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All You Need to Know About EDI 812 Credit/Debit Adjustment

Modern businesses are constantly striving to improve and automate their business processes, especially when it comes to supply chains. However, even the best-run supply chains can face situations where adjustments need to be made. If a problem arises with a purchase order, the trading partner uses EDI 812.

What is an EDI 812?

EDI 812, formally known as an EDI X12 812 Credit/Debit Adjustment Transaction Set, is an EDI document used by trading partners (buyer and seller) in B2B communication to indicate that adjustments have been made to a specific payment or to demand an adjustment or bill-back.

Using EDI 812 transaction, trading partners can reconcile payments with invoices and eliminate the need for paper credit or debit memos.

Who Uses The EDI 812 Debit/Credit Adjustment?

EDI 812 is used to automate B2B communications in all industries. This EDI document can be used by various companies such as:
  • Retailers/ grocers
  • suppliers of goods and services
  • manufacturers of goods
  • wholesalers
  • warehouses
  • 3 PL Logistics
  • transport companies (providing road, rail, sea (river) and air transportation) and many others.

When is The EDI 812 Document Used?

Trading partners use EDI 812 Credit/Debit Adjustment in various cases, the most common examples are:
  • The products that were ordered were not delivered.
  • There was a mistake in sending the products.
  • A defective, damaged, or spoiled item was received.
  • The manufacturer’s discount or retailer’s markup needs to be adjusted.
  • In the original purchase order or invoice, there was an error in the pricing.
  • There is an inconsistency in the quantity of goods delivered. For instance, when more or less goods are delivered than ordered.
  • Consumers are returning the goods to the retailer

What Information is Included in EDI 812 Debit/Credit Adjustment?

Generally, an EDI 812 document refers to a specific Purchase Order or Invoice and contains detailed information such as:
  • The number of the original PO or Invoice.
  • The total amount of the adjustment.
  • The items that are being adjusted.
  • Identification of the items.
  • Quantity of the items.
  • Credit, debit, or adjustment justification.
  • Debit/Credit Memo

EDI X12 812 Transaction Set Specification

EDI X12 812 Credit/Debit Adjustment Transaction Set is an electronic document used in the context of EDI where:

EDI – Electronic Data Interchange is a technology used to exchange commercial data between companies in a structured digital form based on regulated message formats and standards.

X12 – is a cross-industry standard for electronic exchange of business documents between business partners. In the United States, it is the most commonly used EDI standard.

812 – is a unique three-digit number to identify an EDI transaction. A three-digit code is assigned to each type of EDI document that is used in the X12 standard.

Transaction Set – is an electronic document that is the equivalent of a paper document.

The following is an example of the specification for the EDI 812 Transaction Set. The 812 contains mandatory and optional data, as with any other EDI document. Depending on the field of activity and the requirements of the trading partner, additional data may be required.

A typical structure for this document would be as follows:

EDI 812 Transaction Set Heading:
Segment IDNamePurpose:
ST Transaction Set HeaderIndicating the start of a transaction set and assigning a control number
BCD Beginning Credit/Debit AdjustmentProvide the receiver with the identifying date and number for the transaction set and the monetary value of the transaction
N9 Extended Reference InformationTransmit identifying information as specified by the Reference Identification Qualifier
PER Administrative Communications ContactIdentification of the individual or office to whom administrative communications should be addressed
SHD Shipment DetailTo specify shipment details, such as weight, quantity, and routing instructions regarding crediting or debiting returned products
N1 Party IdentificationIdentification of a party based on type of organization, name, and code

EDI 812 Transaction Set Detail:

Segment IDNamePurpose:
CDD Credit/Debit Adjustment DetailProvide information concerning a line item adjustment 
LIN Item IdentificationIdentifying basic information about an item 
PO4 Item Physical DetailsTo describe the physical characteristics, packaging, weights, and dimensions of an item 
N9 Extended Reference InformationTtransmit identifying information as specified by the Reference Identification Qualifier 
SE Transaction Set TrailerTo specify the end of a transaction set and report the number of segments transferred (including beginning (ST) and ending (SE) segments). SE represents the final segment of a transaction set. 

What Communication Protocol is Used to Send and Receive EDI 812?

At present, most companies that use EDI to communicate with their business partners do so over the Internet using FTP, sFTP, or AS2 communication protocols. For a variety of reasons, some companies may opt to use VAN, which is a more expensive solution.

Learn more about EDI communication protocols in the free EDI guide: Introduction to EDI Communication

EDI B2B Automation Through 812 Translation

The information transmitted by EDI 812 needs to be translated into a functional format for further processing or for integration into the company’s business system. Many companies use the Fully Managed EDI Services from EDI2XML. Through this service, EDI 812 information can be synchronized with an internal system, such as an ERP/CRM or accounting system, eliminating the need for manual data entry. In this way, the data received from trading partners via EDI is immediately pushed into the business system and can be processed quickly.

Learn more about the Fully Managed EDI Service

As an alternative to fully managed EDI, to transmit and translate an EDI 812 or any other EDI document, company can use low-cost and flexible EDI solution from EDI2XML – the HTTP EDI Web Service (REST API).

EDI2XML Web service is a web-based HTTP service that runs over the Internet and converts EDI messages into XML and XML messages into EDI (based on EDI2XML’s proprietary XML schema).

Learn more about this EDI service in the article: How to Become EDI Compliant in Under 60 Minutes (Yes, Really)

Benefits of Using the EDI 812 Credit /Debit Adjustment

Both the seller and the buyer benefit from EDI 812 credit/debit adjustment by automating the transaction process. Below are some of the advantages that can be realized by both trading partners:
  • Sending and receiving credits/debits can be done more quickly and with less effort
  • Gain operational efficiencies by reducing paperwork
  • Automated data entry reduces errors
  • Maintains documentation for deductions and credits

Conclusion: All You Need to Know About EDI 812 Credit/Debit Adjustment

For more information on how to implement EDI 812 in your company, contact us for a free consultation with one of our EDI experts.

You can also gain a lot of useful knowledge about business and e-commerce automation and integration of EDI, ERP, and CRM by exploring our Blog
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EDI for Specific Industries

EDI – Electronic Data Interchange is a well-established protocol of business data exchange, which has become more and more widespread in recent years among businesses of all sizes and various industries.

Through EDI, companies can exchange business documents that were traditionally communicated on paper or by e-mail.

By replacing the exchange of paper or e-mail documents with EDI, companies save time and eliminate manual data processing, which often leads to errors and costly delays in all business processes.

Companies today use EDI to send all kinds of documents, from orders, and invoices to motor carrier load tender, customs manifest, and more.

The exchange of EDI takes place between business partners who exchange goods or services.

All EDI transactions comply with standards developed and maintained by several organizations including UN/CEFACT, X12, ODETTE, GS1, Peppol, and others.

However, despite uniform standards, each industry can use a certain set of specific EDI transactions. Below we provide some examples of EDI documents for specific industries.

USEFUL: A complete list of documents that can be exchanged via EDI

EDI for Transportation and Logistics Industries

The Transportation industry actively uses EDI and, in addition to standard transactions, this industry use sets of specific EDI documents.

The transport industry includes a huge variety of different types of transportation. It includes marine, air, rail, and motor freight. Accordingly, the EDI transactions used for example in rail transportation will differ from those used by motor freight.

The Most Used EDI Transactions for Transportation and Logistics

USEFUL: You can find a complete list of EDI transportation codes in our article “EDI Integration for Transportation and Logistics”

EDI for the Supply Chain Industry

The supply chain industry includes many processes such as distribution, inventory, purchasing, production planning, sales, supply chain planning, interaction with trading partners and warehouses.

The use of EDI in the supply chain allows the company to quickly exchange documents electronically with all suppliers, exchange prices and catalogs, track information on shipments and acceptance of goods. EDI allows to make the supply chain as transparent and efficient as possible, receiving up-to-date data on the movement of goods and funds in real-time.

EDI Transactions for Supply Chain

Here are some of the most common EDI documents in the supply chain:

  • EDI 810 – Invoice
  • EDI 846 – Inventory Status
  • EDI 850 – Purchase Order
  • EDI 856 – Ship Notice/Manifest
  • EDI 855 – Purchase Order Acknowledgment
  • EDI 820 – Payment Order/Remittance Advice
  • EDI 753 – Request For Routing Instructions
  • EDI 754 – Routing Instructions
  • EDI 816 – Organizational Relationships
  • EDI 830 – Planning Schedule With Release Capability

To learn more about the use of EDI in the supply chain, read our article: Electronic Data Interchange (EDI) in the Supply Chain

It covers the following questions:

– What is EDI?

