EDI 861: Receiving Advice/Acceptance Certificate

by | Mar 27, 2018 | Suppliers

The Receiving Advice/Acceptance Certificate is growing in popularity as more and more retailers rely on their trading partners to help manage inventory. The EDI 861 document is often used in automatic stock-replenishment programs managed by the supplier or vendor. As the speed of e-commerce and digital retail continues to accelerate, this EDI document is expected to be incorporated into more inventory management processes.

What is the Receiving Advice/Acceptance Certificate?

The EDI 861 data exchange, the Receiving Advice Certificate, is basically a report back to the shipper that an order/shipment has arrived at its final destination. It’s also called the Acceptance Certificate, because it lets the buyer indicate to shipper the details of what was received compared to what was reported on the bill of lading (BOL), packing slip or the advanced ship notice (ASN) data feed, and to take note if there were any issues with the delivery (if some items are missing/damaged, etc.).

The 861 typically includes information about whether:

  • all or part of a shipment was received or not received;
  • there is a discrepancy between what was shipped versus what was received;
  • any items were damaged in transit.

In an EDI system, this report can be triggered automatically. It essentially marks the end of a chain of documents — a purchase order (EDI 850), PO acknowledgement (EDI 855), advanced shipping notice (EDI 856), and then the Receiving Advice Certificate. Since everything has been updated and acknowledged, scanning the inventory that has been received can trigger the 861 and let the shipper know the product has arrived, been received and the order is updated.

Benefits of EDI 861 Receiving Advice/Acceptance Certificate

Inventory accuracy throughout the supply chain is important, but it’s especially vital to vendors and suppliers that help their buyers and retailers manage inventory, such as a Just In Time inventory strategy. With the information from the Receiving Advice/Acceptance Certificate, suppliers and vendors can better maintain inventory accuracy in their warehouses, identify fraud or potentially fix shipping and delivery errors that could damage the relationship with the buyer.

For example, if the same buyer consistently reports receiving damaged goods, the situation can be investigated to determine what’s happening, whether it’s a problem in shipping or the buyer is overreporting damaged goods. Additionally, if a buyer has legitimately received an incorrect quantity that conflicts with the advanced shipping notice (ASN) or they need to send some of the product back, the vendor or supplier can keep their own inventory counts accurate.

To learn more about using an EDI 861 or any other EDI documentation, please visit the SPS Commerce website. You can learn more about EDI, get a free demonstration, or speak to one of our EDI specialists.

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Scott Bolduc
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EDI 861, receiving advice, acceptance certificate

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