EDI 855: Purchase Order Acknowledgement
EDI 855 Definition
The EDI 855 Purchase Order Acknowledgment document is a standard transaction within the electronic data interchange (EDI) suite, used by suppliers to confirm the receipt and acceptance of a purchase order (PO) sent by a buyer. It may also communicate whether the order can be fulfilled as requested regarding quantities, prices, and delivery schedules. This document serves as a formal response to the EDI 850 Purchase Order, allowing suppliers to accept, reject, or propose changes to the order details.
What is EDI 855 Used for?
Suppliers use the EDI 855 to communicate their ability to meet the terms of the purchase order as specified by the buyer. This acknowledgment can confirm the order as placed, notify the buyer of any discrepancies or inability to fulfill the order as requested, and propose alternatives. The buyer then reviews the EDI 855 to understand the status of their order and make any necessary adjustments or preparations based on the supplier’s response.
Key Elements of EDI 855
An EDI 855 document typically includes key elements to effectively convey the acknowledgment of a purchase order:
- Transaction Set Header and Trailer: Marks the beginning and end of the EDI 855 document, encapsulating the acknowledgment details.
- Acknowledgment Details: Information about the acknowledgment status, including acceptance, rejection, or acceptance with changes to the original PO.
- Order Information: Details from the original PO, including order date, PO number, and requested delivery dates.
- Item Acknowledgment: Detailed information on each item being acknowledged, including item numbers, descriptions, quantities acknowledged, and any changes from the original PO.
- Terms of Sale: Any terms of sale that are being confirmed or amended, including prices, delivery terms, and payment terms.
Benefits of EDI 855
Utilizing the EDI 855 document offers several advantages:
- Improved Communication: Enhances clarity and efficiency in the order fulfillment process by providing a standardized way to acknowledge POs.
- Reduced Errors: Minimizes the risk of errors by automating the acknowledgment process and clearly communicating any changes or issues with the order.
- Faster Processing: Speeds up the order-to-fulfillment cycle by quickly informing buyers of order status, allowing for faster adjustments if needed.
- Enhanced Customer Satisfaction: Improves relationships with buyers by providing timely and transparent communication regarding their orders.
EDI 855 Document Example
Here’s a simplified example of what an EDI 855 might look like in raw data format:
ST*855*0001
BAK*00*AC*PO123456*20241130
N1*ST*Supplier Company*92*67890
N1*BT*Buyer Company*92*12345
PO1*1*100*EA*10.00*PE*IN*Widget A*PD*Description of Widget A
ACK*IA*100*EA*20241215*AC
CTT*1
SE*7*0001
Guide to EDI 855 Terms and Elements:
- ST (Transaction Set Header):Initiates the EDI 855 document, identified by a unique control number.
- BAK (Beginning Segment for Purchase Order Acknowledgment):Indicates the start of the acknowledgment, including the PO number and acknowledgment type.
- N1 (Name): Identifies the parties involved, such as the supplier (ST) and the buyer (BT), including identification numbers.
- PO1 (Purchase Order Line Item): Details each item from the original PO, including quantities and prices.
- ACK (Line Item Acknowledgment): Specifies the acknowledgment status for each item, including quantities that can be fulfilled and the expected ship date.
- CTT (Transaction Totals): Summarizes the total number of line items acknowledged in the document.
- SE (Transaction Set Trailer): Concludes the EDI 855 document, ensuring completeness and accuracy.
This example is designed to give a basic understanding of how an EDI 855 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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Ready to improve your order processing efficiency and accuracy with EDI 855? Contact Comparatio today to discover how our EDI solutions can optimize your purchase order acknowledgments, enhance communication with suppliers, and increase customer satisfaction through timely updates.
