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

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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.


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

Frequently Asked Questions

EDI 820 is an Electronic Data Interchange (EDI) document known as the Payment Order/Remittance Advice. It is used by a buyer to instruct a financial institution to make a payment to a supplier, as well as to provide remittance information explaining the payment details, such as which invoices are being paid.

An EDI 820 document includes details such as the payer’s and payee’s identification, payment amount, payment method, and remittance information. The remittance details typically list the invoices being paid, the amounts applied to each invoice, any deductions or adjustments, and other related information.

EDI 820 benefits businesses by automating and streamlining the payment process. It reduces manual processing errors, ensures timely payments, and provides clear remittance information, which helps suppliers match payments with outstanding invoices. This improves cash flow management, enhances financial reconciliation, and strengthens buyer-supplier relationships.

EDI 820 is transmitted between trading partners using standard EDI communication protocols such as AS2, FTP, or VAN (Value Added Network). These protocols ensure secure and reliable transfer of data, maintaining the accuracy and confidentiality of the payment information exchanged.

EDI 820 is commonly used across a wide range of industries, including retail, manufacturing, healthcare, automotive, and wholesale distribution. Any industry that involves frequent financial transactions and payments between trading partners can benefit from using EDI 820 to streamline their payment processes and improve financial management.

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Full List of EDI ANSI X12 Documents and Transactions

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