Accredited ACH Professional (AAP) Practice Exam 2025 - Free AAP Practice Questions and Study Guide

The ANSI ASC X12.835 transaction set is specifically designed for reporting remittance advice. This transaction set serves as a notification from a payer to a payee, detailing payment information, including the amount paid, any discounts applied, and the reason for adjustments. It is primarily used in healthcare payment systems, enabling providers to reconcile payments received from insurance companies or other payers efficiently.

In the context of remittance advice, the 835 transaction set allows for the automation of payment processing and enhances the accuracy of accounting records by supplying detailed information regarding each item being paid. Since remittance advice is crucial for managing accounts receivable, the ANSI ASC X12.835 fulfills this purpose effectively.

The other transaction sets listed do not correspond to remittance advice. For instance, the ANSI ASC X12.520 and ANSI ASC X12.821 have different functions, primarily focusing on other aspects of electronic transactions in commerce, but they do not address payment remittance details. The ANSI ASC X12.820, while related to payment orders and associated remittance information, is not specifically the format used for remittance advice as the 835 is.