Types of EDI Documents and Their Uses in Business

Electronic Data Interchange (EDI) is a standardized method for exchanging business documents digitally, reducing the need for paper-based transactions. Businesses across industries use EDI document types to streamline processes such as order placement, invoicing, and shipping notifications.

Understanding the list of EDI document types and their functions can help companies improve efficiency, ensure EDI compliance, and enhance data accuracy. Whether you’re dealing with EDI transactions in healthcare, supply chain management, or finance, knowing which EDI standards apply to your industry is essential.

Overview of Essential EDI Documents

EDI facilitates seamless data exchange between trading partners. Different industries use specific EDI transactions to automate their processes. Below is an overview of the most commonly used EDI document types and how they benefit businesses.

For a complete guide on EDI standards like ANSI and EDIFACT, check out our article on EDI Standards.

5 Key EDI Document Types and Their Functions

Each EDI document type serves a distinct role in business transactions. Below is a breakdown of the most essential EDI transactions used across industries.

1. Purchase Order (PO) (EDI 850)

A Purchase Order (PO) is one of the most frequently used EDI document types. It allows buyers to place orders electronically, reducing manual input errors and speeding up procurement.

• Purpose: Initiates an order from the buyer to the supplier.
• Key Information: Item descriptions, quantities, pricing, and delivery dates.
• Industry Use: Common in retail, manufacturing, and healthcare for automating purchase requests.

For more details on EDI in retail, read EDI in Retail: Enhancing Supplier Relationships and Omnichannel Strategies.

2. Advanced Shipping Notice (ASN) (EDI 856)

The Advanced Shipping Notice (ASN) informs the buyer that a shipment is on its way. It includes details such as package contents, tracking information, and estimated arrival times.

• Purpose: Provides shipment details before arrival.
• Key Information: Carrier details, tracking numbers, estimated delivery date.
• Industry Use: Used in supply chain management, logistics, and distribution for better inventory planning.

For insights into how EDI improves inventory management, check out our blogpost about the role of EDI in teal-time inventory management.

3. EDI Invoice (EDI 810)

An EDI invoice is a digital billing document sent by a supplier to request payment for goods or services delivered.

• Purpose: Requests payment from the buyer.
• Key Information: Item details, quantities, pricing, payment terms.
• Industry Use: Used across industries including finance, healthcare, and retail.

For a deeper look at how EDI invoice processing improves financial accuracy, read about the benefits of EDI for financial reporting and accounting.

4. Order Acknowledgment (EDI 855)

The Order Acknowledgment confirms receipt of a purchase order and specifies whether it can be fulfilled as requested.

• Purpose: Confirms or modifies order details.
• Key Information: Accepted, modified, or rejected line items, delivery timelines.
• Industry Use: Used in manufacturing, retail, and supplier management to avoid order discrepancies.

If you’re choosing an EDI system, read our guide to choosing the right EDI solution for your business needs. 

5. Inventory Inquiry/Advice (EDI 846)

This document provides real-time inventory updates, helping businesses plan their stock levels more efficiently.

• Purpose: Communicates stock availability between suppliers and buyers.
• Key Information: Available inventory, warehouse locations, stock levels.
• Industry Use: Used in warehousing, distribution, and retail for inventory forecasting.

To explore EDI’s impact on supply chain operations, read How EDI Improves Supply Chain Efficiency and Vendor Management.

EDI Transactions in Healthcare

The healthcare industry relies on EDI for secure and accurate transactions. Some of the most commonly used EDI document types in healthcare include:

• EDI 837 (Healthcare Claims) – Used for submitting insurance claims electronically.
• EDI 270/271 (Eligibility & Benefit Inquiry/Response) – Helps healthcare providers verify patient insurance coverage.
• EDI 835 (Payment/Remittance Advice) – Details insurance payment and claim status.

For an in-depth look at how EDI is transforming healthcare, read our article about the role of EDI in the healthcare industry.

EDI Invoice Processing and Automation

Managing invoices manually can lead to delays and errors. EDI invoice processing automates billing, improving cash flow management and reducing disputes.

• EDI invoice format follows standardized structures (ANSI X12, EDIFACT) to ensure compatibility across systems.
• EDI automation tools streamline invoice validation, approvals, and payment reconciliation.

Frequently Asked Questions

Understanding EDI document types is essential for businesses looking to automate transactions and improve efficiency.

Below, we answer some of the most common questions about EDI transactions, invoice formats, and their role in various industries, including healthcare.

What are EDI document types?

EDI document types refer to structured formats used to exchange business transactions electronically. Common types include purchase orders, invoices, and shipping notices.

How is a Purchase Order different from an Invoice in EDI?

A Purchase Order (EDI 850) initiates a transaction by placing an order, while an Invoice (EDI 810) requests payment for delivered goods or services.

What is the standard format for an EDI invoice?

An EDI invoice format follows industry standards such as ANSI X12 or EDIFACT, ensuring compatibility across different EDI systems.

How does EDI benefit healthcare transactions?

EDI transactions in healthcare automate claims processing, improve accuracy, and enhance data security, helping providers and insurers exchange information seamlessly.

For a complete overview of EDI and its benefits, start with What is EDI? A Beginner’s Guide.