Introduction

Electronic Data Interchange (EDI) is a standardized method for exchanging business documents electronically between companies. Various EDI transaction sets are used for different business processes, ensuring efficiency, accuracy, and automation. Below are some of the most commonly used EDI transaction types and their applications.

Key EDI Transaction Types and Their Uses

1. EDI 850 – Purchase Order

• Used to send purchase orders from buyers to suppliers.
• Contains details such as item descriptions, quantities, and pricing.
• Automates the procurement process, reducing manual errors.

2. EDI 810 – Invoice

• Sent by suppliers to request payment from buyers.
• Includes details like invoice number, order references, item costs, and payment terms.
• Streamlines the billing process and improves accuracy.

3. EDI 855 – Purchase Order Acknowledgment

• Confirms receipt of a purchase order (EDI 850) by the supplier.
• May indicate acceptance, rejection, or modifications to the order.
• Helps buyers track order status and supplier commitments.

4. EDI 856 – Advance Ship Notice (ASN)

• Provides shipment details before goods arrive.
• Includes tracking numbers, expected delivery dates, and item quantities.
• Helps recipients prepare for incoming shipments and streamline logistics.

5. EDI 846 – Inventory Inquiry/Advice

• Used by suppliers to share inventory levels with buyers.
• Supports just-in-time inventory management.
• Helps avoid stockouts and overstocking.

6. EDI 940 – Warehouse Shipping Order

• Directs a warehouse to ship goods to a buyer or store.
• Ensures efficient warehouse management and order fulfillment.

7. EDI 943 – Warehouse Stock Transfer Shipment Advice

• Notifies a warehouse of stock transfers from suppliers.
• Helps maintain accurate warehouse inventory records.

8. EDI 944 – Warehouse Stock Transfer Receipt Advice

• Confirms the receipt of inventory at a warehouse.
• Helps track inventory movement and reconciliation.

9. EDI 997 – Functional Acknowledgment

• Confirms receipt of an EDI transaction.
• Ensures successful communication between trading partners.

10. EDI 214 – Transportation Carrier Shipment Status Message

• Used by carriers to update shipment status.
• Helps businesses track deliveries in real time.

Conclusion

Each EDI transaction set serves a specific function in automating business processes. By implementing EDI, companies can improve efficiency, reduce errors, and enhance collaboration with trading partners. Understanding the different EDI types ensures better integration and smooth business operations.

For organizations considering EDI adoption, selecting the right transaction sets based on business needs is crucial for maximizing benefits.