– Why use EDI in the supply chain?

– How does EDI work?

– Typical EDI workflow process

– Additional and specific types of EDI messages

– Benefits of EDI for Supply Chain Management

– Effective EDI Solution for Supply Chain

USEFUL: EDI for Third-Party Logistics providers (3PL)

EDI for HealthCare and Insurance Industries

EDI is of great value to healthcare organizations because it provides a secure way to electronically exchange sensitive information.

The healthcare industry includes health insurance activities, which are carried out by both commercial and public health organizations.

Most common EDI Transaction Sets in HealthCare

  • HIPAA / X12 270 – Eligibility, Coverage, or Benefit Inquiry
  • HIPAA / X12 271 – Eligibility, Coverage, or Benefit Response
  • HIPAA / X12 276 – Healthcare Claim Status Request
  • HIPAA / X12 277 – Health Care Claim Status Response
  • HIPAA / X12 837 – Health Care Claim (Professional, Institutional, and Dental)
  • HIPAA / X12 999 – Implementation Acknowledgment
  • EDI 273 – Insurance/Annuity Application Status
  • EDI 274 – Healthcare Provider Information
  • EDI 275 – Patient Information
  • EDI 834 – Benefit Enrollment And Maintenance
  • EDI 835 – Health Care Claim Payment/Advice
  • EDI 852 – Product Activity Data (to exchange information between Manufacturers and Pharmacies)
  • EDI 999 – Implementation Acknowledgment (for Health Care Insurance)

To learn more about EDI in healthcare, please read this article: All you need to know about HIPAA EDI compliance in Healthcare

EDI for the Retail Industry

The Retail Industry is a pioneer in the implementation of EDI. Large retailers are actively automating business processes and introducing new information technology solutions to reduce costs and increase sales.

Thus, the use of EDI in retail is a must. Since large retail companies have a huge number of suppliers, they have to exchange thousands of documents every month. It is simply impossible to go through so much documentation manually.

The Most Used EDI Documents in the Retail

  • EDI 810 – Invoice
  • EDI 820 – Payment Order/Remittance Advice
  • EDI 832 – Price/Sales Catalog
  • EDI 846 – Inventory Inquiry/ Advice
  • EDI 850 – Purchase Order
  • EDI 852 – Product Activity Data
  • EDI 855 – Purchase Order Acknowledgment
  • EDI 856 – Ship Notice/Manifest
  • EDI 861 – Receiving Advice/Acceptance Certificate

The use of EDI in retail offers many benefits, ranging from savings in paperwork and avoiding manual data entry errors, to reducing transport and logistics costs and increasing company profits.

If you want to learn more about the use of EDI in retail, please read this article: The Top 6 EDI Documents for Retail Suppliers

Conclusion: EDI for Specific Industries

In this article, we explored the use of electronic data interchange in some industries, however, if you have any questions regarding EDI, you can always contact us for a free initial consultation.

Our more than 21 years of experience in the implementation of EDI for various industries allows us to offer our customers the most profitable and effective EDI solutions.

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EDI for Manufacturing Companies

Manufacturing and EDI: Introduction

Electronic Data Interchange (EDI) is an essential part of the modern manufacturing business process. EDI can speed up production, reduce labor and storage costs, and improve all manufacturing business processes.

In this article, we will analyze how and why EDI is used in manufacturing companies and how to get started with electronic data interchange.

Electronic data interchange (EDI) is the process of exchanging documents (such as purchase orders, invoices, shipping notices, etc.) electronically with a business partner.

Why Use EDI in the Manufacturing Industry?

Every day manufacturing companies in all sectors face many challenges. Managing the procurement of raw materials and components for production, maintaining stocks at an optimal level, accelerating the turnover of finished products, quickly receiving payments, all these and many other challenges are being faced daily at most manufacturing enterprises.

That is why automation through the use of EDI helps to successfully manage many processes in production.

Manufacturing B2B Communication

One of the particularities of a manufacturing company is that it can act both as a buyer when buying raw materials, components, and consumables, and as a seller when selling finished products.

A manufacturing company can have different EDI partners; it can exchange EDI documents with the following business partners:

  • supplier of raw materials and component parts;
  • wholesale buyer;
  • distribution centers;
  • retail companies;
  • eCommerce marketplaces;
  • dropship partners;
  • warehouses / public warehouse;
  • third-party logistics service providers (3 PL providers);
  • freight carriers, transportation companies, and many others.

Manufacturing EDI Transactions

A manufacturing company may need to exchange bi-directional EDI transactions with different business partners. The type and number of EDI documents vary according to the business processes within the manufacturing company.

Below is a list of EDI documents for manufacturing; Some of them are used only for manufacturing enterprises, while others are being widely used in any business.

  • EDI 196 – Contractor Cost Data Reporting
  • EDI 830 – Planning Schedule / Material Release
  • EDI 832 – Price/Sales Catalog
  • EDI 844 – Product Transfer Account Adjustment
  • EDI 846 – Inventory Inquiry/Advice
  • EDI 849 Response to Product Transfer Account Adjustment
  • EDI 850 – Purchase Order
  • EDI 852 – Product Activity Data
  • EDI 855 – Purchase Order Acknowledgment
  • EDI 856 – Advance Shipment Notice
  • EDI 860 – Purchase Order Change
  • EDI 861 – Receiving Advice/Acceptance Certificate
  • EDI 862 – Shipping Schedule
  • EDI 866 – Production Sequence
  • EDI 867 – Product Transfer and Resale Report
  • EDI 869 – Order Status Inquiry
  • EDI 870 – Order Status Report
  • EDI 894 – Delivery/Return Base Record
  • EDI 895 – Delivery/Return Acknowledgment or Adjustment
  • EDI 940 – Warehouse Shipping Schedule
  • EDI 943 – Warehouse Stock Transfer Shipment Advice
  • EDI 944 – Warehouse Receipt Advice
  • EDI 945 – Warehouse Ship Advice
  • EDI 997 – Functional Acknowledgment

As stated above, you will probably only need to integrate some of the EDI documents I listed above to automate your business processes and establish an electronic document exchange with your trading partner.

6 Essential EDI Documents for Manufacturing

What are the most common EDI documents used in manufacturing? As mentioned above, different manufacturing companies may use various sets of EDI transactions based on their own business processes and manufacturing characteristics. However, there are some basic EDI transactions that most manufacturing companies use.

Below you will find the 6 EDI transactions used in manufacturing in the ANSI X12 standard (which is widely used in North America), and their equivalent in the EDIFACT standard for Europe.

1. EDI X12 830 – Planning Schedule with Release /EDIFACT (SLSFCT) – Sales forecast message

EDI 830 / EDIFACT( SLSFCT) transmits forecast data related to products, such as location, period, product identification, price, quantity, market sector information, etc.

This enables the recipient to process the data automatically and utilize it for production, planning, marketing, analytics, etc…

2. EDI X12 850 – Purchase Order / EDIFACT (ORDERS) Purchase Order Message

EDI 850 / EDIFACT (ORDERS) is the most commonly used EDI document, not just in the manufacturing industry, but across all industries since it is used when ordering goods. In the case of manufacturing companies, EDI 850 can be used either as an incoming or outgoing EDI document.

– Incoming EDI 850 is sent from the buyer to the manufacturing company when ordering finished products.

– Outgoing EDI 850 is sent by the manufacturing company to its supplier of raw materials or components.

The purchase order contains all the information about the ordering product such as item description, price, and quantities, payment terms, shipping details, requested delivery date, etc.

3. EDI X12 855 – Purchase Order Acknowledgement / EDIFACT (ORDRSP) Purchase Order Response)

EDI 855/ EDIFACT (ORDRSP) is an EDI transaction set that sellers send to a buyer as a response to a purchase Order X12 850/ EDIFACT (ORDERS), to confirm or reject the delivery of products.

PO Acknowledgement (855) is based on EDI 850 and contains similar information about the products, buyer, and seller information, order confirmation number.

4. EDI X12 856 – Advance Shipment Notice (ASN) / EDIFACT DESADV Despatch advice message

EDI 856 message should be sent immediately after the shipment leaves the supplier’s premises.

