EDI 812: Credit/Debit Adjustment
EDI 812 Definition
The EDI 812 Credit/Debit Adjustment document is a crucial tool in electronic data interchange (EDI) transactions. It allows businesses to communicate adjustments to invoices, such as credits for returned goods, debits for additional charges, or any other adjustments that affect the balance of an invoice. This document streamlines the process of resolving discrepancies, ensuring both parties agree on the revised terms of a transaction.
What is EDI 812 Used for?
Businesses issue an EDI 812 to notify a trading partner of an adjustment to a previously issued invoice. This could be due to a variety of reasons, such as returned goods, pricing disputes, or additional charges not previously invoiced. The receiving party reviews the adjustments and, if agreed upon, applies them to their accounting records to reflect the updated transaction terms.
Key Elements of EDI 812
An EDI 812 document includes several key elements to accurately convey adjustment details:
- Adjustment Number and Date: Unique identifier for the document and the date it was issued.
- Original Invoice Information: Details of the invoice being adjusted, including invoice number and date.
- Adjustment Details: Specifics about each adjustment, including type (credit or debit), amount, and reason for the adjustment.
- Party Information: Identification of the parties involved, typically the seller and buyer, including their respective EDI identifiers.
- Summary Section: A summary of all adjustments made, including total credits and debits applied.
Benefits of EDI 812
Implementing EDI 812 offers several advantages:
- Efficiency: Quickly communicates adjustments, speeding up the resolution of invoice discrepancies.
- Accuracy: Reduces errors associated with manual adjustment processes.
- Transparency: Provides a clear, auditable trail of adjustments for both parties.
- Improved Relationships: Facilitates smoother transactions by resolving disputes amicably and efficiently.
EDI 812 Document Example
Here’s a simplified example of what an EDI 812 might look like in raw data format:
ST*812*0001
BAK*00*AD*123456*20241128
N1*BT*Comparatio*92*12345
N1*SE*Customer XYZ*92*67890
IT1**1**AC*150*PR*Product returned due to defect
IT1**2**AD*50*PR*Additional shipping charge
TDS*200
CTT*2
SE*8*0001
Guide to EDI 812 Terms and Elements:
- ST (Transaction Set Header): Marks the beginning of the transaction set, specifically 812 for a Credit/Debit Adjustment, followed by a unique control number.
- BAK (Beginning Segment for Credit/Debit Adjustment): Indicates the start of the adjustment details, including the adjustment type and reference number.
- N1 (Name): Identifies the parties involved, first the buyer (BT) with Comparatio's identification, then the seller (SE) with the customer's identification.
- IT1 (Baseline Item Data): Details each adjustment, including the type (credit or debit), amount, and reason.
- TDS (Total Monetary Value Summary): Summarizes the total adjustments made, including both credits and debits.
- CTT (Transaction Totals): Provides a count of the total number of adjustments included in the document.
- SE (Transaction Set Trailer): Concludes the transaction set with the same control number as the ST segment.
This example is designed to give a basic understanding of how an EDI 812 document might look, including the types of information it conveys. Remember, the actual implementation might vary based on specific business needs and partnerships.
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