How ABA ERA (835) Payment Posting Works: 8 Steps from Remittance to Balance

An 835 electronic remittance advice (ERA) tells you what the payer paid, adjusted and denied — line by line. TargetFlo's Billing → Payments posts it for you, and shows what it couldn't place.

1. The ERA arrives on its own

The clearinghouse notifies TargetFlo when a remittance is ready, and a daily check picks up anything a notification missed. Each remittance is stored once, so it can't post twice.

2. Match the claim

By the patient control number TargetFlo sent on the claim, then by the payer's claim number. Exactly one match → posted.

3. Match the lines

By the line control number sent with each line, otherwise by code and date of service when exactly one line fits.

4. Post amounts per line

Paid, allowed and patient responsibility go on each line; claim totals add up from the lines. Reversals are negative and net out.

5. Keep every adjustment

Each CAS adjustment is stored with its group code, CARC and RARC — the reason, not just the amount.

6. Set the claim status

Paid, partially paid, denied, or accepted-awaiting-readjudication — calculated from running totals.

7. Create denial work items

Any adjustment that isn't CO-45 or patient responsibility becomes a denial work item, grouped by claim and reason code.

8. Work the Unmatched queue

No match, several matches, or a claim already paid by hand → Unmatched. A person picks the claim; TargetFlo never guesses.

Manual payments (paper checks, payers without ERA) post through exactly the same rules.

Related: ABA clearinghouse checklist · ABA revenue dashboard metrics · Billing & Claims