EDI 860 - Purchase Order Change

What is the EDI 860? The EDI 860, or the Purchase Order Change Request, is a transaction set that enables the buyer to communicate changes to a previously submitted purchase order. These changes can include adjustments in quantities, prices, shipping details or even the cancellation of the entire order or specific line items.

The EDI 860 ensures that both the buyer and seller agree with the updated terms of the purchase order, thus improving operational efficiency and reducing dispute potential.

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EDI Documents

EDI 860 format

EDI 860 Format from SPS Commerce

Key features of the EDI 860 document format include:

Header section:

Specifies the beginning of the document and includes details such as the change order type (e.g., addition, deletion or modification), purchase order change number and the date of the change.

Detail section:

Contains information about the items being changed in the order. This can include the item identification, original and revised quantities, unit of measure (EA, CS, LB, KG, etc.) and price changes.

Summary section:

Provides a summary of the changes made, including the total number of line items changed and the total price of the order after adjustments.

Dates and terms:

Specifies delivery dates, shipping methods and payment terms that have been revised.

References and notes:

Includes additional references or notes related to the purchase order changes, such as reason codes for the changes.

How is the EDI 860 used?

The EDI 860 is sent by the buyer to the seller when part of the order needs to be changed. Here’s how it works:

Step 1
The buyer sends the EDI 860 to the seller, indicating they need to modify their original order.
Step 2
In the EDI 860 document, the buyer explains what needs to be changed from the original order. This could relate to the quantity of items, shipment details or even order cancellation.
Step 3
The buyer provides the corrected and specific details of what they need instead of the original order. So, if they originally ordered too many of an item, the EDI 860 will provide the corrected number they need instead.
Step 4
In addition to making a change to the original order, the EDI 860 document can also be used for other details the buyer may have forgotten in the original purchase request, like packing specifications or delivery notes.

Benefits of using an EDI 860 Purchase Order Change (Buyer Initiated)

Both the buyer and the seller benefit from implementing the EDI Purchase Order Change. The EDI 860 can prevent invoicing issues because it enables the supplier to invoice the retailer for the correct amount, and ensures that the retailer doesn’t overpay for items that weren’t delivered. Many of these benefits are dependent on how automated and integrated the transaction is for both parties.

Benefits of the EDI 860 include:

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Allow the purchaser to modify an order quantity based on current inventories to enable future demand planning.

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Improve efficiency of executing purchase order changes.

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Ensure accuracy of final order.

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Update the buyer’s and supplier’s system to create a record of the change, should any discrepancies arise. This provides an audit trail.

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Gain consensus between buyer and supplier on order details.

Common issues regarding EDI 860

PO changes can occur at different times within the order cycle.

The purchase order change can be sent if a portion of the order has been shipped, but the balance of the order needs a quantity adjustment, new ship date or has to be outright canceled.

A retailer might send an EDI Purchase Order Change after an order is shipped to correct pricing before billing happens.

Automate Purchase Order Changes 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.

A full-service provider, like SPS Commerce, has an expert team that handles ongoing management of your EDI solution so you can prevent EDI errors and chargebacks.

SPS communicates directly with your trading partners to manage connectivity, setup, requirements, updates and support efforts. Our team takes ownership of understanding your trading partner requirements and making map changes. We actively manage 9,000 changes from retailers each year.

Our full-service team also proactively monitors and optimizes your solution to minimize keystrokes and data entry.

Interested in learning more about our EDI solution?

Learn More About SPS Fulfillment

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