How Does the EDI 816 Organizational Relationships work?
EDI 816 – Earlier, every business, irrespective of its size, used to encounter great difficulty in establishing seamless communication between two working locations. This is also used to be true in case of setting up direct contact with its trading partners. With the advancement in EDI, this communication establishment became easier with the help of many EDI transaction codes.
Some of these codes are highly-advanced and effectively deal with the complex data exchanging aspects such as privacy and location. The EDI 816 Organizational Relationships transaction code is one of them. Now, let’s try to get more information on this transaction code.
What is EDI 816 Transaction code?
A typical EDI 816 transaction contains two formats. The first format is utilized to provide location addresses. Further, the second format is used for communication between the locations. For instance, stores, distribution centers, storerooms, warehouses, and many others.
Most of the common transaction codes do not include location info in detail to reduce complexity and cost. These documents simply assign unique codes to different locations for processing the documents. The EDI 850 Purchase Orders and EDI 810 Invoices are the best examples of this. On the other hand, the EDI 816 transaction offers the complete address of the sender’s location along with the transaction code. Not only that, but it also gives information on the eligibility of each location to buy under the pre-defined terms.
It may be useful for
- Production industries with multiple locations for manufacturing, storage, distribution, etc.
- Hospitals and health centers.
- Stores and regional distribution centers.
- Regional suppliers.
How is this code used?
It is transacted by the trader to the retailer or supplier to remove the need of sending a separate address for any purchases. After this code is received, 997 functional acknowledgment is sent to indicate that the order was successfully received.
How is this code processed?
It is also processed in the same way as the other transaction codes are processed. When the EDI document is received, it should be translated into a human-readable format for easier understanding. During the entire EDI process, all the guidelines linked with specific data segments, data elements, and data values should be taken into account.
Key elements present in the 816 EDI document
- An original or edited data identifier: It is used to identify the original and edited data
- Deletion codes: It is used to represent the data that needs to be deleted
- Location codes: It consists of the location of senders and respective codes
Benefits of 816 transaction code
- Time taken by the businesses to complete any transaction or delivery is less which results in good operating efficiency
- Reduction in the usage of paper resulting in favor of the environment conservation
- Elimination of the detailed information associated with different locations
- Increased delivery speed
Common issues regarding EDI 816 transaction codes
- Incorrect data exchange between seller and carrier
- Frequent occurrence of typo- error
- Incorrect entering of the delivery address
Overall this transaction code is very helpful in communicating the locational details between the sender and the receiver without any trouble. However, its functionality can be optimized further by the usage of MapMyEdi solution. It offers EDI tracking, EDI error handling, EDI mapping, and many more features. For more information call at 1-423-896-1025 and connect our EDI Integration Specialist