The ASN 856 includes information about the contents of the delivery, the order, the packaging method, and the product description.

EDI 856 simplifies and speeds up the process of receiving goods, providing details about cargo, transferring information about shipments, and tracking the delivery.

5. EDI X12 810 – Invoice / EDIFACT (INVOIC) – Invoice

EDI 810 / EDIFACT (INVOIC) sent by the seller to the buyer to receive payment for goods provided.

In the case of a manufacturing company, EDI 810 can be used as an outgoing document from the manufacturing company to the buyer of the finished product, or as an incoming document from the raw material supplier to the manufacturing company.

6. EDI X12 EDI 846 – Inventory Inquiry/Advice / EDIFACT INVRPT – Inventory Inquiry/Advice

EDI 846 is sent by a manufacturer to inform its business partners (dealers, distributors, retailers, etc.) of current and future stock levels.

EDI 846 transmits full information about the product such as item description, quantity available in stock, price, as well as quantity forecasted, quantity sold already.

EDI Integration with Manufacturing Software, ERP, or CRM

Electronic Data Interchange (EDI) is a powerful tool that can greatly streamline business processes, particularly when it comes to manufacturing. By integrating EDI with manufacturing software, Enterprise Resource Planning (ERP), and Customer Relationship Management (CRM) systems, manufacturers can improve efficiency and accuracy in areas such as order management, inventory control, and invoicing. EDI allows for the automated exchange of data between systems, reducing the need for manual data entry and minimizing errors. This integration can also help manufacturers better manage their supply chain, by providing real-time visibility into inventory levels and order status.

Get even more EDI benefits and improve your production efficiency by integrating EDI with your manufacturing software or your ERP, CRM, or accounting system. We can rapidly Integrate EDI with:

  • Salesforce Cloud
  • JD Edwards EnterpriseOne
  • Oracle ERP Cloud
  • SAP / SAP S4HANA
  • Dynamics 365
  • Oracle NetSuite
  • DBA manufacturing software and many other

Overall, integrating EDI with manufacturing software, ERP, and CRM systems can help manufacturers improve productivity, reduce costs, and enhance customer satisfaction.

We can connect EDI to any of your business systems in the cloud, on-premises, or in hybrid deployments using a no-code, low-maintenance approach that allows the manufacturing company to maximize the ROI from EDI.

Manufacturing Document Processing Automation with EDI Service Provider

An EDI integration and service provider, such as EDI2XML, can take over the entire task of exchanging EDI documents with your business partners.

EDI2XML can take care of all the EDI integration steps: from planning the EDI project to designing the file format that the customer requests (XML, TXT, CSV), to connectivity and full-cycle testing with the trading partner.

With our cloud-based fully managed EDI service we receive EDI files on behalf of our customers from its trading partners, convert incoming documents to the necessary format (XML, CSV, TXT, JSON, etc.) then push converted files directly to the business system of our customer.

Benefits of using EDI in Manufacturing

EDI has numerous business benefits for manufacturing companies, which includes:

– Accuracy. Reduce human interaction and errors associated with manual data entry. Thus, by automating the exchange of EDI documents, you can eliminate manual data entry and significantly reduce costs.

– Back-office productivity. Eliminating the need to store and manage physical documentation, and reducing transaction times.

– Production productivity. Through the use of EDI, manufacturing companies are achieving significant reductions in response/cycle times.

– Improve supply chain. EDI helps streamline processes throughout the supply chain and improve all operational processes in manufacturing.

– Improving business relationships with your retailers, wholesalers, and customers.

EDI integration helps to significantly improve logistics and production processes: from the purchase of raw materials to sales support and financing.

USEFUL: With our cloud-based Fully Managed EDI Service, we guarantee cost-effective initial and ongoing EDI service costs. Request our Fully Managed EDI Service Pricing Plans here

EDI Integration for Manufacturing with Any Trading Partner

As an EDI service provider with over 20 years of experience, we help our clients exchange EDI documents with their trading partners in the most efficient and cost-effective way. We can set up the exchange of EDI documents with any company, anywhere in the world, and no matter what industry it operates in.

Contact us for your first free consultation with one of our EDI integration experts.

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Fully Managed EDI Service for Outsourcing B2B Communication

In today’s highly competitive business market the efficiency gained through EDI implementation and integration is enormous. EDI (for electronic data interchange) allows companies to interact effectively with their business partners and opens new doors for small businesses to collaborate with large companies.

There are various types of EDI solutions, it can be either locally installed on-premises or cloud-based. Our company as a leading EDI provider offers all types of EDI services:

Each of the above EDI service models has its specific benefits. In today’s article, let’s look at the fully managed EDI service, and why companies can benefit from this EDI service or solution.

What is EDI?

Electronic Data Interchange (EDI) is the electronic exchange of business documents using a standardized format. EDI allows business partners to exchange business documents electronically rather than paper or e-mail.

Despite the widespread use of EDI in business, some companies still do not use EDI. They can be limited by the complexity of setting up their EDI flows and processes, or the lack of the necessary IT skills to do such an implementation. All these problems can be solved by hiring an outside EDI service provider that can take care of fully managing their EDI processes and its integration to their internal ERP/CRM system.

What is Fully Managed EDI Service?

The fully managed EDI service offering provided by EDI2XML means that we will fully manage the EDI operations and integration on the behalf of the customer.

Customers using our Fully Managed EDI Service do not need to install any software or hardware, we will setup and configure the process flows, take care of the data routing, and be responsible for data format transformation and integration.

With our fully managed EDI service, we will take on a wide range of responsibilities that are usually performed by an internal IT department and deliver a turnkey project when onboarding a client’s partners.

During the execution of any EDI project, our team will perform the following activities:

  • Initial analysis of the entire EDI Integration Project.
  • Work with the client to define the points of connectivity between both platforms.
  • Perform the communication testing, between the EDI2XML integration platform and the Trading Partner.
  • Configure the EDI2XML platform, according to the Trading Partners’ specific requirements.
  • Perform connectivity and full-cycle testing with the trading partner.
Fully managed EDI Service

EDI Managed Services for B2B Integration

A fully managed EDI service is ideal for companies that need to use EDI, but don’t want to spend time and effort to do the implementation themselves, or don’t have necessary EDI skills and specialists who can do it. They, therefore, need a partner (EDI service provider) who will take care of all the configuration and integration of EDI into any on-premises or cloud-based ERP or CRM system.

Advantages of The EDI Fully Managed Services

With an EDI managed service provider such as EDI2XML, you no longer have to worry about your EDI transactions because the EDI provider will professionally handle electronic data exchange on your behalf, so you can focus on growing your business.

Managed EDI

– No overpayments. For businesses, this is much more profitable than integrating EDI on-premises.

– Reliable level of security. The EDI3XML platform is hosted on our private cloud, in a state-of-the-art secured data center in Canada.

– No client-side installation. End-users do not need to download and install anything on their computers.

– Minimum requirements for user devices.

– EDI Fully Managed Services delivered by highly qualified EDI experts. Your company can benefit from the technical expertise of the EDI provider staff. You don’t have to deal with the cost of additional training for your own IT department or hiring additional EDI specialists.

– Possibility to seamlessly integrate EDI transactions into your business management system. We have implemented many projects to integrate EDI with Salesforce, SAP, Oracle’s JD Edwards, Shopify, and other business systems. This integration between EDI and ERP/CRM eliminates the need to manually enter data for each EDI transaction.

Useful reading: How to Change Your EDI Service Provider

EDI Fully Managed Service Price

Each month, our clients pay what we call the “ceiling” value, that is fixed in $ value, and includes a specific volume of data. At the end of the month, the monthly fee is re-evaluated based on the logs. So, depending on the volume, the price will be pre-calculated based on pre-packaged pricing packages per month, that increase (or decrease) dynamically based on the volume of data processed during a specific month.

In other words, when the monthly amount of data processed exceeds a certain threshold, the customer will be billed based on the respective pricing plan. It works both ways: when the volume is increased and when the volume is decreased.

Request our EDI Pricing Package here for more information.

EDI Outsourcing

Our company is a successful EDI service provider operating in North America and connecting trading partners worldwide for over 20 years. Our clients are large companies as well as small businesses from various industries.

Due to our level of experience and expertise, we helped each of our clients to choose the most optimal EDI solution for their business and qualified enough to handle all kinds of EDI scenarios.

