What is an EDI Document?
A typical EDI document contains data elements, segments and envelopes that are formatted according to the rules of a specific EDI format.
When two business exchange an EDI documents – both companies must follow the same set of formatting rules – based on the EDI standard & version used in the exchange. EDI applies to documents such as purchase invoices, Purchase Order, EDI Payment Order/Remittance Advice, shipping notices and commission sales reports, as well as other important or classified information.
What are examples of EDI documents?
There are many EDI documents used in industry today such as invoices (EDI 810), purchase orders (EDI 850), purchase order acknowledgments (EDI 855), advance ship notice (EDI 856), Order Status Inquiry (EDI 869), and many more. Here are the six most common EDI transactions used today.
An invoice notifies a customer that order is complete and that you are ready to bill them. An EDI invoice typically contains product information, services rendered, payment type, and shipping information. Companies usually send this EDI document at the same time as shipping the products from customer.
A purchase order is used to place an order from a buyer to their supplier A purchase order has lots of information - including the items needed, prices, quantities ordered, shipping details, payment terms, and any relevant discounts.
The EDI Functional Acknowledgment serves as an electronic response between EDI transactions. For example, when a buyer sends a purchase order to their supplier – the supplier can then send an EDI 997 to either accept, accept with issues, or reject the purchase order. This document enables a high-level of transparency in the order fulfillment process.
The purchase order acknowledgement is used by sellers. When a seller receives a purchase order, an EDI 855 is sent back to the buyer acknowledging that the purchase order was successfully received. EDI Purchase Order Acknowledgment indicates the acceptance or rejection of order, changes in pricing or quantity, information about product availability, shipping details.
This EDI advance shipping notice informs the buyer that their order is being shipped to them An EDI 856 describe all the relevant information of a giving order: including the items shipped, descriptions quantities, packaging information, the estimated delivery date, carrier information, and tracking numbers.
The EDI Payment Order/Remittance Advice document is sent by the buyer after an EDI 810 (Invoice) is successfully received from the seller. This accompanies an invoice payment and close the lifecycle of an order. This EDI document includes the invoice number, total paid amounts, and banking information.
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EDI is easy with Infocon Systems. With over 30 years of experience, our EDI solutions have grown into the industry standard.