What is an EDI 867?
EDI 867, also known as a Product Transfer and Resale Report, is usually sent from a reseller, such as a wholesaler or distributor, to a vendor, such as a manufacturer. It lets the vendor know about product movements, including sales, changes in location, and returns, which can help the vendor understand their products’ success across locations and end consumers. Commonly, this EDI document is used by distributors reflect sales and returns that are associated with rebates.
EDI 867 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 867?
The Product Transfer and Resale Report needs to include key information regarding product sales. Core elements of EDI 867 include, but are not limited to:
- Reseller identification information
- Product names, quantities, and descriptions
- End customer details
- Indication of sales, returns or other product movement
- Ship from/to locations for product transfers
- Transaction total, in terms of price, item quantities, weights or other agreed-upon units of measurement
How do I Use EDI 867?
EDI 867 is a broadly applicable EDI transaction code that can be used by virtually any reseller, distributor, wholesaler, or retailer, to report product movements to a supplier or manufacturer. In addition to sales and returns information, EDI 867 can also let a manufacturer know about product movement between stores, warehouses, or distribution centers for better inventory visibility. Additionally, resellers can use EDI 867 to let a vendor know about lost sales due to demand beyond stock availability.
The most common use of this document occurs in healthcare. A pharmaceutical distributor might send EDI 867 when a product is sold or returned with the end goal of receiving a rebate for applicable sales. However, the document can also be used for non-physical product movement reports.
EDI 867 is similar to EDI 852, which is used to notify suppliers of product sales and inventory stock movements. However, EDI 867 covers a much wider range of uses, and provides a more detailed look at stock movements overall.
EDI 867 can be sent after a triggering event such as a sale, or scheduled for regular reporting, such as all sales over a 30-day period. After receiving an EDI 867 document, a manufacturer normally sends back an EDI 997 Acknowledgement.
What are the Benefits of EDI 867?
By using EDI 867, resellers are able to give vendors a much clearer understanding of how their product is moving, including differences in product movements by location. This helps the vendor to know where to focus their inventory efforts to maximize sales and profitability, while applying the appropriate rebates where applicable based on contract. Because the Report is automated, distributors can quickly communicate this information, without wasting time on time-consuming emails and phone calls. Additionally, because movement data can be pulled in automatically using EDI integrations, the document is less prone to errors than manually created Product Transfer and Resale Reports.