EDI 844 Product Transfer Account Adjustment

EDI 844 is commonly used in industries like healthcare, medical, and pharmaceuticals to adjust accounts for sales and shipments efficiently. In this guide, you'll learn about EDI 844 transaction sets.

What is an EDI 844?

The EDI 844 transaction set, also known as the Product Transfer Account Adjustment, is used to request a credit or debit from a manufacturer for a product transfer.

This transaction set is primarily utilized to adjust account balances related to the transfer of products between trading partners.

Key Features of EDI 844:

• Account Adjustments: The EDI 844 is used to communicate adjustments related to product transfers or returns, such as correcting account balances or updating financial records.
• Detailed Information: It includes details such as the reason for the adjustment, the amount being adjusted, and references to related transactions or documents.
• Error Correction: It helps in correcting errors or discrepancies that may arise in product transfer accounts, ensuring that financial records are accurate.

What are the Key Elements of EDI 844?

An EDI 844 typically includes:

• Product Identification: Detailed information about the product involved in the adjustment, including UPC, EAN, GTIN, product description, and quantity.
• Adjustment Reason: Specifies the reason for the credit or debit, such as return, price error, rebate, or promotional allowance.
• Financial Information: Includes the amount of the credit or debit, invoice numbers, and dates related to the transaction.
• Supporting Documentation: References to any supporting documents, like proof of delivery or return authorization.

How is EDI 844 Product Transfer Account Adjustment Used?

• A distributor sells a product to a customer at a pre-authorized price.
• The distributor then sends an EDI 844 to the manufacturer requesting a credit or debit to adjust for the difference between the sale price and the pre-authorized price.
• The manufacturer responds with an EDI 849, accepting or rejecting the adjustment.

Benefits of EDI 844

EDI 844 offers significant benefits to both distributors and manufacturers. By automating the process of requesting credit or debit adjustments, it reduces manual effort, minimizes errors, and accelerates claim processing. This leads to improved efficiency, reduced costs, and enhanced cash flow management. Additionally, EDI 844 provides a clear audit trail, facilitating dispute resolution and compliance with regulatory requirements. Through accurate and timely data exchange, it strengthens business relationships and supports overall supply chain optimization.

EDI 844 Format

Here’s an example structure of an EDI 844 Product Transfer Account Adjustment, showcasing the key segments used to communicate a reimbursement claim in the form of a debit or credit request:

EDI 844 Example:

This is a highly simplified example to illustrate the basic structure of an EDI 844. Actual EDI documents are much more complex and follow specific X12 standards.

ST*844*0001~

BEG*00*PO12345~20240815~

DTM*003*20240810~

LIN*01*ITEMA~100~EA~C~20~

AMT*001*DC*1000.00~

N1*ST*MANUFACTURER NAME~

N1*RE*DISTRIBUTOR NAME~

SE*5*0001~

Breakdown of the Example: