EDI 850 - Purchase Order
The EDI 850 is a type of electronic data interchange transaction set that contains details about an order. Also known as an electronic purchase order, an EDI 850 is usually sent to a vendor as the first step in the ordering process.
An EDI 850 generally provides the same information you would find in a paper Purchase Order (PO) document, including:
- Item, prices and quantities ordered
- Shipping details
- Payment terms
- Discounts
What is EDI
Electronic Data Interchange (EDI) is defined as the electronic communication process for exchanging data amongst trading partners without human intervention. Simply put, EDI provides a technical basis for commercial “conversations” between two entities, either internal or external.
EDI encompasses the entire electronic communication process including:
- Transmission
- Message Flow
- Document Format
- Software Used to Interpret Documents
Common EDI Transactions
- EDI 810 Invoice
- EDI 850 Purchase Order
- EDI 856 Ship Notice/Manifest
- 997 Functional Acknowledgment
Full List of EDI ANSI X12 Documents and Transactions
What is EDI 850
An EDI 850 also known as an electronic purchase order, is usually sent to a vendor as the first step in the ordering process. A buyer will use EDI purchase orders to order products to be shipped to a distribution center, a store or the end consumer. An EDI 850 can be used both for a single purchase, for recurring purchases, or to delete or amend an order as specified by the buyer. The 850 can contain a single ship-to location or multiple ship-to locations.
This electronic document complies with the ANSI X12 EDI specification.
Benefits of EDI 850
Even though a paper purchase order contains the same information, sending it electronically offers benefits for both buyers and sellers.
All EDI documents are securely encrypted in transit, allowing trading partners to send sensitive data such as pricing and contact information safely. Using an EDI 850 also helps to streamline order processing, so sellers can optimize their business operations, and buyers can receive their goods quickly.
How is an EDI 850 Used?
Traditionally the EDI 850 documents are sent from the buyer to the seller to commence an order. After receiving an EDI 850 purchase order, the vendor will confirm receipt of the document with an EDI 997 Functional Acknowledgement
Other EDI documents that can be exchanged in response to an EDI 850 can include:
- 855 - Purchase Order Acknowledgement.
- EDI 810 - Invoice
EDI 850 Purchase Order Segments
EDI 850 Invoice Segments
Instead of a paper based purchase order delivered via snail mail or fax the EDI 850 is the electronic version that contains:
- PO Number
- Order date
- Requested shipping and/or delivery date
- Vendor details ( name, address and/or contact details)
- Buyer details (name and delivery address)
- Buyer billing information
- Item identifiers, such as product SKUs or UPC’s
- Quantity and unit of measure of items ordered
- Price per unit, as well as the total price for the order
- Shipping terms, (shipping method, preferred carrier, and desired delivery date)
- Proposed payment terms
- Allowances and charges
EDI 850 Purchase Order Specifications
The EDI 850 X12 Transaction set is used to initiate an order in an industry-standard specified format.
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.
EDI 850 Purchase Order Transaction Sample
The example below shows the raw EDI data, which is then translated by your business system (ERP) to begin the fulfillment process.
ISA*01*0000000000*01*0000000000*ZZ*ABCABCABCABCABC*ZZ*98765432198*101127*1719*U*00400*000003438*0*P*>
GS*PO*ABCABCABCABCABC*98765432198*20101127*1719*1421*X*004010VICS
ST*850*000000010
BEG*00*SA*08292233294**20101127*610385385
REF*DP*038
REF*PS*R
ITD*14*3*2**45**46
DTM*002*20101214
PKG*F*68***PALLETIZE SHIPMENT
PKG*F*66***REGULAR
TD5*A*92*P3**SEE XYZ RETAIL ROUTING GUIDE
N1*ST*XYZ RETAIL*9*0003947268292
N3*31875 SOLON RD
N4*SOLON*OH*44139
PO1*1*120*EA*9.25*TE*CB*065322-117*PR*RO*VN*AB3542
PID*F****SMALL WIDGET
PO4*4*4*EA*PLT94**3*LR*15*CT
PO1*2*220*EA*13.79*TE*CB*066850-116*PR*RO*VN*RD5322
PID*F****MEDIUM WIDGET
PO4*2*2*EA
PO1*3*126*EA*10.99*TE*CB*060733-110*PR*RO*VN*XY5266
PID*F****LARGE WIDGET
PO4*6*1*EA*PLT94**3*LR*12*CT
PO1*4*76*EA*4.35*TE*CB*065308-116*PR*RO*VN*VX2332
PID*F****NANO WIDGET
PO4*4*4*EA*PLT94**6*LR*19*CT
PO1*5*72*EA*7.5*TE*CB*065374-118*PR*RO*VN*RV0524
PID*F****BLUE WIDGET
PO4*4*4*EA
PO1*6*696*EA*9.55*TE*CB*067504-118*PR*RO*VN*DX1875
PID*F****ORANGE WIDGET
PO4*6*6*EA*PLT94**3*LR*10*CT
CTT*6
AMT*1*13045.94
SE*33*000000010
GE*1*1421
IEA*1*000003438
Electronic Data Interchange (EDI) is defined as the electronic communication process for exchanging data amongst trading partners without human intervention. Simply put, EDI provides a technical basis for commercial “conversations” between two entities, either internal or external.
EDI encompasses the entire electronic communication process including:
- Transmission
- Message Flow
- Document Format
- Software Used to Interpret Documents
An Integrated EDI solution translates your inbound documents, like purchase orders, from your trading partners’ EDI files into a format that can be imported directly into your ERP, accounting or other business system.
When you’re ready to send out invoices, PO acknowledgments or other outbound documents, it takes the format exported from your system and translates it into the EDI formats required by your trading partners.
Commport’s Integrated EDI solution has no complicated or expensive software to install, and no need for you to be an EDI
expert or create your own mappings
The solution grows easily as your business grows and adding new customers is easy.
Translation is fast and reliable – so you can focus on your business
Key Features of Commport's Integrated EDI
- Documents flow into and out of your business system without any human interaction.
- Commport handles all of the ‘EDI’ work.
- No delays between your customer sending an order and you receiving it.
- Reduce manual effort
- Eliminate errors
- Improve cash flow
