What is an EDI 850?
The EDI 850 is an X12 transaction set for a Purchase Order that is used to place an order for good or services. The EDI 850 provides information such as:
- Purchase order number and date
- The items, prices, and quantities for the requested order
- Billing and shipping information and instructions
- Payment terms and discounts
- Carrier details
Benefits of implementing the EDI 850
Implementing the EDI 850 enables you to automate and streamline your supply chain. It eliminates the need to receive orders via fax or email and manually re-key the information into your various systems, thus reducing your business costs, resource needs, and human error.
EDI 850 Workflow
An EDI 850 is used to communicate the specific items a buyer wishes to order from a supplier. Upon receiving the purchase order, your trading partner will expect other EDI transactions from you in response to the purchase order.
Documents that are exchanged in response to the EDI 850 can include:
- 810 - Invoice: used to replace a paper invoice
- 855 - Purchase Order Acknowledgement: used to confirm you can meet the requirements in the purchase order
- 856 - Advance Ship Notice (ASN): used to describe the contents of each shipment and how items were packed
- 860 - Purchase Order Change Request (Buyer Initiated): used to request an update to the details on the original purchase order
- 997 - Functional Acknowledgement: used to confirm receipt of the 850
EDI 850 Example
ISA|00| |01| |ZZ|A1B2C3D4E5|ZZ|123456789012345|101010|0101|U|00400|000001010|0|P|>
N3|12345 West RD