Learn the basics of common EDI documents like 850, 810, and 856, and how they streamline B2B transactions. Read our latest blog.
Dinuka Ekanayake
Published: 02 May 2025
Traditionally, organizations exchanged business documents through paper-based methods or emails with attachments, which involved manual processing. Electronic Data Interchange (EDI) automates this process by enabling the electronic exchange of business documents between systems in standardized formats, without human involvement. EDI file exchange process offers significant benefits, including lower costs, faster processing, fewer errors, and stronger relationships with business partners. EDI supports the seamless exchange of documents such as purchase orders, invoices, and shipping notices between trading partners.
EDI document types are standardized electronic formats used to exchange business transactions between organizations. Each type is identified by a unique transaction code. There are several EDI (Electronic Data Interchange) standards in use, with the most widely used being ANSI ASC X12 (primarily in the USA) and UN/EDIFACT (used internationally, especially in Europe). Other notable standards include TRADACOMS (commonly used in the UK retail sector), ODETTE (used in the European automotive industry), and HIPAA (developed for the North American healthcare sector), and more.
The following are some of the most commonly used EDI document types formatted according to the American National Standards Institute (ANSI X12) standards, such as Purchase Orders (EDI 850), Invoices (EDI 810), Shipping Notices (EDI 856), and Purchase Order Acknowledgements (EDI 855). Each type is described below with its purpose, areas of use, and the information it typically includes.
The EDI 850 - Purchase Order is the electronic version of a paper-based purchase order, sent from a buyer to a seller to request goods or services.
An EDI 850 document contains the necessary information to make an order request, such as:
Purchase order date
Purchase order number
Items requested and their prices
Quantities ordered
Vendor name and address
Buyer name and address
Billing and shipping details
Allowances and charges
Payment method
Carrier details
This information is structured into distinct segments and data elements, making it easier to understand and process. Each segment is essentially a group of related data elements, and each data element represents a specific piece of information. Below is an example of the EDI X12 850 format along with an explanation.
ISA*00* *00* *ZZ*SENDERID *ZZ*RECEIVERID *250415*1200*U*00401*000000001*0*P*>
GS*PO*SENDERID*RECEIVERID*20250415*1200*1*X*004010
ST*850*0001
BEG*00*NE*123456789**20250415
REF*DP*123
PER*BD*JOHN DOE*TE*5551234567
N1*ST*Acme Warehouse*92*12345
N3*123 Elm St
N4*Metropolis*NY*10001*US
PO1*1*10*EA*15**IN*ABC123*VN*98765
CTT*1
SE*10*0001
GE*1*1
IEA*1*000000001
| Segment | Description | Segment Line from Sample EDI |
| ISA | Interchange Control Header – Identifies the start of the EDI message, sender and receiver IDs, interchange control number, date, time, and separators used for the message. | ISA*00* *00* *ZZ*SENDERID *ZZ*RECEIVERID *250415*1200*U*00401*000000001*0*P*> |
| GS | Functional Group Header –Includes Identifier Code, sender/receiver codes and control information | GS*PO*SENDERID*RECEIVERID*20250415*1200*1*X*004010 |
| ST | Transaction Set Header – Marks the start of the transaction set (850 Purchase Order) and includes a control number to pair with the trailer. | ST*850*0001 |
| BEG | Beginning Segment for Purchase Order – Indicates the type of purchase order, purpose, order number, and order date. | BEG*00*NE*123456789**20250415 |
| REF | Reference Identification – Provides additional reference information such as department numbers, vendor numbers | REF*DP*123 |
| PER | Administrative Communications Contact – Specifies contact information for a person relevant to the order, including name and communication details. | PER*BD*JOHN DOE*TE*5551234567 |
| N1 | Name – Identifies involved parties such as ship-to or bill-to locations, including their names and identification codes | N1*ST*Acme Warehouse*92*12345 |
| N3 | Address Information – Provides street address details for the party specified in the preceding N1 segment. | N3*123 Elm St |
| N4 | Geographic Location – Provides city, state, ZIP/postal code, and country for the address mentioned in the N3 segment. | N4*Metropolis*NY*10001*US |
| PO1 | Purchase Order Line Item – Describes each item being ordered, including line number, quantity, unit of measure, unit price, and item identifiers such as part numbers. | PO1*1*10*EA*15**IN*ABC123*VN*98765 |
| CTT | Transaction Totals – Gives the total number of line items in the order. | CTT*1 |
| SE | Transaction Set Trailer – Marks the end of the transaction set and provides a count of included segments and the control number (matching ST). | SE*10*0001 |
| GE | Functional Group Trailer – Ends the functional group of transaction sets, providing count and control number to pair with GS. | GE*1*1 |
| IEA | Interchange Control Trailer – Marks the end of the entire EDI message and includes control information to match with ISA. | IEA*1*000000001 |
Once the purchase order is received, several responses are involved to confirm a successful transaction:
EDI 997 Functional Acknowledgement: Confirms the receipt of the EDI 850 Purchase Order.
