Parse an X12 835 electronic remittance advice (ERA) file and post payments automatically

Steps

1. Receive the 835 file from the payer clearinghouse via SFTP or direct API pickup; validate the ISA/GS envelope control numbers to detect duplicates before processing
2. Parse the BPR segment to extract total payment amount, payment method (check or EFT), and effective date; cross-reference with expected EFT deposits in your bank feed
3. Loop through CLP segments (claim payment information) to match each CLP01 patient control number back to the original claim in your billing system, then read CLP04 paid amount and CLP05 patient responsibility
4. Within each CLP loop, parse SVC segments for line-level adjudication: SVC01 procedure code, SVC02 billed amount, SVC03 paid amount; read accompanying CAS segments for claim adjustment reason codes (CARCs) explaining any reduction
5. Post payments line by line, write-off amounts flagged with CARCs as contractual adjustments, and route any remaining balance using MOA and RMR segments before reconciling the batch total against the BPR payment amount