Contact us for your first free consultation with one of our EDI integration experts.

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What is an EDI 824 Application Advice?

EDI 824 Definition

EDI 824 Application Advice is an EDI document that is sent in response to a previously received EDI transaction. EDI 824 reports the receipt of an EDI document and indicates its status. Application Advice can report various statuses:

– acceptance

– rejection

– acceptance with change

Normally, trading partners discussed and agree in advance to each one of the above statuses.

How is EDI 824 Application Advice used?

To generate an EDI 824 transaction, some verifications must be performed on the received EDI document. For example, the list of items in EDI 856 (ASN) should be the same as in the previously submitted EDI 855 (PO Acknowledgement). If a deviation is found in the EDI document, an EDI 824 message with the appropriate status will be generated.

A company can implement Application Advice EDI 824 in response to any EDI document except if a specific response document already exists in EDI business practice, for example:

– EDI 855 Purchase Order Acknowledgment in response to EDI 850 Purchase Order

– EDI 990 Response to a Load Tender in response to EDI 204 Motor Carrier Load Tender

– EDI 754 Routing Instructions in response to EDI 753 Request For Routing Instructions

Why Trading Partners Need EDI 824 Application Advice?

EDI 824 is designed to promptly inform business partners about the accuracy of the information in the previously submitted EDI documents.

This allows the company to promptly correct mistakes and send the adjusted document to their trading partner. EDI X12 824 is based on a general business practice and can be used in any type of business or industry, by any trading partner to advise, reject or indicate any errors on a previously received EDI document.

What are the Benefits of EDI 824?

Cloud Services Provider By using EDI 824, trading partners can quickly report issues related to incoming EDI documents they received, which helps to improve and speed up the order processing and avoid errors.

Cloud Services Provider Application Advice indicates exactly which elements of the received EDI document contain errors, so the sender can quickly correct the EDI document and resend it. This eliminates the need to spend time identifying inaccuracies and errors in the EDI document. This type of electronic exchange of errors and statuses, improves the process of communication between business partners.

Cloud Services Provider EDI 824 is generated automatically, eliminating manual processing of each rejected document.

What are the Differences between EDI 824 and EDI 997?

Even though both EDI 824 and EDI 997 are acknowledgment messages that are sent as a response to the received EDI message, they are very different EDI messages with different functions.

EDI 997 Functional Acknowledgement simply confirms the delivery of the EDI message and that the syntax of the EDI Transaction Set was correct. Accordingly, the EDI FA 997 informs the sender that the envelope has been received by the recipient, and its structure was validated, and it was accepted (or rejected) by the recipient, obviously without validating the content of the received EDI document.

Unlike EDI 997, the EDI 824 works differently; it is the result of the validation of the content of the received initial EDI document. Application notification parses the content of the message and returns a message with a specific status and indicates errors in the content of the message.

824 EDI Document Type

The formal name of this EDI document is X12 824 Application Advice Transaction Set.

EDI 824 Application Advice is supported by the X12F Finance Subcommittee under the X12 Accredited Standards Committee.

In the EDIFACT standard, which is used mainly in Europe, the APERAK – Application Error and Acknowledgement message perform the same function.

EDI Transaction Types – Complete List of EDI Transactions Sets & Codes for ANSI ASC X12 Standard

EDI 824 – Application Advice Structure

ANSI ASC X12 824 Application Advice, can have the following structure:

ISA Interchange Control Header

GS Functional Group Header

ST Transaction Set Header

BGN Beginning Segment

N1 Name

PER Administrative Communications Contact

OTI Original Transaction Identification

REF Reference Identification

DTM Date/Time Reference

AMT Monetary Amount

TED Technical Error Description

SE Transaction Set Trailer

GE Functional Group Trailer

IEA Interchange Control Trailer

How to Integrate and Exchange EDI 824

To exchange EDI 824 or any other EDI documents, each company can choose the most optimal solution that will be most beneficial for it and meet the business requirements of their trading partners.

As an EDI service provider with over 20 years of experience, we understand that requirements can be different from a company to another. One company may have a huge number of EDI transactions that need to be integrated directly into their ERP or CRM system (for example, Salesforce, Oracle JDE, SAP, etc.)

Another company may only have a few transactions per week, and it is not profitable for them to implement a fully managed EDI solution on their own premises.

Some companies may be leaning towards the “on-premises” EDI solution when they have “internal policies” or they are a large enterprise with their own team of IT experts.

That is why we have developed different types of EDI solutions and support different EDI standards (X12, EDIFACT, RosettaNet, etc.) and can use different communication protocols (like AS2, VAN, FTP / SFTP, HTTP / HTTPS) to meet the need of any company.

EDI Web Service

EDI2XML web service is a REST API to convert X12 to XML and vice versa. This API web service for EDI exchange is very low cost and meant for companies who got their own technical resources to work with REST API. Thus, this is a self-service solution with no contract, and no commitment, moreover you can be up and running in less than an hour.

Fully Managed EDI Solution

EDI2XML Managed Services is our popular EDI service that includes translation and communications services. All EDI file conversions are done on our side, so customers don’t need to install software or hardware on-site. This is a complete turnkey EDI solution.

Moreover, with these fully managed services, all EDI documents can be synchronized with the company’s internal system such as ERP, CRM, eliminating the need for manual data entry and fully automating the EDI process.

EDI On-Premises Solution

We offer EDI services with “on Premises” deployment at the customer servers.

In this case, companies need to have some resources such as proper in-house EDI expertise, expertise to work with XML, necessary IT infrastructure.

We help companies choose the best personalized EDI integration solution for their business. To find out more, contact us for a free consultation with one of our EDI experts.

You may also be interested in reading about:

EDI integration for B2B exchange to optimize and grow your business

The Top 6 EDI Documents for Retail Suppliers

Electronic Data Interchange (EDI) in the Supply Chain

All You Need to Know About EDI 210 – Motor Carrier Freight Details and Invoice

What is an EDI 210 Transaction Set?

EDI Transaction Set X12 210 Motor Carrier Freight Details and Invoice is an EDI document used in logistics by motor carrier companies. EDI 210 is usually sent by the carrier to the shipper (it could be a 3PL warehouse, distributor center, manufacturer, etc.) in order to provide detailed information about the fees for transportation services.

210 EDI Document Type

The formal name of this X12 transaction set is X12 210 Motor Carrier Freight Details and Invoice. 

EDI 210 transaction set, is maintained by a subcommittee “X12I – Transportation” operating within X12’s Accredited Standards Committee.

How is EDI 210 – Motor Carrier Freight Details and Invoice Used?

EDI for transportation

EDI 210 can be used by motor carriers in one of the following two scenarios:

1. as an invoice to request payment, or

2. to provide information about the cost of motor freight transportation.

Typically, the carrier sends the EDI 210 transaction, after the shipment has been delivered to the destination. The EDI 210 document, will indicate the full amount required for a shipment, as well as the terms of payment. The shipper can use the EDI 997 (functional acknowledgment) transaction, to confirm receipt of an EDI 210 transaction.

Benefits of Using EDI 210

Exchange of business documents via EDI is much more efficient and secure than using paper documents or emails. Electronic data interchange helps business partners to improve communication and optimize processes. By exchanging EDI business documents, companies have the following benefits:

– Eliminate the costs associated with the use of paper documents.

– Minimize the labor cost performing daily redundant data entry operations.

– Save time and increase of employee’s productivity.

– Reduce errors due to manual data entry.

– For motor carrier companies, using EDI 210 can speed up the billing process, allowing them to get paid much faster by their business partners.

– For shippers, EDI 210 provides a clear and accurate view of costs, helping to effectively plan a company’s finances.

What Information Does EDI 210 Contains?

The EDI Motor Carrier Freight Details and Invoice Transaction Set contains motor carrier expense details, billing information, and other information that a standard invoice should contain:

– Number and date of the invoice.

– The name and address of the consignee.

– Name and address of the shipper.

– Detailed information about the cargo:

  • name,
  • quantity,
  •  type of cargo,
  •  weight and size

– Delivery methods and route information.

– The total amounts to be paid.

