What is an EDI 844?
EDI 844, also known as a Product Transfer Account Adjustment, is an EDI transaction code used by a wholesaler to request a credit or debit from a manufacturer. This document is common in trade relationships where a manufacturer sells to a reseller, who is then pre-authorized to sell, or transfer product, to an end customer.
EDI 844 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 844?
An EDI 844 document must include several elements detailing the requested adjustment. These include, but are not limited to:
- Wholesaler and manufacturer identification information
- Final sales details, such as the retailer price
- Rebate information
- Total adjustment amount requested
- Product information, such as descriptions, SKUs or UPCs, pricing and quantity
- Account details and/or instructions for reimbursement
How do I Use EDI 844?
Wholesalers and manufacturers generally have contracts that specify specific wholesale prices for products. However, end customers buying from the wholesaler may also have access to a manufacturer rebate. Because the wholesaler is selling to the retailer at the rebated price (often called a pre-authorized product transfer), they must then request an account adjustment, or reimbursement, to address the price difference.
EDI 844 is an electronic request that lets a wholesaler to just that. By sending EDI 844, the wholesaler can let the manufacturer know the details of the final order, the rebate itself, and the credit or debit they are requesting as a result. The manufacturer then responds with EDI 849, in which they can accept, reject, or request changes to the adjustment.
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What are the Benefits of EDI 844?
Using EDI 844 can streamline trading partner communications during the reimbursement process, while also helping reduce discrepancies. Because the document is automated, it saves significant time, enabling rapid reconciliation. It also automatically fills in the necessary data, eliminating errors from manual input that can lead to disagreements.
Like most financially related documents, an account adjustment request may include sensitive business and financial details. EDI 844 offers a more secure option than a printed, faxed or emailed request, thanks to multiple protections provided by EDI software providers. For example, TrueCommerce integrated EDI employs two-factor user authentication for our EDI portals to ensure only verified users can access documents. Other common protections for EDI transactions include HTTPs or FTPs protocols, and in-transit data encryption.