EDI 857 Shipment and Billing Notice
EDI 857 is used in supply chain processes to streamline operations by sending shipment details and billing information in a single transaction. In this guide, you'll learn about EDI 855 transaction sets.
What is an EDI 857?
The EDI 857 is known as the Shipment and Billing Notice, which combines the functionality of an Advance Ship Notice (ASN) and an Invoice. It provides detailed information about a shipment, including arrival dates, load information and billing details. EDI 857 is typically used in scenarios where shipping and billing information need to be communicated together.
EDI 857 is not a universal replacement for EDI 856 and EDI 810. The choice of using EDI 857 depends on specific industry practices and trading partner agreements.
What are the Key Elements of EDI 857?
Here's what an EDI 857 typically includes:
- Purchase order number
- Ship-from and ship-to locations
- Carrier information
- Item information (product ID, quantity, description)
- Invoice number & Date
- Item pricing and extensions
How is EDI 857 Shipment and Billing Notice Used?
The EDI Shipment and Billing Notice is sent by suppliers before the shipment reaches its destination. It provides crucial shipment details, such as expected arrival dates and load information, which help receiving warehouses, distribution centers, and retail stores to plan accordingly, similar to the EDI 856 Advance Ship Notice.
Additionally, the EDI 857 includes billing information, like the EDI 810 Invoice, informing the buyer of the total charges and requesting payment. Rather than replacing the EDI 856 or EDI 810, the EDI 857 combines their functions into a single document, eliminating the need to send them separately. Buyers usually acknowledge receipt of the EDI 857 by sending back an EDI 997 Functional Acknowledgement.
Benefits of EDI 857
The EDI 857, or Shipment and Billing Notice, offers several benefits for businesses involved in the supply chain. Here are the key advantages:
- Efficiency: Combines two separate documents into one, reducing paperwork and processing time.
- Accuracy: Reduces errors caused by manual data entry.
- Faster Payments: Enables quicker invoice processing and payment.
- Improved Inventory Management: Provides advance notice of shipments, allowing for better inventory planning.
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