EDI 210 – Motor Carrier Freight Details and Invoice Structure

ANSI ASC X12 Version 4010 of a 210 Motor Carrier Freight Details and Invoice, can have the following structure:

  • ISA – Interchange Control Header
  • GS – Functional Group Header
  • ST – Transaction Set Header
  • B3 – Beginning Segment for Carriers Invoice
  • C3 – Currency
  • M7 – Seal Numbers
  • S5 – Stop Off Details
  • N9 – Reference Number
  • G62 – Date / Time
  • R3 – Route Information
  • H3 – Special Handling Instructions
  • N1 – Name
  • N3 – Address Information
  • N4 – Geographic Location
  • N7 – Equipment Details
  • LX – Assigned Number
  • POD – Proof of Delivery
  • L5 – Description, Marks, and Numbers
  • L0 – Line Item – Quantity and Weight
  • L1 – Rate and Charges
  • L7 – Tariff Reference
  • K1 – Remarks
  • L3 – Total Weight and Charges
  • SE – Transaction Set Trailer
  • GE – Functional Group Trailer
  • IEA Interchange Control Trailer

EDI 210 and EDI 214

What is the difference between EDI 210 and EDI 214? Both of these documents are actively used by logistics and transportation companies, but they have completely two different purposes.

As stated previously in this post, the EDI 210 document, in most cases acts as an invoice for trucking companies. So often, trucking companies call EDI X12 210 Motor Carrier Freight Details and Invoice simply as EDI 210 Invoice.

EDI 214 is a Transportation Carrier Shipment Status Message used by the carrier to notify the shipper and consignee about the status of their cargo.

For complete information on the EDI 214 transaction set read this article: EDI for transportation – EDI 214 Transportation Carrier Shipment Status Message

Automate Logistics and Business Process with EDI2XML Integration Platform

To fully automate data exchange with their business partners, many companies integrate EDI 210 and other important EDI transactions into their internal business systems. Our EDI2XML integration platform provides secure and efficient EDI integration with most ERP, CRM, business, and accounting applications from leading vendors such as SAP, Oracle JD Edwards, Salesforce, Microsoft Dynamics, etc.

Fully managed EDI Service

Our robust and powerful EDI integration platform support different EDI standard (X12, EDIFACT, RosettaNet, etc.) and various communication protocols (e.g. AS2, VAN, FTP/SFTP, HTTP/HTTPS), thus we can connect business partners anywhere they are in the world, regardless of their industries.

Connecting business partners through EDI for over 21 years, our company has accumulated vast experience to carry out your EDI integration project quickly and efficiently.

Contact us for your first free consultation.

EDI in transportation and 3PL

You may also be interested in reading about:
– Electronic Data Interchange (EDI) in the Supply Chain
– How EDI can speed the receiving of goods in a warehouse
– EDI for Third-Party Logistics providers (3PL)
– DELFOR, DELJIT, DESADV – key EDI messages in supply chain management for manufacturing

EDI 945 Warehouse Shipping Advice in Transportation Management, 3 PL Warehouse, and Third-party Logistics.

Many different processes take place in the warehouse every day, whether it’s a regular or 3PL warehouse. All of them must be carried out quickly and accurately. In this article, we will look at the importance of using EDI (Electronic Data Interchange) especially, an electronic document – EDI 945 Warehouse Shipping Advice associated with shipment of goods. Let’s figure out who and when to use EDI 945, what information a Warehouse Shipping Advice contains, 945 EDI specifications, benefits of using this EDI document, and much more.

What is EDI 945 transaction?

The Warehouse Shipping Advice Transaction Set (EDI 945) is an electronic data interchange (EDI) document. EDI 945 is usually used by 3PL warehouse/ remote warehouse or third-party logistics company, to notify its client (depositor) that a shipment has been made. It is used to match order quantities with shipment quantities.

945 EDI document type

EDI X12 945 Warehouse Shipping Advice Transaction Set is a document base on the X12 standard. X12 is a non-profit, ANSI-accredited standards development organization for cross-business transactions that support electronic data interchange in North America.

Each set of EDI transactions is supported by a subcommittee working within the X12 Accredited Standards Committee. EDI 945 falls under X12M – Supply Chain Subcommittee.

How is EDI 945 – Warehouse Shipping Advice used?

When a supplier/depositor (for example, a manufacturer or a wholesaler) needs to ship goods from the warehouse, he sends his 3PL warehouse an EDI document 940 Warehouse Shipping Order. EDI 940 contains all the necessary information regarding the goods required for shipment (description and quantity of goods, delivery date, recipient information, etc.) as well as shipping instructions.

Useful Reading: What is EDI 940 Warehouse Shipping Order?

The warehouse, having received the EDI 940, makes the shipment of the order and returns the EDI 945 immediately after the parcel has left the warehouse.

EDI 945 transfers detailed information about the merchandise shipped and the detail of the delivery.

Based on transaction EDI 945, the supplier can generate EDI 856 Advance Ship Notice as needed to notify its customer of an upcoming delivery.

What is the shipping process in a warehouse?

Shipment is the process of preparing and sending goods to the designated location. The shipping procedure at the warehouse is carried out according to predetermined rules. Each company develops shipping regulations independently, taking into account the characteristics and specifics of the goods and warehouse space.

The procedure for shipping goods from the warehouse/ 3PL warehouse can include many stages:

  • processing of the depositor’s order (for example, entering data into the warehouse system);
  • checking the availability of goods in the warehouse;
  • receiving a picking list;
  • selection of the necessary goods from the storage place;
  • moving to the picking area;
  • packaging and labeling in containers/pallets;
  • loading of transport;
  • Preparation and entry into the warehouse system of the relevant information.
EDI- Price

The main task of the warehouse manager is to organize efficient work, which will ensure fast processing of orders since all shipments must be carried out on time.

Automation of warehouse processes, for example, the use of EDI can significantly improve the quality and speed of shipment of goods.

Workflow to Exchange Warehouse Shipping Advice (EDI 945)

Let’s take a closer look at the process of shipment of goods from a third-party warehouse and analyze what other EDI documents are involved in the logistics process. Of course, keep in mind that the process below may reflect only one of the possible options. Each company can establish its own business process with a third-party warehouse, which depends on the type of the company’s activity, type of product, etc.

In the figure below you can see that usually the process in which EDI 945 is involved consists of at least three participants:

– Customer (it could be a retail outlet)

– Supplier (who is a client of the 3PL warehouse, or a depositor)

– 3PL Warehouse / or 3 PL logistics company.

1. The business flow begins with a Purchase Order – EDI 850 which is sent by the customer to the supplier.

2. The supplier responds to the customer with the EDI 855 PO Acknowledgement

3. The supplier sends the Warehouse Shipping Order (EDI 940) to the 3 PL warehouse

4. 3PL Warehouse process a Shipping Order and sends the goods to the supplier’s customer by the address specified in EDI 940.

5. Immediately after dispatch, the warehouse transfers the EDI 945 to the supplier.

6. Based on EDI 945, the supplier generates an Advance Ship Notice (EDI 856) and transfers it to his client.

7. The supplier sends the customer an EDI invoice 810

So, as you saw from the EDI workflow, 945 Warehouse Shipping Advice – is the main document, which confirms the fact of shipment of goods. It is used by many companies operating in wholesale and retail, including online stores.

Useful Reading: EDI Integration for Transportation and Logistics

What information does EDI 945 contain?

EDI document Warehouse Shipping Advice contains accurate and detailed information about the item shipped from the warehouse. Thus, EDI 945 includes the following information:

  • Information about the depositor, warehouse, and place of delivery (addresses, contacts).
  • Details of the carrier and the method of delivery of the goods.
  • Information about the product – cost, product name, SKUs, etc.
  • The number of goods shipped.
  • Complete order detail of the original order (EDI 940)
  • Date and time of shipment from the warehouse.
  • Transportation method

EDI 945 Warehouse Shipping Advice Structure

Like any other EDI document, EDI 945 transaction set has a precise structure and sequence of elements.

