Electronic Data Interchange (EDI) is a method of exchanging business documents between companies in a standardized electronic format, eliminating the need for manual data entry and reducing errors and costs.
One of the most common EDI transaction sets used between trading partners is the ANSI X12 EDI 860 Purchase Order Change Request – Buyer Initiated Transaction Set.
What is EDI 860 – EDI 860 Definition
EDI X12 860 Purchase Order Change Request – Buyer Initiated or simply called EDI 860 PO Change is an electronic data interchange (EDI) transaction set that is used by buyers to request changes or modifications to a previously submitted purchase order (EDI 850).
EDI 860 provides a structured way for businesses to communicate changes to purchase orders, such as update to item quantities, delivery dates, or pricing.
EDI 860: What Are The Essential Components?
The EDI 860 transaction set includes several essential components, each of which provides important information about the changes to a previously submitted purchase order. These components include:
Header Information: The header segment contains information about the sender and receiver of the transaction, the date and time of the transaction, and a unique transaction control number.
Purchase Order Information: The purchase order segment contains information about the original purchase order, such as the purchase order number, the date of the original purchase order, and the supplier’s reference number.
Change Request Information: The change request segment contains information about the requested changes to the original purchase order, including any additions, modifications, or cancellations. This segment includes information such as the item number, the requested change quantity, change date etc.
EDI 860 Specification
Here are some key specifications for the EDI X12 860:
– The EDI 860 is part of the Purchase Order family of transaction sets and is used to request changes or modifications to a previously submitted purchase order.
– The transaction set is transmitted using the ANSI X12 standard format, which includes a standard set of data elements, segment structures, and functional group structures.
– The EDI 860 typically follows the receipt of the original purchase order (EDI850), and the transaction set is used to request changes to the original order, such as adding or deleting items, changing quantities, or changing delivery schedules.
– The transaction set includes header information, purchase order information, change request information, and summary information. Each segment contains a specific set of data elements that provide information about the transaction.
– The data elements used in the transaction set are standardized, and their use is governed by a set of implementation guidelines, which provide specific instructions on how to use the data elements.
– The transaction set is designed to be transmitted electronically between trading partners, and it is typically sent using a secure and reliable communication protocol, such as AS2, FTP/SFTP, or VAN.
How Do Companies Use EDI 860 (EDI 860 Workflow)?
EDI 860 purchase order changes may occur at different times within an order cycle. A purchase order cycle typically includes several stages, such as order creation, order acknowledgment, order fulfillment, shipment notification, etc.
Changes to a purchase order may occur at any of these stages, and the EDI 860 transaction set can be used to request changes and communicate them to the supplier.
For example, a retailer may create a purchase order for products from a supplier and send it using the EDI 850 transaction set. After the order is acknowledged by the supplier using the EDI 855 transaction set, the retailer may realize that they need to make a change to the order, such as adding additional quantities or changing the delivery date. They can create an EDI 860 transaction set to request the changes and send it to the supplier.
Later in the order cycle, the supplier may realize that they are unable to fulfill the order as requested, or that they need to make a change to the order themselves, such as changing the product code or price. They can create an EDI 865 Purchase Order Change Acknowledgement / Request – Seller Initiated transaction set, to request the changes and send it to the retailer.
By using the EDI 860 and EDI 865 transaction sets, changes to purchase orders can be communicated quickly and efficiently between trading partners, even if they occur at different times within an order cycle.
The EDI 860 workflow includes the following steps:
1. Purchase Order Creation: A buyer creates a purchase order and sends it to the supplier using the EDI 850 transaction set.
2. Change Request: If the buyer needs to make changes to the purchase order, he creates an EDI 860 transaction set to request the changes. This can include adding or deleting items, changing quantities, or changing delivery schedules.
3. Acknowledgment: There are several different scenarios at this stage that depending of previous agreements between trading partners.
a) The supplier receives the EDI 860 and sends back an EDI 855 PO Acknowledgement, indicating that they have received the request and will process it.
b) The supplier can respond with an EDI 865 Purchase Order Change Acknowledgement / Request – Seller Initiated to inform about the acceptance or rejection of changes made by the seller to a previously submitted purchase order.
Note, the EDI 865 document can also be used to alert the buyer of changes initiated by the seller on a previously submitted purchase order.
4. Order Fulfillment: The supplier sends to the buyer the EDI 856 transaction set also known as Advance Ship Notice (ASN); it contains details about the contents of a shipment and how it will be delivered.
5. Invoice: Once the products have been delivered, the supplier can create an invoice using the EDI 810 transaction set and send it to the buyer.
The workflow can vary depending on the specific business processes and systems used by the trading partners. However, in general, the use of the EDI 860 allows for a standardized and efficient process for requesting and processing changes to purchase orders, improving collaboration and reducing errors and costs associated with manual processing.
How to Exchange EDI Documents with Trading Partner
To start exchanging EDI documents with a trading partner you will need to choose an EDI solution/service provider that can meet your business requirements.
