignment of charge entry transactions by medical code(s) related to the visit.

What is Demo entry in medical billing? ›

Demo Entry: Patient Details: Patient name and ID#, Gender, Marital Status, Email, Date of Birth, Social Security Number, Contact numbers work and home and Address work and home. Guarantor/Account Details: Guarantor Name, Date of Birth, Work and Home Phone and Address details.

What are the rules of posting? ›

A general rule of posting is that both credited and debited entries must be equal when an accountant posts them in the general ledger. The accountant simply has to enter the same amount from the first entry to the second entry.

What is the process of posting? ›

Posting is the process of transferring the entries from the book of original entry (journal) to the ledger. In other words, posting means grouping of all the transactions in respect to a particular account at one place for meaningful conclusion and for further accounting process.

What is the first step in the posting procedure? ›

Each amount in the Debit and Credit columns of a general journal is posted to the account written in the Account Title column (T/F). The posting reference is always recorded in the journal as the first step in the posting procedure (T/F).

What is negative balance in medical billing? ›

A negative balance indicates that your bill was overpaid and that you may be eligible for a refund.

Who uses CMS-1500 form? ›

The CMS-1500 form is the standard claim form used by a non-institutional provider or supplier to bill Medicare carriers and durable medical equipment regional carriers (DMERCs) when a provider qualifies for a waiver from the Administrative Simplification Compliance Act (ASCA) requirement for electronic submission of ...

Why is EOB important? ›

The most important thing for you to remember is an EOB is NOT a bill. It's letting you know which healthcare provider has filed a claim on your behalf, what it was for, whether it was approved, and for how much. You should always review your EOB to make sure it's correct. Here's a breakdown on how to read your EOB.

How is EOB calculated? ›

The formula can be calculated a couple different ways. The first is: allowed+adjustment = billed charges. The second more detailed method is: payment+adjustment+patient responsibility = billed charges. Even a third method can be used: payment + patient responsibility = allowed amount.

What are the types of denials? ›

There are two types of denials: hard and soft. Hard denials are just what their name implies: irreversible, and often result in lost or written-off revenue. Conversely, soft denials are temporary, with the potential to be reversed if the provider corrects the claim or provides additional information.

What is the role of AR analyst? ›

An Accounts Receivable Analyst provides accounts receivable support through monitoring all aspects of the collection of outstanding debts owed to a company.

What are AR claims? ›

Home Healthcare AR / Medical Claims Follow Ups. Account receivable (also known as A/R) is a term used to denote cash owed by organizations for practices and services rendered and billed. Any payments from payers, patients, and other guarantors are measured as A/R.

What is a post transaction? ›

The "Post Transactions Process" refers to moving all transactions from all Journals (transaction registers) to the Chart of Accounts (General Ledger). “Posting” can also refer to moving one or more transactions into a Journal from a module.

How long does it take for transactions to post? ›

Generally, a transaction will be pending for one to two days before it is posted to an account. Settlement with the settlement bank usually initiates the final posting. Communication on a refund or chargeback can vary from the standard transaction process which occurs with a basic transaction.

What does it mean if a check is posted? ›

Postdating a check is done by writing a check for a future date instead of the actual date the check was written. This is typically done with the intention that the check recipient will not cash or deposit the check until the future indicated date.

How long does it take for payment to go through? ›

Credit card transactions typically take 48 hours to settle. An authorization is issued immediately; however, it takes 48 hours for the money to be moved.

What are the post transaction elements? ›

Post-transaction components include line fallout or failures, defective finished goods, rejected product, system or field failure, repair or replacement costs, loss of customer goodwill, additional communication, and possibly training.

Can a posted transaction be reversed? ›

Transactions can be reversed by authorization reversal, by refund, or by chargeback. Meanwhile, merchants can only counteract a reversal through deflection or representment.

What is pre transaction? ›

A Pre-Sale Transaction is typically performed when a customer wants to purchase an item that is not currently available for sale in the store. Pre-sale transactions have the following requirements: The transaction must be associated with a customer. The transaction must be paid in full at setup.

Why do payments get returned? ›

Payments may be returned because of insufficient funds in a consumer's account, closed accounts, or frozen accounts. Banks and other financial institutions charge their consumers returned payment fees.

What chargeback means? ›

A chargeback – also called a “reversal” – is the return of credit card funds used to make a purchase to the buyer. A chargeback can occur if a consumer disputes a purchase made using their credit card, claiming that it was fraudulent or made without their knowledge or permission.

What is a pending transaction? ›

What is a pending transaction? A pending transaction is an approved purchase or Card pre-authorisation that has not yet posted to your Card Account balance. It may take up to four days for an approved purchase to be posted to your Card Account balance.

What's the difference between posted balance and available balance? ›

Your account balance is made up of all posted credit and debit transactions. It's the amount you have in the account before any pending charges are added. Your available balance is the amount you can use for purchases or withdrawals.

How do I issue a post dated check? ›

Generally, if you write a cheque, you will write the current date of the cheque i.e., 27th Jan. But when you write a date which is later than the current date, say you write a date of a cheque as 3rd Feb, this is when it becomes post-dated cheque.

What is ledger balance? ›

A ledger balance is the checking account balance at the beginning of a given day. Ledger balances are calculated at the end of each business day after all credits, withdrawals and interest from a given day's activity have been factored in. A ledger balance differs from an available balance.

What is a payment processing center? ›

What is a payment processing service? Businesses that provide payment options through credit or debit cards to their customers need a payment processing service provider who would help them in crediting the money into their bank accounts.

Why does it take 3 days to transfer money? ›

The receiving banks often take 2-4 days for funds to be released to customers because they are following what they call the “”three-day good funds model”, which basically means they'll hold the funds for three days to make sure it's not a fraudulent transaction.

Does Bill Pay send a physical check? ›

Bill pay services allow consumers to pay their bills via an app or a website. Instead of writing a check and sending it in the mail, you can simply use your computer or smartphone and make the payment online.


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