EDI 857: Shipment and Billing Notice
EDI 857 Definition
The EDI 857 Shipment and Billing Notice document is a multifunctional transaction within the electronic data interchange (EDI) suite, combining elements of a shipping notice with an invoice. It provides detailed information about a shipment that has been sent, including the items shipped, quantities, shipping details, and associated billing information. This document allows for the consolidation of shipping and billing processes, facilitating faster payment processing and improved accuracy in financial and inventory records.
What is EDI 857 Used for?
Suppliers and logistics providers use the EDI 857 to inform buyers about the details of shipments that have been sent and to provide the associated billing information in a single document. This enables buyers to efficiently reconcile received goods with their corresponding invoices, streamlining the receiving, accounting, and payment processes.
Key Elements of EDI 857
An EDI 857 document typically includes key elements to effectively convey both shipment and billing details:
- Transaction Set Header and Trailer: Marks the beginning and end of the EDI 857 document, encapsulating the combined shipment and billing details.
- Shipment Identification: Information about the shipment, such as the shipment identification number, shipping date, and carrier details.
- Order Information: References to the related purchase order(s) and details about the order items, including quantities and prices.
- Shipment Details: Specific details about the items shipped, including item numbers, descriptions, quantities, and packaging type.
- Billing Information: Detailed billing information related to the shipment, including invoice numbers, total amounts billed, and payment terms.
- Carrier and Transportation Information: Information on the transportation carrier, method of shipment, and tracking numbers.
Benefits of EDI 857
Using EDI 857 Invoices offers several advantages:
- Streamlined Processes: Combines shipping and billing information into a single document, reducing paperwork and simplifying processing.
- Improved Accuracy: Minimizes discrepancies between shipped goods and billed amounts, enhancing accuracy in accounting and inventory management.
- Faster Payment Processing: Facilitates quicker invoice processing and payment, improving cash flow.
- Enhanced Visibility: Provides comprehensive information on shipments and billing, increasing transparency in the supply chain. Item
EDI 857 Document Example
Here’s a simplified example of what an EDI 857 might look like in raw data format:
ST*857*0001
BSN*00*SHIP12345*20241130*1430
HL*1**S
TD5**2*UPS*UP*GROUND
N1*ST*Buyer Company*92*12345
N1*SF*Supplier Company*92*67890
PRF*PO123456
IT1*1*100*EA*10.00*PE*IN*Widget A
TDS*1000
CAD*SCAC*UPS*Tracking1234567
ISS*100*LB*1*CT
SE*10*0001
Guide to EDI 857 Terms and Elements:
- ST (Transaction Set Header): Initiates the EDI 857 document, identified by a unique control number.
- BSN (Beginning Segment for Ship Notice): Provides basic information about the shipment and billing notice, including the shipment identification number and date.
- HL (Hierarchical Level): Identifies the hierarchical structure of the notice, indicating the shipment level.
- TD5 (Carrier Details): Details the carrier information, including the carrier name and shipment method.
- N1 (Name): Identifies the parties involved, such as the ship-from (SF) and ship-to (ST) parties, including identification numbers.
- PRF (Purchase Order Reference): Identifies the purchase order associated with the shipment.
- IT1 (Baseline Item Data): Details each item being billed, including quantities, unit prices, and descriptions.
- TDS (Total Monetary Value Summary): Specifies the total amount billed in the shipment.
- CAD (Carrier Detail): Provides carrier and transportation information, including the SCAC code and tracking number.
- ISS (Invoice Shipment Summary): Summarizes the shipment details, such as total weight and number of cartons.
- SE (Transaction Set Trailer): Concludes the EDI 857 document, ensuring completeness and accuracy.
This example is designed to give a basic understanding of how an EDI 857 document might look, including the types of information it conveys. Remember, the actual implementation might vary based on specific business needs and partnerships.
Optimize Your Shipment and Billing Information with Comparatio
Ready to streamline your shipping documentation and billing processes with EDI 857? Contact Comparatio today to discover how our EDI solutions can unify your shipment and billing information, enhance operational efficiency, and improve accuracy in financial transactions.
