The EDI 870 Application Advice is designed to provide a standardized method for businesses to convey information regarding the acceptance, rejection, or modification of previously received EDI transactions. This could pertain to purchase orders, invoices, or other relevant documents.
By using EDI 870, organizations can ensure that all parties are on the same page regarding the status and processing of transmitted documents.
All EDI documents are securely encrypted in transit, allowing trading partners to send sensitive data safely. By communicating the acceptance, rejection, and processing status of EDI transactions, it plays a critical role in ensuring efficient, accurate, and seamless data exchange between trading partners.
Improved Processing Efficiency
By automating the feedback process on the status of transactions, businesses can streamline their operations, reducing the need for manual checks and follow-ups. This leads to faster processing times and more efficient overall operations.
Cost Savings
By identifying and addressing errors early in the process, businesses can avoid costly issues that may arise from incorrect data processing. Additionally, the automation of status reporting reduces administrative costs associated with manual error tracking and communication.
Compliance and Reporting
For industries and transactions requiring compliance with specific standards or regulations, EDI 824 helps businesses maintain compliance by documenting the receipt and processing status of transactions. This documentation can be crucial for audit trails and reporting purposes.
Acknowledgment of Receipt: Confirms the receipt of an EDI transaction, ensuring the sender that their document has been received.
Acceptance Notification: Informs the sender that their transaction has been accepted and will be processed accordingly.
Rejection Notification: Communicates reasons for rejecting a transaction, allowing the sender to address issues.
Modification Requests: Suggests changes or modifications to the original transaction, facilitating collaborative corrections.
Status Updates: Provides updates on the processing status of a transaction, keeping all parties informed.
Header: Contains control information about the transaction set, such as sender and receiver details.
Detail: Holds the main content of the application advice, including specific acknowledgments or rejections.
Summary: Provides control totals and other summary information to ensure data integrity.
ST (Transaction Set Header): Indicates the start of the transaction set and assigns a control number.
BCA (Beginning Segment for Application Advice): Specifies the purpose and reference information related to the application advice.
REF (Reference Identification): Provides additional references or identifiers related to the transaction.
DTM (Date/Time Reference): Indicates relevant dates and times associated with the advice.
N1 (Name): Identifies parties involved, such as the sender and receiver.
OTI (Original Transaction Identification): References the original transaction set being acknowledged.
TED (Technical Error Description): Describes any errors or issues identified in the original transaction.
SE (Transaction Set Trailer): Indicates the end of the transaction set and provides a control count.
The primary purpose of EDI 870 is to provide a standardized format for businesses to acknowledge, accept, reject, or request modifications to previously received EDI transactions. It ensures clear communication and helps in addressing any discrepancies or errors in the original documents.
EDI 870 is widely used across various industries including retail, manufacturing, healthcare, logistics, and supply chain management. Any industry that relies on electronic data interchange to manage transactions can benefit from using EDI 870 for formal acknowledgment and response.
If an EDI 870 Application Advice indicates a rejection, the receiving party will typically provide a reason for the rejection. The sender can then address the issue, correct the transaction, and resubmit it if necessary. This process ensures that any problems are resolved before further processing.
While EDI 870 is not mandatory for all EDI transactions, it is highly recommended for businesses that want to ensure clear and formal communication regarding the acceptance, rejection, or modification of received documents. Its use depends on the specific requirements and agreements between trading partners.
The EDI 870 header segment typically includes control information such as the transaction set identifier, sender and receiver details, and a unique control number. This segment establishes the context for the rest of the transaction set.
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