EDI 816 Organizational Relationships

EDI 816 is a standardized EDI document used to define and communicate relationships between organizations. In this guide, you'll learn about EDI 816 transaction sets.

What is an EDI 816?

The EDI 816 transaction set, also known as Organizational Relationships, is used to share information about relationships within a company or between organizations, such as subsidiaries, divisions, departments, or external trading partners. It is often utilized by suppliers, retailers, and distributors to communicate hierarchical data or store location updates, helping maintain accurate partner relationships and organizational structures.

Key Functions of EDI 816:

• Communicating Organizational Structure: It provides detailed information about the internal structure of a company (e.g., departments or divisions) or external relationships (e.g., partnerships).
• Store/Location Updates: Retailers use it to inform suppliers and distributors about store openings, closures, or changes in store details such as addresses or operating hours.
• Supplier/Partner Relationships: Companies can share changes to their supplier or distributor relationships, ensuring their partners are informed about new or discontinued connections.
• Group Assignment: Identifies groups or divisions within an organization, helping companies manage their internal operations more effectively.

What are the Key Elements of EDI 816?

An EDI 816 typically includes the following key data elements:

• Organization Identification: Unique identifiers for both the parent and child organizations.
• Relationship Type: Specifies the nature of the relationship (e.g., parent-subsidiary, joint venture, contractual).
• Start Date: Indicates the date the relationship began.
• End Date: Indicates the date the relationship ended (if applicable).
• Percentage Ownership: Specifies the percentage of ownership that one organization has in the other.
• Contact Information: Contact details for both organizations.

How is EDI 816 Organizational Relationships used?

An EDI 816 Organizational Relationships document is sent by a trading partner to a supplier to streamline the process, eliminating the need to provide separate address details for purchase orders or other documents. Once the supplier receives the EDI 816, they typically respond with a 997 Functional Acknowledgment to confirm successful receipt.

EDI 816 is commonly used when a new store or distribution center opens or when there's a change of address for an existing location. This helps sellers keep track of shipping destinations for orders and provides essential information for suppliers when the new location places an order or is designated as a shipping point. Buyers can also send updated EDI 816 documents whenever a location opens, closes, or undergoes other changes, ensuring that all parties have the most current information.

Benefits of EDI 816

• Improved Efficiency: Helps trading partners stay informed about changes in organizational structure or locations, reducing miscommunication.
• Accurate Data: Ensures that all parties have the most up-to-date information, avoiding delivery errors and misrouted shipments.
• Streamlined Processes: Automates the communication of critical relationship or location data, reducing manual efforts.

EDI 816 Format

Here’s a simplified example of the structure of an EDI 816 Organizational Relationships. This example illustrates how the various components of the EDI 816 are organized and formatted:

Example Structure of EDI 816

ST*816*0001

N1*ST*STORE A*92*12345

N3*123 MAIN STREET

N4*NEW YORK*NY*10001

REF*92*REGION001

PER*IC*JOHN DOE*TE*1234567890

SE*6*0001

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