820 EDI

The EDI 820 is sent by a buyer after the receipt of an invoice (EDI 810). Learn about EDI 820s by reading the guide below. If you need to send or receive EDI 820s, request a demonstration of Cleo's EDI Solution.

EDI 820 - Payment Order / Order Remittance Advice

What is an EDI 820 Payment Order / Order Remittance Advice?

The EDI 820 is used to share payment or order remittance advice. Most often, the EDI 820 is issued by a buyer after the receipt of an EDI 810 Invoice or an EDI 850 Purchase Order to communicate payment information. 

How is an EDI 820 Payment Order / Order Remittance Advice used?

The EDI 820 Payment Order / Order Remittance Advice is used when an open account needs to be settled or to advise the paying trading partner of the details or potential adjustments with a given payment.

After receiving the EDI 820, the buying trading partner generates a 997 Functional Acknowledgement to send back confirming the successful reception of the EDI 820 transaction. 

EDI 820 Format

Here are the essential components of an EDI 820.

The EDI 820 contains information on payment information, including: 

1. Buyer and seller identification, including business names and addresses 

2. Invoice or purchase order numbers

3. Bank and account ID

4.  Amount billed or paid amounts, including adjustments 

5. Payment tracking information

EDI 820 Payment Order / Order Remittance Advice - Cleo Integration Cloud

Here is an EDI 820 Transaction within Cleo Integration Cloud

Example EDI 820 transaction exchange:

1. First, An EDI 850 Purchase Order is sent from your trading partner (Lozier in this example) and received by your business

2. Second, your Cleo EDI Platform creates and sends an EDI 855 Purchase Order Acknowledgment to your trading partner to recognize that the EDI 850 Purchase Order was received. 

3. Third, Cleo's cloud-based EDI platform generates an EDI 856 and sends the document to your trading partner, giving information on the contents of the shipment. 

4. Fourth, Cleo Integration Cloud generates an automated EDI 810 invoice and sends the invoice to Lozier as a receipt for goods purchased. 

5. Fifth, your trading partner sends an EDI 820 Order/Remittance to send the terms of the impending payment for goods purchased. The EDI 820 will confirm payment details and/or advise you (the seller) of any modifications to the payment amount.

EDI 820 Specification 

This X12 Transaction Set contains the format and establishes the data contents of the Payment Order/Remittance Advice Transaction Set (820) for use within the context of an Electronic Data Interchange (EDI) environment. The transaction set can be used to make a payment, send remittance advice, or make a payment and send remittance advice.

This transaction set can be an order to a financial institution to make a payment to a payee. It can also be remittance advice identifying the detail needed to perform cash application to the payee's accounts receivable system. The remittance advice can go directly from payer to payee, through a financial institution, or through a third-party agent.

Sources

Accredited Standards Committee X12. ASC X12 Standard [Table Data]. Data Interchange Standards Association, Inc., Falls Church, VA. https://x12.org/index.php/products/transaction-sets

Modern EDI Services with Cleo

Choose the EDI Services package that best fits your business:

1. Create and deploy your own integrations using Cleo's intuitive, self-service design platform.

2. Utilize Cleo's EDI managed services team to design and build your integrations.

3. Blend our EDI expertise and your business knowledge together in any manner that suits your use case.

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