What is an EDI 940?
The EDI 940 is an X12 transaction set for a Warehouse Shipping Order that is used to instruct a warehouse to ship orders from the seller to the buyer. The EDI 940 provides information such as:
- Warehouse number and shipping order identification
- Ship To and Bill To information
- Pickup and delivery dates
- Item description and quantities
- Shipping information and PO number
Benefits of implementing the EDI 940
Implementing the EDI 940 will streamline transportation operations by providing the warehouse with the correct data in terms of SKUs, item description and quantity of the shipment. It eliminates the need to send 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 940 Workflow
An EDI 940 is used by the supplier to authorize a shipment of items from a warehouse to the buyer. It can also be used to confirm or modify a shipment, and cancel a previous transmitted shipping order. Generally it is generated by a Sales or Purchase Order.
Documents that are exchanged in response to the EDI 940 can include:
- 810 - Invoice: used to replace a paper invoice
- 850 - Purchase Order: used to communicate the specific items a buyer wishes to order
- 855 - Purchase Order Acknowledgment: used to confirm you can meet the requirements in the purchase order
- 860 - Purchase Order Change Request (Buyer Initiated): used to request an update to the details of the original purchase order
- 945 - Warehouse Shipping Advice: used to notify the trading partner of a shipment
- 997 - Functional Acknowledgment: used to confirm receipt of the 856
EDI 940 Example
ISA|00| |00| |12|12345678910 |01|987654321 |666666|4444|U|55555|000000000|1|P|-
N1|ST|SHIP TO NAME
N3|000 SHIP TO ADDRESS
N1|BT|BILL TO NAME
N3|00000 BILL TO ADDRESS