Businesses can use the Fully Managed EDI Service, to exchange various types of EDI documents, including EDI 860. With EDI2XML, companies can automate their EDI process. This service streamlines the entire EDI process and eliminates the need to manage in-house their EDI translation and communication.
As a result, businesses can reduce costs, improve efficiency, and enhance accuracy when exchanging EDI documents, including EDI 860, with their trading partners.
Another very effective way to start exchanging EDI with your business partner is to choose EDI2XML REST web service.
For example, using the EDI2XML EDI web service, you can exchange EDI documents within an hour!
Regardless of the method used to exchange EDI 860 documents, both parties must agree on the specific details of the exchange, such as standard, file format, communication protocols, and security measures. This is typically documented in an EDI agreement or trading partner agreement.
EDI 860 Example
Let’s break down the structure and content of the EDI 860 X12 file:
ISA*00* *00* *08*9254291001 *12*518569780 *150818*0603*U*00401*000002256*0*P*>~
GS*PC*9254291001*518569780*20150818*0603*2256*X*004010~
ST*860*0001~
BCH*01*SA*01004773829***20150720*****20150817~
REF*IA*01000472975~
REF*DP*034~
REF*PS*J1~
N1*ST**9*0003947268781~
N1*BY**92*1004~
CTT*0~
SE*9*0001~
ST*860*0002~
BCH*01*SA*01005773829***20150720*****20150817~
REF*IA*01000472975~
REF*DP*034~
REF*PS*J1~
N1*ST**9*0003947268781~
N1*BY**92*1005~
CTT*0~
SE*9*0002~
ST*860*0003~
BCH*04*SA*08781775632***20150801*****20150806~
REF*IA*01000472975~
REF*DP*049~
REF*PS*R~
N1*ST**9*0003947268781~
POC*1*QI*576*192*EA***IN*005895635*UP*025473333517*VN*XYZ460-4*UK*12345673333514~
POC*2*QD*1216*384*EA***IN*005895636*UP*025473333524*VN*XYZ460-4*UK*12345673333521~
POC*3*QD*672*192*EA***IN*005895637*UP*025473333531*VN*XYZ460-4*UK*12345673333538~
POC*4*QZ*384*96*EA***IN*005895638*UP*025473333548*VN*XYZ460-4*UK*12345673333545~
POC*5*QD*360*120*EA***IN*005895642*UP*025473333586*VN*XYZ465-5*UK*12345673333583~
POC*6*QD*180*60*EA***IN*005895646*UP*025473333623*VN*XYZ465-5*UK*12345673333620~
POC*7*QD*1440*432*EA***IN*005895649*UP*025473333777*VN*XYZ809-5*UK*12345673333774~
POC*8*QD*1408*448*EA***IN*005895651*UP*025473333791*VN*XYZ809-5*UK*12345673333798~
POC*9*QD*1344*384*EA***IN*005895652*UP*025473333807*VN*XYZ809-5*UK*12345673333804~
POC*10*QD*1152*336*EA***IN*005895653*UP*025473333814*VN*XYZ809-5*UK*12345673333811~
POC*11*QD*528*144*EA***IN*005895655*UP*025473333821*VN*XYZ809-5*UK*12345673333828~
POC*12*QD*960*288*EA***IN*005895656*UP*025473333838*VN*XYZ816-4*UK*12345673333835~
POC*13*QD*960*288*EA***IN*005895657*UP*025473333845*VN*XYZ816-4*UK*12345673333842~
POC*14*QD*608*192*EA***IN*005895658*UP*025473333852*VN*XYZ816-4*UK*12345673333859~
POC*15*QD*416*128*EA***IN*005895661*UP*025473333869*VN*XYZ816-4*UK*12345673333866~
POC*16*QD*504*144*EA***IN*005895662*UP*025473333630*VN*XYZ709-2*UK*12345673333637~
POC*17*QD*504*144*EA***IN*005895663*UP*025473333647*VN*XYZ709-2*UK*12345673333644~
POC*18*QD*432*144*EA***IN*005895664*UP*025473333654*VN*XYZ709-2*UK*12345673333651~
POC*19*QD*324*108*EA***IN*005895665*UP*025473333661*VN*XYZ709-2*UK*12345673333668~
POC*20*QD*504*144*EA***IN*005895666*UP*025473333678*VN*XYZ709-2*UK*12345673333675~
POC*21*QD*468*144*EA***IN*005895667*UP*025473333685*VN*XYZ709-2*UK*12345673333682~
POC*22*QD*432*144*EA***IN*005895668*UP*025473333692*VN*XYZ709-2*UK*12345673333699~
POC*23*QD*324*108*EA***IN*005895669*UP*025473333708*VN*XYZ709-2*UK*12345673333705~
POC*24*QD*432*144*EA***IN*005895670*UP*025473333715*VN*XYZ709-2*UK*12345673333712~
POC*25*QD*468*144*EA***IN*005895671*UP*025473333722*VN*XYZ709-2*UK*12345673333729~
POC*26*QD*432*144*EA***IN*005895672*UP*025473333739*VN*XYZ709-2*UK*12345673333736~
POC*27*QD*396*108*EA***IN*005895673*UP*025473333746*VN*XYZ709-2*UK*12345673333743~
CTT*27~
SE*35*0003~
GE*1*2256~
IEA*1*000002256~
ISA (Interchange Control Header): This segment marks the beginning of the interchange and contains information about the sender and receiver.
