What is an EDI 820 Payment Order/Remittance Advice?
EDI 820 transaction set is useful in making a payment, sending remittance advice, or for both. The transaction set may be used as an order to any financial institution for making a payment to a payee. EDI 820 may also be advice for remittance to identify any detail required for performing cash application to payee’s system of accounts receivables. The advice of remittance may directly be transferred from payer to payee, or by any financial institution or third-party agent.
The data contents and format of EDI 820 Payment Order/Remittance Advice are used for the electronic interchange of information. It is divided into various segments and data elements.
Workflow for the Exchange of an EDI 820 Payment Order/Remittance Advice
EDI 820 falls under the category of X12F Financeransaction set. This transaction set is utilized to make payments or send advice for remittance. The modes for transferring the remittance advice can be a direct transfer between payer and payee, or by the help of a financial institution or an agent.
Stay EDI Compliant with EDIConnect
EDIConnect is an enterprise-grade EDI solution that simplifies the process of sending and receiving EDI messages. It is designed to handle X12, EDIFACT, and HL7 transaction sets through its built-in parser, validator, and transaction builder. It also offers features to help businesses comply with EDI requirements and communicate seamlessly with their trading partners.