Have you ever sent a document, whether by email, physical mail, or fax, and then wondered, “Did it arrive safe and sound?” When you're working with Electronic Data Interchange (EDI), there’s less reason to worry — thanks to the EDI 824 (Application Advice).
If you use EDI, think of the EDI 824 as your business’s version of a confirmation message. It tells you whether your EDI transaction was accepted, rejected, or needs adjustments. Instead of leaving you in the dark, it delivers clear feedback that saves time and helps prevent mistakes.
In this guide, we’ll explain what the EDI 824 is, its components and use cases, and why it matters in your EDI workflow.
What’s the EDI 824? Definition and Overview
The EDI 824 is an optional X12 transaction set that lets the recipient of an EDI document confirm receipt and notify the sender whether everything checks out or needs fixing.
It supports efficient EDI implementation by confirming whether a document was accepted, rejected, or requires adjustments due to errors. If there’s an invalid purchase order number, a missing control number, or a formatting issue, the EDI 824 document identifies it so the sender can correct it and resubmit.
That said, the EDI 824 isn’t a replacement for other response-based documents like the EDI 855 (Purchase Order Acknowledgement), which is used specifically in response to an EDI 850 (Purchase Order). Instead, the EDI 824 provides a predictable feedback mechanism that helps catch document inconsistencies early and prevents unnecessary delays between trading partners.
In industries like dropshipping — where smooth transactions and real-time updates keep orders moving and customers satisfied — the EDI 824 helps spot order and invoice issues early. That means a more efficient supply chain and less hassle when managing high-volume transactions.
The EDI 824: Specification, Format, and Elements
The EDI 824 is part of the X12 EDI standard, the backbone of Electronic Data Interchange between trading partners. It follows a standardized format made up of data elements and segments, each designed to explain the status of the original document and highlight any actions the sender may need to take.
To help better understand its structure, below is a simplified example of an EDI 824 transaction. It showcases key segments and how they work together to communicate acceptance or rejection in an EDI document.
Sample EDI 824 Document
ISA*00* *00* *ZZ*COMPANY1 *ZZ*COMPANY2 *250408*0800*U*00401*000000001*0*P*:~ GS*HP*COMPANY1*COMPANY2*20220715*0800*1*X*004010~ ST*824*0001~ BGN*00*1234567890*20250409*0800~ OTI*850*12345*20250714~ TED*1*Invalid Vendor Number~ NTE*AD*Please verify the vendor number and resubmit~ SE*9*0001~ GE*1*1~ IEA*1*000000001~
EDI 824 Data Elements and Segments
ISA (Interchange Control Header) and GS (Functional Group Header)
The ISA (Interchange Control Header) and GS (Functional Group Header) identify the sender and receiver of the document, along with details like the date and time and control numbers to track the transmission from start to finish.
ST (Transaction Set Header) and BGN (Beginning Segment)
These segments clarify the purpose of the message. The ST (Transaction Set Header) kicks off the EDI 824 transaction, while the BGN (Beginning Segment) adds a reference number and timestamp.
OTI (Original Transaction Identification)
The OTI (Original Transaction Identification) segment links the EDI 824 document back to the original file — whether an EDI 850 (Purchase Order), EDI 810 (Invoice), or another document. This helps both parties know which transaction the feedback corresponds to.
TED (Technical Error Description)
If there’s an issue with the original document, the TED (Technical Error Description) segment spells it out. It highlights errors like missing information, incorrect pricing, or invalid reference numbers, so the sender knows what needs fixing.
NTE (Note/Special Instructions)
Not all errors fit neatly into a predefined format. That’s why the NTE (Note/Special Instructions) segment allows businesses to add more context — like explaining that a missing field is required for compliance or suggesting an alternative format.
SE (Transaction Set Trailer)
The SE (Transaction Set Trailer) segment confirms that the document includes all necessary details and properly finalizes the EDI 824 transaction.
GE (Functional Group Trailer) and IEA (Interchange Control Trailer)
The GE (Functional Group Trailer) and IEA (Interchange Control Trailer) act as a final verification step so the document is processed correctly and ready for system integration.
What’s the Difference Between the EDI 997 and the EDI 824?
It’s easy to mix up the EDI 997 and EDI 824, as both are responses to EDI transactions — but they serve different purposes:
EDI 997 (Functional Acknowledgment)
Think of the EDI 997 like a "Got it!" notification. It confirms that the recipient’s system received and successfully translated the document. However, it doesn’t validate the content — it simply acknowledges that the transmission went through. For example, it might say, “Your document was received and processed.” The system usually sends an EDI 997 after transactions, such as purchase orders, to confirm that the file made it to its destination.
