2021-10-26T11:39:23+00:00

What is an Electronic Data Interchange (EDI)?

Electronic Data Interchange (EDI) is the exchange of business information done electronically using a structured, standardized format. It allows companies to send useful information digitally instead of using paper. Here is an EDI example.

EDI Example

Some common EDI examples include purchase orders (EDI 850), shipment status, invoices containing customs information, inventory documents, and payment confirmations. One such example is when an automobile dealer can use EDI to request the credit report of a buyer. Within a matter of minutes, the dealership system can electronically transfer and analyze the credit history to quote the rate at which the car will be given to a potential customer.

EDI Document Types

There are different types of EDI document types, such as:

  • EDI 810 Invoice
  • EDI 850 Purchase Order
  • EDI 820 Payment Order

What is an EDI 810 Invoice?

An EDI 810 invoice is one of the most commonly used electronic documents or transaction sets that comply with ANSI X12 EDI specifications. However, the format of the EDI 810 invoice is complex, therefore an average buyer would struggle to interpret it. It is a computer-to-computer-based exchange of information that facilitates quick and error-free communication between businesses. An 810 EDI invoice is supposed to be sent, received, and understood by EDI software.

EDI 810 Invoice Segments

An EDI invoice is the electronic version of a paper-based bill or invoice that contains the information required for a usual paper-invoice purchase transaction, such as:

  • The items ordered and their cost 
  • Quantity ordered 
  • Invoice number
  • Shipping date
  • Date of invoice
  • Payment terms 
  • Discounts offered 
  • Billing and shipping details  

How is EDI 810 Invoice Used?

All the information included in an 810 EDI invoice is organized into different segments and data elements in accordance with the EDI 810 specifications. The purpose of using this EDI specification is to save time, money, and labor spent on manually preparing, printing, and mailing a paper-based invoice. The main benefit is that it allows for the rapid exchange of important transaction information between enterprises.

EDI 810 Invoice Specifications 

The EDI 810 X12 Transaction set is used for providing billing transactions in an industry-standard specified format. It is sent in response to an EDI 850 Purchase Order as a request for payment after the goods have been shipped or the services are rendered. The vendor will generate an EDI invoice transaction set 810.

Other EDI documents that can be transmitted in response to EDI 810 transaction include:

  • Functional Acknowledgement EDI 997 – It confirms the receipt of the EDI 810 transaction.
  • Text Message EDI 864– It reports any business violations detected in the EDI 810 invoice.
  • Remittance Advice EDI 820 – It details the payment of the invoice, or the remittance advice or both.

EDI X12 810 Invoice Transaction Sample 

The following example details the format of the EDI 810 invoice[1]: 

ISA*00* *00* *ZZ*VENDORID *08*9251190000 *040101*2245*U*00401*000000001*0*P*\~
GS*IN*VENDORID*6125404455*20040101*2245*1*X*004010~
ST*810*0001~
BIG*20140905*93608602*20140730*45056564~
N1*RI*Vendor Name*92*00231629~
N3*Vendor Street Address~
N4*City*IL*606930024*US~
IT1*0000010*660*LB*4.07*PE*BP*2018710000*MP*12345*VN*944940~
PID*F****OREGANO TURKISH WHOLE A 20#BG~
DTM*011*20140904~
SAC*C*D240***5500~
N1*ST*GENERAL MILLS*92*01HNWA~
N3*ONE RED DEVIL RD~
N4*HANNIBAL*MO*63401
TDS*280120~
SAC*C*G530***6000~
CTT*1~
SE*16*0001~
GE*1*1~
IEA*1*000000001~

[1] https://www.generalmills.com/~/media/Images/GMI/TradingPartners/NorthAmerica/EDI810SpecDocumentationFAQ.pdf?la=en 

Enjoy frictionless B2B data exchange with our enterprise-ready EDI software.

Contents of an EDI 810 Invoice

ISA*00* *00* *ZZ*VENDORID *08*9251190000 *040101*2245*U*00401*000000001*0*P*\~ 

This is the interchange control header that provides authorization and security information, receiver’s and sender’s ID, and the ANSI X12 version used for the transmission.

GS*IN*VENDORID*6125404455*20040101*2245*1*X*004010~ 

This is the functional group header. It contains sender’s and receiver’s code and the date and time of exchange. 

ST*810*0001~ 

This is the transaction set header. It identifies the type of EDI document. 

N1*RI*Vendor Name*92*00231629~ 

N3*Vendor Street Address~ 

N4*City*IL*606930024*US~ 

This segment contains the creation date and purchase order and invoice number. 

BIG*20140905*93608602 

*20140730*45056564~ 

This segment contains name and address information. 

IT1*0000010*660*LB*4.07*PE*BP 

*2018710000*MP*12345*VN*944940~

The IT segment contains information about the product, such as quantity invoiced, unit price, unit of measurement, and more. 

PID*F*** 

*OREGANO TURKISH WHOLE A 20#BG~ 

The PID segment contains a description of the product invoiced. 

DTM*011*20140904~ 

This segment contains a DTM qualifier. For example, 011 refers to the date and time when the shipment leaves the supplier. 

SAC*C*D240***5500~ 

This segment contains information about the service, promotion, allowance, and any relevant charges.

N1*ST*GENERAL MILLS*92*01HNWA~ 

N3*ONE RED DEVIL RD~ 

N4*HANNIBAL*MO*63401

These segments contain the name and address details of the –ship-to location.

TDS*280120~ 

The TDS segment contains the total invoice amount. 

CTT*1~ 

This segment contains transaction totals. 

SE*16*0001~ 

This is the transaction set trailer that specifies the number of segments included between ST and SE. 

GE*1*1~ 

GE refers to the functional group trailer. It specifies the number of transaction sets included. 

IEA*1*000000001~ 

This is an interchange control header. It specifies the number of functional groups included in the transmission.

EDI 810 Invoice Mapping Workflow for Exchange

An EDI 810 invoice is generated in response to an 850 Purchase Order. An EDI 850 Purchase Order lists the items a buyer wants to purchase from a supplier, along with their quantities, shipping instructions, and other details. Upon receiving the purchase order, the supplier sends a 997 acknowledgment to confirm the receipt of the order. The order is filled and delivered to the buyer along with an 810 invoice.  

Other documents that are exchanged between trade partners in response to an 810 EDI invoice include: 

  • EDI 856 Advance Shipment Notice
  • EDI 855 Purchase Order Acknowledgment  
  • EDI 856 Ship Notice/Manifest  
  • EDI 857 Shipment and Billing Notice

Ensure EDI Compliance with EDIConnect

EDIConnect is a high-performance EDI solution designed to work with EDI X12, EDIFACT, and HL7 transaction sets. With a built-in EDI parser, validator, and transaction builder, EDIConnect simplifies the process of sending and receiving EDI messages, enabling seamless communication between trade partners and helping businesses achieve EDI compliance.

Find out more about the industries we’ve helped and how we did it.