How 850 Works
EDI 850 Purchase Order
The 850 Invoice is used by the supplier to indicate to the buyer the details of the purchase (items, price, and quantities delivered). The 850 Invoice will also contain payment details and terms as indicated by the buyer.
What makes up the EDI 850?
Elements could include vendor number, item, quantity, price per item, and address information (street, city, state, etc.) identical to a paper invoice.
How EDI 850 is used?
The 850 Purchase Order is used to place an order for goods and services and is used to communicate to a supplier the specific items, price, and quantities they wish to have delivered.
Benefits of EDI 850
- There is a significant reduction of paper flow and gain operating efficiencies through lowered time requirements to complete transactions by both companies
- Resources can be focused on value added work, instead of buyers manually submitting orders and suppliers manually receiving and entering purchase orders
- Elimination of data entry error dealing with manual order processing
- Potential for an increase of order fulfillment speed
