What is an EDI 855?

What is an EDI 855?
What is an EDI 855?

An EDI 855 is a Purchase Order Acknowledgement. It is sent after an EDI 850 (Purchase Order) is received to confirm goods are available to be sold. It replaces the need to call, fax, or email trading partners to confirm a purchase order was received and whether it will be fulfilled.  An EDI 855 includes the following:

  • Order Accepted
  • Order Rejected
  • Order Variations

EDI 855 Format

 

 edi 856

EDI 855s enable businesses to streamline the supply chain by eliminating the need for phone calls, faxes or emails and manually re-key the information into different systems. The automation also keeps the cost of business down as a whole because it frees up resources and reduces human error.

How I send/receive EDI 855s?

It is fairly easy for a system to send/receive EDI 855s. For the most part, the transmitting is done through the Internet or Value Added Network (VAN). To keep EDI costs affordable, today most EDI transmission is done through the internet using AS2 (Applicability Statement 2) or secure FTP (File Transfer Protocol), eliminating the need for an expensive VAN. The file is kept secure using encryption to keep the data safe.

Translating an EDI 855

Once an EDI 855 document has been received, it must be translated into a functional format for your system. Many organizations have their own standard set of definitions for EDI 855s and companies use a platform like logicbroker to configure and translate these different documents. Once the EDI 855 is translated, the information can be synced to your internal system of record such as an ERP(Enterprise Resource Planning) – eliminating the need for manual data entry. Once the information exists in your systems, you can quickly acknowledge the order. Retailers and Suppliers find EDI 855 useful because it gives order updates quickly and allows them to anticipate order variations. Typically, the next step is to send back similar documents such as an EDI 810 (Invoice) and an EDI 856(Advance Shipment Notice).

To learn more, please download our complete EDI 855 booklet or contact us