What is an EDI 860?
EDI 860, also known as a Purchase Order Change Request, is sent from a buyer to a seller when the buyer needs to make changes to their EDI 850 Purchase Order. This electronic data interchange transaction helps streamline trading partner communications, so changes can be tracked and made easily.
EDI 860 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 860?
EDI 860 documents need to match the information found on the EDI 850 Purchase Order, and indicate the changes needed, and reasons for the changes. Data found on the EDI 860 document include:
- Purchase Order number
- Buyer and seller information
- Product quantities and descriptions
- Quantity and/or product type changes
- Price changes
- Addition or deletion of products
- Rescheduling of the order/desired delivery date
- Indication of reasons for change
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How do I Use EDI 860?
After submitting an EDI 850 Purchase Order, a buyer, such a retailer, sometimes needs to make changes. For example, they might need to add more of a product if it starts selling rapidly or cut down on more slow-moving items. Buyers can use EDI 860 to request these changes to the order, and let the vendor know the reasons for the changes.
After receiving an EDI 860 transaction, sellers will occasionally be required to send back an EDI 865 Purchase Order Change Acknowledgement. They might also respond with an EDI 997 functional acknowledgement. The EDI 865 will tell the seller whether their changes were accepted in full, accepted with additional changes, or rejected.
EDI 860 can also be used as a response to EDI 865, when a seller is requesting a change instead of the buyer. In this case, EDI 860 can indicate acceptance, acceptance with changes, or rejection. Partners can go back and forth between 860 and 865 documents until an agreement is reached.
What are the Benefits of EDI 860?
Using EDI 860 makes it easy to change orders without needing to cancel an order and create a new EDI 850 transaction. It also creates a virtual paper trail, so vendors and buyers can easily reconcile order changes and discrepancies. Automated EDI also helps by eliminating the need for time-consuming retyping and reducing the potential for errors.
Sending change requests with EDI 860 is also more secure than using an email or PDF document. EDI software providers often use technology like data encryption, HTTPs or FTPs protocols and portal user authentication to keep sensitive business details safe.