EDI 855 Purchase Order Acknowledgement: Sent in response to the EDI 850 to confirm that the supplier can meet the requirements outlined in the purchase order.
EDI 856 Advance Ship Notice: Describes the contents of each shipment and how items were packed, notifying the buyer of the shipment details.
EDI 810 Invoice: An invoice sent in response to the purchase order, detailing the goods or services provided.
An EDI 855 Purchase Order Acknowledgement is typically sent by the seller to the buyer in response to an EDI 850 Purchase Order. This document not only confirms the receipt of the new order but also informs the buyer whether the purchase order was accepted, accepted with changes, or rejected.
Here are the key components typically included in a Purchase Order Acknowledgement (EDI 855):
Acknowledgment details
Dates and times
Product/item information
References
Buying Party, Supplier/Manufacturer Information
Here is an example of an EDI X12 855 Purchase Order Acknowledgment format, along with its explanation:
ISA*00* *00* *ZZ*SUPPLIERID *ZZ*BUYERID *250415*1300*U*00401*000000002*0*P*>
GS*PR*SUPPLIERID*BUYERID*20250415*1300*2*X*004010
ST*855*0002
BAK*00*AC*123456789*20250415
REF*IA*78910
N1*BY*Acme Corp*92*54321
N3*456 Oak St
N4*Gotham*IL*60601*US
PO1*1*10*EA*15**IN*ABC123*VN*98765
ACK*IA*10*EA*20250420
CTT*1
SE*10*0002
GE*1*2
IEA*1*000000002
| Segment | Description | Segment Line from Sample EDI |
| BAK | Beginning Segment for PO Acknowledgment – States the purpose of acknowledgment, acknowledgment type (e.g., accepted), PO number, and date. | BAK*00*AC*123456789*20250415 |
| REF | Reference Identification – Provides reference numbers relevant to the acknowledgment (e.g., internal vendor number). | REF*IA*78910 |
| N1 | Name – Identifies buyer or seller parties and identifier. | N1*BY*Acme Corp*92*54321 |
| N3 | Address Information – Provides the street address of the party identified in the N1 segment. | N3*456 Oak St |
| N4 | Geographic Location – Provides city, state, ZIP code, and country. | N4*Gotham*IL*60601*US |
| PO1 | Line Item – Identifies the item being acknowledged, including quantity, unit of measure, price, and item codes. | PO1*1*10*EA*15.00**IN*ABC123*VN*98765 |
| ACK | Line Item Acknowledgment – Specifies acceptance or rejection of a specific PO line item, including quantity, unit, and date. | ACK*IA*10*EA*20250420 |
| CTT | Transaction Totals – Gives total number of line items acknowledged in the document. | CTT*1 |
The EDI 856, also known as the Advance Ship Notice (ASN), is typically sent by a supplier to a distributor or retailer to provide detailed information about a shipment. It includes the contents of the shipment as well as additional details such as order information, product descriptions, physical characteristics, packaging type, markings, carrier details, and the configuration of goods within the transportation equipment.
