What is an EDI 847 Material Claim?

EDI 847 transaction set provides the trading partners with the ability to advise each other about costs and any charges involved in fabricated or purchased material which has been considered damaged, obsolete or unusable, or in both. The transaction set cannot be used for submission of any claims against the transportation or the insurance carriers. EDI 847 can be useful in the following ways:

  • For a material seller to advise the buyer of the costs and any charges which result from cancellation or change in order and must be dependent on the authorization of the buyer to purchase or fabricate the material, or both
  • For a material buyer to advise the seller of the costs and any charges which result from the material declared unusable or damaged

The data contents and format of EDI 847 Material Claim are used for the electronic interchange of information. It is divided into various segments and data elements.

Workflow for the Exchange of an EDI 847 Material Claim

EDI 847 falls under the category of X12M Supply Chain transaction set. This transaction set assists trading partners in advising each other regarding costs and charges which are associated with purchased or fabricated material, or both, which has been declared damaged, obsolete or unusable.

Stay EDI Compliant with EDIConnect

With a built-in message parser, validator, and transaction builder, EDIConnect can handle transaction sets in X12, EDIFACT, and HL7 formats. This helps businesses easily exchange EDI documents with their trading partners, allowing them to stay EDI compliant. Using EDIConnect, users can automate file uploads and downloads, create workflows, and transform files into the required format to streamline the process.

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