In Electronic Document Interchange (EDI), an EDI 850 Purchase Order (PO) is a transaction set used when placing an order for goods or services. It is one of the most commonly utilized supply chain documents as they relate to EDI transaction sets. The 850 document is most widely used in general merchandise, while its counterpart, the EDI 875 Purchase Order, is reserved for grocery items.
An 850 purchase order transaction set is typically insufficient to fully comply with EDI standards. Additional documentation is necessary to fully comply with the sales cycle and supply chain requirements. An acknowledgement document, such as an 810 Invoice, will need to be included as well as an advance shipping notice, such as an EDI 856 Advance Ship Notice. An EDI 856 will include important information regarding the outbound shipment, including the shipment’s contents and how the items were prepared for shipment.
EDI 850 Format
EDI 850 Purchase Order Key Data
When it comes to an EDI 850 purchase order, depending on the agreement between trading partners, there is typically a set of standard data that is included, such as:
- Purchase order number
- Purchase order date
- Location(s) where the product or services should
- Be supplied to
- Requested ship and/or delivery date
- Product item identifiers/services such as
- UPC/EAN/GTIN needed with their respective quantities
Additional data may be required according to trading partner specifications. These data can include:
- Carrier and service levels
- Vendor number
- Item price
- Expected charges and/or allowances
- Additional item identifiers such as buyer item number and vendor part number
- Item description
- Additional dates (Ex: cancel by dates)
EDI 850 Purchase Order Benefits
EDI 850 offers plenty of benefits to both the purchaser and the supplier. When implementing the use of electronic purchase orders, benefits can include:
- Reduced in the volume of paper-based processes
- Reduced time to complete transactions on both ends of trading partnerships
- Reduced time invested in manual processes, such as order submissions and PO entry
- Increase in value-added work as resources are freed by automation of manual processes
- Fewer data entry errors
- Optimized fulfillment
- Reduced on-hand inventory for retailers
For more information on Encompass Solutions’ EDI offerings, read more about our Rapid EDI Implementation.
About Encompass Solutions
Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers and Distributors. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, and renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.