What is an EDI 820?
The EDI 820 is the X12 transaction set that informs the trading partner the customer has remitted payment in response to an 810 Invoice. This transaction set can be used by wholesalers, retailers, and merchants to communicate detailed information about a payment. This transaction set is different from most others, as it can be transmitted among four parties, instead of the usual two: the payer, the payer’s bank, the payee, and the payee’s bank.
The EDI 820 may contain some of the following elements:
- Purchase order, invoice, or transaction numbers
- Payment action code
- Monetary amount
- Payer and Payee information
- Banking and account information
Benefits of Implementing the EDI 820
Implementing an EDI 820 creates an easier way of tracking accounts that need to be settled by buyers. Additionally, the electronic funds transfer account information is encrypted to ensure security. It also allows trading partners to reconcile invoices with ease and informs all parties of any changes to made to the payment.
EDI 820 Workflow
The EDI 820 is transmitted in response to an EDI 810 Invoice or an EDI 880 Grocery Invoice in order to advise the payee of remittance. Once an 820 is received, a 997 (Functional Acknowledgment) is transmitted back to the sender of the message.
EDI 820 Example
ISA*00* *00* *08*123456789 *ZZ*123456789 *200217*0242*^*00501*100000141*0*P*>~