What is EDI 819?
The EDI 819 document type is an electronic operating expense statement to transmit periodic expense details associated with an asset from the asset operator to the asset owner(s). The transaction set contains the format and determines the data contents for use in the electronic data interchange (EDI) environment.
EDI 819 documents adhere to the X12 format set by the American National Standards Institute (ANSI), a not-for-profit organization regulating EDI formats in the U.S. Other format options include Electronic Data Interchange for Administration, Commerce, and Transport (EDIFACT) and its subsets.
Essential Components of EDI 819
An EDI 819 document is divided into various data elements and segments. Segments have at least one data element, and data elements have data fields. The EDI 819 document can include the same data elements as a paper copy of an operating expense statement, including:
- Total cost of all assets
- Operating costs
Some segments commonly included in EDI 819 include:
- Terms of Sale to specify the terms of sale.
- Line Item Detail to specify the service code or expense classification.
- Measurements to specify the physical measurements, tolerances, weights, and variances of the asset.
- Product/Item Description to describe a product or process in free form.
- Partner Share Accounting to state the percentage share of the project for the asset owner or owners to pay.
How to Use EDI 819
Companies that maintain or own assets can use EDI 819 documentation to track these expenses. For example, a petroleum lease or property could be an asset that various owners and operators could use EDI 819 to maintain.
An asset operator creates an 819 electronic data interchange document to outline the various expenses associated with that asset. The asset operator delivers this document to the asset owner. The owner sends the operator an EDI 997 Functional Acknowledgment to prove they received the 819 operating expense statement.
An EDI solution will process the EDI 819 documents into an accounting or enterprise resource planning (ERP) system or another readable entry format.
Benefits of EDI 819
The main benefit of EDI 819 is that it allows the operator of an asset to transmit expense details to the owner(s) of an asset. The operator can share expense details periodically regarding the:
- Service code or expense classification the owner(s) will be charged for.
- The product or process involved.
- The allowance, charge, or service for the expense.
- The equipment involved for a specific service code.
The asset owner(s) can also see accounting details regarding the operating expenses. The Partner Share Accounting section details the percentage share of the project the owner must pay. Since this section is optional, owners can also see their percentage share in the reference information section.
These expense details allow asset operators and owners to be transparent and communicative about the work completed and the details of the expenses for recordkeeping.