Supply chains rely on accurate and instantaneous information sharing between trading partners, ensuring goods move between facilities without delay.
Fortunately, business-to-business (B2B) industries have standardized information exchange by adopting Electronic Data Interchange (EDI). EDI-capable businesses can use EDI codes to transact from any point globally without sluggish paper-based processes.
Numerous EDI transaction codes exist to facilitate data exchange, leaving many fledgling businesses overwhelmed by the endless list of EDI types. Orderful is here to help. This guide discusses common EDI codes, their functions, and their importance in B2B transactions.
What Is an EDI Transaction
EDI codes are numerical identifiers used in EDI transactions to classify various business documents (aka transaction sets). They specify the type of document getting exchanged, whether an invoice, purchase order, or shipping notice.
EDI messages are standardized to function independently of the specific communication or software method. EDI codes ensure transactions follow a structured format, enabling seamless communication between trading partners (e.g., suppliers, manufacturers, retailers, and third-party logistics (3PL) providers).
In the United States, these EDI transaction codes and transaction types are standardized by the Accredited Standards Committee (ASC) X12 within the American National Standards Institute (ANSI). Most other countries use standards developed by the United Nations/Electronic Data Interchange for Administration, Commerce, and Transport (UN/EDIFACT).
The 10 Most Common EDI Codes and Types in the United States
Although EDI transaction types and codes vary by geographic region, most types of EDI documents within an area are applicable across sectors. Let’s look at a list of EDI codes and transaction types commonly used across industries in the U.S.
EDI 850: Purchase Order
This is an ANSI X12-standardized EDI transaction buyers use to place orders with suppliers. The EDI 850 can detail a single or recurring order. It specifies the following:
Shipping and delivery information
Billing data
Item identifiers
Agreed-upon payment terms
Order date
Vendor details
Purchase order number
EDI 855: Purchase Order Acknowledgment
Suppliers send a Purchase Order Acknowledgment to a buyer to recognize the receipt of a purchase order. The document confirms whether the supplier will fulfill the order as requested, partially fulfill it, or reject it.
The EDI 855 transaction serves as a formal communication document to manage expectations and plan subsequent steps, like shipping. The document streamlines supply chain production and inventory management.
EDI 860: Purchase Order Change Request
Buyers use the Purchase Order Change Request transaction set to communicate order changes or updates to a previously issued purchase order. Order changes can range from item descriptions to line item cancellations or modifications to quantities, pricing, and more.
This transaction ensures trading partners share updated order information, minimizing inaccuracies during fulfillment.
EDI 810: Invoice
The EDI 810 is an electronic invoice a seller sends to a buyer to outline charges and payment details after delivering goods or services. The EDI 810 plays a critical role in the supply chain by enabling quicker payment cycles and eliminating manual and paper-based entries. The transaction set contains the following information:
Item details
Pricing
Adjustments
Taxes
Purchase order ref
Invoice number
Date
Total amount due
Large retailers like Costco, Amazon, and Walmart often mandate their trading partners comply with company-specific EDI invoice standards.
EDI 820: Payment Order/Remittance Advice
This is the electronic version of a cash receipt often issued by a buyer after receiving an invoice. The EDI 820 is typically sent to the supplier alongside an electronic funds transfer (EFT). The remittance advice contains details on adjustments, invoices getting paid, deductions, and more.
This EDI document automates the order and payment process when combined with the EDI 850, EDI 855, and EDI 810.
EDI 824: Application Advice
This ANSI X12 standard transaction set is sent in response to another EDI form to notify the sender of any errors encountered when processing. It highlights syntax, semantic, or structural mistakes in the received EDI files.
EDI 830: Planning Schedule with Release Capability
Buyers use this standard EDI transaction to forecast future product demand to suppliers. The document includes specific delivery schedules for all shipments and aids with just-in-time manufacturing and supply chain management.
With this document, suppliers can plan production, inventory, and other processes based on the buyer’s anticipated needs.
EDI 862: Shipping Schedule
This EDI business document amends a Planning Schedule with Release Capability (EDI 830). It communicates updated delivery information from the buyer to the supplier, such as logistics info, cargo quantity, and shipping dates. This ANSI X12 standard document type allows buyers to meet unexpected market shifts, manage inventory efficiently, and coordinate supply chain processes.
EDI 840: Request for Quotation
Buyers use this EDI document to request additional information from a trading partner before placing an order. Businesses can use it to streamline their procurement process by automating requests for quotes, ensuring accurate and timely pricing comparisons.
EDI 843: Response to Request for Quotation
Suppliers use this EDI transaction to respond to an EDI 840 from a buyer. It details delivery schedules, pricing, availability, and terms of the requested products. The EDI 843 allows the buyer to compare responses from the suppliers and make an informed purchasing decision.
EDI 856: Advance Ship Notice
A supplier sends an Advance Ship Notice to a buyer to inform them of the content and packaging of a shipment before it arrives. The transaction provides details on pending delivery so the receiver, such as a warehouse, can prepare for an incoming shipment.
EDI 997: Functional Acknowledgment
This EDI transaction is an acknowledgment message the receiver sends back to the sender. It verifies that the recipient’s system received the EDI document and confirms that it meets the agreed-upon standards and syntax.
EDI 997 doesn’t confirm any business-level acceptance but rather technical validation.
Talk to an EDI Expert
EDI technology allows businesses to connect their B2B transaction systems using universally agreed standards. These standards use hundreds of EDI numbers or codes to mark the documents and their purpose. Most EDI codes apply across industries, simplifying global transactions.
If you’re planning to become EDI-integrated, Orderful can simplify the process. We provide a modern cloud-based solution that is scalable and easy to use, even for startups. Talk to our EDI experts today to learn more about our solution and how it can help your business.