The EDI 997 Functional Acknowledgment is one of the most important and most misunderstood EDI documents in the X12 standard. It confirms whether an inbound EDI transaction has been received, parsed, and accepted or rejected at the syntactical level.
In this updated article, we explain what the EDI 997 is, when it is used, how it is structured, and how businesses interpret acknowledgment codes. We also include real examples, troubleshooting tips, and FAQs that business users and IT teams frequently search for.
What Is EDI 997?
EDI 997 (Functional Acknowledgment) is a response document sent back to the original sender to confirm the receipt and syntactical validation of an inbound EDI X12 transaction, such as EDI 810, EDI 850, EDI 856, EDI 820, EDI 940, and others.
The 997 does not evaluate business data. It only confirms whether the EDI file is structurally correct according to X12 rules.
When Is an EDI 997 Sent? (Workflow Explained)
The 997 is automatically generated by the receiver’s EDI system after:
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Inbound EDI file is received
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System validates its syntax against X12 rules
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System generates EDI 997
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997 is sent back to the originator (indicating Accepted, Accepted with Errors, or Rejected)
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Both sides update logs and audit records
Typical timing:
A well-configured EDI environment returns the 997 within seconds to minutes.
How the EDI 997 is Structured
The EDI 997 message follows a specific format defined by the ANSI ASC X12 standard, which is widely used in North America. It contains essential information such as control numbers, acknowledgments, and error reports. The Functional Acknowledgment confirms the receipt of the original transaction by including the sender’s control number and indicating whether the transaction was accepted or rejected.
Key Components of the EDI 997
Control Numbers: Each EDI transaction carries a unique control number, and the Functional Acknowledgment references this control number to establish a link with the original transaction.
Accepted or Rejected: The Functional Acknowledgment indicates whether the original transaction was accepted or rejected. If rejected, it may provide error codes or detailed error reports to help the sender identify and rectify the issues.
Date and Time: The Functional Acknowledgment includes the date and time of its generation, allowing the sender to track the timing of the acknowledgment.
R: Rejected – Indicates that the corresponding segment, transaction set, or data element was rejected. This status signifies that the segment or data does not comply with the agreed-upon standards or requirements.
P: Partial Acceptance – Indicates that only a portion of the corresponding segment, transaction set, or data element was accepted. This status signifies that there were both accepted and rejected elements within the segment or transaction set.
These acknowledgment status codes help to provide a clear understanding of the acceptance, rejection, or error status at different levels of the EDI transaction, enabling effective troubleshooting, resolution, and communication between trading partners.
Please note that the specific acknowledgment status codes used may vary depending on the industry, trading partner agreements, and EDI standards implemented.
Benefits of Using EDI 997
Improved Communication: The Functional Acknowledgment fosters better communication between trading partners by confirming the successful transmission and understanding of EDI transactions.
Error Detection and Resolution: The acknowledgment helps identify any syntax or semantic errors in the original transaction, allowing prompt correction and retransmission of accurate data.
Audit Trail: The Functional Acknowledgment provides an audit trail of EDI transactions, enabling both parties to track the progress and history of their document exchanges.
EDI 997 Acknowledgment Status Codes (Table)
Below are the most commonly used codes for AK5 (transaction-level) and AK9 (group-level):
AK5 – Transaction Set Response
| Code | Meaning |
|---|---|
| A | Accepted |
| E | Accepted with Errors |
| R | Rejected |
| M | Rejected – Message Authentication Failed |
| P | Partially Accepted |
AK9 – Functional Group Response
| Code | Meaning |
|---|---|
| A | Accepted |
| E | Accepted with Errors |
| R | Rejected |
| P | Partially Accepted |
These codes help both parties troubleshoot issues at the transaction or group level.
Common EDI 997 Errors & How to Fix Them (Troubleshooting)
1. AK5 = R (Rejected)
Cause: Structural or syntactical error in the original transaction
Fix:
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Validate segments and mandatory fields
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Check control numbers
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Verify segment order
2. AK9 = R (Functional Group Rejected)
Cause: Multiple transactions failed validation
Fix:
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Review all transactions in that interchange
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Correct mapping or formatting issues
3. No 997 Received
Cause:
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Transmission failure
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Trading partner mailbox issue
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Incorrect ISA/GS identifiers
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Partner’s system down
Fix:
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Resend the document
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Validate communication setup
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Open a ticket with the trading partner
4. Accepted with Errors (E)
Cause: Minor structural inconsistencies
Fix:
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Review segments identified in the AK3/AK4 error notes
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Correct formatting and resend only if required by the partner
EDI 997 vs EDI 999
EDI 997 and EDI 999 are both acknowledgments of received EDI documents, but they differ in the depth of validation. EDI 997 (Functional Acknowledgment) confirms that a document was received and passed basic syntactical checks. EDI 999 (Implementation Acknowledgment) does the same but also reports whether the document complies with specific implementation rules (for example, HIPAA in healthcare).
