EDI 820 - Payment Order Remittance Advice

An EDI 820 Payment Order Remittance Advice is a type of electronic data interchange transaction set, which is used to transfer payment data between buyers and sellers. Usually, an EDI 820 is sent jointly with the payment itself via electronic funds transfer.
EDI-x12 transaction codes

View the full list of EDI X12 documents and transactions

What is EDI 820?

An EDI 820 is a type of electronic data interchange transaction set, which is used to transfer payment data between buyers and sellers. Most often, the EDI 820 is issued by a buyer after the receipt of an EDI 810 Invoice or an EDI 850 Purchase Order to communicate payment information. Usually, an EDI 820 is sent jointly with the payment itself via electronic funds transfer. This electronic document complies with the ANSI X12 EDI specification.

After receiving the EDI 820, the buying trading partner generates a 997 Functional Acknowledgement to send back confirming the successful reception of the EDI 820 transaction. 

Benefits of the EDI 820

All EDI documents are securely encrypted in transit, allowing trading partners to send sensitive data such as pricing and contact information safely. Benefits automating the EDI 820 reduces the workload of employees and eliminates errors from human manual data entry therefore saving money. For sellers, automation enables a business to oversee accounting through exceptions. 

How is an EDI 820 Used?

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. 

EDI 820 Payment Order / Order Remittance Advice Segments

    • The EDI 820 contains information on payment information, including:

      • Buyer and seller identification, including business names and addresses
      • Invoice or purchase order numbers
      • Bank and account ID
      • Amount billed or paid amounts, including adjustments
      • Payment tracking information

EDI 820 Specifications

This X12 Transaction Set contains the format and establishes the data contents of the Payment Order/Remittance Advice Transaction Set (820) for use within the context of an Electronic Data Interchange (EDI) environment. The transaction set can be used to make a payment, send remittance advice, or make a payment and send remittance advice.

This transaction set can be an order to a financial institution to make a payment to a payee. It can also be remittance advice identifying the detail needed to perform cash application to the payee’s accounts receivable system. The remittance advice can go directly from payer to payee, through a financial institution, or through a third-party agent.

ANSI ASC X12

The American National Standards Institute (ANSI) chartered the Accredited Standards Committee (ASC) X12 to develop uniform standards for inter-industry electronic exchange of business transactions, namely electronic data interchange. ASC X12 also contributes to UN/EDIFACT messages that are used widely outside of the United States. Accredited Standards Committee X12. ASC X12 Standard httpss://x12.org/index.php/products/transaction-sets

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We got the goods to help you utilize your EDI services effectively. We encourage you to explore our available resources below

Commport EDI Buyers Guide

Full List of EDI ANSI X12 Documents and Transactions

Read the full list of EDI x12 Documents and Transactions. PDF version available for download!
The Complete EDI Guide

The Complete EDI Guide

Dive into this complete guide to all things EDI. From the history to EDI to the costs of doing EDI, this guide covers it all! Dive in
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Getting Started with EDI

EDI can make life so much easier for businesses that need to pile through hundreds of pages of reports, invoices and data. Sounds great—but what does your business need to get started with EDI? Find out where to start!