The contents of an Advance Shipping Notice (ASN) can vary based on the requirements of each party and the specific needs of the transaction. However, most EDI 856 documents typically include the following key elements:
Shipment Number
Shipping Date
Expected delivery date
Ship from/to addresses and information
Purchase order numbers
Item details and quantities
Packaging detail
UCC128/GS1 Numbers
Here is an example of an EDI X12 856 ASN format, along with its explanation:
ISA*00* *00* *ZZ*SHIPPERID *ZZ*RECEIVERID *250415*1400*U*00401*000000003*0*P*>
GS*SH*SHIPPERID*RECEIVERID*20250415*1400*3*X*004010
ST*856*0003
BSN*00*123456*20250415*1400*0001
DTM*011*20250416
HL*1**S
TD1*CTN25*10
TD5*B*2*UPSN*G*GROUND
REF*CN*1Z99999
N1*ST*Acme Warehouse*92*12345
N3*123 Elm St
N4*Metropolis*NY*10001*US
HL*2*1*O
PRF*123456789
HL*3*2*P
MAN*CP*1234567890
HL*4*3*I
LIN**BP*ABC123
SN1**10*EA
SE*17*0003
GE*1*3
IEA*1*000000003
| Segment | Description | Segment Line from Sample EDI |
| BSN | Beginning Segment for Ship Notice – Includes purpose code, Shipment identification, date/time of ASN creation, and hierarchical structure code. | BSN*00*123456*20250415*1400*0001 |
| DTM | Date/Time Reference – Specifies the date/time information related to the shipment (e.g.: shipped date or delivery date) | DTM*011*20250416 |
| HL (S) | Shipment Level – Indicates a hierarchical level; in this case, shipment level | HL*1**S |
| TD1 | Carrier Details (Quantity and Weight) – Describes packaging code and quantity shipped. | TD1*CTN25*10 |
| TD5 | Carrier Details (Routing Sequence/Transit Time) – Provides information about the carrier, method, and Routing. | TD5*B*2*UPSN*G*GROUND |
| REF | Reference Numbers – Provides a tracking number or shipment ID. | REF*CN*1Z99999 |
| N1 | Name – Identifies ship-to or other involved parties. | N1*ST*Acme Warehouse*92*12345 |
| N3 | Address – Street address of the N1 party. | N3*123 Elm St |
| N4 | Geographic Location – City, state, ZIP/postal code, and country. | N4*Metropolis*NY*10001*US |
| HL (O) | Order Level – Indicates the order-level HL segment (child of shipment). | HL*2*1*O |
| PRF | Purchase Order Reference – Contains the purchase order number being fulfilled. | PRF*123456789 |
| HL (P) | Pack Level – Represents the packing structure | HL*3*2*P |
| MAN | Marks and Numbers – Shipping label bar code or carton number (e.g., SSCC or license plate number). | MAN*CP*1234567890 |
| HL (I) | Item Level – Item-level detail, child of pack level. | HL*4*3*I |
| LIN | Item Identification – Identifies line item details such as buyer/seller part numbers. | LIN**BP*ABC123 |
| SN1 | Item Detail (Shipment) – Quantity and UOM for the item being shipped. | SN1**10*EA |
The EDI 810 is an electronic version of an invoice that the seller sends to the buyer to request payments for the delivered goods or services. Similar to a paper-based invoice, the EDI 810 Invoice must include key details about each order.