  • ISA – Interchange Control Header
  • GS – Functional Group Header
  • ST – Transaction Set Header
  • W06 – Warehouse Shipment Identification (numbers, dates, and other basic data)
  • 0100 – Loop Name (to identify a party by type of organization, name, and code)
  • N1 – Name
  • N9 – Reference Identification
  • G62 – Date/Time
  • W27 – Carrier Detail
  • W10 – Warehouse Additional Carrier Information
  • 0300 – Loop Assigned Number
  • LX – Assigned Number
  • MAN – Marks and Numbers
  • PAL – Pallet Information
  • 0310 – Loop Warehouse Item Detail
  • W12 – Warehouse Item Detail
  • N9 – Reference Identification
  • W03 – Total Shipment Information
  • SE – Transaction Set Trailer 
  • GE – Functional Group Trailer
  • IEA – Interchange Control Trailer

Benefits of using EDI 945 in Warehouses/ 3PL warehouses and Logistics

The use of EDI 945 in a 3 PL warehouses or 3 PL logistics company, allows you to get significant competitive advantages due to:

  • increasing the speed and accuracy of logistics operations;
  • reducing the cost of manual processing of documents;
  • reducing the risks of losses and information inaccuracies;
  • Increasing the speed of order processing due to receiving timely, fast, and accurate information.

Thus, automation of warehouse processes through the use of EDI document such as EDI 945, significantly improves the quality of 3PL warehouse processes.

Automate Warehouse Shipping Advice with EDI2XML Web Service

We have a ready-made EDI solution for the exchange of electronic documents in the X12 and EDIFACT standards. It is a unique HTTP service running over the internet that is capable of receiving HTTP requests to translate EDI messages to XML, and XML to EDI.

Try all the possibilities of the EDI2XML Web Service for free. We offer a 15 days free trial.

Contact us for a free consultation and find out how within an hour you can start exchanging electronic documents such as EDI 945 and many others with your trading partner.

EDI in transportation and 3PL

You may also be interested in reading about:
– Electronic Data Interchange (EDI) in the Supply Chain
– How EDI can speed the receiving of goods in a warehouse
– EDI for Third-Party Logistics providers (3PL)
– DELFOR, DELJIT, DESADV – key EDI messages in supply chain management for manufacturing

 

EDI Integration for Transportation and Logistics

Electronic Data Interchange (EDI) Integration for Transportation and Logistics

Electronic data interchange (EDI) is the exchange of commercial and financial electronic documents between business partners. There are several EDI standards used in transportation and logistics:

– EDI X12 standard used in the United States and Canada.

– EDIFACT – mainly used in Europe and international transportation.

Useful Reading: What Are the Differences Between ANSI X12 and UN/EDIFACT

The exchange of EDI documents between business partners simplifies and speeds up business processes. That is why, in logistics, regardless of the mode of transportation, motor, marine, or rail transportation EDI is used as a fast, economical, and safe method of transferring important business information related to the transportation of goods.

How is EDI used in transportation?

Electronic Data Interchange (EDI) is widely used in transportation and logistics to automate communication and data exchange between different parties involved in the transportation process, such as shippers, carriers, and third-party logistics providers (3PLs).

In transportation, EDI is used for various tasks such as:

Shipment tracking and status updates: EDI messages can be used to provide real-time information about the status of shipments, such as pickup and delivery times, estimated time of arrival (ETA), and any delays or issues.

Shipping documentation: EDI can be used to exchange shipping documents such as bills of lading, packing lists, and customs declarations, which helps to reduce errors and streamline the shipping process.

Freight invoicing and payment: EDI messages can be used to exchange billing and payment information between shippers, carriers, and 3PLs, reducing the need for manual data entry and minimizing the risk of errors and disputes.

Capacity planning and optimization: EDI can be used to exchange information about available capacity, shipment volumes, and transportation rates, enabling carriers and shippers to plan their operations more efficiently and make more informed decisions.

What are the most important EDI documents used in transportation?

In addition to common EDI transactions such as orders or invoices, each industry uses its specific EDI documents. Electronic Data Interchange in logistics ensures the operational interaction between business partners (buyers, suppliers, 3PL warehouses, forwarders, etc.) at all stages of the delivery, and improves the management of complex business processes. Thus, in transportation, the following types of EDI documents are most commonly used:

EDI 204 – Motor Carrier Load Tender: This EDI document is typically sent from the shipper (retailer, manufacturer, or a distribution center) to the transportation provider to request pickup of the shipment.

EDI 990 – Response to the Load Tender: used by the transportation provider to inform acceptance or rejection of the shipment order.

EDI 214 Transportation Carrier Shipment Status Message: delivery status message sent by the transportation company to the shipper (retailer, manufacturer, or a distribution center) to give an update on the status of delivery.

EDI 210 Motor Carrier Freight Details and Invoice: Submits by transportation provider to the shipper after delivery. This EDI transaction contains full information about the cost of services provided by the transportation provider and is used as an invoice for a payment request.

EDI 212 Motor Carrier Delivery Trailer Manifest – send by a transportation company to consignees to inform about the contents of a trailer containing multiple loads.

EDI 856 Advanced Ship Notice (ASN): sent by transportation provider or warehouse / supplier to the consignee immediately upon closing the truck, to inform about all pertinent data relative to the shipment.

EDI 997 – Functional Acknowledgement: used by both parties t to confirm they received the transaction set.

Complete list of EDI transportation codes

Below is a complete list of EDI X12 transactions sets used in the transportation industry. The EDI transactions listed below are maintained by the X12I subcommittee under the X12 Accredited Standards Committee.
  • EDI 104 Air Shipment Information
  • EDI 106 Motor Carrier Rate Proposal
  • EDI 107 Request for Motor Carrier Rate Proposal
  • EDI 108 Response to a Motor Carrier Rate Proposal
  • EDI 109 Vessel Content Details
  • EDI 110 Air Freight Details and Invoice
  • EDI 120 Vehicle Shipping Order
  • EDI 121 Vehicle Service
  • EDI 125 Multilevel Railcar Load Details
  • EDI 126 Vehicle Application Advice
  • EDI 127 Vehicle Baying Order
  • EDI 128 Dealer Information
  • EDI 129 Vehicle Carrier Rate Update
  • EDI 160 Transportation Automatic Equipment Identification
  • EDI 161 Train Sheet
  • EDI 163 Transportation Appointment Schedule Information
  • EDI 204 Motor Carrier Load Tender
  • EDI 210 Motor Carrier Freight Details and Invoice
  • EDI 211 Motor Carrier Bill of Lading
  • EDI 212 Motor Carrier Delivery Trailer Manifest
  • EDI 213 Motor Carrier Shipment Status Inquiry
  • EDI 214 Transportation Carrier Shipment Status Message
  • EDI 215 Motor Carrier Pickup Manifest
  • EDI 216 Motor Carrier Shipment Pickup Notification
  • EDI 217 Motor Carrier Loading and Route Guide
  • EDI 219 Logistics Service Request
  • EDI 220 Logistics Service Response
  • EDI 222 Cartage Work Assignment
  • EDI 223 Consolidators Freight Bill and Invoice
  • EDI 224 Motor Carrier Summary Freight Bill Manifest
  • EDI 225 Response to a Cartage Work Assignment
  • EDI 227 Trailer Usage Report
  • EDI 228 Equipment Inspection Report
  • EDI 240 Motor Carrier Package Status
  • EDI 250 Purchase Order Shipment Management Document
  • EDI 284 Commercial Vehicle Safety Reports
  • EDI 285 Commercial Vehicle Safety and Credentials Information Exchange
  • EDI 286 Commercial Vehicle Credentials
  • EDI 300 Reservation (Booking Request) (Ocean)
  • EDI 301 Confirmation (Ocean)
  • EDI 303 Booking Cancellation (Ocean)
  • EDI 304 Shipping Instructions
  • EDI 309 Customs Manifest
  • EDI 310 Freight Receipt and Invoice (Ocean)
  • EDI 311 Canada Customs Information
  • EDI 312 Arrival Notice (Ocean)
  • EDI 313 Shipment Status Inquiry (Ocean)
  • EDI 315 Status Details (Ocean)
  • EDI 317 Delivery/Pickup Order
  • EDI 319 Terminal Information
  • EDI 322 Terminal Operations and Intermodal Ramp Activity
  • EDI 323 Vessel Schedule and Itinerary (Ocean)
  • EDI 324 Vessel Stow Plan (Ocean)
  • EDI 325 Consolidation of Goods In Container
  • EDI 326 Consignment Summary List
  • EDI 350 Customs Status Information
  • EDI 352 Customs Carrier General Order Status
  • EDI 353 Customs Events Advisory Details
  • EDI 354 Customs Automated Manifest Archive Status
  • EDI 355 Customs Acceptance/Rejection
  • EDI 356 Customs Permit to Transfer Request
  • EDI 357 Customs In-Bond Information
  • EDI 358 Customs Consist Information
  • EDI 359 Customs Customer Profile Management
  • EDI 361 Carrier Interchange Agreement (Ocean)
  • EDI 404 Rail Carrier Shipment Information
  • EDI 410 Rail Carrier Freight Details and Invoice
  • EDI 412 Trailer or Container Repair Billing
  • EDI 414 Rail Carhire Settlements
  • EDI 417 Rail Carrier Waybill Interchange
  • EDI 418 Rail Advance Interchange Consist
  • EDI 419 Advance Car Disposition
  • EDI 420 Car Handling Information
  • EDI 421 Estimated Time of Arrival and Car Scheduling
  • EDI 422 Equipment Order
  • EDI 423 Rail Industrial Switch List
  • EDI 424 Rail Carrier Services Settlement
  • EDI 425 Rail Waybill Request
  • EDI 426 Rail Revenue Waybill
  • EDI 429 Railroad Retirement Activity
  • EDI 431 Railroad Station Master File
  • EDI 432 Rail Car Hire Rate Negotiation
  • EDI 433 Railroad Reciprocal Switch File
  • EDI 434 Railroad Mark Register Update Activity
  • EDI 435 Standard Transportation Commodity Code Master
  • EDI 436 Locomotive Information
  • EDI 437 Railroad Junctions and Interchanges Activity
  • EDI 440 Shipment Weights
  • EDI 451 Railroad Event Report
  • EDI 452 Railroad Problem Log Inquiry or Advice
  • EDI 453 Railroad Service Commitment Advice
  • EDI 455 Railroad Parameter Trace Registration
  • EDI 456 Railroad Equipment Inquiry or Advice
  • EDI 460 Railroad Price Distribution Request or Response
  • EDI 463 Rail Rate Reply
  • EDI 466 Rate Request
  • EDI 468 Rate Docket Journal Log
  • EDI 470 Railroad Clearance
  • EDI 475 Rail Route File Maintenance
  • EDI 485 Ratemaking Action
  • EDI 486 Rate Docket Expiration
  • EDI 490 Rate Group Definition
  • EDI 492 Miscellaneous Rates
  • EDI 494 Rail Scale Rates
  • EDI 601 Customs Export Shipment Information
  • EDI 603 Transportation Equipment Registration
  • EDI 715 Intermodal Group Loading Plan
  • EDI 854 Shipment Delivery Discrepancy Information
  • EDI 858 Shipment Information
  • EDI 859 Freight Invoice
  • EDI 920 Loss or Damage Claim – General Commodities
  • EDI 924 Loss or Damage Claim – Motor Vehicle
  • EDI 925 Claim Tracer
  • EDI 926 Claim Status Report and Tracer Reply
  • EDI 928 Automotive Inspection Detail
  • EDI 980 Functional Group Totals
  • EDI 990 Response to a Load Tender
  • EDI 998 Set Cancellation

