Common EDI Documents: 855 Purchase Order Acknowledgement

The 855 Purchase Order Acknowledgement*** is used by the supplier to indicate to the buyer that their purchase order will be filled as requested. Specific details such as items, price and quantities delivered will be represented in the document. The buyer then knows you will be filling the order and shipping the goods as requested, by the date requested, or that you will be unable to do so for some reason, such as being out of stock, or not agreeing to the terms of the purchase order.

What makes up the 855 Purchase Order Acknowledgement document?

Elements could include vendor number, purchase order number, address information (street, city, state etc.), and an acknowledge/reject indication, identical to a paper or faxed Purchase Order Acknowledgement. 

How is the 855 Purchase Order Acknowledgement used?

An 855 Purchase Order Acknowledgement is sent by the supplier after receiving the 850 Purchase Order from the buyer.

****After the EDI document has been received, a 997 Functional Acknowledgement is sent back from the supplier indicating the EDI document was successfully received

Common EDI Documents: 856 Advance Ship Notice/Manifest

The 856 Advance Ship Notice/ Manifest*** is used by the supplier to indicate to the buyer the contents of the shipment it is associated with. Specific details such as order information, physical characteristics and product descriptions, and carrier information will be represented in the document. The 856 Advance Ship Notice/ Manifest will also contain marking, packaging information, and configuration of goods in the transportation equipment.

What makes up the 856 Advance Ship Notice/Manifest document?

Elements could include order information, product descriptions, carrier information, and packaging information identical to a paper shipping manifest.

How is the 856 Advance Ship Notice/Manifest used?

The 856 Advance Ship Notice/Manifest is most often sent when the shipment is first en route to the destination.

****After the EDI document has been received, a 997 Functional Acknowledgement is sent back from the supplier indicating the EDI document was successfully received

Common EDI Documents: 940 Warehouse Shipping Order

The 940 Warehouse Shipping Order* is used to advise the warehouse that a shipment is to be made to the designated ‘ship to’ on behalf of the depositor, and provides detailed information concerning a warehouse shipment.

What makes up the 940 Warehouse Shipping Order document?

Elements could include vendor number, items, and ship to location, identical to a paper motor carrier details and invoice document.

How is the 940 Warehouse Shipping Order used?

The 940 Warehouse Shipping Order is transmitted to the supplier’s warehouse.

*After the EDI document has been received, a 997 Functional Acknowledgement is sent back indicating the EDI document was successfully received

Common EDI Documents: 945 Warehouse Shipping Advice

The 945 Warehouse Shipping Advice** is used to advise the depositor that a shipment was made, and also contains information that assists in the reconciliation of order quantities with shipment quantities. 

What makes up the 945 Warehouse Shipping Advice document?

Elements could include vendor number, order number, items, and item quantities in the shipment, identical to a paper warehouse shipping advice document.

How is the 945 Warehouse Shipping Advice used?

The 945 EDI document is transmitted to the depositor to advise that the shipment has been made.

**After the EDI document has been received, a 997 Functional Acknowledgement is sent back from the transportation provider indicating the EDI document was successfully received. 

Common EDI Documents: 997 Functional Acknowledgement

The 997 Functional Acknowledgement is used to acknowledge receipt of an EDI document.

What makes up the 997 Functional Acknowledgement document?

Elements could include Transaction Set Header, Functional Group Response Header, Transaction Set Response Header, Data Segment Note, Data Element Note, Transaction Set Response Trailer, Functional Group Response Trailer, Transaction Set Trailer, etc.

How is the 997 Functional Acknowledgement used?

The 997 Functional Acknowledgement is sent after a trading partner received a document to notify the sender that they have received the document that was sent.

What is a Value-added Network?

A Value-added network, also known as VAN, is a hosted service offering that acts as an intermediary between business partners sharing standards based or proprietary data via shared business processes. VAN is a private network provider that is hired by a company to facilitate electronic data interchange, or EDI, or other network services, such as message encryption, secure mail, and management reporting. VANs simplify the communication process by reducing the number of parties that a company will have to communicate with. VANs insert themselves between trading partners, acting as an emissary. VANs operate in a mailbox fashion, i.e. companies will send transactions to a VAN while it places the transaction in the receiving companies’ “mailbox.” The receiving companies contact the VAN and pick up the transactions, and proceed to send transactions of their own. VANs are similar to email but rather than being used for unstructured text, VANs focus on standardized structured data.

            So what are the advantages of using a Value-Added Network for e-commerce communication? The use of VANs allows for better communication channels among supply chain and trading partners by allowing the transmission of data and translation between formats, which can help a business in more effective e-commerce transactions through the encryption, retransmission, and support of messages. Compared to manual transaction processing, VANs transmit data and complete transaction at a much faster speed, allowing for quicker access to operating information. VANs transmit information similar to that of a cable internet connection; however, its quality is from the audit information added to messages. Data can be modified as it passes through error-detection, correction processes, and during conversion. The efficiency of VANs and how it is able to handle transactions and communications can benefit all businesses involved and lead to stronger relationships between them. VANs decrease the need for paper transfers, and allow paper-based tasks to be handled electronically, which can decrease the chances for error. Today’s VANs can provide a host of Web services and can support Web technology standards, evolved to accommodate the latest e-commerce applications, all based on providing dependable and secure communication across a network.

               There are also some aspects of VANs that would cause pause for some businesses to use them, such as the cost; the implementation of a VAN can be expensive as well as a resource-intensive endeavor, especially for a small to medium-sized business. VANs, like most computer technology, require ongoing technical and network support and maintenance. A company would need to hire experienced personnel in order to manage the in-house network, or utilize the services of an independent support provider. Continuous maintenance increases the cost of using the network and complicates day-to-day operations. And since the age of the Internet and its increasing prevalence in society, VANs have become less desirable, largely due to the cost considerations associated with them, and the Internet has been found much more cost-effective to move data than to pay the fees and charges usually found in VAN contracts. However, VANs have still been able to become a major force in certain industries, such as health care, retail, and manufacturing and have expanded the range of services provided to their customers.