These typically include:
Invoice number and date
Buyer, Seller, and Remittance identification details
Order details, including product quantities and prices
Additional charges, discounts, and/or allowances
Total amount due
Acceptable payment methods
Payment terms
Tax details where applicable
Here is an example of an EDI X12 810 Invoice format file, along with its explanation:
ISA*00* *00* *ZZ*SUPPLIERID *ZZ*BUYERID *250415*1500*U*00401*000000004*0*P*>
GS*IN*SUPPLIERID*BUYERID*20250415*1500*4*X*004010
ST*810*0004
BIG*20250415*INV1234567*20250410*PO123456
REF*IA*78910
N1*BY*Acme Corp*92*54321
N3*456 Oak St
N4*Gotham*IL*60601*US
ITD*02*3**15**30**31
DTM*011*20250415
IT1*1*10*EA*15**IN*ABC123*VN*98765
TDS*15000
CAD****UPSN*GROUND
SAC*C*D240***500
ISS*10*EA
CTT*1
SE*17*0004
GE*1*4
IEA*1*000000004
| Segment | Description | Segment Line from Sample EDI |
| BIG | Beginning Segment for Invoice – Includes invoice date and number, and the corresponding PO number and date. | BIG*20250415*INV1234567*20250410*PO123456 |
| REF | Reference Identification – Supplies additional reference numbers such as internal vendor numbers. | REF*IA*78910 |
| N1 | Name – Identifies the buyer or bill-to party. | N1*BY*Acme Corp*92*54321 |
| N3 | Address – Provides street address of the party identified in N1. | N3*456 Oak St |
| N4 | Geographic Location – Specifies city, state, ZIP, and country. | N4*Gotham*IL*60601*US |
| ITD | Terms of Sale/Deferred Terms – Describes payment terms, such as discount and due date. | ITD*01*3**15**30**31 |
| DTM | Date/Time Reference – Indicates ship date or invoice-related dates | DTM*011*20250415 |
| IT1 | Baseline Item Data – Describes invoice line items: quantity, unit, price, item identifiers. | IT1*1*10*EA*15.00**IN*ABC123*VN*98765 |
| TDS | Total Monetary Value Summary – Total amount due in the invoice | TDS*15000 |
| CAD | Carrier Detail – Provides shipping method or carrier information | CAD*UPSN*GROUND |
| SAC | Service, Promotion, Allowance, or Charge – Describes extra charges, discounts, or allowances. | SAC*C*D240***500 |
| ISS | Invoice Shipment Summary – Describes total quantity shipped and unit of measure. | ISS*10*EA |
| CTT | Transaction Totals – Indicates number of line items invoiced. | CTT*1 |
The EDI 997 – Functional Acknowledgment is used to confirm the receipt of other EDI transactions. Unlike other messages that indicate approval or acceptance, the 997 only confirms that the message was received and processed by the recipient’s system. This ensures that important EDI documents, like purchase orders or invoices, have been successfully delivered.
EDI 997 Functional Acknowledgment include several pieces of information such as,
AK1 – Functional Group Acknowledgment
AK2 – Transaction Set Acknowledgment
AK3 – Reports errors in a specific segment
AK4 – Reports errors in specific element
AK5 – Type of acknowledgment
AK9 – Functional Group Response Trailer
Here is an example of an EDI X12 997 Functional Acknowledgment,
ISA*00* *00* *ZZ*RECEIVERID *ZZ*SENDERID *250415*1530*U*00401*000000005*0*P*>
GS*FA*RECEIVERID*SENDERID*20250415*1530*5*X*004010
ST*997*0005
AK1*PO*4
AK2*850*0001
AK5*A
AK9*A*1*1*1
SE*6*0005
GE*1*5
IEA*1*000000005
Understanding and implementing key EDI document types such as 850 (Purchase Order), 810 (Invoice), and 856 (Advance Ship Notice) is essential for seamless and efficient B2B operations. These standardized transactions help businesses scale, reduce errors, and build stronger, more reliable relationships with trading partners. As EDI becomes increasingly integral to modern supply chains, investing in the right EDI solutions or consulting with experts can set the foundation for long-term operational success and competitive advantage.
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