Electronic Data Interchange (EDI)
What exactly is Electronic Data Interchange (EDI)?
It’s how companies communicate and share documents with each other in the modern world (business-to-business). EDI automates communication and business workflows- resulting in streamlined processes for your company.
Electronic Data Interchange allows for processing bulk amounts of transactions very quickly. In the digital age, nearly every company in any industry needs a reliable EDI platform.
Ideally, Electronic Data Interchange
- saves companies man-hours and money
- practically eliminates the time it takes to share information, and
- results in greater security and fewer errors overall.
EDI codes for Wholesale
The wholesale industry is quickly evolving to keep up with the market and its many challenges- global supply chain hiccups, consumers demanding a completely virtual experience, and complex trading partner relationships.
EDI is a tool meant to simplify these logistical issues- and many are making the change and taking advantage of EDI.
13 of the most common Electronic Data Interchange transaction codes for wholesale are:
- EDI 832 – Price/Sales Catalog
- EDI 850 – Purchase Order
- EDI 855 – Purchase Order Acknowledgement
- EDI 875 – Grocery Products Purchase Order
- EDI 810 – Invoice
- EDI 812 – Credit/Debit Adjustment
- EDI 820 – Payment Order/Remittance Advice
- EDI 880 – Grocery Products Invoice
- EDI 204 – Motor Carrier Load Tender
- EDI 211 – Motor Carrier Bill of Landing
- EDI 940 – Warehouse Shipping Order
- EDI 830 – Planning Schedule with Release Capability
- Bonus Code!
(Note: for a complete list of transaction codes, visit https://www.edistaffing.com/resources/edi-transaction-glossary/#supplychain)
1. EDI 832 – Price/Sales Catalog
EDI 832 is sent by manufacturers or suppliers to their trading partners. This EDI transaction shares the most recent product details and prices. Because this essential EDI needs to be sent out a few times a year, it may not be part of the regular P2P process, but it is still an EDI.
To give their customers as much information as possible, EDI 832 shares the catalog number/date, supplier data, product SKU or UPCs, product descriptions, per unit prices and minimum order amounts, and any ongoing promotions.
As an electronic document, EDI 832 saves time and physical resources by being updated automatically, without re-publishing paper copies. Updating catalogs in this way also cuts down the amount of human error that would normally come with updating an entire catalog. And of course, like all EDI transactions, there is also the benefit of added encryption and security.
2. EDI 850 – Purchase Order
EDI 850 contains all relevant details about a purchase order. In most cases, this transaction set (the first step in the ordering process) is usually sent to a vendor.
Conveniently, EDI 850 can have details for a single order, recurring orders, or a changed order. As an electronic purchase order, EDI 850 outlines the Purchase Order number, order date, and vendor details. Also included are the shipping and delivery details, pricing and billing information, item descriptions and identifiers, and payment terms.
When using an EDI, all communications are secure against outside threats. In addition to this added layer of security, EDI transactions streamline operations between partners, sharing and updating information almost instantly.
3. EDI 855 – Purchase Order Acknowledgement
EDI 855 is a document typically sent in response to EDI 850 (perhaps in conjunction with EDI 997). A seller responds to a buyer’s purchase order to trigger the forward motion of the order processing workflow.
The EDI 855 transaction set includes extremely detailed information for new orders. These details outline the EDI 850, the seller’s vendor number, and any changes in the order or errors that need to be noted.
Some key perks of EDI 855 are the security that comes from encrypted communication, real-time updates for all parties, and seamless transactions. All parties benefit from near-instant updates regarding order changes.
4. EDI 875 – Grocery Products Purchase Order
EDI 875, as indicated by its name, is a document used exclusively in the grocery industry. With this code, a retailer or grocer orders their goods from a supplier (such as a wholesaler). It can be compared to a typical EDI 850 Purchase Order.
Included among the details in EDI 875 are the buyer and vendor details, product identifiers, item quantities, total cost (and a breakdown of unit prices), and of course shipping and payment information.
Unlike an EDI 850, EDI 875 is focused on food and beverages- not on general stock and merchandise. This added level of simplicity is in addition to time saved and errors reduced by automating these transactions.
5. EDI 810 – Invoice
EDI 810 is a document sent to a buyer from a seller. Just like all invoices, sellers send EDI 810 to notify buyers of the balance due and ask for payment. This invoice can also be used for several order types across industries.
As an invoice, EDI 810 includes the invoice number and date, order details, all charges and the total balance due. It may also include payment methods accepted, payment terms, and possibly tax details.
Like other EDI documents, EDI 810 ensures data security, and nearly-instant communication without errors. As a bonus, sending an electronic invoice may result in sellers getting paid faster.
6. EDI 812 – Credit/Debit Adjustment
EDI 812 is an EDI transaction buyers use to note payments adjustments. If there were any changes made, this transaction set securely reconciles invoices and payments.
