What is Electronic Data Interchange 850
There are plenty of purchases made in the world today. May it be personal purchase or purchases made for industries, it is always better to have a proper purchase order (PO) document. But how can this be done online? This can be done online with the help of EDI. The EDI offers a good platform for all the businesses in almost all the aspects. When it comes to Purchase Orders, EDI 850 transaction set is very useful.
What is EDI 850?
The Electronic Data Interchange 850 or EDI 850 is a transaction set of Purchase Orders. This is used for placing the orders, goods or services. EDI 850 document provides the information which you can find in any paper of Purchase Order (PO) document. This includes;
- Prices, Items and the quantities ordered
- Details of the shipment
- Terms of payments
EDI 850 transaction set is mostly used in response of purchase order (PO) as;
- EDI 997: to confirm the receipt for the usage of EDI 850.
- EDI 810: used to replace the traditional and old paper invoices.
- EDI 856: to provide description of each shipment and how all the items are packed
- EDI 855: sent in response to Electronic Data Interchange 850
- EDI 860: sent for the requisition of update to details on the original PO
EDI 850 Format
TD5*A*92*P3**SEE XYZ RETAIL ROUTING GUIDE
N3*31875 SOLON RD
The above format is the standard EDI 850 format.
EDI 850 specifications:
All the EDI transaction sets including EDI 850 are standard formats of X12 Transaction Set used in EDI. This EDI 850 transaction provides details of purchase orders for goods and services for customary and other established businesses and industries. EDI 850 document shouldn’t be used for conveying the changes made in purchase order. This also includes acknowledgement for purchase order information.
Electronic Data Interchange 850 provides a better understanding to the consumers when it comes to purchase order documents. Though EDI 850 comes with its own restrictions, the clarity and simple format offering will never create any confusion regarding PO with EDI.
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