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EDI 850: Purchase Order

EDI 850 Definition

The EDI 850 Purchase Order document is a fundamental component of electronic data interchange (EDI) transactions, serving as a formal request from a buyer to a supplier for the supply of goods or services. It specifies the types, quantities, and agreed prices for products or services, as well as delivery schedules and payment terms. The EDI 850 streamlines the procurement process, reducing the need for paper-based orders and enabling faster, more accurate order processing.

What is EDI 850 Used for?

Buyers use the EDI 850 to electronically send purchase orders to their suppliers. Upon receipt, suppliers process the order within their order management systems, potentially responding with an EDI 855 Purchase Order Acknowledgment to confirm receipt and acceptance of the order. This automated process enhances efficiency, reduces errors, and improves the overall procurement cycle.

Key Elements of EDI 850

An EDI 850 document typically includes key elements to convey the purchase order information effectively:

Benefits of EDI 850

Utilizing the EDI 850 document offers several advantages:

EDI 850 Document Example

Here’s a simplified example of what an EDI 850 might look like in raw data format:



N1*BT*Buyer Company*92*12345

N1*ST*Supplier Company*92*67890

PO1*1*100*EA*10.00*PE*IN*Widget A*PD*Description of Widget A



Guide to EDI 850 Terms and Elements:

This example is designed to give a basic understanding of how an EDI 850 document might look, including the types of information it conveys. Remember, the actual implementation might vary based on specific business needs and partnerships.

Transform Your Purchasing with Comparatio

Ready to enhance your purchase order efficiency with EDI 850? Contact Comparatio today to discover how our EDI solutions can streamline your business transactions and improve your bottom line.

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