EDI 861 Receiving Advice/Acceptance Certificate
EDI 861 is a standardized EDI document used in the supply chain process to acknowledge the receipt of goods or services. In this guide, you'll learn about EDI 816 transaction sets.
What is an EDI 861?
The EDI 861 transaction set, known as the Receiving Advice/Acceptance Certificate, is used by suppliers to notify buyers about the receipt of goods and to confirm the acceptance of those goods upon delivery. This transaction provides critical information regarding the condition of the items received and serves as an acknowledgment of receipt.
Key Functions of EDI 861:
- Acknowledgment of Receipt: Confirms that the goods have been received by the buyer, indicating whether they meet the order specifications.
- Condition Reporting: Provides details about the condition of the items received, including any discrepancies or issues.
- Quantity Verification: Reports the actual quantities received compared to what was ordered.
- Facilitating Returns: Helps streamline the return process if items are damaged or incorrect.
What are the Key Elements of EDI 861?
An EDI 861 typically includes the following key data elements:
- Purchase Order Number: References the original purchase order associated with the shipment.
- Shipping Date: Indicates the date the goods were shipped.
- Receiving Date: Specifies the date the goods were received by the buyer.
- Item Information: Details about each item received, including item number, quantity, and unit of measure.
- Acceptance or Rejection: Indicates whether the shipment was accepted in full, partially accepted, or rejected.
- Reason for Rejection: If the shipment was rejected, specifies the reason for the rejection.
- Invoice Number: References the invoice associated with the shipment.
How is EDI 861 Receiving Advice/Acceptance Certificate used?
A retailer orders a shipment of products from a supplier. Upon receiving the shipment, the retailer sends an EDI 861 to the supplier, acknowledging receipt of the goods and indicating whether they meet the specified quality and quantity standards. If there are any issues, the retailer can include details about the rejection in the EDI 861.
In conclusion, EDI 861 is a valuable tool for managing the receiving process in the supply chain. By automating and standardizing the exchange of information, it helps to improve efficiency, accuracy, and overall supply chain performance.
Benefits of EDI 861
EDI 861 is widely used in various industries, including manufacturing, retail, and distribution. It offers several benefits:
- 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 861 Format
Here’s a simplified example of the structure of an EDI 861 Receiving Advice/Acceptance Certificate. This example illustrates how the various components of the EDI 861 are organized and formatted:
Example Structure of EDI 861
ST*861*0001
BGM*00*1234567890*01
LIN*01*UP*123456789012
QTY*12*100*EA
DTM*007*20230923
N1*BY*BUYER NAME*92*12345
SE*7*0001
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