The Benefit of Using EDI in Transportation

The exchange of information between business partners (orders, invoices, etc.) on paper or by e-mail requires manual input of information into the ERP, CRM, accounting, or other corporate back-office application of the company. The use of EDI allows companies to avoid manual input – all transactions are performed automatically, without delays or inaccuracies.

EDI for transportation

The use of EDI in transportation allows:
  • to optimize the entire supply chain, namely the processes of management, planning, and control of transportation;
  • to increase the speed and efficiency of data processing and improve accuracy;
  • the manufacturer to promptly respond to the buyer’s requests;
  • transport companies to make delivery on time;
  • wholesale suppliers to improve the efficiency of logistics and procurement and optimally manage their inventory;
  • to reduce transportation costs;
  • improve accuracy and avoid manual input of information.

Thus, the use of EDI increases the speed and accuracy of data and allows companies to concentrate on important business tasks, and not on routine issues of processing and sending documents.

EDI integration in Logistics: Fully Managed EDI Service vs EDI Web Service (API)

Companies implementing EDI can be divided into two groups:

– EDI Initiator company

– Companies involved in the EDI process

Fully Managed EDI Service for EDI Initiator Company

Initiator – a company that realized the great potential of using EDI and decided to implement EDI in operations with its business partners. These are usually large market players who have been using EDI for many years.

Usually, these companies have many business partners and a huge monthly document turnover. That is why they often choose a Fully Managed EDI Service.

However the situation has changed in recent years, more and more mid-sized companies operating in the transportation industry are realizing the benefits of using EDI and are actively integrating Electronic Data Interchange to exchange critical important documents with their business partners.

This is why, we, at EDI2XML offer a Fully Managed EDI service that can fit any size company.

Our EDI2XML integration platform, deployed in our private cloud, runs 24/7/365 and handles all EDI file conversion and transformation between business partners, so customers do not need to install software or hardware onsite.
Fully managed EDI Service

We, as an integration and EDI provider, are responsible for all stages of the integration: from project planning to the development of the file format requested by the client (Json, XML, TXT, CSV), as well as testing and certification with your business partner.

Our “fully managed” EDI service solution has a dynamic monthly price that increases or decreases depending on the volume of data transferred.

This allows us to meet the needs of even small companies with a small volume of transferred documents.

EDI Web Service for Companies involved in the EDI process

Involved companies– organizations that are forced to implement EDI at the request of the initiating company to start a partnership and conclude a contract or when a business partner specifies the use of EDI as a pre-requisite or condition for further business collaboration.

In involved companies, the decision to implement EDI is made at the initiative of a third-party company. However, this requirement does not necessarily imply a large investment for EDI integration.

For companies that find themselves in a situation where a business partner requires a quick connection to EDI, we offer our unique solution EDI Web Service.

EDI2XML web service is our REST API to convert and transform X12 to XML and vice versa. The API web service is very low-cost relative to the Fully managed EDI Service and designed for companies who got their own technical resources to work with REST API (call and consume HTTP Rest Web services). Definitive benefits of EDI Web Service is a low cost per KC, no contract, no commitment, and especially quick entry: you can be up and running in less than an hour, and it is proven; we provide everything to your developers to get started, a java client with its source code and instructions on how to work with.

Choose the best EDI provider for the logistics and transportation industry

In modern logistics, the requirements for carriers are very high and the use of EDI helps them keep the bar high.

We, as a successful EDI provider, have been helping our customers for 21 years quickly, reliably connect to EDI and integrate it into business systems.

Contact us for a free consultation and we will help you choose the most suitable EDI solution for your business.

You may also be interested in reading about:

EDI Integration for B2B Exchange to Optimize and Grow your Business

What is B2B EDI? 

B2B (Business-to-Business) Integration, also known as Electronic Data Interchange EDI, is the process of exchanging business documents electronically either internally or amongst external business partners.

Electronic data interchange (EDI) has become a standard data exchange practice in modern business. EDI allows companies to automate their business processes leading to greater efficiency. Automated data exchange allows to avoid errors, reduce order processing time, and achieve accuracy.

What is meant by EDI?

EDI (Electronic Data Interchange) is the process of exchanging documents electronically through secure communication channels from one software information system to another. In other words, from one business partner to another.

In a fully automated process, the exchange of electronic documents (for example, receiving and processing orders), can take place at the application level, without the direct involvement and participation of employees.

Who typically uses EDI?

EDI standard and connected technologies are used in a B2B data exchange protocol, of any type of businesses in different industries. These can be large, medium, or small enterprises operating in retail, manufacturing, healthcare, pharmaceutical, or any other industry. EDI is also used in international trade such as air, sea, and road transportation. Not surprising, to see customs in most of the countries using EDI heavily in their cross-border operations.

Experience shows that large retailers such as Walmart, Costco, Kroger, Home Depot, Target, etc. are always the initiators of electronic data exchange. Moreover, almost all retailers, having evaluated the advantages of using EDI, force their suppliers to exchange documents only through EDI.

EDI Integration with Business Systems (ERP/CRM)

EDI integration allows to automate the creation, sending, receiving, and processing of any business documents in electronic format with a trading partner, existing backend business systems, or applications, to provide a greater level of efficiency and complete automation.

With over 21 years of experience in EDI and the integration marketplace, our company EDI2XML has a proven experience in integrating EDI, with the most frequently used systems:

EDI Integrations and eCommerce Businesses  

EDI is also becoming a vital element of the e-commerce business; we are receiving more and more requests for e-commerce integration with EDI.

