EDI 880 Price Information

EDI 880 is a structured format that replaces traditional paper invoices, streamlining the billing process and improving efficiency. In this guide, you'll learn about EDI 880 transaction sets.

What is an EDI 880?

The EDI 880 transaction set, also known as the Grocery Products Invoice, is used to exchange detailed billing information related to grocery products between suppliers and retailers. This transaction set is used by grocery suppliers to send invoice information to their retail partners.

The EDI 880 invoice is similar to the EDI 810 invoice, but it has a more industry-specific approach. While both types include invoice details, line item numbers, quantity, price discounts and payment terms, the EDI 880 invoice is frequently used for billing details covering finished goods in wholesale and retail grocery markets. Some grocers support both 880 and 810 invoices.

What are the Key Elements of EDI 880?

EDI 880 contains all the details necessary for the retailer to process the invoice and make payment, including:

• Invoice Number: A unique identifier for the invoice.
• Billing Date: The date the invoice was created.
• Payment Terms: Conditions under which payment is expected.
• Line Item Details: Information about each product being billed, including product codes, descriptions, quantities, unit prices, and extended prices.
• Total Amount Due: The total amount the retailer needs to pay.

How is EDI 880 Price Information used?

EDI 875, EDI 880, EDI 856, EDI 857, and EDI 997 are key EDI documents used in the grocery supply chain to streamline the order-to-cash process.

Standard Process

• Purchase Order: The buyer (retailer) sends an EDI 875 Purchase Order to the supplier (grocery store) detailing the products to be purchased.
• Shipment: The supplier picks, packs, and ships the ordered products.
• Invoice: After shipment, the supplier sends an EDI 880 Grocery Products Invoice to the buyer to request payment for the goods.
• Acknowledgment: The buyer sends an EDI 997 Functional Acknowledgement to confirm receipt of the EDI 880.
• Payment Processing: The buyer reviews the invoice for accuracy and processes the payment.

Some trading partners may prefer a different approach, Instead of sending separate EDI 856 Advance Shipping Notice and EDI 880 Grocery Products Invoice, the supplier can send a combined EDI 857 Shipment and Billing Notice. This document provides both shipping and billing information in a single transaction.

Key Points:

The choice between sending separate EDI 856 and EDI 880 or a combined EDI 857 depends on the specific requirements of the trading partners.

EDI 997 is used to acknowledge receipt of EDI 880, confirming that the buyer has received the invoice.

The buyer's ERP system plays a crucial role in processing the EDI 880 and scheduling payment.

Benefits of EDI 880

EDI 880 offers significant advantages in invoice management:

Improved Accuracy: By automating the invoice creation process and eliminating manual data entry, EDI 880 significantly reduces the chances of errors in invoice details such as quantities, prices, or totals.

• Increased Efficiency: The direct transfer of invoices from the supplier's system to the buyer's system speeds up the invoicing process, saving time and resources for both parties.
• Enhanced Security: EDI transmissions are typically encrypted, providing a higher level of protection for sensitive payment information compared to traditional methods like email, fax, or paper invoices.

EDI 880 Format

EDI 880 adheres to the X12 standard, a widely used electronic data interchange format. However, specific industry groups or trading partners may have additional requirements or customizations.

Example of EDI 880 Structure:

While the exact structure can vary based on specific industry standards and trading partner agreements, a general outline of an EDI 880 might look like this:

ISA*00* *00* *ZZ*SUPPLIERID*ZZ*BUYERID*YY*MMDD*HHMM*ZZ*000001*000001*0*T*:

GS*IN*SUPPLIERID*BUYERID*20230101*000001*000001*0*X*:

ST*880*0001*000001*0*0*:

BEG*00*20230101*000001*:

DTM*001*20230101*:

... (Invoice Line Items)

TOT*00*AMOUNT*:

ITD*1*AMOUNT*:

SE*880*0001*000001*:

GE*1*000001*:

IEA*0*000001*:

This is a simplified example and actual EDI 880 documents can be much more complex with additional segments and data elements.

Key Segments

ST - Transaction Set Header: Identifies the start of a transaction set and assigns a control number.

BIG - Beginning Segment for Invoice: Contains invoice date and number.

REF - Reference Identification: Provides additional identifying information.

N1 - Name: Identifies parties involved (e.g., seller, buyer).

IT1 - Baseline Item Data (Invoice): Detailed information about individual invoice line items.

TDS - Total Monetary Value Summary: Contains the total invoice amount.

CAD - Carrier Detail: Provides details about shipping, if applicable.

ISS - Invoice Shipment Summary: Summarizes the shipment details related to the invoice.

CTT - Transaction Totals: Contains the total number of line items and their cumulative values.

SE - Transaction Set Trailer: Indicates the end of the transaction set and provides the count of included segments.

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