How 820 Works
EDI 820 pAYMENT oRDER
The 820 Payment Order/Remittance Advice is most often used to indicate of one of three things: Payment for an open item is required and settle the account, to advise the payee of the details of the payment, or to advise the payee of any adjustments in the payment. This document is sent by either the supplier or the buyer.
What makes up the EDI 820?
Elements could include Transaction Set Header, Beginning Segment for Payment Order/Remittance Advice, Trace, Currency, Reference Identification, Date/Time Reference, etc.
How EDI 820 is used?
The 820 Payment Order/ Remittance is used when an open account needs to be settled, or to advise the payee of details or adjustments in payment.
Benefits of EDI 820
- Allows the seller to keep track of accounts that need to be settled by buyers
- Encrypts the data to ensure security when exchanging information about payments between buyer and seller
- Informs the buyer and seller of any changes made to payment details and information
