EDI transaction codes, sometimes called transaction sets or T-sets, correspond to a specific type of electronic business document, such as an invoice or a purchase order. There are many different documents that you might exchange with your trading partners, and many more specialized transaction sets that are not used as commonly.
In this blog post, I will discuss the following most popular EDI transaction sets:
1. 846 – Inventory Inquiry/Advice
2. 997 – Functional Acknowledgement
3. 850 – Purchase Order
4. 856 – Advance Ship Notice
5. 810 – Invoice
The best way to understand these EDI documents is to observe how they interact with each other in the context of a business process. As an example, consider Walmart placing an order for printers and printer accessories with Hewlett Packard.
Step 1 – 846 – Inventory Inquiry/Advice
In order to find out about item availability, Walmart may first send HP the EDI 846 Inventory Inquiry/Advice.
The EDI 846 can be used in the following ways:
(1) to provide inventory information to a prospective buyer, with no obligation for the buyer to acquire these goods or services
(2) for a sales representative to supply inventory information to a prospective buyer
(3) for an inventory warehouse to supply another warehouse with inventory information
(4) to provide information about inventory availability to a prospective buyer with no obligation on the seller to reserve that inventory
Step 2 – 997 – Functional Acknowledgment
Upon receiving the EDI 846 from Walmart, HP may send Walmart the EDI 997 Functional Acknowledgement, which is basically an electronic version of a receipt. The Functional Acknowledgment tells a sending trading partner that a receiving trading partner has successfully received their EDI transaction sets.
Step 3 – 850 – Purchase Order
Walmart now sends HP the EDI 850 Purchase Order to place its orders for printers and printer accessories with HP.
Step 4 – 997 – Functional Acknowledgment
HP sends back the EDI 997 Functional Acknowledgement to acknowledge receipt of Walmart’s EDI 850 Purchase Order.
Step 5 – 856 – Advance Ship Notice
Upon shipping the printers and printer accessories to Walmart, HP sends Walmart the EDI 856 Advance Ship Notice, which lists the contents of the shipment as well as additional information relating to it, such as order information, product description, physical characteristics, type of packaging, marking, carrier information, and configuration of goods within the transportation equipment. The sender of the EDI 856 is an organization responsible for detailing and communicating the contents of a shipment to one or more recipients. The receiver can be any organization having an interest in the contents of a shipment or one that needs information about the contents of that shipment.
Step 6 – 997 – Functional Acknowledgement
Walmart sends back the EDI 997 Functional Acknowledgment to HP acknowledging the receipt of their EDI 856 Advance Ship Notice.
Step 7 – 810 – Invoice
HP sends Walmart an EDI 810 Invoice to bill for the printers and printer accessories that have been shipped.
Step 8 – 997 – Functional Acknowledgment
Walmart sends the EDI 997 Functional Acknowledgment back to HP acknowledging receipt of HP’s invoice.