Introduction
Electronic Data Interchange (EDI) is the backbone of automated B2B communication. One of the most common transaction sets is the EDI 850 Purchase Order, which allows buyers to electronically send order details to suppliers. In this article, we’ll walk through a sample EDI 850 file with line items and explain how file definition rules help integration platforms like Celigo’s Integrator.io parse and process these files.
Key Segments
- ISA/GS/ST → Envelope and transaction headers
- BEG → Beginning segment with PO number and date
- REF/DTM → Reference and date/time qualifiers
- N1 → Buyer and Ship-To information
- PO1/PID → Line items (quantity, price, item codes, descriptions)
- CTT → Transaction totals (number of line items)
- SE/GE/IEA → Closing segments
File Definition Rules
To process this file, integration platforms use file definition rules. These rules define how to break down the EDI file into structured data.
How It Works
- Delimiters:
*separates elements,nseparates rows. - Rules: Each segment (ISA, GS, ST, BEG, PO1, PID, etc.) is defined so the parser can map them.
- PO1/PID: Multiple occurrences are allowed, so the parser can handle any number of items.
- CTT & SE: Must be updated to reflect the correct item count and segment count.
Why This Matters
- Automation: Eliminates manual entry of purchase orders.
- Accuracy: Ensures suppliers receive correct quantities, prices, and item codes.
- Scalability: File definition rules allow seamless handling of variable line items.
- Integration: Platforms like Celigo Integrator.io use these rules to transform EDI into JSON or other formats for downstream systems (ERP, WMS, etc.).
Conclusion
An EDI 850 Purchase Order is more than just a text file — it’s a structured communication standard. By defining clear file definition rules, businesses can reliably parse and integrate purchase orders, whether they contain 1 item or 100. This ensures smooth supply chain operations and accurate order fulfillment.