855 Purchase Order Acknowledgment

An EDI (Electronic Data Interchange) 855 is a type of electronic document used in business-to-business transactions. In this guide, you'll learn about EDI 855 transaction sets.

What is an EDI 855?

EDI 855 refers to an Electronic Data Interchange (EDI) transaction set specifically used for Purchase Order Acknowledgement. It's a standardized electronic message sent by a seller (vendor) to a buyer after receiving an EDI 850 Purchase Order.

Here's what an EDI 855 typically does:

Confirms receipt: It acknowledges that the seller has received the buyer's purchase order.

Responds to the order: The seller can accept the order entirely, request changes (like quantities), or reject it altogether.

Highlights discrepancies: The EDI 855 can point out any errors in the original purchase order, like pricing mistakes or unavailable inventory.

EDI 855 complements, but doesn't replace, an EDI 997 Functional Acknowledgement, which focuses on technical aspects of the data exchange. Large retailers and distributors often require EDI compliance, and EDI 855 might be mandatory within specific timeframes.

What are the Key Elements of EDI 855?

Here's what an EDI 855 typically includes:

• Purchase Order Number: Reference to the original purchase order.
• Acknowledgment Type: Indicates the type of acknowledgment (e.g., accepted, rejected, or accepted with changes).
• Item Details: Information about each item on the order, including Item Identification, Quantity Ordered, Quantity Accepted, Price per Unit and Expected Ship Date
• Ship To and Bill To Information: Details about the shipping and billing addresses.
• Terms of Sale: Payment terms and conditions.
• Shipping Details: Information about the shipping method and expected delivery dates.
• Comments: Any additional information or comments related to the order acknowledgment.

How is EDI 855 Purchase Order Acknowledgement used?

The EDI 855 Purchase Order Acknowledgment is a crucial document in the supply chain management process, serving as the seller's formal response to a buyer's purchase order. When a buyer sends an EDI 850 Purchase Order, the seller responds with an EDI 855 to confirm receipt and acceptance of the order. This acknowledgment indicates whether the seller accepts the order as is, rejects it, or proposes changes to the terms, such as quantities, prices, or delivery dates. By providing clear and timely communication, the EDI 855 helps both parties manage their inventory and production schedules more effectively, reduces the risk of misunderstandings, and ensures that any discrepancies are addressed promptly, thereby enhancing the overall efficiency and accuracy of the procurement process.

Benefits of EDI 855

The EDI 855 Purchase Order Acknowledgment offers several key benefits in the procurement and supply chain process:

• Faster Order Processing: By electronically confirming the order status, EDI 855 helps streamline communication and expedite the fulfillment process.
• Reduced Errors: Automating communication minimizes the risk of errors that can occur with manual processes like phone calls or emails.
• Improved Visibility: Both buyer and seller have a clear understanding of the order status, leading to better inventory management and planning.

These benefits collectively contribute to a more efficient, accurate, and responsive procurement and supply chain operation.

EDI 855 Segments Example

The EDI 855 can be seen in two different formats:

Raw Data Format: This is the original, structured format of the EDI 855 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:

ST Segment: Identifies the transaction set as an EDI 855.

BAK Segment: Reference information about the original Purchase Order (PO number, date, etc.).

PO1 Segment: Details about a specific line item from the original PO (quantity, price, etc.).

ACK Segment: Indicates acceptance (IA) of 5 units from the PO line item. An alternative code could indicate rejection or changes.

CTT Segment: Free-form text comments (optional).

SE Segment: Marks the end of the EDI 855 message.

Example of an EDI 855 Document

Here’s a simplified example of what an EDI 855 document might look like:

ST*855*0001~

BAK*00*AC*PO123456*20240712~

REF*IA*56789~

PER*IC*John Doe*TE*1234567890~

N1*ST*Ship To Company*92*ST123~

N3*123 Main Street~

N4*Anytown*CA*90210~

PO1*1*100*EA*15.00*PE*BP*1234567890*VP*0987654321~

ACK*IA*100*EA*20240715~

PO1*2*50*EA*10.00*PE*BP*2345678901*VP*8765432109~

ACK*IR*50*EA*20240720~

CTT*2~

SE*14*0001~

Human-Readable Version: This is a translated format of the EDI 855, made understandable for people. It displays information in a clear and readable way, showing details such as buyer's details, order numbers, item descriptions, quantities, and prices.

EDI 855 Purchase Order Acknowledgment from the Inofocn Systems Experts

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