EDI 847 - Material Claim Specification

What is an EDI 847?
The EDI 847 Material Claim is a standard that gives business partners a way to communicate the expenses and fees associated with manufactured, acquired, or both types of material that have been deemed damaged, useless, or outdated. It is not permitted to file claims with transportation or insurance companies using this transaction set.

How to use an EDI 847?
An EDI 847 Material Claim provides the trading partners with the ability to advise each other about costs and any charges involved in fabricated or purchased material which has been considered damaged, obsolete or unusable, or in both. There are two ways the Material Claim Transaction Set (847) can be used in the case of exchanging materials: - Material sellers use EDI 847 to inform the buyer of any expenses and fees associated with order modifications or cancellations. This has to be done based on the buyer's authority to fabricate, buy material, or both. - Alternatively, a buyer of material uses an EDI 847 to inform the seller of any costs or fees associated with material that was deemed damaged, obsolete or unusable.

How is an EDI 847 processed?
Receiving an EDI 847 document is processed by integrating into an ERP or accounting system or into a legible format for manual entry that requires an EDI solution. An EDI Implementation guide will be provided to each trading partner, defining the precise segments, data items, accepted values, and relevant business rules to be followed. Cleo Integration Cloud has pre-built maps for all EDI transaction documents, such as 850 purchase orders, 810 invoices, and 856 advance shipment notices, etc.