EDI 845: Price Authorization Acknowledgment/Status
EDI 845 Definition
The EDI 845 Price Authorization Acknowledgment/Status document is a key transaction in the electronic data interchange (EDI) process, used by sellers to communicate the acceptance, rejection, or status of price authorization requests submitted by buyers. This document allows sellers to formally acknowledge the terms under which they agree to sell products at specified prices, ensuring both parties have a clear understanding of pricing agreements.
What is EDI 845 Used for?
Sellers use the EDI 845 to respond to buyers’ requests for price authorizations, providing a formal acknowledgment of the pricing terms they are willing to accept. This document serves as a binding agreement on pricing between the seller and the buyer, facilitating clear communication and preventing misunderstandings related to product pricing.
Key Elements of EDI 845
An EDI 845 document typically includes several key elements to convey the response to a price authorization request effectively:
- Transaction Set Header and Trailer: Marks the beginning and end of the EDI 845 document, encapsulating the acknowledgment details.
- Acknowledgment Details: Information on the acknowledgment status, including whether the price authorization request is accepted, rejected, or requires modifications.
- Price Authorization Information: Specific details of the price authorization being acknowledged, including item numbers, pricing, effective dates, and any conditions or restrictions.
- Reference Information: Additional references that may be necessary for understanding the acknowledgment, such as contract numbers or original request references.
Benefits of EDI 845
Utilizing the EDI 845 document offers several advantages:
- Clarity and Transparency: Ensures both parties have a clear, documented understanding of agreed-upon pricing terms.
- Efficiency: Streamlines the negotiation and agreement process for pricing authorizations, reducing the time to reach an agreement.
- Accuracy: Minimizes disputes related to pricing by providing a formal acknowledgment of agreed terms.
- Improved Relationship Management: Enhances trust and collaboration between trading partners by facilitating clear and formal communication of pricing agreements.
EDI 845 Document Example
Here’s a simplified example of what an EDI 845 might look like in raw data format:
ST*845*0001
BPA*AC*123456*20241130
N1*SE*Supplier Company*92*67890
N1*BY*Buyer Company*92*12345
LIN*1*PN*Widget A
CTP*LE*10.00*100*EA*20241231*20241231
REF*AB*Contract123
SE*7*0001
Guide to EDI 845 Terms and Elements:
- ST (Transaction Set Header): Initiates the EDI 845 document, identified by a unique control number.
- BPA (Beginning Segment for Price Authorization Acknowledgment): Indicates the start of the acknowledgment, including the authorization number and date.
- N1 (Name): Identifies the parties involved, such as the supplier (SE) and the buyer (BY), including identification numbers.
- LIN (Item Identification): Identifies the item being authorized for pricing, including part numbers and descriptions.
- CTP (Pricing Information): Details the pricing for the authorized item, including the unit price, quantity, and effective dates.
- REF (Reference Identification): Provides additional reference information, such as related contract numbers.
- SE (Transaction Set Trailer): Concludes the EDI 845 document, ensuring completeness and accuracy.
This example is designed to give a basic understanding of how an EDI 845 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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