What is an EDI 850 (X12 850)?
Last updated: 31 July 2026
An EDI 850 is a type of electronic data interchange transaction set that contains details about an order. Also known as an electronic purchase order, an EDI 850 is usually sent to a vendor as the first step in the ordering process. An EDI 850 can be used both for a single purchase, for recurring purchases, or to delete or amend an order as specified by the buyer.
Also referred to as the X12 850, it follows the ANSI X12 standard used across North American trading networks.
EDI 850 documents follow the x12 format set by the American National Standards Institute (ANSI), a not-for-profit organisation that regulates EDI formats in the U.S.
UK and European Equivalent:
For businesses using the EDIFACT standard, which is commonly used in Europe and other regions, the equivalent of the EDI 850 is the ORDERS, or Purchase Order Message. This document serves a similar function by containing details about an order and is used as the initial step in the ordering process with vendors. Like the EDI 850, the ORDERS message can be used for single purchases, recurring purchases, or to amend or delete an order as specified by the buyer.
Comparison:
- EDI 850 (Purchase Order): Used in the USA, follows the ANSI x12 standard.
- ORDERS (Purchase Order Message): Used in Europe and other regions, follows the EDIFACT standard. Learn more about purchase order EDIFACT messages here.
Both documents are essential for initiating and managing orders in the supply chain, ensuring clear and efficient communication between buyers and vendors.
What are the Essential Components of EDI 850?
The EDI 850 transaction set provides the same information as a paper purchase order document. These include:
- PO Number
- Order date
- Requested shipping and/or delivery date
- Vendor details such as name, address and/or contact details
- Buyer details such as name and delivery address
- Buyer billing information
- Item identifiers, such as product SKUs or UPC’s
- Quantity and unit of measure of items ordered
- Price per unit, as well as the total price for the order
- Shipping terms, such as the shipping method, preferred carrier, and desired delivery date
- Proposed payment terms
- Allowances and charges
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How Do I Use EDI 850?
In a typical EDI workflow, the buyer sends an X12 850 purchase order to the seller to initiate the transaction. Once received, the seller responds with an EDI 997 Functional Acknowledgement and/or 855 Purchase Order Acknowledgement. The vendor may also respond with an EDI 810 Invoice to convey invoice details.
Most buyers will have specific EDI requirements that indicate which documents must be exchanged, and when. For example, a buyer may request an 855 Purchase Order Acknowledgement within a specified time frame after sending an EDI 850 purchase order. The buyer may also require an EDI 856 Advance Ship Notice previous to the shipped order arriving at the delivery address.
What are the Benefits of EDI 850?
The EDI 850 contains the same information as a paper purchase order, but automating this exchange offers clear advantages for both buyers and sellers.
In general, EDI documents are securely encrypted in transit, allowing trading partners to send sensitive data such as pricing and contact information safely. Using an EDI 850 also helps to streamline order processing, so sellers can optimise their business operations, and buyers can receive their goods quickly. For example, when an EDI 850 document is received by the seller’s business system, automated processes can validate and verify the information, flagging any incorrect or missing data. This lets the seller quickly identify order issues and resolve those with the buyer.
Once the seller’s EDI software receives the X12 850, it translates the document into a format that can be fed automatically into their ERP system, removing the need for manual data entry. EDI workflows require response documents like the EDI 997, to validate that the EDI transaction was received while the seller works on fulfillment.
Ready to Automate Your EDI 850 Process?
TrueCommerce EDI software handles X12 850 purchase orders automatically, connecting buyers and sellers without manual data entry.
EDI Format Example
EDI 850 can be viewed in two formats – a human “readable” version and a “raw” data version. The example below shows the raw EDI data, which is then translated by your business system (ERP) to begin the fulfillment process.
Raw EDI 850 Data Example
- Click to See Example
- ISA*00* *00* *ZZ*AMAZON *12*9622309900 * * *U*00401* *0*T*>
GS*PO*AMAZON*9622309900*20191029*1056**X*004010
ST*850
BEG*00*NE*AMZ_12859*4783291*20190506
CUR*BT*USD
REF*CR*54313451
DTM*064*20190506
DTM*063*20190510
TD5**2*USPS*T*UPS GROUND
N1*ST*Your Company*92*54325
N1*SF*My Company*92*543524523
PO1*1*5*EA*49.95*PE*VN*1896-S1*BP*1896-S1
CTT*1*5
SE*12
GE*1
IEA*1*