EDI 860: Purchase Order Change Request - Buyer Initiated
EDI 860 Definition
The EDI 860 Purchase Order Change Request, initiated by the buyer, is a transaction set within the electronic data interchange (EDI) framework that allows buyers to request changes to previously submitted purchase orders. These changes can include modifications to order quantities, prices, delivery dates, or even the cancellation of entire orders or specific line items. The EDI 860 ensures that any adjustments to the purchase order are communicated efficiently and accurately between trading partners.
What is EDI 860 Used for?
Buyers use the EDI 860 to formally request changes to an existing purchase order. Upon receipt of the EDI 860, the supplier reviews the requested changes and may acknowledge them with an EDI 855 Purchase Order Acknowledgment, indicating whether the changes can be accommodated. This process ensures that both parties have a clear and accurate record of the agreed-upon modifications to the purchase order.
Key Elements of EDI 860
An EDI 860 document typically includes key elements to convey the requested changes to a purchase order effectively:
- Transaction Set Header and Trailer: Marks the beginning and end of the EDI 860 document, encapsulating the change request details.
- Purchase Order Reference: Information about the original purchase order being changed, including PO number and PO date.
- Requested Changes: Detailed information on the changes being requested, such as adjustments to quantities, prices, delivery dates, or specific line item cancellations.
- Buyer and Seller Identification: Details about the buyer and seller, including names, addresses, and contact information.
- Terms of Sale: Any changes to terms of sale, including payment terms, shipping terms, and any applicable discounts or allowances.
Benefits of EDI 860
Utilizing the EDI 860 document offers several advantages:
- Flexibility: Allows buyers to make changes to orders as needed, ensuring that purchase orders reflect current requirements.
- Efficiency: Streamlines the communication of order changes, reducing the time and effort required to notify suppliers of adjustments.
- Accuracy: Minimizes errors by providing a standardized format for communicating order changes, ensuring that both parties have an accurate record of the modifications.
- Improved Supplier Relations: Facilitates clear and timely communication with suppliers, helping to maintain positive and productive relationships.
EDI 860 Document Example
Here’s a simplified example of what an EDI 860 might look like in raw data format:
ST*860*0001
BCH*04*PO123456*20241130
N1*BT*Buyer Company*92*12345
N1*SE*Supplier Company*92*67890
POC*1*LI*100*EA*10.00**AC*90*EA*9.00
CTP*LE*9.00*90*EA
SE*6*0001
Guide to EDI 860 Terms and Elements:
- ST (Transaction Set Header): Initiates the EDI 860 document, identified by a unique control number.
- BCH (Beginning Segment for Purchase Order Change): Provides basic information about the purchase order change request, including the type of change and the original PO number.
- N1 (Name): Identifies the parties involved, such as the buyer (BT) and the seller (SE), including identification numbers.
- POC (Purchase Order Change): Details the changes being requested, including the line item number, original quantities and prices, and the requested adjustments.
- CTP (Pricing Information): Specifies the new pricing information for the changed items, if applicable.
- SE (Transaction Set Trailer): Concludes the EDI 860 document, ensuring completeness and accuracy.
This example is designed to give a basic understanding of how an EDI 860 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 Purchase Order Changes with Comparatio
Ready to enhance your order management flexibility with EDI 860? Contact Comparatio today to discover how our EDI solutions can streamline your process for making and receiving purchase order changes, ensure accurate order updates, and improve overall supply chain responsiveness.