EDI 865 Purchase Order Change Acknowledgment/Request

EDI 865 ensures that both parties are aligned on purchase order changes, preventing misunderstandings and delays. In this guide, you'll learn about EDI 865 transaction sets.

What is an EDI 865?

An EDI 865 Purchase Order Change Acknowledgment/Request is an electronic document that functions as a response to an 860 Purchase Order Change. The 865 Purchase Order Change Acknowledgment is usually sent by the supplier to their trading partner(s). It serves as a reply to the 860 Purchase Order Change, and the supplier may either confirm or reject the requested changes.

Example Use Cases

Additional Comments: A supplier might use EDI 865 to send additional comments or notes about a shipment or order that are not included in the standard order or invoice documents.

Special Instructions: It can be used to communicate special handling instructions or other non-standard information that is necessary for completing a transaction.

What are the Key Elements of EDI 865?

The EDI 865 Purchase Order Change Acknowledgment/Request, typically includes the following essential components.

• Original Purchase Order Number: Identifies the affected purchase order.
• Change Acknowledgment/Request: Indicates whether the document is an acknowledgment or request.
• Change Details: Specifies the accepted, rejected, or modified changes.
• Reason Codes: Provides explanations for accepted or rejected changes.

How is EDI 865 Purchase Order Change Acknowledgment/Request used?

The EDI 865 transaction set is used by sellers to confirm or respond to changes requested by buyers in a previously submitted purchase order (EDI 860). When the seller receives an EDI 860 document from the buyer indicating changes such as updates to quantities, dates, or prices, the seller reviews these changes. Based on the review, the seller creates an EDI 865 document to acknowledge and respond to the buyer's request, indicating whether the changes are accepted, rejected, or if any modifications are proposed. This document is then transmitted electronically to the buyer through an EDI network.

The buyer processes the EDI 865, updating the order status based on the seller’s response and taking any necessary actions, such as adjusting the order in their system or contacting the seller for further clarification if needed.

Benefits of EDI 865

The EDI 865 transaction set offers several benefits that enhance the efficiency and accuracy of purchase order change processes. By automating the communication of order changes, it eliminates the need for manual follow-ups and confirmations, significantly reducing the potential for errors and misunderstandings. This structured format for acknowledging changes ensures that both buyers and sellers are aligned on order details, facilitating better coordination and collaboration.

The EDI 865 also speeds up the process of confirming and implementing changes, helping to maintain timely delivery schedules and improving overall operational efficiency. Additionally, it creates a digital record of all order changes and acknowledgments, supporting compliance and providing a clear audit trail for future reference.

EDI 865 Format

EDI 865 adheres to the X12 format established by the American National Standards Institute (ANSI). It contains many of the same data elements as the original purchase order (EDI 850), but with additional information specific to the changes being made.

Example of EDI 865 Structure:

ST*865*0001*000001

BGN*865*PO12345*20230405

DTM*003*20230405

REF*ZZ*CHANGEREQ123

LIN*1*ITEM001*50*EA

C001*QTY*001*50*EA*ACK

SE*1*000000001

Explanation of the Segments:

ST: Start of transaction set

BGN: Beginning of message

DTM: Date/time reference

REF: Reference identification

LIN: Item information

C001: Change information and acknowledgment

SE: End of transaction set

This is a simplified example. Actual EDI 865 documents can be much more complex, containing additional segments and data elements based on specific requirements and industry standards.

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