EDI Essentials: 10 Common Codes 3PLs Need to Know

Learn about 10 common EDI codes you need for the third-party logistics in this EDI Essentials series.
EDI Essentials: 7 Common Codes for Warehouse Management  
EDI Essentials: 8 Common Codes You Need for Order-to-Cash 
EDI Essentials: 6 Common Codes in Transportation 
EDI Essentials: 12 Codes Used in Procure-to-Pay 

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 3PLs 

Outsourcing to a Third-Party Logistics company can be a smart financial move. But to get the most out of your partnership, EDI transactions are key.  

With EDI, your business can streamline your operations and communication with a 3PL. Complexity isn’t the answer; simplicity is! 

10 of the most common Electric Data Interchange transaction codes for 3PLs are: 

Note: for a complete list of transaction codes, visit https://www.edistaffing.com/resources/edi-transaction-glossary/#supplychain)

Learn about 10 common EDI codes for 3PLs.

1. 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. 

2. 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. 

3. 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. 

Learn about 10 common EDI codes for Procure-to-Pay.

4. EDI 856 – Advance Shipping Notice  

EDI 856 is a transaction set most often used by sellers and distributors, as well as manufacturers and retailers. This EDI document notifies the shipment receiver before a shipment arrives at the store or distribution center. 

Information in EDI 856 includes the shipment number, shipping date (and delivery date), tracking details, and product details. These product details outline item details and numbers, packaging details, and UCC 128/G21 numbers. 

In addition to reducing time spent manually inputting shipping details into individual formats for each trading partner, using EDI 856 also provides all parties with real time updates regarding approaching deliveries. 

5. EDI 860 – Purchase Order Change Request  

EDI 860 is an EDI document sent to a seller from a buyer regarding changes to EDI 850. 

Information included in EDI 860 outlines the PO number, buyer/seller details, and product descriptions. Additionally, EDI 860 includes changes in price, changes in product quantity or type, changes for an expected delivery date, and a brief explanation for all of these changes. 

By using EDI 860, communications between trading partners happen almost instantly. When all parties are aware of updates in shipments, trade is streamlined with less hiccups in the whole process. And as usual, all communication is more secure than with other communication methods. 

6. EDI 864 – Text Message 

EDI 864 is a free-form text used by suppliers, manufacturers, 3PLs, and retailers. It can be either used as a one-time message or as the standard communication for a company. 

As a free-form message, the information that could be included is extremely open-ended. The only constants are the message date and time, and sender/receiver information. 

While this transaction sends as a convenient text, it is still an EDI document. This means EDI 864 is still a more secure form of communication, while still facilitating a transparent business relationship. 

Learn about 10 common EDI codes for 3PLs.

7. EDI 869 – Order Status Inquiry 

EDI 869 is sent from a buyer to a supplier, requesting updates on an order. It should be noted that this transaction requires a response (EDI 870). 

Since the buyer is inquiring after a particular order, EDI 869 needs to include the Purchase Order number, vendor number, buyer information, and the product information. This inquiry may also include any specific questions the buyer has. 

Rather than relying on clunky and time-consuming back-and-forth calls or emails, EDI 869 gives customers a clear route to contact a supplier. This document saves time and has a very small margin for error, since most information is extracted from EDI 850 (the Purchase Order) or other transactions.  

8. EDI 870 – Order Status Report 

EDI 870 is an EDI document sent by a seller to a buyer regarding an existing pending order. It can either be sent in response to an EDI 869 (Order Status Inquiry) or other schedule requirements. 

As a status report, this EDI document outlines the Purchase Order number, vendor information, product information, and order status details. It may also include a brief explanation as to the order status or specific responses to an EDI 869. 

Using EDI transactions to report on orders means streamlined, automatic, and transparent communication. Trading partners can get updates on their orders, with additional security but without manual errors.  

9. EDI 997 – Functional Acknowledgement 

EDI 997 is the EDI transaction set communicating to trading partners that another EDI document has been received. This document can be fully automated, and is sent back as a sort of sophisticated notification system. 

As a rather straightforward document, EDI 997 lists the received transaction code and a notification of whether the received transaction was accepted, rejected, or had errors. If there were errors, the transaction may still be accepted, but EDI 997 may elaborate on any errors made. When a company send out an EDI transaction, they will then automatically receive an EDI 997 to review. 

Acting as a kind of insurance, or audit, EDI 997 keeps all parties in the loop. By creating an electronic paper trail of sorts, any orders, invoices, payments, or changes made are easy to track. And if there are any errors, EDI 997 allows for corrections to be made before the final transaction is sent to the recipient. 

10. Bonus Code! 

If you didn’t see the transaction type your company needs for your 3PLs, 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. 

 Learn about 10 common EDI codes for 3PLs.

CINTAP CLOUD AND EDI 

An Integration Solution for 3PLs 

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 3PLs!  

You can learn more about us or get in contact with us to start optimizing your 3PL transactions right away! 

Optimize your 3PLs on CINTAP Cloud.

Author – Carissa Getscher