In warehouses, inventory is always on the move. To keep operations running smoothly, stock records must be accurate and updated as quickly as possible. One way businesses manage this is through Electronic Data Interchange (EDI), which replaces paper-based tracking with automated, digitized transactions.
In warehouse operations, specifically, the EDI 944 (Warehouse Stock Transfer Receipt Advice) document confirms when inventory is received at a warehouse, giving businesses real-time visibility into their stock levels.
In this guide, we’ll explain what the 944 is in EDI, its key components, and how it helps warehouses stay organized and efficient.
What Is EDI 944? Definition and How It Differs from EDI 943
The EDI 944 (Warehouse Stock Transfer Receipt Advice) is an electronic document used to confirm that a warehouse or 3PL (third-party logistics provider) has received a shipment. Once a warehouse receives a shipment, it sends an EDI 944 to the supplier to confirm key details — how many items arrived, which carrier delivered them, who manufactured them, and whether anything was missing or extra. This back-and-forth helps both sides keep their inventory records accurate and stay on top of stock levels.
EDI 943 and 944
The EDI 943 (Warehouse Stock Transfer Shipment Advice) is a document sent before a shipment arrives. A manufacturer sends an EDI 943 to a warehouse or 3PL to notify them that goods are in transit. This allows the receiving location to prepare for incoming inventory ahead of time.
Once the warehouse receives the shipment and verifies its contents, it sends back an EDI 944 to confirm what was received. This exchange guarantees that both parties have correct records of what was shipped and what was delivered.
The EDI 944 Specification, Format, and Elements
The EDI 944 is designed to help warehouses, suppliers, and logistics providers exchange shipment details accurately and instantly. To keep everything organized, it follows a standardized format based on ANSI X12, a widely used EDI framework for structuring electronic data.
Below, we’ll break down how this document is structured and what each segment represents:
Technical Structure and Format of the EDI 944
Like all EDI documents, the EDI 944 follows a hierarchy that packages information in a logical, standardized way. Here are the three main levels of its structure:
Envelope structure: Think of this as the document’s address label. It identifies who's sending and receiving the file and what type of document it is. This section contains transaction headers and trailers, which direct the message to the right destination.
Segments and data elements: Each segment within the document holds specific information about the shipment, including inventory updates, carrier details, and product quantities. These segments ensure that all data is recorded in a consistent format to guarantee that any EDI system can interpret it.
Loops: Some parts of the EDI document need to repeat when handling multiple items or shipments within the same transaction. These loops group related data together, making it easier to track complex shipments, especially those that contain multiple products.
Sample EDI 944 Document
Here’s an example of the EDI 944 document showing how its various components, including its segments and elements, appear in code:
ISA*00* *00* *ZZ*SENDERID *ZZ*RECEIVERID *240225*1705*U*00401*000000001*0*T*>
GS*RE*SENDERID*RECEIVERID*20240225*1705*1*X*004010
ST*944*0001
W17*123456*RCV*20240225**12345.67*USD
N1*WH*Warehouse Name*92*WAREHOUSE123
N3*123 Distribution Road
N4*Los Angeles*CA*90001*US
N1*SU*Supplier Name*92*SUPPLIER456
N3*789 Supplier Lane
N4*New York*NY*10001*US
W07*1*EA*ITEM12345*VN*12345*UP*012345678901
W20*200*EA
W14*1*EA
SE*10*0001
GE*1*1
IEA*1*000000001
To get a clear picture of how the EDI 944 functions, it's helpful to break it down into its key sections, including trading partner information, shipment and inventory details, and data segments:
Trading Partner Information
Each EDI 944 document includes details about the businesses involved in the shipment to confirm who is responsible for sending, transporting, and receiving the goods:
Supplier information: This section identifies the supplier to confirm that the document is correctly associated with the intended trading partner.
Warehouse location: This specifies the name, address, and unique identifiers of the facility receiving the shipment.
Shipper information: This section identifies the transportation provider responsible for delivering the goods to the warehouse.
Shipment and Inventory Details
Once the shipment arrives, the EDI 944 provides a detailed breakdown of what was received. This section ensures that inventory records are updated accurately and helps resolve any discrepancies between what was expected and what actually arrived.
Shipment information: This section includes essential details about the shipment, such as the shipment date, cargo identification number, and carrier details.
Item information: This lists the individual items that were received, specifying quantities, product identification codes, and units of measurement.
Total shipment information: This section provides a summary of the total quantity of goods received, confirming that stock levels are recorded correctly in the system.