Key Differences
| Feature | EDI 997 | EDI 999 |
|---|---|---|
| Name | Functional Acknowledgment | Implementation Acknowledgment |
| Main Purpose | Confirms receipt and basic syntax validation | Confirms receipt and compliance with implementation rules |
| Level of Detail | Minimal (Accepted, Rejected, Accepted with Errors) | More detailed: specifies which errors or inconsistencies were found |
| Usage | Traditionally used across industries | Introduced for healthcare (HIPAA), but now used more broadly |
| Results | A = Accepted, R = Rejected, E = Accepted with Errors | A = Accepted, R = Rejected, E = Accepted with Errors (with details) |
| Example | Confirming receipt of a purchase order (EDI 850) | Confirming receipt of a healthcare claim (EDI 837) with HIPAA compliance check |
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EDI 997 is like a quick receipt: the document arrived, the structure is readable, and processing can continue. But it does not guarantee that the document complies with business rules or industry standards.
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EDI 999 provides stricter validation. It reports not only receipt but also whether the document meets implementation guidelines (such as required segments and elements). In healthcare this is critical, since non‑compliance with HIPAA can result in claim rejection.
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In practice: many companies use both acknowledgments. 997 for general communication, 999 for industry‑specific compliance.
Important Note
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997 remains widely used, especially in retail and logistics.
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999 is gradually replacing 997 in healthcare, because it provides more detailed feedback.
If you work in retail or manufacturing, you’ll most often encounter 997.
If you work in healthcare (HIPAA), you’ll almost always need 999.
What is the Difference Between EDI 997 and EDI 855?
While both EDI 997 and EDI 855 are important components of the electronic data interchange (EDI) process or flow, they serve different purposes and cater to distinct stages of the transaction lifecycle.
EDI 997, as discussed earlier, is the Functional Acknowledgment that serves as a confirmation of the receipt and acceptance of an inbound EDI transaction. It focuses on verifying the integrity and accuracy of the original transaction set, providing feedback to the sender, without consulting or parsing the “business content” of the transaction.
On the other hand, EDI 855, also known as the Purchase Order Acknowledgment, is an EDI document that serves as a response to the receipt of a purchase order (EDI 850) from the “business” point of view.
The EDI 855 transaction confirms whether the seller can fulfill the requested order and outlines any differences or changes to the original purchase order. It provides important details such as order acceptance, quantity availability, pricing, and delivery dates.
In summary, EDI 997 is a response to the receipt of any inbound EDI transaction, ensuring the transaction’s integrity, while EDI 855 specifically addresses the confirmation of purchase orders, providing essential information for both the buyer and the seller to proceed with the order fulfillment process. Understanding the distinction between these two EDI transactions is crucial for businesses to effectively manage their EDI operations.
Frequently Asked Questions about EDI 997
Is an EDI 997 required for every inbound transaction?
Most trading partners require it for every transaction; some may require 999 instead.
Can an EDI file be processed without a 997?
Yes, but it may cause compliance issues and tracking problems.
What happens if the 997 is late?
Some partners consider it a failed acknowledgment and may delay processing.
Does a rejected 997 mean the transaction failed?
It means the syntax failed; the business transaction was not processed.
Why do some industries prefer 999 over 997?
999 supports advanced validation (IK3/IK4 loops) required in healthcare.
How long should a business keep EDI 997 records?
Typically 1–7 years, depending on compliance requirements.
Does EDI2XML generate 997 automatically?
Yes, for all inbound transactions as part of our Fully Managed EDI Service.
How EDI2XML Automatically Handles EDI 997
At EDI2XML, we manage inbound and outbound 997 acknowledgments automatically as part of our Fully Managed EDI Service:
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Automatic generation of 997 for all inbound documents
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Monitoring of trading-partner SLAs
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Error detection and correction
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Complete log and audit trail
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No missed acknowledgments, no compliance issues
Whether you use an ERP, accounting system, WMS, or no internal system at all, we ensure smooth, compliant EDI communication with all trading partners.
Need Help with EDI 997 or Compliance?
EDI 997, or Functional Acknowledgment, plays a vital role in the smooth functioning of electronic data interchange. By confirming the receipt and acceptance of EDI transactions, it ensures accurate and reliable communication between trading partners.
As an EDI service provider with over 22 years of experience, we understand the complexities of EDI integration.
Whether you need fully managed EDI services, EDI web services, or on-premises EDI solutions, we have the knowledge and resources to ensure your EDI implementation runs smoothly and efficiently.
We pride ourselves on providing reliable, secure and scalable EDI solutions that enable businesses to streamline their operations and increase productivity.
Contact us today for a free consultation and quote, and let our experienced team help you achieve successful EDI integration.
