EDI 810 Invoice

An EDI (Electronic Data Interchange) 810 is a type of electronic document used in business-to-business transactions. In this guide, you'll learn about EDI 810 Invoice transaction set.

What is an EDI 810?

The EDI 810 is an electronic version of an invoice, commonly used in business-to-business transactions to streamline and automate the billing process. This document is sent by a supplier to a buyer to request payment for goods or services provided.

The EDI 810 contains all the necessary information that a traditional paper invoice would include but is formatted in a standardized electronic format that allows for automated processing.

What are the Key Elements of EDI 810?

Here's what an EDI 810 typically includes:

• Invoice Number & Date
• Vendor Information: Details about the supplier, including name, address, and contact information.
• Buyer Information: Details about the buyer, including name, address, and contact information.
• Item Details: Information about the items being ordered, such as Item numbers, Descriptions, Quantities and total amount
• Details about the shipping method, shipping date, and shipping address.
• Information regarding payment terms, such as the due date and acceptable payment methods.
• Special Instructions: Any additional instructions or requirements.

How is EDI 810 Invoice Used?

Using an EDI 810 Invoice involves a few straightforward steps. After a seller, such as a manufacturer or distributor, ships an order to a buyer, like a retailer, they send an EDI 810 Invoice. This electronic document confirms the delivery of the order and requests payment from the buyer. Upon receiving the EDI 810, the buyer sends an EDI 997 Functional Acknowledgement to confirm receipt of the invoice.

The buyer then reviews the invoice details and, if everything is correct, forwards it to their accounting or receivables department to process the payment. To complete the transaction, the buyer can also send an EDI 820 Payment Order or Remittance Advice Document, which provides the payment details back to the seller.

Benefits of EDI 810

EDI 810 invoices offer a number of benefits over traditional paper invoices. They are:

• More efficient: EDI 810 invoices can be sent and received electronically, which can save businesses time and money.
• More accurate: EDI 810 invoices are less prone to errors than paper invoices, which can help to improve cash flow.
• More secure: EDI 810 invoices can be sent using secure protocols, which can help to protect sensitive business information.

EDI 810 Segments Example

Part of the EDI Invoice document will contain envelope information. The envelope information specifies which company is sending the document and which company is receiving the document. The sending and receiving companies are called trading partners because they exchange or “trade” the EDI Invoice and Functional Acknowledgments.

Each EDI 810 Invoice document will have data organized into segments and data elements. Each segment contains at least one data element. Each data element is a data field. Examples of data elements on the Invoice include vendor number, item, quantity, price per item, street address, city, state and zip code, just like on a paper Invoice. The standards bodies have allowed for every conceivable possibility for data on the EDI Invoice document. Any one company will use a small subset of the available choices within the ANS X.12 or UN/EDIFACT standards. An EDI system is necessary to process their EDI documents into a back office system or into human readable form.

The EDI 810 can be seen in two different formats:

Raw Data Format: This is the original, structured format of the EDI 810 document, designed for computers to exchange data efficiently. It uses specific symbols like asterisks (*) and tildes (~) to organize segments and elements.

Some of the common segments include:

ISA: Interchange Control Header - contains control information for the interchange.

GS: Functional Group Header - groups related transaction sets.

ST: Transaction Set Header - indicates the start of the transaction set.

BIG: Beginning Segment for Invoice - provides invoice issue date and invoice number.

N1: Name - identifies parties involved (supplier, buyer).

ITD: Terms of Sale/Deferred Terms of Sale - indicates payment terms.

DTM: Date/Time Reference - specifies dates relevant to the invoice.

IT1: Baseline Item Data - details about individual line items.

TDS: Total Monetary Value Summary - summarizes the total invoice amount.

CAD: Carrier Detail - specifies shipping carrier.

ISS: Invoice Shipment Summary - summarizes shipment quantities.

CTT: Transaction Totals - provides control totals.

SE: Transaction Set Trailer - indicates the end of the transaction set.

GE: Functional Group Trailer - ends the functional group.

IEA: Interchange Control Trailer - ends the interchange.

Example of an EDI 810 Document