Since EDI 812 may accompany an EDI 810 Invoice, it needs to elaborate on the total adjustment amounts, item quantities and descriptions (such as SKUs and UPCs), any necessary chargeback codes, and of course the original invoice number.
All parties benefit from using this EDI transaction set versus a paper or hard-copy memo with the same information. Changes can be made much more quickly, without risking clumsy typos. Additionally, using EDI provides extra security and peace of mind. By tracking adjustments in this way, the paper trail is much easier to follow.
7. EDI 820 – Payment Order/Remittance Advice
EDI 820 shares payment information between buyers and sellers. This document is most often a reply to EDI 810 or 850 to either confirm the terms or make changes to the terms.
This EDI transaction set shares information such as buyer and seller details, invoice number or PO number, the amount that is being charged, pertinent banking details, and payment tracking information.
While EDI 820 provides users with the typical advantages of EDI transactions (data security, accurate and speedy communication, real-time updates, etc.), there is also the added benefit of an automated order process. When all parties are able to fully automate their ordering process, OTC moves much quicker and companies can handle a larger scale of trade.
8. EDI 880 – Grocery Products Invoice
EDI 880 is an invoice sent to a buyer from their grocery supplier. As an invoice, there are specific details that must be included in this document.
The information listed in EDI 880 is as follows: detailed supplier and buyer information and addresses and remit-to details, product information (quantities, prices, etc.), payment terms and amount due.
Since EDI 880 is essentially a bill, automation lends the advantage of mistake-free invoices sent directly to a buyer.
9. EDI 204 – Motor Carrier Load Tender
EDI 204 is a document that manufacturers, distributors, or retailers use to offer a shipment to a carrier. This offer specifically refers to truckload shipments.
Because this offer will be evaluated and either accepted or rejected by a carrier, it needs to include all the pertinent details. Particularly the shipper and receiver information, shipping instructions and requirements, equipment requirements, and load details.
When shippers use EDI 204, they are automating data transfers for a consistent and mistake-free offer to multiple carriers. With the added benefits of data encryption and security, EDI communication is far more convenient, accurate, and streamlined than other methods of making offers.
10. EDI 211 – Motor Carrier Bill of Landing
EDI 211 is a legally binding electronic document sent from the shipper to the carrier regarding a shipment agreement.
As a legal document, there are several required details that need to be laid out in EDI 211. Shipment ID number, contact information for all parties involved, the ship-to address, product quantity/size/weight, load information, expected delivery date, and shipping instructions.
EDI documents come standard with layers of encryption to preserve data security and privacy, which is even more important for a legal document such as EDI 211. Since this document can be created mostly automatically based upon previous correspondence, there is also no risk of human error to the terms of agreement.
11. EDI 940 – Warehouse Shipping Order
EDI 940 is a transaction set sent by sellers to Third-Party Logistics providers (3PLs), requesting a shipment from a warehouse to a buyer.
The EDI 940 transaction shares general information such as Purchase Order number, the ship-to address, and the receiver’s contact information. Also included are details specific to the order, namely order details and specialized shipping instructions (if needed).
With automated real-time data exchange between 3PLs and warehouses, EDI 940 transactions can be created almost as soon as an order is placed in the system. Warehouses save immeasurable time and effort compared to creating individual shipping orders manually. And there is no possibility of human error! Additionally, because these shipping orders are encrypted, EDI documents like this are actually more secure than hard-copy or emailed shipping orders.
12. EDI 830 – Planning Schedule with Release Capability
EDI 830 is an EDI transaction typically sent from a manufacturer to a vendor or supplier, outlining the schedule within a specific timeframe. This document is helpful in automating order fulfillment.
EDI 830 can be as specific (or not) as needed, and includes information such as identification details of all parties, an expected distribution and order schedule, product SKUs and details, resource or order release authorization, delivery instructions, and any shipping information.
A general benefit of most EDI documents is an added layer of security when communicating between trading partners, and streamlined information sharing. EDI 830 additionally provides information that sets up automated order fulfillment, a more productive distribution plan, and data on manufacturer needs.
13. Bonus Code!
If you didn’t see the transaction type your company needs for your wholesale operation, good news!
It’s possible for you to work with an integration platform to customize your own transaction type specific to your system, needs, and trading partners.
CINTAP CLOUD AND EDI
An Integration Solution for Wholesale
CINTAP Cloud users don’t have to be limited to a rigid set of transaction types.
No matter your industry, CINTAP is dedicated to walking each customer through solutions to every problem. And naturally, this includes creating customized transaction types for you, so you can get back the time and resources your company needs!
As an integration platform, CINTAP streamlines EDI and business workflows. With CINTAP Cloud you can:
- accelerate your integration projects
- eliminate any redundancies
- simplify complex processes
- and provide real-time insights, so you (and your partners) have better tracking and visibility.
All this while also offering huge savings compared to other providers in the iPaaS industry!
Start optimizing today:
Get CINTAP Cloud as your solution for Wholesale EDI!
You can learn more about us or get in contact with us to start optimizing your transactions right away!
Author – Carissa Getscher