What are Grocery Store EDI Transaction Codes and how do they work?

Grocery stores deal with a lot of business data, such as orders, invoices, and shipping details. Entering all this information manually can be slow and lead to mistakes. That’s why many grocery stores use electronic data interchange to automate the process of sharing documents. EDI systems makes data exchange easier and faster to process transactions and helps stores fulfill orders more quickly and work more efficiently.

EDI systems uses specific transaction codes to represent different types of business documents. Each code corresponds to a particular step in the process, from ordering products to confirming delivery. This guide explains why EDI codes are important and describes the most commonly used grocery store codes and the details they include.

What are EDI Transaction Codes?

EDI transactions are electronic data interchange (EDI) codes that are used by business partners to send and receive business information. Instead of using paper or email, businesses send these documents directly between their computer systems using standardized formats.

For example, when a company orders products from a supplier, they send an EDI 850 Purchase Order, and when the supplier invoices them, they send an EDI 810 Invoice.

Grocery Store EDI Codes

As a grocery retailer, you’ll often use certain EDI codes. Here are some of the most common grocery store EDI codes and their components:

EDI 875 (Grocery Products Purchase Order)

EDI 875 is sent to a supplier (such as a wholesaler or manufacturer) when you need to order products to stock your shelves. The supplier reviews the order and responds with an EDI 855 Purchase Order Acknowledgment to confirm if they can fulfill it. If items are unavailable or quantities need adjustment, they may propose changes or reject the order.

The EDI 875 is typically the first EDI document sent in the ordering process and is specific to grocery products. It’s simpler than the EDI 850, which is used for more general or technical product orders. The EDI 875 provides all the important details the supplier needs to process the order correctly. The EDI 875 includes:

• The purchase order number
• Contact information for the buyer and supplier
• The order date
• Billing and shipping details
• Information about the products being ordered (e.g., SKUs or UPCs)
• Quantities, unit prices, and the total cost
• Special shipping instructions (like preferred carriers)
• The requested delivery date
• The payment terms

EDI 876 (Grocery Products Purchase Order Change)

EDI 876 is used by grocery stores to update a previously sent purchase order. If a store realizes it needs more or fewer items than originally ordered, or wants to remove an item entirely, it sends an EDI 876 to the supplier. The supplier then confirms the changes by sending an EDI 997 Functional Acknowledgment.

For example, if a store notices an item is selling faster than expected, it can quickly send an EDI 876 to request additional quantities. Similarly, if a product is no longer needed, the store can use the EDI 876 to remove it from the order by setting the quantity to zero. It’s best to send these updates early so the supplier has time to adjust.

The EDI 876 includes:

• The original purchase order number for reference
• Contact information for the buyer (grocery store) and supplier
• The product identifiers for items being updated
• Updated quantities (reflecting the new amount, not the difference)
• Any changes to the total cost resulting from these updates

This document ensures suppliers know exactly what changes the grocery store needs, making the process faster and more efficient.

EDI 880 (Grocery Products Invoice)

EDI 880 is one of the most commonly used EDI codes in grocery stores. Suppliers, like food and beverage manufacturers, send this document to grocery stores after delivering products to bill them for the purchase. The grocery store then matches the EDI 880 to the related EDI 875 (Grocery Products Purchase Order) to verify the details and arrange payment.

This document helps both grocery stores and suppliers by making the invoicing and payment process faster and more accurate. Automating the EDI 880 reduces the need for manual data entry, saves time, and ensures that both parties have a clear record of the transaction in their accounting systems.

The EDI 880 contains key details about the sale, including:

• Information about the buyer and supplier
• Shipping and billing addresses
• Remit-to information (where payments should be sent)
• The quantities, descriptions, and prices of the delivered products
• The total amount due, including any discounts, extra charges, or adjustments
• Payment terms (when and how to pay)
• Any taxable amounts

This document ensures everything is properly tracked and simplifies invoice management, making payments smoother and more efficient.

EDI 882 (Direct-Store-Delivery Information)

EDI 882 is commonly used in the grocery industry. Suppliers, like manufacturers and wholesalers, send this document to confirm that a shipment has been delivered directly to a grocery store. The EDI 882 provides a summary of the delivery and notes any adjustments, like returned items or changes to the order.

This code is typically used when suppliers ship products straight to the store instead of to a warehouse. This method saves time, making it perfect for items like perishable foods that need to be stocked quickly. Once the grocery store receives an EDI 882, they usually send a response and might start payment processing right away.

The focus of EDI 882 is on the shipment as a whole, not the specifics of each item. It may mention the total payment due but isn’t an invoice. It typically includes:

• The supplier’s ID number
• Ship-to and from addresses
• A summary of the delivery
• Details about any returns or adjustments
• The total amount due and a payment request

Using EDI 882 and other EDI codes helps grocery stores and suppliers work together more efficiently by speeding up processes, reducing errors, and keeping deliveries and payments organized. It simplifies the grocery supply chain, ensuring stores stay stocked and suppliers get paid quickly.

To learn more about how Infocon Systems can take care of your EDI needs, please don’t hesitate to give us a call at +1 888-339-0722 or email sales@infoconn.com. We’d love to hear from you.