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

View the full list of EDI 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 the 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.

Reduced Manual Effort

Improve Cash Flow

Eliminate Errors

No delays between your customer sending an order and you receiving it

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:

EDI 850 Purchase Order 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

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Looking for more? We got you!

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

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

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

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!