What are wholesale EDI documents and their purpose?

Key EDI documents used in wholesale transactions are outlined here to explain their purpose and how they streamline communication between buyers and suppliers. Understanding these documents clarifies each step of the order process, from initial purchase orders to final invoicing.

1. Purchase Order (EDI 850)

The Purchase Order (PO) is an EDI document that a buyer sends to a supplier to request goods or services. It contains details like item quantity, pricing, and delivery dates. The PO is the initial step in the wholesale order process, confirming what the buyer needs from the supplier.

2. Purchase Order Acknowledgment (EDI 855)

The Purchase Order Acknowledgment (POA) is used to confirm receipt and acceptance of the purchase order. By acknowledging a PO, the supplier communicates any discrepancies or confirms that they will fulfill the order as requested. This document is essential for syncing order details and managing expectations between buyer and supplier.

3. Purchase Order Change (EDI 860)

The buyer sends a PO Change to update an order they already sent, for example to change quantities or dates, or to cancel line items. Review and accept the change before you ship and invoice, so your ship notice and invoice match the latest version of the order.

4. Advance Ship Notice (EDI 856)

The Advance Ship Notice (ASN) is sent by the supplier to inform the buyer of the shipment details before the goods arrive. It typically includes shipping date, tracking information, item descriptions, quantities, and packaging details. This document helps the buyer plan for the arrival of goods and streamline the receiving process.

5. Invoice (EDI 810)

The Invoice document is used to bill the buyer for the goods or services provided. It includes item quantities, pricing, discounts, taxes, and payment terms. The EDI 810 allows for efficient, accurate billing, reducing the need for manual invoicing.

6. Inventory Inquiry/Advice (EDI 846)

The supplier sends the 846 to share available inventory, so the buyer knows what can be ordered. Many trading partners ask for it on a regular schedule, such as daily.

7. Functional Acknowledgment (EDI 997)

The 997 is an automatic receipt confirming that an EDI document was received and passed basic format checks. It doesn't mean the trading partner accepted the business content, such as prices or quantities.