Typically the EDI 820 documents are to confirm payment details to the seller used in conjunction with a payment. However, an EDI 820 document can also be used to advise the seller of important adjustments to the invoice, which may change the total payment amount. It can also provide information on previous payments to the same invoice.
An EDI 820 can be triggered automatically by the receipt of an EDI 810 or 850 or buyers can also choose to send an EDI 820 document in response to an invoice of any format.
After an EDI 820 is received by the seller, the seller’s EDI solution generates an EDI 997 Functional Acknowledgement, which is sent back to the buyer to confirm receipt.