There are many EDI transactions that can be implemented during the Trading Partner onboarding process. Understanding each transaction and the order of how those transactions are sent and received is imperative to a successful onboarding. The core 4 transactions of a standard buy side relationship consist of the outbound Purchase Order (850), inbound Purchase Order Acknowledgement (POA)(855), inbound Advance Ship Notice (856), and inbound Invoice (810).
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This following details the sequence and function of each EDI transaction during the onboarding process.
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1. Purchase Order (850): Sent from your organization
You first send a Purchase Order to your Trading Partner.
Generally, on an outbound Purchase Order you will see the below details:
Ship to location details – this is where the shipment should be sent to
Bill to location details – if the ship is different from the Bill To
Item details can include the following:
Quantity
Description
Price
Ship Date(s)
Cancel date(s)
2. Purchase Order Acknowledgement (855): Sent from your Trading Partner
Secondly, you will receive an inbound POA to confirm receipt of your outbound Purchase Order.
This transaction alerts you to items being shipped, pricing changes, quantity adjustments, or even back orders.
Note: This transaction is not the same as the Functional Acknowledgement (997).
3. Advance Ship Notice (ASN)(856): Sent from your Trading Partner
Next, you will receive an inbound ASN that provides details on how items are being shipped.
This transaction can Include pallet and/or container counts, shipping details for tracking, and expected receipt dates.
4. Invoice (810): Sent from your Trading Partner
Lastly, your Trading Partner will send you an inbound Invoice to indicate that payment is due for the full shipment.
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Critical Callout
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Ensure each transaction is processed in the correct sequence to avoid integration issues or shipment delays.