EDI 860 Purchase Order Change Request

EDI 860 document is essential for maintaining accurate order information and ensuring smooth operations between buyers and sellers. In this guide, you'll learn about EDI 860 transaction sets.

What is an EDI 860?

The EDI 860 is a transaction set used to transmit purchase order changes between buyers and suppliers. It is also known as the Purchase Order Change Request – Buyer Initiated. This document is typically sent by a buyer when they need to modify an existing purchase order (initially sent as an EDI 850) after it has already been issued.

Key Functions of EDI 860:

• Modifying Purchase Orders: Allows buyers to make changes to existing purchase orders, such as altering quantities, prices, ship dates, or delivery addresses.
• Adding or Deleting Items: Enables the addition of new items or the removal of existing ones from a purchase order.
• Canceling Orders: Can be used to cancel entire purchase orders or specific line items.
• Confirming Changes: Serves as a confirmation of purchase order changes initiated by the seller.

What are the Key Elements of EDI 860?

An EDI 860 typically includes:

• Purchase Order Header Information: This segment includes information such as the purchase order number, date, and any other identifiers for the order.
• Change Details: Specifics on what changes are being requested—whether it's a change in quantity, price, delivery date, etc.
• Item Detail: Includes line item details of the products that are being changed, such as item numbers, description, and any associated changes.

How is EDI 860 Purchase Order Change Request used?

The EDI 860 Purchase Order Change Request allows buyers to modify existing purchase orders sent via EDI 850. When a buyer needs to adjust an order—such as changing quantities, delivery dates, prices, or item details—they send an EDI 860 to the supplier.

This transaction set includes specific segments detailing the changes. For example, it might adjust the quantity of a product ordered, update the price due to new negotiations, or change the delivery location to a different warehouse. The buyer's system generates the EDI 860 and transmits it electronically to the supplier's system.

Upon receiving the EDI 860, the supplier processes the changes, updating their records to reflect the new order details. They may send an acknowledgment, often via EDI 865 (Purchase Order Change Acknowledgment), to confirm they’ve accepted or rejected the changes. This process helps ensure both parties are aligned and reduces the risk of errors in order fulfillment.

Benefits of EDI 860

The EDI 860 Purchase Order Change Request provides following benefits to buyers.

• Streamlined Order Modifications: EDI 860 simplifies the process of updating orders without the need to cancel and reissue a new EDI 850 (Purchase Order), saving time and effort.
• Clear Audit Trail: It creates a digital record of all changes, allowing vendors and buyers to easily track and reconcile any order modifications or discrepancies.
• Reduced Errors: By automating the change request process, EDI 860 eliminates the need for manual data entry, reducing the likelihood of errors.
• Enhanced Security: Sending order changes via EDI 860 is more secure than using email or PDFs. EDI software typically employs encryption, secure protocols like HTTPs or FTPs, and user authentication to protect sensitive business information.

EDI 860 Format

Here’s an example structure of an EDI 860 Purchase Order Change Request, which shows the key segments used to convey changes to an existing purchase order:

EDI 860 Example:

ISA*00* *00* *12*123456789012*34*987654321098*230814*1700*U*00401*000000001*0*P*>~

GS*PC*1234567890*9876543210*20230814*1700*1*X*004010~

ST*860*0001~

BCH*01*SA*4500012345**20230810*230814*123456~

REF*ZZ*PO123456~

N1*ST*BUYER COMPANY*92*0012345678~

N1*SU*SUPPLIER COMPANY*92*87654321~

POC*1*DI*100*EA*14.50*D*BP*12345*VP*67890~

*PD*Updated description of item~

POC*2*CA*0*EA*D*BP*54321*VP*09876~

*PD*Cancelled item description~

CTT*2~

SE*12*0001~

GE*1*1~

IEA*1*000000001~

Breakdown of the Example:

ST: Start of Transaction set, indicating the transaction set identifier (860) and transaction set control number.

BEG: Beginning of Message, containing the purchase order number and date.

PO1: Purchase Order Line Item, containing information about the item, quantity, unit of measure, change code (C for change), and new quantity.

CTT: Transaction Count, indicating the total number of line items in the transaction set.

SE: End of Transaction set, indicating the number of line items and the transaction set control number.

Key Points:

Each line represents a segment with specific data elements separated by tilde (~) characters.

The actual EDI 860 format is much more complex, with numerous additional segments for detailed information.

Specific data elements and their order are defined by X12 standards.

EDI software is used to create, process, and translate EDI documents.

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