EDI 855- Purchase Order Acknowledgement
The EDI 855 Purchase Order Acknowledgement is a type of electronic data interchange transaction set that is normally sent by a seller to a buyer in response to an EDI 850 Purchase Order.
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 855
A EDI 855 Purchase Order Acknowledgement is a type of electronic data interchange transaction set that is normally sent by a seller to a buyer in response to an EDI 850 Purchase Order. included in the confirmation the document will tell the buyer if the purchase order was accepted, rejected or requires changes. EDI 855 is often required by large retailers and distributors and may need to be sent in a specified timeframe or at particular step in your order processing workflow to ensure EDI compliance.
This electronic document complies with the ANSI X12 EDI specification.
Benefits of EDI 855
All EDI documents are securely encrypted in transit, allowing trading partners to send sensitive data such as pricing and contact information safely. Sending an EDI 855 eliminates the human interaction to confirm orders with customers by email, fax or phone. Additionally, the automated nature of EDI 855 helps reduce errors associated with manual retyping and the number of customer service touchpoints.
For buyers, an EDI 855 can quickly alert them to any order issues, preventing any later issues with supply, invoicing, and payments.
How is an EDI 855 Used?
Using Purchase Order Acknowledgment the seller informs the buyer whether the purchase order was accepted, rejected, or accepted with changes (it means that changes were made to the accepted EDI 850 Order)
It is sometimes mistakenly believed that EDI 997 (Functional Acknowledgment) can replace EDI 855. These two EDI messages should not be confused, as they have completely different functions.
EDI 997 is just a notification that Purchase Order (EDI 850) has been delivered and does not contain any validation to the Order.
EDI 855 PO Acknowledgement Segments
EDI 855 Purchase Order Acknowledgement Segments
Confirms receipt of a Purchase Order (EDI 850) and replies with:
- The seller’s intention to fulfill the entire order without changes or the refusal to fulfill the order
- Informs errors and inaccuracies (for example wrong prices, incorrect product numbers, etc.)
- Informs about change in the PO such as:
Delivery date changes
Backordered or cancelled quantities
Inaccurate product identifiers
Price discrepancies
Inventory out-of-stocks
Discontinued items
EDI 855 PO Acknowledgement Specifications
The EDI 855 X12 Transaction set is used to acknowledge an 850 PO 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 855 Purchase Order Acknowledgement 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*00* *00* *ZZ*111111111 *01*ABCDEFGHI *150129*2215*U*00401*000122406*0*P*>
GS*FA*111111111*ABCDEFGHI*20120914*1900*1039*X*004010VICS
ST*855*0005
BAK*16*AP*1234567*20050102
DTM*068*20050203
N1*SF*XYZ MANUFACTURING CO*01*987654321
N1*ST*KOHLS DEPARTMENT STORES*92*0085
PO1*000001*3*EA***UP*123456789012*VA*BLU89Z012*CM*123*SM*12345
PO1*000002*5*EA***UP*123456798123*VA*BLK98A023*CM*321*SM*12345
PO1*000003*1*EA***UP*999988888001*VA*981RACK
CTT*3
SE*10*0005
GE*1*1039
IEA*1*000122406
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
