EDI 850 - Purchase Order

EDIFACT ORDERS

The EDI 850 is also known as EDIFACT ORDERS and x12 850 Purchase Order. The EDI 850 is an electronic purchase order sent from a buyer to a seller, requesting goods or services. An electronic purchase order is one of the most fundamental documents that should be part of an automated EDI system.

Buying organizations use EDI purchase orders to order products to be shipped to a distribution center, a store or the end consumer. This document can contain a single ship-to location or multiple ship-to locations, such as for cross-dock orders.

EDI Documents

Benefits of using an 850 Purchase Order

Buyers and suppliers both benefit from implementing the EDI 850. Many of these benefits depend on how automated and integrated the transaction is for both parties. Some benefits include:

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Reduce time spent manually submitting orders (buyer) and manually receiving and entering purchase orders (supplier), allowing for resources to focus on value-added work

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Potentially increase the speed of fulfillment and reduce on-hand inventory

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Eliminate data entry errors associated with manual processes

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Reduce paperwork and gain operating efficiencies

Benefits to supplier:

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Reduce errors

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Reduce chargebacks

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Process orders faster

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Cut data entry and associated labor costs

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Time savings allows organization to focus on more strategic tasks

Benefits to buyer:

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Reduce errors

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Fulfill orders faster

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Streamline purchasing

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Reduce on-hand inventory

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Save time and money with three-way matching

The key data elements included in an EDI Purchase Order include:

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Purchase order date

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Purchase order number

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Requested ship and/or delivery date

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Location(s) where the product or services should be supplied to

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Product item identifiers/services such as UPC/EAN/GTIN needed with their respective quantities

Additional data that may also be included in the purchase order:

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Item price

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Item description

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Vendor number

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Carrier and service levels

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Expected charges and/or allowances

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Additional dates (such as cancel by dates)

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Additional item identifiers such as buyer item number and vendor part number

Common issues regarding EDI 850

New items:

Issues or errors can occur if a buyer includes new item numbers on a purchase order that are not set up in the supplier’s system.

Pricing discrepancies:

Pricing issues can occur if a buyer lists a different price on the purchase order than the supplier has in their system.

New shipment addresses:

Problems can also occur if the order includes a new ship-to address that is not currently in the supplier’s system.

Automate 850 Purchase Order with Full-Service EDI from SPS Commerce

Managing ongoing EDI tasks can be complex and time-consuming. Full-service EDI providers like SPS Commerce deliver EDI technology and associated staffing resources responsible for customizing, optimizing and operating your EDI solution.

SPS communicates directly with your trading partners to manage connectivity, setup, requirements, updates and support efforts. SPS also takes ownership of understanding your trading partner requirements and making map changes.

SPS Fulfillment proactively monitors and optimizes your solution to prevent errors and minimize data entry. Interested in learning more about our EDI solution?

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