Let's say you’re a supplier preparing a batch of products for a retailer, but before you ship, you hit a snag: Some items are out of stock. You could call or email the buyer to let them know, but that takes time and can lead to confusion or delays. You need a faster, more reliable way to keep everyone in the loop.
This is where the EDI 870 comes in. It’s an Electronic Document Interchange (EDI) document that allows you to send a detailed, real-time status report on the purchase order, notifying the buyer of any changes. It promotes clear communication between sellers and buyers and helps the supply chain.
In this guide, we'll tell you everything you need to know about the EDI 870.
What Is
The EDI 870 is a document sellers use to update buyers on the status of a pending order. It provides details about specific products, individual line items, or the entire order, depending on the trading partners' needs. It helps maintain transparency so that both parties are aligned regarding the order’s progress throughout the entire process.
For example, if delays, product substitutions, or changes to the shipment schedule occur, the EDI 870 is a reliable way to communicate those updates in real time. It's especially useful in industries like retail and logistics, where timely updates are necessary to ensure inventory and supply chain operations on track.
How Is the EDI 870 Document Used?
Sellers usually send EDI 870 documents after receiving an EDI 869 from a buyer to answer specific questions or inquiries regarding the order's status. They sometimes also send it as a regularly scheduled product status report — whether weekly, monthly, or quarterly — to update the buyer without being in constant communication.
Here's a more detailed look at how the EDI 870 works and the key steps involved in submitting it.
Transmit the EDI 870
Once the seller collects all relevant order details and status updates, the information is converted into the EDI 870 format. The document then moves from the seller's system to the buyer’s system, typically through API-based EDI, value-added networks (VANs), or direct EDI (a point-to-point connection between systems). Encryption protocols, such as Secure File Transfer Protocol (SFTP) and Applicability Statement 2 (AS2), safeguard the document during transmission.
Acknowledge Receipt
After receiving the EDI 870, the buyer's system generates an EDI 997 (Functional Acknowledgement) to confirm the document was successfully received and passed validation checks. This indicates that the document was free of errors in structure or syntax. If there are any issues, the buyer notifies the seller to correct them.
Respond to the EDI 870
Based on the status updates in the EDI 870, the buyer may respond with additional EDI documents, such as an EDI 855 (Purchase Order Acknowledgement), EDI 810 (Invoice), or EDI 856 (Advanced Shipping Notice). These follow-up documents help keep both parties aligned on the order’s progress.
EDI 870 Specifications and Components
The EDI 870 uses the ANSIX12 format to communicate order status between trading partners. Its structure incorporates segments and elements that guarantee compatibility across systems. Here are some key technical aspects and components of the EDI 870:
Required segments
To facilitate communication between systems, the EDI 870 document includes essential segments that serve specific functions. These segments ensure the data is processed and accurately translated by both the sender and recipient systems.
Compliance considerations
EDI 870 follows the specific standards of each trading partner, whether that’s EDIFACT or ANSIX12. All segments in the document must align with the agreed implementation guidelines to maintain consistency and compliance.
Key Elements of EDI 870
Vendor Information
This segment provides details about the manufacturer or supplier sending the order status update. It includes the vendor's ID, name, and contact information so that the right seller processes the document.
Order Number
Serving as a unique identifier, the order number links the specific purchase order to its status update. This segment includes the PO number, references to related documents, and a sales order number, making it easy to trace the update back to the original transaction.
Product Details
This segment provides comprehensive information about the products in the order, including SKUs, descriptions, and quantities. The accuracy of this data helps both parties align on the transaction, minimizing errors and improving communication.
EDI 870 Example
Here’s a typical ANSI X12 EDI 870 example that businesses use to modify existing purchase orders, along with a breakdown of its segments:
ISA*00* *00* *ZZ*SENDERID *ZZ*RECEIVERID *210315*1234*U*00401*000000001*0*P*>
GS*OST*SENDERID*RECEIVERID*20210315*1234*1*X*004010
ST*870*0001
BEG*00*NE*123456789**20210315
REF*IA*987654
DTM*002*20210320
N1*ST*BUYER NAME*92*12345
N3*123 BUYER STREET
N4*BUYER CITY*CA*90001
N1*BT*SELLER NAME*92*67890
N3*456 SELLER STREET
N4*SELLER CITY*NY*10001
PO1*1*100*EA*10.00**VP*123456*UP*0123456789012
CTT*1
SE*12*0001
GE*1*1
IEA*1*000000001
ISA (interchange control header): This contains metadata such as sender and receiver IDs as well as the date and time of transmission.
GS (functional group header): This groups related transaction sets (in this case, order status reports, and includes sender and receiver details.
ST (transaction set header): This marks the beginning of the EDI 870 transaction.
BEG (beginning segment for purchase order change request): This contains the purchase order type and number.
REF (reference Identification): This could be a reference for a contract number or another relevant internal tracking number.
DTM (date/time reference): This specifies important dates, such as when the buyer requested the change.
N1, N3, N4 (name, address, and city information): These provide details about the buyer and seller, including names and addresses.
PO1 (purchase order line item): This contains details about the product, such as quantity, unit of measure, unit price, and product codes.
CTT (transaction totals): This provides the total number of line items in the order.
SE (transaction set trailer): This marks the end of the transaction set.
GE (functional group trailer): This marks the end of the group of the functional group.
IEA (interchange control trailer): This denotes the end of the interchange.
3 Benefits of EDI 870
The EDI 870 provides trading partners with several advantages, but here are three of the most significant:
Enhanced Visibility
EDI provides real-time visibility into the order status, allowing businesses to access accurate and up-to-date workflow data. This transparency enables informed decision-making and improves overall supply chain operations by giving businesses a clearer view of their transactions from start to finish.
Better Communication
With EDI, communication between trading partners is faster and more reliable, regardless of location. By eliminating delays and confusion typical of traditional systems, EDI enhances collaboration and helps build stronger relationships with partners, fostering trust and reducing the chance of misunderstandings.
Improved Efficiency
EDI automates the order status reporting process, eliminating the need for manual intervention. This results in quicker, more efficient transaction processing and helps businesses reduce errors, cut costs, and save time.
Streamline Your Supply Chains with EDI
EDI 870 submissions might seem complex, but when you team up with the right EDI platform, they don’t have to be.
Automating and validating your data against partner agreements boosts accuracy and simplifies the process. Real-time tracking and automatic mapping of order status reports minimize mistakes and help build stronger ties with your trading partners. Connect with an EDI expert today to learn more about how a cloud-based EDI solution can transform your approach to order status reports.