GS (Functional Group Header): This segment identifies the functional group and provides control information.
ST (Transaction Set Header): This segment indicates the start of a transaction set and specifies the transaction set identifier (860 in this case).
BCH (Beginning Segment for Change): This segment contains information about the purchase order change, such as the change type, purchase order number, and dates.
REF (Reference Identification): These segments provide additional reference information related to the purchase order change, such as internal or external identifiers.
N1 (Name): These segments represent the names and identification codes of involved parties, such as the buyer and seller.
CTT (Transaction Totals): This segment specifies the total number of line items in the transaction.
SE (Transaction Set Trailer): This segment indicates the end of a transaction set and provides control information.
ST, BCH, REF, N1, CTT, SE (repeated): These segments repeat for each purchase order change within the file.
POC (Line Item Change): These segments represent the changes made to individual line items in the purchase order. Each POC segment corresponds to a modified line item and contains details such as line item number, quantity, unit of measure, and product information.
CTT (Transaction Totals): This segment at the end of each purchase order change section provides the total number of line items in that specific change.
SE (Transaction Set Trailer): This segment marks the end of each purchase order change section.
GE (Functional Group Trailer): This segment indicates the end of the functional group and provides control information.
IEA (Interchange Control Trailer): This segment marks the end of the interchange and provides control information.
Various Types of Communication Protocols for ANSI X12 EDI 860 Document Exchange
ANSI X12 EDI 860 documents can be exchanged between trading partners using various methods, depending on their technical capabilities and business requirements. Here are some common ways to exchange EDI 860 documents:
Value-Added Network (VAN): A VAN is a third-party provider that acts as an intermediary between trading partners to securely transmit EDI documents. Companies can use a VAN to send and receive EDI 860 documents, as well as other EDI transactions.
AS2: AS2 is a secure and reliable protocol for exchanging EDI documents over the Internet. With AS2, companies can send and receive EDI 860 documents directly with their trading partners without the need for a VAN.
FTP/SFTP: FTP (File Transfer Protocol) and SFTP (Secure File Transfer Protocol) are file transfer protocols that can be used to exchange EDI documents. Companies can set up an FTP/SFTP server to send and receive EDI 860 documents with their trading partners.
Which EDIFACT Message Corresponds to ANSI X12 EDI 860?
The ANSI X12 EDI 860 document is mostly used in the United States to transmit purchase order change requests. The equivalent EDIFACT message is the ORDCHG – Purchase Order Change Request Message, which is part of the ORDERS (Purchase Order) message family.
In the same way as EDI 860, ORDCHG also allows buyers to request changes to a previously sent purchase order, such as changes to quantity, delivery date, or item description. Like the X12 860, the EDIFACT ORDCHG message provides a structured way for buyers and sellers to communicate changes to purchase orders in a standardized format.
It’s worth noting that while there are similarities between the X12 860 and the EDIFACT ORDCHG message, there are also some differences in the way the two standards handle certain data elements.
What are the Benefits of EDI 860 for Business Partners?
Companies use the EDI 860 transaction set for several reasons, including:
Efficient Order Management: The EDI 860 allows companies quickly and accurately process changes to purchase orders, reducing the time and effort required to manage order changes manually.
Improved Collaboration: The use of EDI 860 promotes collaboration between trading partners by providing a standardized format for communicating changes to purchase orders. This helps to improve communication, reduce errors, and enhance overall efficiency in the supply chain.
Reduced Costs: The automation of purchase order changes through the use of EDI 860 can help companies reduce costs associated with manual processing, such as data entry, paper handling, and processing errors.
Improved Accuracy: The standardized format of the EDI 860 helps to reduce errors and improve accuracy in the processing of purchase order changes. This can help to reduce the risk of delays, rework, and other issues that can arise from errors in the order management process.
Competitive Advantage: Companies using the EDI 860 transaction can gain a competitive advantage by improving their ability to manage orders efficiently, collaborate effectively with trading partners, and reduce costs associated with order management.
Overall, the use of the EDI 860 document can help companies to improve their order management processes, enhance collaboration with trading partners, and gain a competitive advantage in their industry.
Conclusion: EDI Communication
By utilizing the EDI 860 and other related transaction sets, companies can streamline their order cycle and improve communication efficiency, reducing manual data entry, errors, and costs. Overall, EDI 860 plays a crucial role in the EDI process, enabling businesses to communicate quickly and efficiently with their trading partners.
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