Data Elements
Every EDI 944 document is made up of specific data segments, each serving a distinct function to structure shipment, inventory, and transportation details in a standardized format:
W06 (Warehouse Shipment Identification): This segment links the shipment details to the warehouse receipt, ensuring that inventory reconciliation is accurate.
N1 (Name): This identifies the key trading partners involved in the transaction, such as warehouses, suppliers, and carriers, ensuring that all parties are correctly documented.
N9 (Reference): This section connects related transactions, such as purchase orders or invoices, to create a clear record of the shipment process and improve traceability.
G62 (Date/Time): This denotes critical shipment and receipt dates in YYYYMMDD format, providing precise tracking and documentation of inventory movements.
W27 (Carrier Details): This segment captures transportation-related information, including the type of carrier, the carrier’s name, and tracking details, allowing for better shipment monitoring.
W04 (Item Detail): This provides a detailed breakdown of the items received, including product codes, quantities, and pricing, ensuring accuracy in inventory records.
W14 (Total Shipment Information): This section summarizes the total quantity of goods received and specifies the units of measurement used in the transaction, preventing stock discrepancies.
6 Benefits of the EDI 944
We’ve already mentioned that the EDI 944 allows warehouses to manage their inventory and improve supply chain efficiency. Now, here’s a more detailed look at six key benefits of using this document:
1. Fewer Mistakes in Inventory Records
When warehouses enter shipment details manually, there’s always a chance for mistakes, whether wrong quantities, missing items, or incorrect stock updates. The EDI 944 automates receipt confirmations, reducing errors and confirming that inventory records match what was actually delivered.
2. Clearer Tracking of Shipments
Thanks to the EDI 944, businesses don’t have to guess where a shipment is or whether it arrived as expected. The document gives real-time updates on inventory levels to help warehouses plan ahead for storage, processing, and distribution.
3. Streamlined Warehouse Processes
Instead of handling paperwork and manually logging shipments, warehouses using the EDI 944 can process inventory updates significantly quicker. Because EDI integrates with warehouse management systems (WMS), stock transfers and updates happen faster and with less effort.
4. Standardized Data for Better Communication
Because the EDI 944 follows the ANSI X12 standard, all businesses using it follow the same structure. This makes communication between warehouses, suppliers, and carriers more consistent and reliable, reducing confusion and delays.
5. Better Control over Inventory
Thanks to the EDI 944, stock levels across multiple warehouses are updated automatically, giving businesses a clear picture of what’s available and where. This helps avoid running out of important items or having to store too much of what isn’t needed.
6. Lower Operating Costs
The EDI 944 automates data entry and record-keeping, so warehouses spend less time and money on manual tasks. Eliminating paperwork, reducing labor costs, and improving processing times lead to a more efficient supply chain.
4 Common EDI 944 Issues
The EDI 944 allows warehouses to manage inventory efficiently, but some businesses run into issues with system compatibility, inaccurate stock records, security risks, and onboarding delays. Here are four common challenges and ways to solve them.
1. Difficulty Integrating with WMS and ERP Systems
The EDI 944 doesn’t always work smoothly with existing WMS and enterprise resource planning (ERP) software. If systems aren’t compatible, data transfer errors can occur, causing delays. Choosing an EDI provider with flexible integration options or APIs that support multiple platforms helps prevent major issues, as does testing system compatibility before full implementation.
2. Incorrect Stock Quantities
Sometimes, the stock counts reported in an EDI 944 don’t match the actual inventory received, leading to confusion and supply chain problems. To reduce these errors, businesses can use automated validation rules to compare received stock with shipping manifests and purchase orders. Routine inventory audits also help catch discrepancies before they cause bigger issues.
3. Data Security Risks
Since the EDI 944 contains sensitive inventory and business data, it's an easy target for security threats. Because of this, it’s important to always use secure EDI transmission methods like SFTP (Secure File Transfer Protocol) or AS2 (Applicability Statement 2). Also, performing regular security audits will help keep you compliant with industry standards and prevent data breaches.
4. Slow Onboarding of New Trading Partners
Getting new trading partners set up on an EDI system can take time, especially if their formats or protocols differ from yours. One way to speed up the process is to work with an EDI provider that supports multiple standards, making integration easier. Providing clear onboarding guides for new partners will also help reduce errors and create a smoother transition.
Optimize Your Warehouse Operations with EDI
The EDI 944 has transformed how warehouses track shipments, but it's just one of many transaction sets that power Electronic Data Interchange. To get the most from EDI, you need a system that keeps inventory accurate and data moving seamlessly between partners.
Connect with an EDI expert today to discover how a cloud-based solution can simplify your operations.