EDI 824 (Application Advice)
The EDI 824 goes a step further. It tells you whether the document was accepted or rejected — and if rejected, why. It includes specific error codes and explanations to pinpoint issues like incorrect formatting or missing data. In other words, if something goes wrong, this is where you’ll find out. For example, the EDI 824 might say, “Your purchase order was rejected due to an invalid vendor number.”
An EDI system might send both transactions after receiving a new document, but while the EDI 997 only confirms receipt, the EDI 824 helps you dig deeper into potential challenges. If you're dealing with a disputed document, the EDI 824 is your go-to — it gives you clear, actionable feedback to resolve issues quickly and get things back on track.
3 Benefits of the EDI 824
Document errors cause all sorts of problems, but fortunately, the EDI 824 provides a structured way to communicate and correct issues before they impact operations. And that’s just one of the advantages the EDI 824 offers. Here are three more ways it supports financial and supply chain processes:
Timely and Accurate Detection of Document Inconsistencies
When you catch errors early, you prevent bigger problems down the line. The EDI 824 acts like a safety net, helping you quickly spot document inconsistencies. This timely feedback is especially useful in financial EDI, where accuracy is critical to avoid payment disputes and billing errors. By verifying invoices and transaction details up front, companies can avoid costly corrections later.
Decreased Administrative Times
Nobody wants to waste hours digging through documents for errors by hand. The EDI 824 automates the error-reporting process, significantly cutting down on manual reviews. This is especially helpful in EDI billing, where accuracy and efficiency are key to a steady cash flow. Instead of spending time fixing invoice mistakes, your team can focus on more important tasks — like growing the business.
Improved Order Processing
Order processing should be smooth, not a constant back-and-forth over document errors. The EDI 824 helps businesses quickly confirm whether an order document is good to go or needs corrections. In procure-to-pay operations, that means faster approvals, fewer supply chain disruptions, and payments that go through without unnecessary delays.
Common Issues Reported by an EDI 824 Document
The EDI 824 identifies and communicates errors in EDI transactions, providing feedback on whether a document was accepted or rejected and why. Here's an overview of some of the most common issues the EDI 824 flags and the typical reasons behind them:
Non-Numeric Value in the PO
If a purchase order contains a value that should be numeric but isn't, the EDI 824 catches it. This error usually occurs when someone mistakenly enters a letter or symbol in a numeric field. The system flags this immediately, preventing the transaction from moving forward.
Invalid Vendor Number
Every vendor number must be valid and match the one in the system. If a vendor number doesn’t match the recipient’s records, the EDI 824 reports the rejection. This helps ensure the transaction reaches the correct trading partner.
Blank or Invalid Invoice Number
An invoice number is a key identifier for any transaction. If it's missing or incorrect, the EDI 824 responds with an error. A missing or invalid number prevents the system from linking the transaction properly, which can delay processing.
Invalid Invoice Date
A wrong invoice date can disrupt accounting or order-processing workflows, especially for time-sensitive transactions. If the date doesn’t match what’s expected, the EDI 824 flags it to keep invoicing and payments on track.
Invoice Total Not Equaling the Detail Total
The EDI 824 alerts you when an invoice total doesn’t match the sum of the detailed line items. This type of error usually points to a calculation or data entry mistake, and catching it early helps avoid larger issues.
Invalid Currency Types
Global transactions require accurate currency codes. If the EDI 824 detects an invalid code, it signals an error. This makes sure your transaction aligns with the agreed-upon currency type and avoids confusion or delays in international payments.
Invalid Warehouse Number
If a warehouse number doesn’t exist in the system, the EDI 824 reports the issue. Without a valid warehouse number, the transaction can’t proceed. The system uses this data to match inventory and shipping details, so any mistakes cause the process to stop immediately.
Invalid Due Date
An incorrect due date can lead to delays or missed deadlines. The EDI 824 pinpoints this issue, allowing you to correct it before it disrupts workflows.
Talk to an EDI Expert
Don’t let the complexities of EDI hold you back. If you're ready to streamline your logistics operations and make the most of Electronic Data Interchange, talking to an expert is the first step.
Whether you're struggling with document errors or just looking to improve your workflow, a knowledgeable EDI professional can guide you through best practices, help you choose an EDI platform that fits your business needs, and show you how to automate processes for smoother communication across your trading partners.
Connect with an EDI expert today to see how cloud-based EDI can help you improve efficiency and transform your logistics operations.
Need help understanding specific EDI documents? Explore LearnEDI’s library of EDI transaction set guides, including the EDI 811 (Consolidated Service Invoice/Statement), EDI 812 (Credit/Debit Adjustment), EDI 816 (Organizational Relationships), EDI 820 (Payment Order/Remittance Advice), EDI 823 (Lockbox), and EDI 835 (Healthcare Claim Payment/Advice). Each guide breaks down what the document is for, how it works, and how to use it effectively in your EDI workflows.