EDI 895: Delivery/Return Acknowledgment or Adjustment
EDI 895 Definition
The EDI 895 transaction set is used by retailers and suppliers within the retail industry to communicate the acknowledgment of the receipt of goods or to adjust the details of previously received goods. This document allows a retailer to confirm the quantities and items received, report discrepancies between the goods received and the goods invoiced or ordered, and adjust for items returned to the supplier. The EDI 895 facilitates accurate inventory management and financial reconciliation between trading partners.
What is EDI 895 Used for?
Retailers use the EDI 895 to communicate with suppliers about the receipt of goods and any necessary adjustments to the delivery. This can include confirming the receipt of an order, reporting discrepancies between received and ordered quantities, or detailing returns and adjustments. Suppliers review the EDI 895 to update their records, adjust inventory levels, and reconcile financial accounts based on the information provided.
Key Elements of EDI 895
An EDI 895 document typically includes key elements to effectively convey delivery/return acknowledgment or adjustment information:
- Transaction Set Header and Trailer: Marks the beginning and end of the EDI 895 document, encapsulating the acknowledgment or adjustment details.
- Acknowledgment Details: Information about the receipt of goods, including acknowledgment type, reference identification numbers, and receipt dates.
- Item Information: Detailed information about the items being acknowledged or adjusted, including item identifiers, descriptions, quantities received, and any discrepancies noted.
- Adjustment Details: Specifics regarding any adjustments made, such as reasons for returns, quantities adjusted, and related financial adjustments.
- Summary Information: Summary totals for the transaction, including the total number of items acknowledged or adjusted and total amounts involved.
Benefits of EDI 895
Utilizing the EDI 895 document offers several advantages:
- Improved Accuracy: Enhances the accuracy of inventory and financial records by providing a standardized format for reporting receipt and adjustment activities.
- Efficient Reconciliation: Streamlines the process of reconciling delivered goods with orders and invoices, reducing administrative overhead.
- Enhanced Communication: Facilitates clear and timely communication between retailers and suppliers regarding delivery discrepancies and adjustments.
- Inventory Management: Supports effective inventory management by accurately documenting the receipt and return of goods.
EDI 895 Document Example
Here’s a simplified example of what an EDI 895 might look like in raw data format:
ST*895*0001
BRA*AcknowledgmentNumber*20241130*RR
N1*SU*Supplier Name*1*123 Supplier Street*City*ST*12345
N1*BY*Buyer Name*2*456 Buyer Avenue*City*ST*67890
IT1*1*100*EA*Item123*PD*Product A Description
IT1*2*50*EA*Item456*PD*Product B Description – Damaged
CAD*CarrierName*TrackingNumber*MethodOfTransportation
ISS*150*EA*TotalQuantityReceived
SE*8*0001
Guide to EDI 895 Terms and Elements:
- ST (Transaction Set Header): Initiates the EDI 895 document, identified by a unique control number.
- BRA (Beginning Segment for Return Merchandise Authorization): Provides basic information about the acknowledgment or adjustment, including the acknowledgment number and date.
- N1 (Name): Identifies the supplier (SU) and buyer (BY), including address information.
- IT1 (Baseline Item Data): Details each item being acknowledged or adjusted, including quantities, item numbers, and descriptions.
- CAD (Carrier Detail): Specifies details about the transportation used for the delivery or return of goods.
- ISS (Invoice Shipment Summary): Summarizes the total quantities involved in the transaction.
- SE (Transaction Set Trailer): Concludes the EDI 895 document, ensuring completeness and accuracy.
This example is designed to give a basic understanding of how an EDI 895 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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