EDI 850 - Purchase Order

The EDI 850 Purchase Order places an order for goods or services and contains information like items, prices, and quantities ordered. 

If you need to send or receive EDI 850's, request a demonstration of Cleo's EDI Solution.

850 EDI

What is an EDI 850 Purchase Order?

EDI 850 Purchase Order is an X12 transaction set that is used when a company places an order for goods or services.

How is an EDI 850 Purchase Order used?

An EDI 850 message provides information such as:

  • Items requested and their prices

  • Payments terms

  • Quantities ordered

  • Shipping details

  • Shipping instructions

  • Carrier details

To be EDI compliant when accepting an EDI 850 from a trading partner, one must also send other EDI transactions in response to the purchase order. 

These transactions include:

EDI 810 Invoice - replaces the traditional paper invoice

EDI 856 Advanced Shipping Notice - describes the contents of each shipment

EDI 997 Functional Acknowledgement - confirms receipt of the EDI 850

EDI 855 Order Acknowledgment  - confirms you can meet the requirements of the purchase order

EDI 860 Order Change Request - requests an update to the details on the original purchase order

EDI 850 Format

Common information in the EDI 850 transaction includes:

  • Item, prices, and quantities ordered

  • Shipping details

  • Payment terms

  • Discounts

EDI 850 Purchase Order Format

Here is an EDI 850 Transaction within Cleo Integration Cloud

Example EDI 850 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. 

EDI 850 Specification 

This X12 Transaction Set contains the format and establishes the data contents of the Purchase Order Transaction Set (850) for use within the context of an Electronic Data Interchange (EDI) environment. The transaction set can be used to provide for customary and established business and industry practice relative to the placement of purchase orders for goods and services. This transaction set should not be used to convey purchase order changes or purchase order acknowledgment information.

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

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

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