Especially, requests for connecting online stores running on one of the major e-commerce platforms. The most frequent EDI e-commerce integration are:

  • Shopify EDI Integration
  • Magento EDI Integration
  • BigCommerce EDI Integration
  • Amazon Vendor Central EDI integration
  • Amazon Seller Central EDI integration
  • Walmart EDI Integration
  • And much more…

This means that orders from an online store will be automatically converted into an EDI document (for example X12 EDI 850 Purchase Order) and pushed into a supplier’s business system. This is the most common scenario in an eCommerce dropship business.

However, it is worth mentioning the very common request for e-commerce integration with ERP / CRM systems. This means syncing data between business software systems (SAP, Salesforce, JDE, etc.) with your e-commerce store.

Fully Managed EDI Services to automate data exchange with business partners

Our company offers a fully managed EDI service that includes transformation and connectivity services for companies of all sizes.

Our customers do not need to install any software or hardware because all EDI file conversions and transformations, are done from our side. We carry out all stages of an integration project from project planning to testing with the trading partner.

Our integration platform receives EDI files (for example x12 or EDIFACT) from the trading partner, then converts them into the required format (i.e. XML, CSV, TXT) and sends them to you (see the picture below).

Fully managed EDI Service

EDI2XML platform will sit in  the middle between you and your trading partner to convert, send and collect all EDI documents.

Request Fully Managed EDI Service Pricing Plans HERE for more information.

Benefits of using EDI for B2B exchange

Currently, using the latest technologies, EDI implementation is not so expensive (as many business leaders might think), but the benefits of EDI integration allow companies to significantly speed up document flow and increase sales. Besides, EDI has many advantages, namely:

  • EDI enables companies to optimize all processes in the enterprise, from planning to production management and control.
  • EDI allows increasing the speed and efficiency of data processing. Mandatory use of standards (for example X12 or EDIFACT) helps to avoid errors and improve accuracy.
  • EDI helps manufacturers to quickly respond to the requests of their wholesalers’ customers.
  • EDI document exchange allows retailers and wholesalers to improve the efficiency of logistics and procurement as well as improve inventory management. For example, using EDIFACT messages such as INVRPT, DELFOR, DELJIT, and DESADV allows reducing warehouse storage costs.
  • EDI integration allows companies to reduce the number of employees who enter data into the business system received on paper or by e-mail.
  • EDI increases the accuracy of information processing because as practice shows, errors are inevitable with manual data entry.

B2B / EDI Integration – find the best Solution

EDI2XML offers various EDI integration solutions.

Whether you are a buyer, supplier, manufacturer, retailer, 3PL Warehouses, or Logistics – using our advanced EDI technology, you can exchange data electronically with all your partners quickly, reliably, and efficiently.

We’ve got an EDI solution that really makes your day-to-day tasks easier and faster!

Contact us for a free consultation with our EDI experts.

EDI 820 Payment Order/Remittance Advice

What is EDI 820 Remittance Advice?
X12 EDI 820

EDI X12 820 Payment Order/Remittance Advice (or simply EDI 820), sometimes called as EDI payment, is an electronic document transmitted via EDI (Electronic Data Interchange) that business partners (seller, buyer, financial institution…) use to provide detailed payment information. Normally an EDI 820 transaction, is sent by the buyer to his supplier after issuing a payment against an EDI 810 Invoice sent by the supplier.

In North America, the Payment Order/Remittance Advice transaction set is transmitted in EDI X12 standard. The message code in EDIFACT standard for the Remittance advice message is REMADV.

REMADV is the analog of EDI 820; it has the same function and application in international business practice, mainly in Europe.

Usage of the EDI 820 Payment Order/Remittance Advice Transaction Set

Unlike typical EDI transactions exchange between two trading partners, banks and financial institutions are also involved in the exchange of EDI 820.  

Moreover, EDI 820 transaction set can be used for various purposes:

Simultaneously to make a payment and send remittance advice (sent through your bank to trading partner)

In this case, all Remittance Advice details and the Payment Order will be transferred to your financial institution (bank). The bank will then forward Remittance details to your trading partner and debit your account in favor of your trading partner.

To send remittance advice only (sent directly to your Trading Partner, payment is made independently)

If you use this option, you must make payment to your trading partner in separate transaction. This transaction must match the total amount specified in the EDI 820 detail transmission. Normally, the trading partner accepts payment details referencing invoice numbers only.

Remittance Advice can be sent directly from the payer to the recipient, through a financial institution, or a third-party agent.

To make an EDI payment (sent through your bank to trading partner)

In this case, the payment order will be transferred to the bank and the bank will forward the file to your trading partner and debit your account in favor of this trading partner. Thus, EDI 820 can act as an instruction for a financial institution to make a payment to the beneficiary.

It should be noted that usually trading partners also require the details to be sent in EDI format.

Some companies may still accept non-EDI remittance advice, however, data sent by email, fax, or paper will incur additional manual processing fees for each transaction.

What information is included in EDI 820

As mentioned above, Payment Order/Remittance Advice document contains all important information related to the financial transactions. The EDI 820 document contains the following basic information:
  • Payer / Beneficiary identification (name, address details)
  • Invoice number(s)
  • Bank and account information
  • Invoice adjustments (if applicable)
  • Payment amount
  • Currency
  • Payment/remittance date
  • Method of payment/funds movement
  • Credit /debit confirmation
  • Check /payment number

How to send and/or receive Remittance Advice (EDI 820)

There are several different ways to exchange an EDI 820 document. The main communication protocol to transfer EDI documents are:
  • Connection with VAN (Value Added Networks). VAN is the third party in the EDI exchange process that transmits and stores data in an electronic mailbox until it is received by one of the business partners.

Point-to-point EDI exchange:
  • FTP/SFTP – File Transfer Protocol/Secure File Transfer Protocol. These file transfer protocols allow trading partners to connect with each other via the Internet to exchange EDI documents.
  • AS2 – A secure way to exchange documents electronically over the Internet by using digital certificates and encryption of the EDI data.
  • HTTP (REST) where data is transferred using content type “multi-part/form data”

Each one of the above communication protocols,  has its advantages, however, each company must decide what best fits its policy, based on the requirements of its business partner or the business processes of the company.

To learn more about EDI Communication Protocols read our article: All about EDI: 11 Complete Answers about Electronic Data Interchange

EDI 820 Payment Order/Remittance Advice Segments and Data Elements

Payment Order/Remittance Advice like any other EDI document has a structure of segments and elements predefined by the X12 standard. Some of them are mandatory, some are optional. It all depends on how this EDI 820 document will be used and the specifications requested by the trading partner.

The structure of EDI 820 could be as follow:

ISA – Interchange Control Set Header (Mandatory)

GS – Functional Group Header (Mandatory)

ST – Transaction Set Header (Mandatory)

BPR – Beginning Segment for Payment Order / Remittance Advice (Mandatory)

TRN – Trace (Mandatory)

CUR – Currency (Mandatory)

REF – Reference Numbers (Mandatory)

DTM – Date / Time Reference (Optional)

N1 – Name (Mandatory)

N3 – Address Information (Optional)

N4 – Geographic Location (Optional)

PER – Administrative Communication Contact (Optional)

ENT – Entity (Optional)

RMR – Remittance Advice Accounts Receivable Open Item Reference (Mandatory)

REF – Reference Numbers (Optional)

DTM – Date / Time Reference (Optional)

ADX – Adjustment (Optional)

SE – Transaction Set Trailer (Mandatory)

GE – Functional Group Trailer (Mandatory)

IEA – Interchange Control Trailer (Mandatory)

Integrate EDI 820 Payment Order/Remittance Advice with EDI2XML EDI Service

With over 21 years of experience in EDI integration, we offer our clients the most advanced and cost-effective EDI service.

You can start exchanging EDI 820 Remittance Advice within an hour using our EDI Web Service. It is a cost-effective, no-contract, and fast EDI solution that does not require special technical knowledge. In addition, we offer a free 15 days trial period. Find out more about our EDI web service here.

With our Fully Managed EDI Service, we take care of all:
  • EDI mapping
  • Trading Partner configuration
  • Standards maintenance
  • XML/CSV/TXT translation
  • Send & receive EDI documents, to and from Trading Partners or to and from the customer
  • Drop off & pick up Json/XML/CSV/TXT files to and from the customer.
  • Integration with ERP application with certified connectors (when required option)

Request our EDI2XML fully managed EDI service Pricing Packages here, or contact us for a free consultation with our EDI expert.