EDI 180 Return Merchandise Authorization and Notification

EDI 180 streamlines the return process by providing a structured electronic format for communication between retailers and suppliers. In this guide, you'll learn about EDI 180 transaction sets.

What is an EDI 180?

EDI 180, known as the " Return Merchandise Authorization and Notification," is a transaction set used in the return goods process. It allows a buyer to request authorization from a supplier or manufacturer to return goods that are no longer needed, defective, or require replacement. This transaction set is typically used to streamline and standardize the process of managing returns.

What are the Key Elements of EDI 180?

The EDI 180 Return Merchandise Authorization and Notification, typically includes the following essential components.

• Return Reason: Details about why the merchandise is being returned.
• Item Information: Product details, quantities, and original order information.
• Return Authorization: Indicates whether the return is authorized or not.
• Return Instructions: Specific guidelines for the return process.

How is EDI 180 Return Merchandise Authorization and Notification used?

EDI 180 operates as follows:

• Initiation of Request: The buyer identifies the need to return goods, which may be due to reasons such as defective products, overstock, or other issues. The buyer then prepares an EDI 180 document to request authorization from the supplier to return the items.
• Document Creation: The EDI 180 document is created, including all relevant details such as the reference to the original purchase order or invoice, item numbers, quantities to be returned, and any specific return reasons. The document also includes identification information for both the buyer and the supplier.
• Transmission: The EDI 180 document is electronically transmitted from the buyer to the supplier using an EDI network or VAN (Value-Added Network). This secure electronic transmission ensures that the supplier receives the request promptly.
• Processing by Supplier: Upon receiving the EDI 180, the supplier reviews the return request. The supplier may verify the return details, check the original order information, and assess the return request based on their return policies.
• Authorization and Response: If the return is approved, the supplier generates a Return Goods Authorization (RGA) and sends it back to the buyer, often using an EDI 180 or a related transaction set. This response includes authorization details and instructions for returning the goods.
• Return Execution: The buyer follows the authorization instructions to return the goods to the supplier. The return is processed based on the agreed terms, and the supplier handles the returned items according to their procedures.
• Record Keeping: Both the buyer and supplier maintain electronic records of the return request and authorization. This documentation supports tracking, auditing, and resolving any discrepancies related to the return.

Benefits of EDI 180

The EDI 180, or Return Goods Authorization/Status Request, offers significant benefits in managing the return process between buyers and suppliers. By providing a standardized electronic format for requesting return authorization, it streamlines and automates what can otherwise be a complex and manual process.

This automation reduces the likelihood of errors and ensures that return requests are processed more efficiently. With accurate and timely communication, both parties can quickly address issues such as defective products or overstock, improving overall customer satisfaction. Additionally, the electronic documentation supports better record-keeping and tracking, facilitating easier audits and resolving discrepancies. Overall, EDI 180 enhances operational efficiency, speeds up the return process, and fosters better coordination between trading partners.

EDI 180 Format

This is a simplified example to illustrate the basic structure of an EDI 180. Actual EDI 180 documents can be much more complex, containing additional segments and data elements based on specific requirements and industry standards.

Example EDI 180 Document

ST*180*0001*000001

BGN*180*PO12345*20230405

DTM*003*20230405

REF*ZZ*RETURN123

RDR*1*DEFECTIVE

LIN*1*ITEM001*10*EA

SE*1*000000001

Explanation of the Segments:

ST: Start of transaction set

BGN: Beginning of message

DTM: Date/time reference

REF: Reference identification

RDR: Return discrepancy reason

LIN: Item information

SE: End of transaction set

Key Information:

Return request date: 2023-04-05

Return reason: Defective

Item: ITEM001, quantity 10

Additional Notes:

The EDI 180 can include additional segments to provide more detailed information about the return, such as product descriptions, unit measures, and return shipping addresses.

The document can also include information about the return authorization, including the RMA number and return instructions.

This example provides a basic overview of the EDI 180 structure. Real-world EDI 180 documents can be much more complex and contain additional data elements to meet specific business requirements.

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