What are Popular EDI Transaction Sets / Files for Retail?
In this posts, we will go through the most popular Electronic Data Interchange (EDI) transaction sets for retailers. Often people refer to “EDI Files” but are actually making reference to the transaction set because there is only one in the file. For example, “they sent me a EDI 850 document” - actually is an EDI File that contains one 850 transaction set.
It depends on the trading relationship, but usually it’s:
- Inventory Update (EDI 846) when dropshipping
- Purchase Order (EDI 850)
- Advance Ship Notice (EDI 856)
Other transactions that do get used, but aren’t as popular:
- Purchase Order Acknowledgement (EDI 855)
- Invoice (810)
- Order Change by Buyer (860)
- Order Change by Seller (865)
- Price Catalog (832)
Let’s step through each one to understand the use case.
Inventory Update (EDI 846)
The Inventory Update (EDI 846) is mostly used when dropshipping to communicate inventory information from the Supplier’s warehouse to the Retailer. This file is often filled with the location reference / id for the retailer, and product information. Each line item in the product information represents a variant / SKU that contains: reference (usually UPC), the quantity, and the title of the item.
For a wholesale trading relationship, it’s not required because the inventory count will get communicate through the Purchase Order (850), or another form of communication (Ex. Email).
Purchase Order (EDI 850)
As you imagine in a retailer context, the purchase order is the most popular transaction set. It communicate order details such as shipping addresses, order notes, and line items. It’s used in both a dropship and wholesale trading relationship.
Advance Ship Notice (EDI 856)
The Advance Ship Notice (ASN) is communicating shipping and fulfillment information from Supplier to Retailer. It contains information about what shipping, at what level (item, pack, container), and anything else for shipping the good. It’s used in both dropship and wholesale.
We have seen many use not use the Purchase Order Acknowledgement which makes the ASN act as the acknowledgement (or they use email).
Purchase Order Acknowledgement (EDI 855)
The Purchase Order Acknowledgement (EDI 855) is sent from the Supplier to the Retailer to confirm receipt of the purchase order. It can indicate acceptance of the order as-is, or communicate any changes or rejections. This transaction set helps ensure both parties are in agreement about the order details before fulfillment begins.
Order Change by Buyer (EDI 860)
The Order Change (EDI 860) allows the Retailer to modify an existing purchase order. Common changes include updating quantities, shipping information, or canceling line items. The Supplier typically responds with an 865 to accept or reject these changes.
Order Change by Seller (EDI 865)
The Order Change Acknowledgement (EDI 865) is the Supplier's response to an 860 Order Change request. It confirms which changes were accepted or rejected, and can propose alternative changes if needed. This ensures both parties remain synchronized when order modifications are necessary.
Invoice (EDI 810)
The Invoice (EDI 810) is sent from the Supplier to the Retailer to request payment for goods or services. It includes detailed pricing information, payment terms, and references to the original purchase order. This transaction set is crucial for automated accounts payable processes.
Price Catalog (EDI 832)
The Price Catalog (EDI 832) allows Suppliers to communicate their product catalog, including pricing, to Retailers. It contains detailed product information, pricing tiers, effective dates, and any special promotional pricing. This helps keep product and pricing information synchronized between trading partners.
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With all of these transactions set, you can tell that each EDI retailer can be different. They require different information, use different ids, and have unique components. Hendricks does a great job at capture each unique requirement into a standard app on our app store. We help teams get connect between platforms like Shopify, WooCommerce, Big Commerce, Adobe Commerce and EDI. We work with your EDI partners on your behalf to save you the effort of having to become an EDI expert. Think of Hendricks as the “Google Translate between EDI and E-Commerce platforms”.
If you have any questions, feel free to reach out to hello@hendricks.so.