What is an EDI 816?
EDI 816, also known as an Organizational Relationships document, is an electronic transaction set sent from buyers to sellers. It contains information on individual locations, such as warehouses, distribution centers or retail stores, including their addresses and relationship to the parent organization.
EDI 816 documents follow the x12 format set by the American National Standards Institute (ANSI), a not-for-profit organization that regulates EDI formats in the U.S.
What are the Essential Components of EDI 816?
EDI 816 transaction sets need to cover certain details about each individual location. Some core elements in EDI 816 include:
- Location addresses and contact information
- Codes for locations, such as store numbers
- These are commonly used in other EDI transactions Relationship to the parent organization, such as purchasing eligibility
How do I Use EDI 816?
EDI 816 is often triggered during the opening of a new store or distribution or a change of address for a particular location. This can help the seller not only keep track of things like ship-to locations on orders, but also provides the relative information to assist the supplier when the new location places an order or becomes an available ship to location. The buyer can also send updated EDI 816 documents when a location closes, opens, or has other information changes.
After getting EDI 816, the seller usually responds with an EDI 997 Functional Acknowledgement to confirm receipt.
What are the Benefits of EDI 816?
EDI 816 Organizational Relationships transactions help facilitate better communication between trading partners. They also help keep sellers informed about any location changes, additions, or closures, which might affect order shipments. Because EDI 816 is automated, it saves a lot of time spent manually typing in information and is less prone to errors.
Many EDI documents are protected by security protocols that meet standards like SOC-2 Compliance, which can also help keep important business information safe.